It happens that you apply for a mortgage, and the lender says no.  Credit search good, got two incomes, sensible but not excessive outgoings and still the lender says no.  Why?

Hi Lee, so me my boyfriend and applied for a mortgage, they said no.  Our credit is fine, they told us that, our income is decent, got two of them but they said we did not meet their affordability assessment.  So, if we go to another lender is the same thing going to happen?  To be clear, we asked why they just told us the computer said no.

Maybe is the only answer I can give you.  One of the downsides of making an online application direct to a lender is that they give you next to no feedback when they say no, as is the case here.  At least you do know it was due to failing their affordability assessment so that helps a little.

What could it be?

I have limited information here, but if the issue relates to their affordability assessment, then it's likely because you're asking too much.  Money that is.  But they are usually quite good at telling you how much they could lend.  Possible options:

1. You can't meet affordability based on what you want.
2. You have too much in the way of outgoings.
3. Your credit score is too low.

Whilst you may have been told your credit search is ok by the lender, being ok and being high enough for them are not the same.  It's also possible that they could have lent you something, but most high street lenders are machines in terms of processing speed and just won't spend the time explaining potential solutions.

If it as simple as the computer said no based on their affordability assessment, then a different lender could say yes.  While there are rules, refer to MCOB 11 if you're bored, some of what lenders must do is called guidance, so they have to do something, but the regulator leaves them to determine how they do it.  Therefore, each lender has their approach to affordability that is not necessarily the same.  But again, depends on what your specific issue is.  IT may be something that all lenders would say no.

Sorry, can't be more helpful than that in terms of the why.

Options!

Before you look for another lender, I strongly suggest you find a local mortgage advisor.  These are experienced people who know how to get a deal done.  And if the lender has an issue, they will speak to the advisor, explain why and what options there may be.  A good advisor will also be experienced enough to know the likely reason or reasons a lender may say no before they get a chance too.

There is a danger in applying to lender after lender directly as the answer may be a simple one, but without the right feedback from them, which you may not get, you will never fix the issue or make changes to get it through.

Based on the limited information you have given me that is as much as I can offer, do reply to email again if you have anything else and I will update.