Can't get a mortgage

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  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    Obtain all three versions of credit file (no, they are not all the same) and speak to experienced whole market independent broker.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,445 Forumite
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    debbiedebt wrote: »
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?
    �

    A perfect analysis.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    amnblog wrote: »
    A perfect analysis.
    You lucky, amn?

    I tend towards Gary Player. The harder I work, the luckier I get! ;)
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 23,727 Forumite
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    kingstreet wrote: »
    You lucky, amn?

    I tend towards Gary Player. The harder I work, the luckier I get! ;)
    I have the complete opposite stance. I consider the less I work the luckier I am...more time for the golf course, gym, pub or as we approach winter staying in and watching Jezza :P
    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.
  • Weisenwolf
    Weisenwolf Posts: 11 Forumite
    edited 13 October 2016 at 11:26AM
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    debbiedebt wrote: »
    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.

    That £500 unauthorised loan (which is what it effectively is) will be crucifying your credit score; whether she's been paying it or not it shows she defaulted and can't be trusted (Sorry nothing personal) and only has £10/month spare.

    If it were me I would pay that overdraft off, buy something I can afford with the £150,000 (even if it's elsewhere) and start accumaulating some savings with the rent/mortgage I wont be paying while my credit rating repairs over time. I would be making sure I manage the rest of my finances to perfection in the meantime. I would join the MSE credit club thingy and wait until my credit scores improve before entering the mortgage market. The perfect place may have to wait; anyone lending £60K to someone who couldn't clear a £500 overdraft is going to charge a mint.
  • muhandis
    muhandis Posts: 994 Forumite
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    In your daughter's place, what I would do is -

    1. Pay off the overdraft immediately, if it isn't already.

    2. Get £2 copies of credit reports from the three main rating agencies - Experian, Equifax and Callcredit.

    3. Go to a mortgage broker (you should be able to find a decent whole of market independent broker who will not charge for the initial consultation) and find out if there is a realistic possibility of getting a mortgage. Going by what the brokers on this thread have commented, it looks like a distinct possibility, but only an advisor who has had a look at all the aspects will be able to tell.

    3. Thinking logically, with effectively a 30% LTV loan, there must be lenders in the market willing to lend against a charge on a house even if her credit rating is poor.

    Worst case scenario is that your daughter is told that she can't get a mortgage at the moment, no harm done but at least she knows what her budget is going forward.

    Good luck.
    debbiedebt wrote: »
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Malmo wrote: »

    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.

    Getting technical here. An AP is a default. Once contractual terms are broken an account will be viewed as having "defaulted". Forget the CRA default disclosure.
  • Smodlet
    Smodlet Posts: 6,976 Forumite
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    Cecil, I am pretty sure you are advertising so have reported your post as spam. There are plenty of mortgage brokers in this country; the OP's daughter has no reason to deal with someone in Canada, where the laws are different to those of England and Wales.
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