C & G

simonlewis_2

We have found a Repo which we can get for 185k. We have an interest only mortgage on our current house of 185K. We are asking to port the mortgage over and only need 165k.

My credit score on credit expert is 999. But they think that as I have 61k unsecured credit available, of which no more than 10 is being used could be the problem. They think I have too much credit available and could be why it's being denied.

I have writtent to C & G and told them that i can get rid of some cards, in fact i've already sent back 20k's worth. Has anyone heard of this and do you think they will relent once they see the reduction.

Also, my broker says that C & G are the only ones doing 90 LTV but i just checked this site and it says First Direct do.

Affordiabilty of this mortgage is not a problem as I can cover the mortgage with a ratio of about 3.1 times income.

_Andy_

Salary multiples aren't everything - if you have massive outgoings on credit then it can be irresponsible to lend.
If your outgoings are high I doubt FD will lend to you.

Toughluck

Andy, for FD, do you have to have a HSBC bank account that your salary is paid into?

OP, is there a partial repayment charge to port and lower the mortgage amount? I would imagine the only way to prove to C&G of the remaining debt that you have is to provide ALL statements for card holders and proof the accounts are closed. They potentially then do an up to date search to confirm this.

Based on the fact I know 3 underwriters very well at C&G, they have tightened up their criteria no end in the past 3 days. Max 80% on further advances for example. So once the U/W thinks it is irresponsible to lend you have a lot of work to do to convince them. How did you manage to pay back £20K onto the cards so quick? This may be something they want to know, ie how you manage your fianances and run up such a lot on credit cards, then pay it back swifty. Not good in my opinion when going for a mortgage.

_Andy_

No idea sorry.

feesh

Toughluck wrote: »

How did you manage to pay back £20K onto the cards so quick? This may be something they want to know, ie how you manage your fianances and run up such a lot on credit cards, then pay it back swifty.

I got the impression that the OP actually didn't have any debt on the cards - he used the term "available credit" which means that they were just counting up the sum of all his credit limits on his credit cards.

It's one of the things that's held on your credit file - you might have 5 x credit cards each with a £5k limit, but never use them. But the lender has to take into account that someday in the future you could go wild and rack up the full amount on each of them and therefore end up £25k in debt almost overnight!

payless

I've never had a case declined ( with any lender) due to excessive "unused" credit lines... nor had a case where they have requested account closing

yes C&G have tightened up a lot in last few days though .

They can see what you have outstanding and what you have available

Re First Direct ... 90%

there's still 90% lending available from some lenders -( not just CG / FD) although if tied to C&G my guess is that would be one of the cheaper routes anyway

some brokers won't mention FD ( others will- so worth checking if adviser is "true whole on market" )