As a finance broker each of our team at Up Loans are under compliance restrictions where they cannot submit an application to a bank that they do not feel will service (show borrowing capacity) and be approved.
As such if you come to a team member at Up Loans with a contract that has been signed and we do not have a solid option for you we cannot submit an application to get a decline letter to satisfy your finance clause. We can also not write a decline letter for you as we are not a lender.
What we can do is:
– Draft up an email that states that we cannot show borrowing capacity and therefore cannot submit an application on your behalf which we recommend you forward on to your solicitor. The wording will be similar to this provided it is the truth:
“Please let this email confirm that upon an assessment by our team of the applicant’s financial position there was not sufficient capacity to make an application to a lender to purchase the aforementioned property.”
– We can recommend you speak to your solicitor / conveyancer and get their advice on options going forward on how you can exit the contract safely and retain your deposit.
– We can have a conversation with you about how you can approach a bank directly if you do need to get formal written decline advice, but you should be aware that this can result in an equity on your credit report.
We alway recommend borrowing capacity is run before making an offer and where possible that a pre-approval is sought.