Mortgage switch declined as not with existing lender 12 months

imalwayshappy

Registered User
Messages
80
Why do Banks make it so difficult to switch mortgage. I'm on a fixed rate due to expire in 1 month so I said to myself I will change provider for a lower rate and start the ball rolling so I will be in a position to move when my fixed rate is up. After sending in the mountain of paper work I get a response "declined". I say that's strange because on paper i'm very good. The logical person would suggest that maybe it was an issue with my CCR or ICB but no.

I am with my lender 11 months and not 12 months is the reason I was rejected. I say to them can you not just put in a pre condition that I can't drawdown until 12 months? They say no, come back when you are with you existing bank for 12 months and we will look at the application. Do I have any grounds for a complaint here? For me to wait until 12 months means that I revert on to a higher variable mortgage for at least 6 weeks while I am going through the mortgage process.

It's just mad, one would wish someone in the mortgage department would have an ounce of cop on.
 

PolkaDot

Frequent Poster
Messages
340
Well they may be of the view that you will do the same to them in 12 months (or less) and declined using that as the reason.
Yeh but they seem to have implied they will consider the application in a month’s time when 12 months with the lender. That is very frustrating and lacking a bit of cop on from the bank!

@imalwayshappy do you mind telling us which bank this is? Could be useful for others to know.
 

imalwayshappy

Registered User
Messages
80
Well they may be of the view that you will do the same to them in 12 months (or less) and declined using that as the reason.
I wouldn't imagine so, as that reason would not hold up in a complaint situation to the central bank. A bank can only refuse your application on the information provided to them and if it falls outside their credit policy and they told me its because I am not with my lender for 12 months. All Bank's take on risk when they lend, if an underwriter said to me that I have refused a mortgage application of someone because I believe they might move mortgage in 12 months time I would most likely show him the door... It's up there with I'm not going to work today because I am afraid of being killed in a car accident.
 

imalwayshappy

Registered User
Messages
80
Yeh but they seem to have implied they will consider the application in a month’s time when 12 months with the lender. That is very frustrating and lacking a bit of cop on from the bank!

@imalwayshappy do you mind telling us which bank this is? Could be useful for others to know.
I would rather not say on a public forum but send me a PM and i will tell you. :)
 

shweeney

Frequent Poster
Messages
285
there are people on this forum who have switched 2 or 3 times in quick succession to take advantage of cashback offers so this seems strange, though I suppose they were all approved based on the existing mortgage.
 

renter45

Frequent Poster
Messages
107
I had that issue with EBS. Spoke to guy over phone told him mortgage was up in 3 months and wanted to start process. Did the mountain of paperwork only for underwriters to say I wasn't with provider 12 months. I produced paperwork for 4 years with the previous previous lender but it didn;t make any difference. Went with UB in the end due to 2.3%, hassle free with them and will stick with them.
 
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