desperate for some mortgage advice.

holbrook99

Hi guys i have put a bid in on a house as i thought a mortgage wouldnt be a problem, and have taken ona financial advisor to take care of the mortgage application etc.

However the financial advisor has tried with both abbey and nationwide and they have both refused and we have no idea why...

I earn 27k year and i have a 20% deposit, and my credit report is clean?? i am a first time buyer employed full time. the house we want is £122,000 and like i say we have a 20% deposit.

looking at my credit report i dont have ANY defaults whatsoever and everything is green, the only thing i can find is some late payments on an old provident account that has since been settled completley.

we really cant understand why these companies are saying no, and we are now in danger of losing what we believe is the ideal house for our family.

Conrad

Sounds like it could be those late payments have caused the declines.

The credit crunch means lenders are risk averse regardless of a 20% deposit - they don't want to repossess you. The modeling they use is based upon the premise, someone who has not kept to thier credit agreements in the past, is more likely to not pay the mortgage on time in full. Harsh, but there it is.

Also I notice you say the late pays were with Provident and they are a subprime lending organisation which may have had an adverse effect - prime borrowers dont borrow from Provident.

There will be other loadings such as the area you are from, type of job - is your adviser skilful - to they embelish your application? For example dont put shop assistant, put servce industry worker etc etc

Maybe you want to try N Rock and Halifax.

holbrook99

yeah the financial advisor is a family friend so most definatley "embelishes".....the thing is the account that had late payments has been settled in full it never got to a default so surely that doesnt show me to be a bad creditor if they got there money in the end, just a little late?

Conrad

I'm afraid it does have an adverse impact on your credit status. In a nutshell you signed up to terms that bound you to paying on time in full and those terms were not met. It's the equivolent of your boss paying you late or the airline promising you an inflight meal but only giving you a glass of orange.

holbrook99

oh right, well ive been applying in my name only as my partner has a 2 year old default.

if i was to try nortern rock, can you advise who would have the better chance of being accepted.

Me with late payments but no default
or my partner with only 1 default

we both work for same company and earn same money. and we have a deposit of 20%.

RobertoMoir

It doesn't show you as being as bad as could be but (especially depending on how late you mean by late) how could you possibly think that late payments are not bad?

At the moment, I think some lenders just don't want to take risks unless those risks are very small ones indeed.