FTBI Mortgage Refused, normal mortgage offered

jonnyk

Hi

I'm after some advice...

I'm trying to get on the property ladder via the government's First Time Buyers Initiative, where I'd only need to get a mortgage for 1/2 the property's value.

The value of the property I'm after is £180,000, so the mortgage would be £90,000.

Halifax are one of the banks who offer mortgages under this scheme, and I applied this evening, but I've failed a credit rating. I'm not sure why, although I accidentally paid a credit card 2 days late a couple of months ago. I was told that this shouldn't have any affect.

The really frustrating this is that Halifax have accepted me for a 'normal' mortgage of £93,000, but not the shared equity mortgage I need. So my credit rating is obviously good enough for that.

It's all rather depressing, but any advice on where to go from here would be much appreciated.

How long should I wait before I re-apply?

Thanks in advance

JK

herbiesjp

There are other lenders that will lend on a shared equity basis - have you looked at those?

jonnyk

No, I've just tried Halifax but I'm worried that if I keep trying other lenders it will adversely affect my future chances of a successful application?

Should I give it a go?

luckyfool

Clarify with them what this means. It might be that you qualify for a normal mortgage at 90%, but not the shared equity deal. i.e. If you are putting a 10% deposit of your own money down on a standard deal it is ok. Unfortunately Halifax require you to pass a credit score as if you are borrowing 100% for the shared equity deals where you are not putting your own cash in, this means its quite possible to get a very high score sufficient for a traditional mortgage, yet not high enough for a "100%" shared equity scheme.

herbiesjp

jonnyk wrote: »

No, I've just tried Halifax but I'm worried that if I keep trying other lenders it will adversely affect my future chances of a successful application?

Should I give it a go?

I wouldn't go it alone for that exact reason.

You do not want to start doing things that will affect your mortgage potential.

Have you got a copy of your credit report, to make sure there are no other entries on there that could be a mistake?

jonnyk

It is as you say - I can have a £90K mortgage with a £10K deposit, but not a £90K mortgage under the shared equity scheme. Which is absolutely no good to me.

My big question is, is it worth trying other lenders? Nationwide is another in on this scheme I think. Am I any more like to be successful with them, particularly after a failed application?

Thanks for the replies, also.

herbiesjp

You do not get a big black mark on your credit report if a mortgage is declined or does not proceed - it simply shows up as a credit search.

However too many of those, and it can cause problems, so best bet is too discuss your situation with a whole of market adviser and see what they can offer you - some will offer to research the whole market including direct only deals (for a small fee)

jonnyk

I've sent off for a credit report, the pin should be through in the next couple of days to access the online file. I'll see what's on there.

I'm wondering if because I've only been in my job for 3 months, whether that goes against me...

If you have multiple mortgage applications, how long do they stay on record for? If there's any chance that another lender would offer the FTBI mortgage (in my mind I can't be that far away from being accepted given I was for a 'normal' mortgage), I'd go for it.

Do Halifax have any kind of reputation of being more stringent than other lenders?

jonnyk

Thanks Herbies, I'm out of sync with replies...

I'll try and speak to somebody tomorrow to discuss.

Thanks for your advice.

jonnyk

Ok, I've received my Experian credit report, which shows I have a credit score of 842. The only negative alert it shows is that it I am not registered on the electoral roll at this address, which obviously I will change immediately. It is also missing a couple of credit card accounts and current account, which are all still registered at my previous address. Again I will get this sorted straight away.

Does anybody know how long it will take for these changes to be reflected in my credit score? I am hoping that as soon as my score includes the above changes, it will have boosted my credit profile high enough to be accepted for the mortgage I'm desperetaly after.

All advice would be appreciated.

Many thanks,

Jon

herbiesjp

They normally refresh their data each month, and I doubt it will happen before next months starts

So assuming they action your requests straight away, probably looking at June.

Are you still after the Halifax deal? I'm sure if you tried with another lender you would get a better result without all that hassle - making sure they offered the sgared equity mortgage