History of the case
Last week we received an enquiry from a self employed gentleman whom had previously applied for a mortgage directly to a lender and had had his mortgage application declined. He had also been to another broker who had 2-3 declines with various Mortgage lenders.
The client came to us a little concerned about the process as he had received a couple of Decision in principle (DIP) letters, but had been turned down at full application stage and he was worried about the implication to his credit score and he did not want us to get a DIP only to build his hopes up and then get his mortgage application declined further down the line.
What did we do?
The first thing was to understand why his mortgage application declined a number of times as once we had that, we could then do the research and discuss the case with our account managers and the underwriters.
Once we had done our research, we went back to the client and discussed his options and explained the options to him. There were 2 lenders offering rates of around 2.5% and then another lender with rates of around 4%.
We then put the case to the underwriter before doing any credit checks so as to avoid anymore inconvenience and further declined applications effecting his score. We explained ALL of the issues (default, employment issues etc) and he was satisfied that on the face of it, they would be open to an application. We then did the DIP and submitted the documents to be assessed.
The outcome (this is the important bit!)
Today we were given the green light on the customers application and subject to a letter from an accountant and a valuation we would have a Mortgage offer in hand.
This was actually a very complicated case, there was a lot to it. But by spending a bit of time with the client understanding the issues. We were able to open dialogue with the underwriter and explain everything to them and get the answers to their questions before doing any applications.
We did not do anything any other Mortgage broker can do if they try hard enough however we do regularly see cases where brokers have made multiple applications only to have multiple mortgage applications declined (without questioning why), only for us to get it through.
All it takes is a little bit of time to research but unfortunately not all brokers are prepared to invest the time doing the research.
But we now have another very happy customer this evening 🙂
Have you had your mortgage application declined? Dont panic and give Mortgage Success a call as we will get to the bottom of why your application declined, be it adverse credit whether you know about it or not, complex needs and/or self employment or how to get a mortgage if you are an ex-pat or have any other unusual mortgage need…