mortgage declined - can anyone help???

melatron

hiya, any advice off anyone would be much appreciated on my problem.

me and my boyf are FTB and we have a 10% deposit, we are looking for a mortgage for 125k.

we applied to RBS for our mortgage as my boyf works for them and it has been declined, first they didnt give us a reason and told us to refer it as likely to get accepted cuz one of us is staff so we did and they are now declining it based on credit scoring.

we anticipated this maybe a problem as i had some credit problems when i was younger which i have certainly learnt my lesson from, these go back about 5 years but they have all been cleared up and the last 3/4 years ive been debt free. i had the odd payment crop up from some old accounts but i cleared them straight away. i realise my credit score is low and i have done a credit report on equifax which i can see all my bad credit still on there, but in the last 3/4 years its clear with 4 accounts on their kept up to date.
i realise banks are really strict at the moment with lending and they consider us a risk (even though my boyf has a spotless credit and we have never missed a rent or bill payment) but i feel we are being punished unfairly.

we have applied to the post office as they apparently only go back 3 years for their lending criteria and seem more lenient and have a good rate but i still dont hold out much hope, im so worried that its going to decline and we dont know where to go from here??

we have a mortgage advisor at our estate agents but i was just wondering if anyone could give me any advice on what to do or if they know of any lenders who are about at the moment who would be willing to take us on but not at a ridiculously high rate?

Conrad

Melissa

Maybe try Abbey - I find them not as strict sometimes.

Also use paragraphs as it's so much easier to read, sorry![URL="javascript:add_smilie("][/URL]

melatron

do you think they'd be more likely to offer us a mortgage in our position? i thought we were in quite a good position but it seems this credit stuff keeps coming back to haunt me :-(

do you know if the post office would be quite likely to accept us?

oh and sorry for the lack of paragraphs! i just kept writing :-)

lukekelly_2

It sounds very much like you're going to struggle to get a good mortgage deal, partly because of your small deposit. I'm afraid you might just have to be patient. Keep saving, keep watching those missed payments drop off your credit record and enjoy watching house prices fall. You'll get there in the end.

mic200202

The credit history will stay on file for 6 years - most lenders will ask for a 3 years address history so if any of the bad credit happended at a previous address it may have followed you to any current address..

The post office only act as a go between for mortgages - ie they just sell them - they dont actually lend any money as such.

As you have 10 % deposit lenders will be stricter on you than if you had 15% or so. The credit score will also depend on other factors ie employment histry,address history, type of employment etc, so thes may also be an issue.

My advice is to speak to a local independent broker. Try unbiased.co.uk for a list of these.

beecher

I'd keep saving until you have at least a 15% deposit, by which time house prices will hopefully have fallen further.

melatron

my employment history is all fine, i have been with the same company for over 4 years and take home a good wage every month, so does my boyfriend. some of the bad credit followed me to an address i lived at 3/4 years ago so i know thats probably causing me a problem. i was just hoping with everything being good for the past 3 years and my boyfriends being spotless we may have been ok.

yeah we were thinking of saving a little more so we have a larger deposit if they decline us. it maybe our only option anyway and it will give it time for my credit report to improve and hopefully some files will drop off. the problem is we really want a house that we have seen!

i will look on that website though for independent broker and get some advice off them. we should find out today whether or not our mortgage has gone through but im pretty sure its going to be a decline

herbiesjp

As you rightly say a broker would be your best option, especially when there is adverse credit involved.

Get both your credit reports and show these to the adviser you speak to.

This will give them information with which to discuss your potential application with a lender before doing any credit checks

They will also now which lenders are likely to be more lenient depending on the amount and age of the the problems

tiptop222

The credit issues are a while ago which means you should be able to get a mortgage now. The market is changing fast, very fast. The majority of mortgage brokers are unable to offer the best 90% deals at the moment due to the funding problems with the lenders. There are many lenders offering deals at 90% although as they do not pay brokers they are hard to find. In recent weeks brokers who choose to can now see these deals and may be able to help with these deals. Of course you would need to pay a fee for this help which may save you a lot of money if a better deal is found. This is new and I would not be suprised if very seen Mr Lewis has a new post on 'mortgage broker' or new 'super broker'.

I hope your mortgage was agreed by PO.

melatron

thanks for your advice, we still havent heard back from the post office!!
its taking so long but we rang up yesterday and they said our application had been looked at and all seemed fine with the form (i also explained on here about credit stuff as it asked you) but was now going through the full application process where they do credit checks and proceed to check valuation report.

we paid the valuation fee a week ago now so were hoping to have an answer by now but it seems to be taking forever for them to do the work! but from what ive read it can take up to 10days from this point.

we have decided to go and see a broker if this declines, does anyone know where we can find a reputable one where we arent likely to get ripped off? i have looked all over the net but am worried they might be dodgy.

thanks

Conrad

As I say, Abbey I'm finding have an easier score than Nationwide, Halifax and the others.

As for finding a trustworthy broker, maybe one local to you that operates from thier own premises. Such people tend to look after thier local community as word spreads fast but thats no guarantee.
Something to be mindful of is the best salesmen will by definition come accross well, but try not to be swayed too much by surface impressions. Rich people in my experience are so because they deal with others based upon facts and evidence to tease out the truth, not surface personality.