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Mortgage Declined - TMW


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Hi all,

I want to gauge if anyone has struggled to get a mortgage recently?

The mortgage works pulled out of the mortgage application and provided the following statement;

The application has been declined by our head office. In this instance we are unable to provide further detail regarding the reason for the decline but will be unable to proceed with the application.

The mortgage amount was £66,000 being purchased by my Ltd company. 

This is very annoying on my part, as I am financially & time committed and lost out on a very nice 1 bed maisonette.

Regards,

Craig.

 

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I'll be honest, as a broker that message doesent look good.

If it were a credit decline they would give the usual 'we check with reference agencies...' speil and tell you to get a credit report. If it were a criteria or valuation issue they would be somewhat clear on the reason as it might be something that could be solved. This message suggests that a team seperate to the underwiting process has pulled the case. It could be a spot check, and it could be an inconsistency somewhere along the line; in your application information, company paperwork, comparisson to other applications or ID docs that they are not happy with. Its definitely not going to be overturned though. You need to try with a different lender.

Your broker might be able to get them to shed some light on this if they have a helpful BDM, but it will be a very vaugue and guarded answer as generally they are not permitted to disclose any of this to brokers or clients. Dont be surprised if they get stonewalled by TMW.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Hi Stuart, 

I agree, It's not a good situation. This was the 3rd mortgage application/purchase last year with TMW. The other 2 applications went through just fine with no issues,  the same information was sent. Maybe I was scaling up my BTL portfolio to quickly, purchasing 3 properties last year. I have to wait and find out what info my broker can obtain.

Regards,

Craig. 

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That could be it. TMW are known for wanting to slow down the pace applicants acquire property. They are usually clear on it though, and might recommend a bigger deposit instead of a straight decline.

If your broker asks TMW this directly id expect them to give you an honest answer on this. If it is the case, then dont worry too much, its them not you! They want you to spread the risk with some other lenders, reapply with them in 6 months and it might be all fine.

If its not the case, then the earlier comment stands, it might be a compliace, eIDV, due diligence issue.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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  • 1 month later...

Hello Everyone.

I thought  I would update you all on my situation. 

I decided to use another mortgage advisor. I got in touch with Matt Cottrell @ Phoenix Mortgages who has set me up a mortgage offer with Precise Mortgages. No issues or dramas this time round. However I am not out the woods yet, I still have the solicitor searches and the other unexpected issues which may arise during the transaction. 

The first hurdle (major hurdle) is over and done with now.

I am still unable to get a reason why TMW pulled the application. Either way, I managed to get a better deal with Precise Mortgages. 

 

Regards,

Craig.

 

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I also had a similar experience with TMW last year after they pulled out at the last minute on a deal which meant we had to get a last minute bridge loan, costing me around £10k more.

Their reason for the rejection: "the property was marketed as below market value".

I have just re-mortgaged the property and they were the recommended lender from the broker. I gave them a second chance and they were fine to be fair.

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Mortgage broking isnt an exact science. Had an issue recently with Barclays, a whole string of unusal credit related declines, got the credit reports which were sparse but clean, and simply went to NatWest. Approved straight away.

Glad you got the result you wanted.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Bear in mind if you borrow from TMW they will not consent to a second charge  - no matter what.

Neither will Paragon or Santander

Many of our clients get caught out by this when they want a cheeky second charge to raise a deposit or cover refurb costs later down the line.

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  • 3 weeks later...
On 3/6/2021 at 5:19 PM, stevewalker said:

Bear in mind if you borrow from TMW they will not consent to a second charge  - no matter what.

Neither will Paragon or Santander

Many of our clients get caught out by this when they want a cheeky second charge to raise a deposit or cover refurb costs later down the line.

Just on the TMW comment, we are with them for one of our properties and our broker confirmed they do offer Additional Lending/Further Advances on BTL.....

 

 

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On 3/22/2021 at 7:50 PM, nick smith said:

Just on the TMW comment, we are with them for one of our properties and our broker confirmed they do offer Additional Lending/Further Advances on BTL.....

 

 

Nick - they may allow a further advance with TMW (assuming it meets policy) - but not with any other lender.

I am in the process of remortgaging someone from TMW because they wont grant a further advance and wont let anyone else register a second charge either.

You may get an exception if the total proposed borrowing (the first and second charge) is below 50% LTV.

Otherwise I fear not

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2 hours ago, stevewalker said:

Nick - they may allow a further advance with TMW (assuming it meets policy) - but not with any other lender.

I am in the process of remortgaging someone from TMW because they wont grant a further advance and wont let anyone else register a second charge either.

You may get an exception if the total proposed borrowing (the first and second charge) is below 50% LTV.

Otherwise I fear not

Hi Steve,

Well if they start playing those games and going against what they advertise in their terms by refusing further advances without any reasonable justification then they’ll just get more people like your client ditching them and shifting elsewhere, I know I would. Guess I’ll find out in a few months!
 

 

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Its frustrating when you aren't getting the decisions you want, but Banks and lenders are businesses and they don't play games. They have very clever people in house who closely monitor the performance of their lending book, and the ever fluid external financial climate. This information is used to adjust their appetite accordingly. If a lender appears to be tightening up, this will be a result of them getting bitten somewhere or concerns with external changes in the sector and that is their reasonable justification.

Clients may of course vote with their feet and refinance elsewhere if the current lender will not support further requests, but maybe that is what the lender hopes they will do by changing the policy...

Property investor ¦ Commercial Finance Broker ¦ Ex banker with 20 years lending experience. 

Commercial Lending Manager at Real Finance Ltd - www.realfinance.co.uk
Happy to discuss any queries regarding property finance for  Company/Complex BTL, HMO, MUB, Holiday Let, Commercial, Bridging & Development.  

kirsty@realfinance.co.uk
07494949852

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