Have you been rejected for a mortgage at the last minute?
May 24th, 2012

We are hearing an increasing number of cases where potential buyers are being turned down for a mortgage literally at the final stages of the purchase transaction.

We have heard various excuses  but it ususally involves a person not realising they were late with a payment on their credit card and we even had a case where a lady had missed a card payment by one day due to an oversight involving a bank holiday.  She was refused her mortgage on that basis.

This may be understandable if matters came to light when the lenders were first approached about a loan.  Potential buyers are initially told they are acceptable and to return once they have agreed the purchase of a property.  The mortgage process may then proceed right up to a time when the purchasers may be thinking of moving in to their new home when the lender suddenly drops the bombshell that the application has been rejected by their underwriters.

The obvious solution is to carry out all credit checks, stress checks and so on when the client makes the initial enquiry or at worst when the application is received, with a 48 hour decision.  Come on banks, please start treating your customers as people again.