Lenders decline cases, it happens. But there are a number of cases where just a little more work could convince an underwriter or BDM to approve your application.
Take a look at these three case studies, all from a Create broker, to learn more.
All five of the cases appealed by this broker went on to complete with the lender. Imagine what 5 additional cases could pay you as we move into 2019.
We can actually go one further as these are real cases, the Banked value of these three cases was no less than £3337
CASE Study 1
This application was submitted for a client and her son who was too going on the mortgage.
She was purchasing the property from her sister who was also gifting her £100,000 equity in the property.
It went through reasonably well (Other than an issue with an employer’s reference not being received) and went to offer.
It was only the majority of the way through the solicitor’s process that they noticed it was not showing as a concessionary purchase, meaning we had to go back to the lender to make them aware of this.
Due to the lenders criteria on concessionary purchases, they re-ran the affordability calculator on this criteria and it declined on affordability due to it being riskier than a standard gifted deposit.
As we was so far through the process, we did all that could be done to retrieve the case with Halifax, asking them for what would be required documentation-wise to appeal this.
Halifax sent us a list of all information they need for the appeal (tailored to the requirements of this specific client) which were all easily satisfied.
One of the reasons it failed was that the employer’s reference was not on letter headed paper, once a reference was received on letter headed paper from her employer, the case went to offer on the basis of the concessionary purchase.
CASE Study 2
We had two cases that declined on the same thing which we appealed.
We submitted a decision in principle for these clients which passed, however once submitting the full mortgage application and documents been assessed it was declined on affordability.
We spoke through the commitments and income on both cases with the lender to ensure both the lender and us had the correct figures, which we did.
We completed an affordability calculator for both clients to see what the affordability shows at on this, which on both cases came back higher than what was provided from the support desk at Halifax.
Because this was showing higher, it prompted the broker to write an appeal on be basis that the affordability calculator is showing more than what was given over the phone.
Within the appeal the affordability calculator is attached to show the figures keyed in and the max amount showing.
As this is a calculator they provide and that it was showing higher, the lender honoured the max amount showing on the affordability calculator allowing the cases to go to offer.
CASE Study 3
These are appeals on valuations.
If a property comes back down valued, you can usually appeal the valuation if you have 2/3 properties in the same area to the down valued property with similar qualities (number of bedrooms, space etc.) and these properties have been sold / are being sold for a similar valuation that was needed within a few years period.