We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Rejected for a Mortgage Question
Comments
-
I hope your credit history is more then just a mobile phone contract Brit.
My studant overdraft, home telephone line, internet, gym membership and PAYPAL account should all help. I was told at Uni and then again while taking out my mobile that I had a good credit rating already.
6 months ago they said due to the credit crunch to get the best deal on a mortgage you need a good credit score and deposit.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0 -
My studant overdraft, home telephone line, internet, gym membership and PAYPAL account should all help. I was told at Uni and then again while taking out my mobile that I had a good credit rating already.
6 months ago they said due to the credit crunch to get the best deal on a mortgage you need a good credit score and deposit.
To be honest Brit, you may have struggled to get a mortgage before the credit crunch even started.
With the exception of your student overdraft (what limit is this?, how often do you use it?) you have not had any actual hard credit, so how can you demostrate and prove to a potential lender that you can and/or will manage a mortgage?
I strongly suggest, at the very least, you apply for a credit card and start using it for your monthly spend (pay if off in full every month and your avoid paying interest)
This will improve your credit rating, and your chances of a mortgage.0 -
On CreditExpert which is run by Experian you can see your credit rating to a very good level of accuracy.
Although I have a credit rating of 999 which is a little strange. I have no adverse credit and an impeccable history but 999!?!
https://www.creditexpert.co.uk/
0 -
I was rejected by the Halifax today witha 15% deposit on a property of £143k, the FA said it was because I only have as mall amount of credit history, it's clean as a whistle but a bit sparse!
He said that Halifax have approved with a 20% deposit which I can't raise before the agreed dealdline. He said that he can arrange a loan for the remainder, but I'm not keen on that tbh.
If I just go to other lenders and rack up 4 or 5 applications will I make things worse for myself?
Ta.
Go back to the seller/developer and offer the lower amount necessary to make your deposit 20% of the value.0 -
He said that he can arrange a loan for the remainder,
So basically their system says - You ar'nt good enough for them to lend you money (mortgage) so, in order to make you good enough, they will lend you money so that they can lend you more money
!!!!!! is that all about???
This explains why all banks have had to be bailed out recently, its because they are all thick as shlt!Hi, we’ve had to remove your signature. The one where you showed us Dithering Dad is a complete liar. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE Forum Team0 -
scousethife wrote: »So basically their system says - You ar'nt good enough for them to lend you money (mortgage) so, in order to make you good enough, they will lend you money so that they can lend you more money
I'm not sure about the legal implcations about retrieving debt from a loan as opposed to a mortgage. It may be easier.
It may be that this is their criteria and as stupid as it sounds, its a way they can circumnavigate the rules.
One thing I would bet is that the loan will be at a much higher interest rate than the mortgage:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I was rejected by the Halifax today witha 15% deposit on a property of £143k
In my experience, Halifax has always been one of the strictest in terms of mortgage lending.
Possibly one of the other competitors will not be so strict
Good Luck:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I was rejected by the Halifax today witha 15% deposit on a property of £143k, the FA said it was because I only have as mall amount of credit history, it's clean as a whistle but a bit sparse!
This was very common before the credit crunch, but even more so since. Basically unless the lender can see that you've paid your previous credit well, they'll assume that you won't.
Tough on those with limited/no credit history, but has always been the way. At one time opening a deposit account with a lender would help but not so now. As has been suggested, arrange some 'Buy now pay later' or credit card and pay off straight away to help establish the record.He said that Halifax have approved with a 20% deposit which I can't raise before the agreed dealdline. He said that he can arrange a loan for the remainder, but I'm not keen on that tbh.
Unless the lender is aware (and you have written confirmation of this) it is fraudulent to do this and you should run a mile from any adviser who suggests it. Besides, it would probably be discovered by your solicitor, disclosed to the lender and then your offer would be withdrawn before completion - unless you deliberately lie to your solicitor about the source of your deposit.If I just go to other lenders and rack up 4 or 5 applications will I make things worse for myself?
Ta.
Much worse. Every application (and most decisions in principle) lead to a recorded credit search. Too many credit searches (more than 5 or 6 in a 3 month period) will reduce your credit score making things worse.
That is what a broker is there for. To do that homework for you.Ah, just seen on your other thread, this is a new build - you never mentioned that! I think you will find thats why the deposit required is so high, because the lender knows that a new build will in effect be overpriced at the very start and they are covering themselves.
Not in the case of the Halifax. As long as it is not a flat, the Halifax have no problem at 85%. This is down to the OP's credit score with the Halifax.
I have always asked if there is a lower LTV the customer will pass at if they fail score with the Halifax. Most brokers have know to ask this for years.Hi as part of my plan to buy a house (and world domination:D) I got a mobile phone contract binning my pay as you go to improve my credit rating before buying. Other ways are getting credit cards and paying off early and such like.
Have a read of the link below how to improve it.
http://www.moneysavingexpert.com/banking/credit-rating-credit-scoreMy studant overdraft, home telephone line, internet, gym membership and PAYPAL account should all help. I was told at Uni and then again while taking out my mobile that I had a good credit rating already.
6 months ago they said due to the credit crunch to get the best deal on a mortgage you need a good credit score and deposit.
None of the items in bold help at all as they are generally not recorded on your credit file. Getting a formal credit agreement that is recorded on your file (loan, card, mobile phone, HP etc etc) is the only way to 'improve' your profile as they are the only ones that add a credit history.
A good credit history does not equate to a high credit score and every lender scores differently from each other and for different products.
A lender may accept you for a mortgage but refuse to give you a credit card (and vice versa). It is not uncommon for banks to reject their own customers for a mortgage even though it may not be obvious why.
I've lost track of the number of people who have told me that they cannot understand why they have been declined as they 'always pass' and have lenders throwing money at them - especially in recent months.mrstinchcombe wrote: »On CreditExpert which is run by Experian you can see your credit rating to a very good level of accuracy.
Although I have a credit rating of 999 which is a little strange. I have no adverse credit and an impeccable history but 999!?!
https://www.creditexpert.co.uk/
Sorry, but the credit expert score is nothing more than a guide and, in most cases, a waste of £5.
Every lender scores differently and use every answer on the application form to form an overall profile. If you do not fit that overall profile you will not pass score, no matter how good your credit history.
I recently did a mortgage for 2 company directors of a well established company, on very good money looking for a very low loan amount, low loan to value and excellent credit history. Their existing lender declined them as they did not pass score. The next (prime) lender we tried passed them with a high score.
Unlike the US, we do not have (and never have had) a single national credit score like FICA etc.Go back to the seller/developer and offer the lower amount necessary to make your deposit 20% of the value.
This is the best advice you have received on this thread. In the current climate developers are looking to offload.
If you withdraw they have to find another buyer who will offer the same price, get their mortgage in place, get through the valuation etc etc to even stand still on the deal (ignoring the cost of time to them).
As they say, a bird in the hand ....
Try this first.
Good LuckI am an IFA (and boss o' t'swings idst)You should note that this site doesn't check my status as an IFA, 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.0 -
I strongly suggest, at the very least, you apply for a credit card and start using it for your monthly spend (pay if off in full every month and your avoid paying interest)
.
I'd suggest a cashback card (such as Amex, which I have) and direct debit to pay it off in full every month....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »I'd suggest a cashback card (such as Amex, which I have) and direct debit to pay it off in full every month.
Yes, that will do - he needs something.
Also Brit, ensure your on the electoral roll.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards