Can't get a mortgage

debbiedebt
debbiedebt Posts: 224 Forumite
in Mortgages & endowments
Please can someone help? Our daughter has inherited £150k which she hoped to put towards a house. She has found the perfect place and needs to take out a mortgage of £60k - there's no cheap housing in our area.

The problems are that her partner is self employed with only one years trading she is a stay at home Mum and they get working/child tax credits. The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!

Does anyone know a broker who could help? Or offer any advice?

Sorry for the long post but we're getting desperate.

Thanks in advance.
Debt Free Date [STRIKE]December[/STRIKE] June 2019

GC January £0/£180
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Comments

  • ACG
    ACG Posts: 23,721 Forumite
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    Most brokers should be able to get this placed but the rates may not be high street rates, it depends on when the default was registered.

    Find a local broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • debbiedebt
    debbiedebt Posts: 224 Forumite
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?

    Thank you for answering so quickly ��
    Debt Free Date [STRIKE]December[/STRIKE] June 2019

    GC January £0/£180
  • ACG
    ACG Posts: 23,721 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Forget estate agent brokers. They want easy vanilla cases. A whole of market/independent broker not associated with an estate agents will probably be a better option.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Voyager2002
    Voyager2002 Posts: 15,279 Forumite
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    debbiedebt wrote: »
    The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

    She needs to find out what it is recorded as a default and if possible get the lender to correct the record.
  • neo2020
    neo2020 Posts: 50 Forumite
    debbiedebt wrote: »
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?

    Thank you for answering so quickly ��

    There are companies that you can find online that offer mortgages for self-employed people, including on one year's accounts.

    They will usually charge a fee but they specialise in this kind of mortgage so will definitely be able to help or say with certainty if they can't.
  • debbiedebt
    debbiedebt Posts: 224 Forumite
    Any broker recommendations? Thanks xx
    Debt Free Date [STRIKE]December[/STRIKE] June 2019

    GC January £0/£180
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    debbiedebt wrote: »
    The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

    Settle and clear the debt asap. An inheritance doesn't change historic credit profiles. Only time does.
    They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!

    Interest rates are abnormally low and won't remain so. Affordability is assessed at 7% rates. Also house ownership comes with the burden of maintenance , repair and renewal. When renting that's all in.

    Speak to a broker as obviously they are going to need guidance through the process and look to purchase a property at a suitable price level.
  • muhandis
    muhandis Posts: 994 Forumite
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    This rule might be restricted to only mortgage advisors, but I don't think posters are allowed to give any broker recommendations on here.
    debbiedebt wrote: »
    Any broker recommendations? Thanks xx
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    What am I missing? If she has £160,000 cash, why is she paying off a £500 overdraft at ten pounds a month??? Why hasnt she just cleared it ?
  • Malmo
    Malmo Posts: 710 Forumite
    First Anniversary Combo Breaker
    AnotherJoe wrote: »
    What am I missing? If she has £160,000 cash, why is she paying off a £500 overdraft at ten pounds a month??? Why hasnt she just cleared it ?

    ^This.

    Also, are you sure that a default is recorded and not an Arrangement to Pay (AP). Neither are good, but there is a slight distinction.

    As already advised, estate agents are not the best place to help with sourcing the right mortgage. Have a look on unbiased.co.uk (after entering your postcode, untick the option Only show sponsored results at the bottom of the search filters on the left, so that you see all results).
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