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  • FIRST POST
    • JohnM1000
    • By JohnM1000 13th Apr 17, 3:53 PM
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    JohnM1000
    Mortgage advice needed
    • #1
    • 13th Apr 17, 3:53 PM
    Mortgage advice needed 13th Apr 17 at 3:53 PM
    Hopefully somebody can give me some advice on this.

    I bought a house last month. Due to the house needing refurbishment it was a cash only sale. Having previously had an excellent credit history I was able to take out two loans to complete the purchase. The loans in total are £45k. The intention was to do some of the refurb and then apply for a mortgage to pay off the loans and compete the refurb. I took financial advice before taking out the loans specifically asking would this impact my ability to get a mortgage. The answer was that it shouldn't affect it as I'd be paying the loans off.

    Well the time has now come to apply for a mortgage and I've been turned down twice due to a poor credit report. I've taken out a credit report check and the two loans have hit my credit score and now the failed mortgage applications have hit my score even more.

    A new financial advisor suggested waiting 3 months to see if the score improves enough to get a mortgage. We're in a position now that we don't have any more funds to carry on with the refurb. My questions is is 3 months a realistic time frame to improve a credit score? I won't be taking any more credit out but at the same time I will still have the loans. Also, can anybody think of any solutions to my situation? Apart from selling the house!

    Many thanks in advance

    John
Page 1
    • kingstreet
    • By kingstreet 13th Apr 17, 3:57 PM
    • 31,595 Posts
    • 16,877 Thanks
    kingstreet
    • #2
    • 13th Apr 17, 3:57 PM
    • #2
    • 13th Apr 17, 3:57 PM
    Many lenders won't consider an application until you've owned the property for six months.

    Did the advisors you have spoken to mention that?
    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
    • By ACG 13th Apr 17, 4:10 PM
    • 15,058 Posts
    • 7,613 Thanks
    ACG
    • #3
    • 13th Apr 17, 4:10 PM
    • #3
    • 13th Apr 17, 4:10 PM
    Why not use a Mortgage lender who credit checks rather than credit scores?
    As kingstreet there is also the fact you have not owned the property that long and potentially the LTV/renovation works.

    But assuming the LTV is not too high then I would imagine there will be lenders who will do this but there is a lot that needs checking beforehand.
    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.
    • Thrugelmir
    • By Thrugelmir 13th Apr 17, 5:44 PM
    • 54,363 Posts
    • 47,178 Thanks
    Thrugelmir
    • #4
    • 13th Apr 17, 5:44 PM
    • #4
    • 13th Apr 17, 5:44 PM
    The intention was to do some of the refurb and then apply for a mortgage to pay off the loans and compete the refurb.
    Originally posted by JohnM1000
    Is the property habitable i.e. mortgageable. Cash sales require extensive work hence why they are sold as such.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • JohnM1000
    • By JohnM1000 18th Apr 17, 9:24 AM
    • 3 Posts
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    JohnM1000
    • #5
    • 18th Apr 17, 9:24 AM
    • #5
    • 18th Apr 17, 9:24 AM
    Thanks for the replies.

    Yes, I was advised that many lenders don't lend until the property has been owned for 6 months. I was also advised that there are lenders that will and this shouldn't be an issue. My financial advisor found a number of lenders but it's the credit check that is proving to be a stumbling block. We're looking at a mortgage with a LTV of around 50% but half of that is going towards the loan repayment and this debt consolidation is also counting against me. I'm going to speak to another financial advisor and see if they can recommend anything.

    Thanks
    • ACG
    • By ACG 18th Apr 17, 9:58 AM
    • 15,058 Posts
    • 7,613 Thanks
    ACG
    • #6
    • 18th Apr 17, 9:58 AM
    • #6
    • 18th Apr 17, 9:58 AM
    There is nothing you have said that makes me think this can not be done. 50% LTV with debt consolidation is not a problem at all. To me it sounds like the first broker just wants the nice easy cases (possibly a fee free 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.
    • JohnM1000
    • By JohnM1000 18th Apr 17, 1:31 PM
    • 3 Posts
    • 0 Thanks
    JohnM1000
    • #7
    • 18th Apr 17, 1:31 PM
    • #7
    • 18th Apr 17, 1:31 PM
    I've spoken to another adviser this morning who seems to think the less than 6 months ownership issue is the biggest problem. I guess I'll just have to wait the 6 months and put a hold on renovations for now.
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