Loan application affected credit score help me urgently !!!!

iolanthe07

The general advice is that you should never take out an unsecured loan towards your deposit, and lenders will often refuse the mortgage if they find you have done this. You can try another lender, but the reality is that you may have to wait a bit and save some more. One consolation is that most experts predict that house prices are likely to fall for some time yet, so it may be worth waiting.

rx8al

_Andy_ wrote: »

Why would you want to buy in a falling market with minimal deposit and risk negative equity?




Demonstrably you haven't saved enough, otherwise you wouldn't be thinking of getting a loan for a deposit.



You have no valid complaint - no lender is obliged to lend you anything whatsoever.

It doesn't matter if he goes into negative equity unless he needs to sell or refinance the property in the near future. Everyone knows prices will turn at some point - its a perfect time to buy, as long as he finds the right property and is comfortable with the monthly payments on the loan and the mortgage debt.

_Andy_

rx8al wrote: »

It doesn't matter if he goes into negative equity unless he needs to sell or refinance the property in the near future. Everyone knows prices will turn at some point - its a perfect time to buy, as long as he finds the right property and is comfortable with the monthly payments on the loan and the mortgage debt.

It's irrelevant as he doesn't have a suitable source of deposit. In any case I doubt we'll hear from the OP again.

marshallka

spammylou wrote: »

Why should she not want to buy in a falling market? You'd be a fool not to. What goes down must go up!!

Its how soon its goes up that matters. If she buys now and gets a loan to do it and then house prices fall again, the lender gets into difficulties at the start and there is then a loan to pay and also the negative equity in a house too. Its hard enough us that have been on the ladder for years.

Zapp_from_Planet_Zogg

bathgatebuyer wrote: »

Wow - I knew it recorded applications, but not rejections.

Rejections are not recorded - only applications for credit are recorded. The 'credit rating' will take a battering when you apply for a loan. If you apply for multiple loans in a short space of time then lenders get nervous as it looks like desperation.

'Credit ratings' improve when loan agreements are shown as settled. The length / value of the loan has little difference. This is regularly using and clearing the balance of a credit card is good to build a credit score.