mortgage advise

ces_3

Looking for some advice, I am 25 and recently applied for a mortgage with my partner to both HBOS and Nationwide and unfortunately was rejected. I applied for £83,000 on a shared equity with the builders making up the other 25%.I am a primary teacher with a salary of 28,000 and my boyfriend has a salary of 17,000.

I had checked my credit report before applying and have a settled default from 2 years ago when I was a student, aside from that I have no late payments or debt.

My mortgage advisor came back and told me the reason for the decline was because I don't have much credit history and my partner had some late payments on his credit card.We are both first time buyers and live at home with our parents.

I do have my own deposit of 10,000 which I know isn't alot as I am aware that 20% is better.

Does anyone have any advice to what my next step should be?

I was thinking about raising a bigger deposit but would that make a difference? Also I am aware that rejections make you less appealing to lenders- Help!!

herbiesjp

How much was the default for and who with?

ces_3

The default was for egg and it was for £2000

herbiesjp

I'd have to say that the reason for the declines is the £2k default, and not the fact you do not have anough credit history

Nationwide has always been tight on criteria and witha 2 year old £2k default I would not have chosen them as an option.

It does not sound like your adviser has much experience as otherwise they would not be wasting time on lenders that woudl decline your application with that information showing. By doing so, and having further credit searches run up against you, could further damage any other applications that you make.

You may want to consider using a different broker and discussing your situation in detail, including the credit reports.

A bigger deposit will indeed open up a few more options, but again it will have to be based on the overall scenario as to whether or not you fit the criteria.

haziec

Hello could you answer a question for me herbiesjp or anyone on behalf of my niece.
She is applying for a mortgage through a broker, she has a default on her credit record which will be six years from date of default at the end of Sept for £636 which is marked "balance satisfied". She has no other defaults, has a credit card, which she clears each month and bank account with overdraft, mobile phone contract etc,all showing regular payments on time. Will be default affect her getting a mortgage do you think? I believe they are applying to Halifax for around 60% of the property value which is approx £105,000.

thank you, she is not an MSE member (soon put that right!)

ps, just thinking? any other tips to help their application? She is on the electoral roll and her husbands credit account is linked to hers I think and he has a perfect score, according to the quick calculator on here.

herbiesjp

The fact it is almost 6 years old should mean it has less impact.

Has the broker discussed with the lender - what have they said?

haziec

herbiesjp wrote: »

The fact it is almost 6 years old should mean it has less impact.

Has the broker discussed with the lender - what have they said?

I don't think she has told the broker yet, I suppose I should phone her and tell her to do this. Do you think that HFC bank would remove it now if she asks them?
She has told me that it is definately Halifax they are going through so wonder how they will view it?

haziec

She has now informed the broker, ahead of their meeting.
HFC won't/can't remove it. They said its very very minor and old so as you have already said shouldnt make a difference.
thanks

herbiesjp

You always need to tell the broker everything.

Otherwise they could be wasting their time with the wrong lenders for you.

At 60% are Halifax offering them the best deal? Are the brokers whole of market?

Conrad

I agree with Herb on the OP's broker - sounds like they are fresh of a training course to me.

Keep in mind shared ownership is treated very carefuly by lenders - you normaly need to be squeaky clean. I would suggest perhaps trying Abbey.

If still declined then yes a larger 'own' deposit could help. My personal opinion is Sheared equity is not really beneficial for most people. If I were a FTB I would want to do it on my own and not have the added complexity and costs of S/O. If you want to remo later to buy a bigger share it can be a headache.

ces_3

Thanks, he said he applied to them as it is only them and HBOS that do the shared equity.Do you happen to know how long a mortgage appllication would stay on your credit file for?

I'm really frustrated with the whole thing and deeply regret defaulting.My mortgage broker suggested getting a mortgage with my father but I can't see that making much of a difference.