mortgage declined - can anyone help???

melatron

well we have just had our mortgage application declined with the post office so we are feeling pretty low about that now. they told us that it failed at the credit score as it was below their lending criteria.

she said she was aware of my situation in the past as i had explained it all and it was probably not helping that stuff was still showing on my report, she said to either wait until things drop off or get a bigger deposit. she explained that our deposit is low in the current market and if we had 20/25% then it would give us much more chance of getting a mortgage even if the credit score declined as the lenders would look at us putting in a higher % to the property so we wouldnt be as much risk.

do you think this is our best bet? to save up more money? but this means double what we have now and its going to take a very long time. we live in rented accommodation so although we are on good wages, we dont want to have to wait 2 years to buy our own house.

its so unfair, the small deposit (even though in my eyes 14k is not small!) and my past credit problems which arent even excessive are just stopping us from having our own home when we can afford the payments!!

we have a reputable, recommended broker to speak too but basically as it stands now, we dont want anymore searches or anything done on our file unless we have a more or less 100% yes that we will be accepted. hopefully our broker will be able to tell us if we stand any chance with any lenders.:mad:

beecher

With any luck you'll look back on this and be thankful that you didn't go ahead, as you'll be in a much stronger position once you have a deposit of 20%. House prices are falling so that might not mean you having to double what you presently have. That £140k house might be £120k before long. You say you're both on good wages - maybe you could go onto the Debt Free Wannabee forum for help on how to save more than you have been? You might get good advice there on how to improve your credit rating too.

melatron

yeah i can understand what your saying, we will be in a better position but its so frustrating when we have found the house we want. but then that house has also been on the market for a year so it could still be there in 6 months time....who knows. i really am hating the current climate at the moment, house prices maybe falling but the lenders criteria is just over the top.

i will have a look on that forum to see if i can pick up any advice, thank you

melatron

DAB1209 wrote: »

I have a low credit score,couple defaults from 3 yrs ago and have convinced myself that its gona be a decline.We also have 10% deposit and as were renting it will take ages to save up another 5/10% .

well as much as i hate to say it, i really wouldnt hold out much hope. you may have a bit more luck than us depending on your situation but with the current climate being as it is and the lenders wanting high deposits its just making things impossible.

who did you apply with?

we are going to speak to a broker thats been reccommended to us and our estate agent and go from there. if we really have no other options then we will pull out and just save some more and hope the climate improves so that banks are less strict.

good luck anyway

melatron

yes i will keep you updated. my boyfriend is ringing the broker today to arrnage a meeting, hopefully for tomorrow so will see how that goes. we have our credit reports and everything so will be totally honest. hopefully he will be able to find us a lender who will accept us.

of course the other option is finding the money to higher our deposit...but where are people supposed to find 13 - 15k these days!!

good luck with yours anyway and let me know the outcome

brett374

Hey, I would say go with Abbey.

I have one regisytered default on credit file (from 3 years ago), and some missed payments, partner has a good credit report.
We choose Abbey as our mortgage advisor said that they have the least strictist requirements.

We had a 15% deposit on a £145K mortgage, and have now been accepted as long as suverys and valuations come back fine.

The only thing i would say is be patient and keep on at abbey. They always asking for more and more documents, but it be worth it in the end,


Hope this helps

samay007

have you got any chance to rectify the credit file or put some notification on your default list. i recently got offer from post office mortgage for 150K property with 10% deposit FTB. Many lender refused to offer mortgage since i had 3 default in the last 2 years and finally it was removed as it was not my fault.

Default in mobile contract does not affect any lending. i would suggest abbey through broker since they search only experian.

cob_4

Can you please let me know if you have any success. My partner and I just been refused by Chelsea and HSBC due to one default I have. We have a 35% deposit and like you found a house we love.

Conrad

Cob, try an experienced broker. N Rock, Abbey, Leeds and others might be worth a try.

tjj1984

well iv just posted an application for post office mortgage, lending 102.600 with a 11.400 deposit on the 114.000 property, i hope its dealt with asap! iv had no loans,debt etc etc so i think my credit score should be 100% fine along with the same for my girlfriend!

fixed for 3 years @ 6.02% over 35 years 586 a month im happy with that (if i am accepted)

good luck to all