When can i re-apply for a mortgage?

sarjl77

Me & my husband have just applied for a mortgage with Natwest, unfortunately it has been refused due to a problem on his credit report. We got a copy of the report & it was a direct debit that was not paid due to changing bank accounts & moving house. We have contacted this company & have settled the account. They said they will update his credit report on 1st November. How long should we leave it before applying for a mortgage again?

Conrad

Need more detail;

1) How many months went unpaid?

2) What ltv are you borrowing (for example 90%)?

3) Was a default or ccj registered?

4) What was the start and end date of the missed payments period?


Depending on your answers, some lenders may consider an application right now.

herbiesjp

How does this problem show up on the credit report?
A default?
Missed payments?
CCJ?

sarjl77

Thanks, I need to double check the credit report to find out the answers to your questions.
We are applying for a 95% mortgage.
Will get back on about hows it shows on the credit report.

herbiesjp

At 95% you need to be ultra squeaky clean

Who is your current lender? What can they offer you - you should ask them first

sarjl77

Natwest, my husband has held both his current & buisness account with them for some years. He is self emplyed but has over 3 years audited accounts. They were offering us the best interest rate as we also went to a mortgage advisor who couldnt beat the rate of 6.4% 3 years fixed rate.
We have been offered the chance to rent the property we put an offer on for 6 months with the view to buying it then. Do you think our credit report will be better then?

Conrad

Hard to say Sarj.

What you must do is ensure you are on the voters role and switch all your documents to the new address without delay. When it comes to a search in a few months time, there is nothing more likely to reduce your score than an absence of 'footprints' at a new address.

My gut feel is 95% will be unlikely in 6 months time (more like 4 months though if your rental contract ends in 6 months).

10% deposit will make things easier.

Lenders are extremely risk averse, a commerical landscape that will not alter for some years yet.

sarjl77

The credit report states that it as a default from January to june of this year. We now have the letter from the company saying we have paid off the debt in full. Unbeleiveable the company that the debt was with have just rang my husband & offered him a £10K loan! He said but ive defaulted a payment with you & they said yes but youve settled it & you have a very good credit rating!!
We are 1st time buyers is there not a chance that the government will have to still offer 95% mortgages so people can have any chance of getting on the ladder?

_Andy_

sarjl77 wrote: »

We are 1st time buyers is there not a chance that the government will have to still offer 95% mortgages so people can have any chance of getting on the ladder?

As stated above, 95% mortgage are available, however your credit history needs to be spotless (i.e. no defaults, etc.)

sarjl77

Well hopefully, now we have the letter from the company that was the only bad mark on the credit history stating the account is settled, hopefully in a few months we will b able to re-apply without problem.

sarjl77

Its was marked as a default for non payments from Jan to June of this year. This account is now fully settled & we have a letter from the company to show this. This was the only bad mark on my husbands credit report & mine was clear already. Will a refused mortgage application now make a difference?