Can't get a mortgage despite good credit

GreyKnight

Hi everyone, this is my first post on here - I'm desperate for some sensible opinions and advice on my problem.

I am a first time buyer and have found the perfect first property for me at a price I can afford. I have had my offer accepted and am now trying to get a mortgage, but I have now been declined twice!!!

I'm 30 years old in a good job and I'm single (buying the flat just for me). I have a 15% deposit (not brilliant I know, but better than 10%) and to my knowledge I should be a good bet for a mortgage - but my mortgage broker (who is very good and a friend of the family) has had two applications declined - one with C&G, the other with Abbey National, both 85% LTV mortgages at around 5.89% fixed rate for 5 years. He says he can't understand it and is speechless.

The mortgage lenders have said that there isn't anything wrong with me as a prospect, except that I don't have any recent credit history! Apparently the most recent entry in my credit file is from Jan 06. This doesn't make sense as I've had at least five credit agreements / loans since then, four are all paid back, the other is still in place and finishes in May this year.

I have joined CreditExpert and looked at my file - indeed none of my recent credit applications are on there, although the mortgage searches are showing up. In addition my credit score is 923 out of 1000 which I think is pretty damn good!

I'm at a loss as to what to do! I really want a mortgage and could pay the monthly payments without even thinking! It really isn't fair that just because I'm careful with money I'm being penalised. I don't have any credit cards you see (just applied for one in an attempt to get some credit history). But the £25k worth of credit I've had over the past few years seems to count for nothing as it hasn't been recorded :mad:

What can I do? I'm going to miss my opportunity to buy this flat if I can't sort out this utterly unfair situation

Can anybody advise me?

Many thanks

Graham

getmore4less

If it is not one of those allready tried you could try your own bank.

feisty1

Quote:"that I don't have any recent credit history! but my mortgage broker (who is very good )

I don't think so! The adviser should have checked this with you when first considering applying for a mortgage......this is only standard procedure for a FTB as with many it is non-existent, they should have advised you what to do in these circumstances............

GreyKnight

feisty1 wrote: »

Quote:"that I don't have any recent credit history! but my mortgage broker (who is very good )

I don't think so! The adviser should have checked this with you when first considering applying for a mortgage......this is only standard procedure for a FTB as with many it is non-existent, they should have advised you what to do in these circumstances............

yes but had he asked I would have said I had good credit history - there's loads of stuff missing on my credit file though!

herbiesjp

Your broker indeed should be explaining what to do about these declines.

Rather than looking at different lenders, has he tried to appeal these with the lenders in question?

You may want to get a second opinion with a different whole of market broker

feisty1

GreyKnight wrote: »

yes but had he asked I would have said I had good credit history - there's loads of stuff missing on my credit file though!

but had he asked !!!

what do you consider as stuff?

GreyKnight

feisty1 wrote: »

but had he asked !!!

what do you consider as stuff?

£11,000 loan to buy a car (now paid off)

£13,000 loan to buy another car (still in place)

£1,200 finance agreement to buy a computer (now paid off)

that sort of thing, all done within the past 4 years.

brightbuy

herbiesjp is right, lenders are able to tell brokers why they have refused and the first point of call is to speak with the lender and not go elsewhere.

Without knowing your situation, it could be more to do with affordability or an income stretch. The progression from C&G to Abbey leads me to believe this.

GreyKnight

Maybe, but I earn £30k a year and have no outgoings, I'm looking to borrow about £100k.

Don't see how that's not affordable.

feisty1

is this an experian/equifax/or what report?

brightbuy

£13,000 loan to buy another car (still in place)

Do you have children, other loans? Monthly payments for all existing loans are taken into affordability calculations and so are dependants. If you still have this loan then it is an outgoing.