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Wurzel Of Highbridge

Refused A Mortgage Under The 'new Rules'

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Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

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Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

I'm glad. Hopefully they've saved you from yourself, just days after MMR come into effect / FLS no longer in play mortgage lending. Got to be worth waiting a bit longer to see the effects.

£200,000 houses which are "relatively good value against London prices". Hmm yeah. Keep telling yourself that.

Buying is dead money.

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That is surprising but I'll presume lender specific until proven otherwise.

I bet Nationwide is still pumping out loans like Northern Rock at its prime.

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How long have you been in your current job?

3 Months, just out of probationary period. I have only been without work for 4 weeks since leaving uni 10 years ago. I have our joint current account with the same bank for that long too.

I'm glad. Hopefully they've saved you from yourself, just days after MMR come into effect / FLS no longer in play mortgage lending. Got to be worth waiting a bit longer to see the effects.

£200,000 houses which are "relatively good value against London prices". Hmm yeah. Keep telling yourself that.

Buying is dead money.

You're right, we should wait a bit longer and we will.

It's all a little worrying when we are planning to start a family after putting it for almost 10 years. The wife will be at home for 12 months.

According to the bank we can't afford it. I ask myself why do we continue to work?

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Refused 100k borrowing on a 35k salary? Makes you wonder how all those 300k 2 beds are going to fare doesn't it….

Average house price 250k… household income therefore needs to be more than 87k given 35k isn't enough to borrow 100k.

For two earners with an average salary of 26k that gives a total of 52k household income, they only need to both increase their incomes by 67%…. or prices need to drop by 60% for two average earners to live in an average house with no deposit. Save 15-20k deposit and prices need only halve. Any recent buyers looking pale out there?

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Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

Wow, I'm surprised about that. In fact I can barely believe. If I was looking to buy, I would be in a similar position of loan to deposit.

You are right. If they won't lend to you with that kind of deposit they won't be lending to anyone!

Can I ask what bank you tried to get the loan from?

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3 Months, just out of probationary period. I have only been without work for 4 weeks since leaving uni 10 years ago. I have our joint current account with the same bank for that long too.

I'm guessing this is the only possible reason for the refusal. Don't banks understand that people have to change jobs and length of service isn't always a great indicator of future income! I've been in my job for 10 years but that doesn't mean that I couldn't lose it next week!

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Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

If they wouldn't lend less than 3 times your single salary, with that deposit, and this is the start of generally tight lending, then surely house prices are toast?

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could have been a 95%....and they didnt want to have the security provided by an unsaleable miniature house...

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You may genuinely be a dodgy prospect due to (e.g. new job as previous poster suggested), but I've been denied credit more than once for normal broadly marketed credit products when I have stable employment (>5 years in same job) with a monthly salary in excess of the credit as well. I've clearly been flagged as using "special offers," as "special offers," instead of "potential gateway to debt servitude." If you question it they will find the mistake very quickly and probably claim some unusual element of your request (i.e. size of deposit) flumoxed their automated systems.

It's not a conspiracy, just the by-product of very tough target setting by some absolute ******* upper management type combined with ruthless efficiency by some middle management type. Ultimately, although nobody will ever admit this you are abusing taster products designed to lure unsuspecting financial illiterate types into a cycle of ever expanding debt servitude that results ultimately in bankruptcy that leaves the bank well up on the deal. Frankly, you should push the point as they are probably in breach of consumer financial product marketing laws if they use debt profiling for profitability and not repayability purposes (never got that far myself; they cave instantly).

Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

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they are probably in breach of consumer financial product marketing laws if they use debt profiling for profitability and not repayability purposes

A depressing thought

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HSBC are renowned for being notoriously strict when it comes to lending and so they should be.

You've saved us the paperwork for a remortgage with them as come June my wife will be starting her new job and three months probation with it - about the same LTV too.

Don't put off having children any longer if you want them for the sake of not owning a home yet... you will ;)

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Perhaps they thought there was a danger you'd actually pay back the money?

This - they don't want you to default, but they really want you to keep on paying for the next 25-30 years so that they have a steady income stream. If you've managed to save 100K on your current incomes, I'd say bravo - they'd probably say 'no profit margin here'...

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Can I ask what bank you tried to get the loan from?

First direct - life time tracker product 1.79% above Carney/Merv/BOE/Bernankes rate.

could have been a 95%....and they didnt want to have the security provided by an unsaleable miniature house...

unsaleable miniature house - Very amusing :lol:

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How do the mortgage repayments compare to your rent?

£384pcm vs £775 renting.

The mortgage was over a term of 30 years, which I use as a contingency measure.

Consider that the minimum minimum repayment amount, as I can overpay from 'other' DJ work that the bank don't know about.

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If you've managed to save 100K on your current incomes, I'd say bravo - they'd probably say 'no profit margin here'...

to be honest, the money I earn in the day job is ok, but it's the money I earn from working outside of the day job that really counts.

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First direct - life time tracker product 1.79% above Carney/Merv/BOE/Bernankes rate.

unsaleable miniature house - Very amusing :lol:

:lol:

Only unicorns and mermaids are eligible for those deals. Try a proper lender :rolleyes:

Crash off, normal service resumes.

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You are exactly the sort of people that HtB was supposed to help (well OK you have a massive deposit as well) where the rent is more than the mortgage. You should be a safe bet and having just gone through the prohibition period I would say you are a better bet than many others. Add to that the 3x salary with 50% deposit, I would (if you really want to buy) check other providers.

If I was paying help-to-buy rates of 5%+ my rent would be cheaper with a £100k deposit.

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Well here's my anecdote:

Deposit £100k

Looking to borrow £100k @ 2.29% repayment.

Me £35k, her £17.5k

Mortgage refused on the grounds that the wife is still in her probationary period and it would be unaffordable on my salary.

Bit peed off, but if they won't lend to me they aren't going to be lending to anyone else either.

That does surprise me. I'm sure HSBC offer pretty much the same deal. I got a mortgage (also a lifetime tracker) with them 3 years ago, and I'm a part-time, self-employed single dad!

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HSBC are renowned for being notoriously strict when it comes to lending and so they should be.

You've saved us the paperwork for a remortgage with them as come June my wife will be starting her new job and three months probation with it - about the same LTV too.

Don't put off having children any longer if you want them for the sake of not owning a home yet... you will ;)

In fact I have never heard of anyone being approved for an HSBC mortgage, I am not sure they exist in reality.

The reality of getting a mortgage is that some banks say no for no apparent reason, but others will lap you up, it has always been thus. It depends who has some target debt left to extend this month.

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