Manchester Mortgages received an enquiry from clients who lived in Stockport who was refused a mortgage from the bank who they have held an account with for 20 years.
They were initially advised that they had been accepted and on that basis put a offer on a property that was accepted.
They then made an appointment with the banks adviser to submit the mortgage application and it was at this point that the lender advised that the mortgage application was not acceptable.
The adviser did not really give a full explanation as to why the mortgage had been rejected other than it did not meet the lenders/banks policy.
The clients were at a loss of what to do and after research on the internet contacted Manchester Mortgages.
The adviser at Manchester Mortgages established that both the applicants were in stable jobs and had been working throughout the Coronavirus pandemic with no loss of earnings or in receipt of furlough pay.
The clients were first time buyers and had a 5% deposit available for the purchase.
Both clients had an excellent credit rating but did have high existing credit commitments each month which the adviser was able to advise my have effected the application with their bank.
A lot of lenders have a debt to income ratio ( what this means is that if your current outstanding debt is over a certain percentage of your income then this will have a adverse effect on the lenders decision even if all credit commitments are being paid).
The adviser quickly identified a lender who would be prepared to lend with a 5% deposit and who did not have a debt to income ratio.
An agreement in principle was obtained by the lender and the full application was submitted.
All the relevant paperwork was obtained from the clients ie Passports, Last three months payslips and last three months bank statements and submitted to the lender on the clients behalf.
The property was Valued and the mortgage lender issued the mortgage offer within 8 days of the initial enquiry enabling the clients to continue with their first house purchase.
Although it my sound like a good idea to choose the bank you have been with for a number of years this was not the case as our clients found out
By speaking with a independent mortgage broker they can review all the mortgage lenders and match you with the lender appropriate to your circumstances.
Call Manchester Mortgages on 0161 706 0242 and speak with one of our industry experienced advisers to discuss your personal situation.