FTBI Mortgage Refused, normal mortgage offered

jonnyk

Thanks for your help.

I've not tried anybody else yet - and I've contacted my local council who have told me that the electoral roll will be updated on 28 May, so like you were saying, June would be the best time to reapply.

If I went to another lender though, how can I avoid the same pitfall of not being on the electoral roll at my current address? I've read a few internet articles and it seems as though being on the electoral roll is pivotal in being offered credit. My parent's address is where I am currently registered. Could I use this address in my mortgage application? That is also where my current account is registered. But then I have a mobile phone, credit card and car finance now at my current address (the latter two I only changed this morning).

My thoughts were to get all of my credit agreements registered to where I live now.

I'm also wary of applying to somebody else (say Nationwide who also do the equity share mortgage), because of the footprint I'd leave on my credit file, should I be declined.

In summary, I think the only way I could apply for a mortgage elsewhere, now, is if I used my parent's address where I'm registered on the electoral roll. Would this be adviseable?

leemuddywaters

Hi. I have a credit score of 805 through experian and am hoping in the next year or so to but the house myself and my Fiancee are currently renting as the landlord as offered to sell direct to us. Can anyone shed any light on what score what put me in the best position to be accepted for a mortgage. Also does going in joint help?

herbiesjp

The score you get is only an indication of your creditworthyness.

The important score is the one you get on the lenders own scoring system, as that is the one that will dictate whether or not they will agree a mortgage for you.

Just make sure all your credit commitments are all up to date, and you are on the electoral register and you should be fine with the score you have.

Applying jointly only helps really in terms of affordability - as if one of you has a low score it will affect the person with the high score, rather than the high score helping the other way around.

jonnyk

What would be the implications if I applied for a mortgage using my parent's address (my previous address), and where I'm currently registered on the electoral roll?

herbiesjp

You need to use the address where you currently live, as you will have to provide proof of address with your mortgage application

luckyfool

Your application data from one application to another is cross referenced through the HUNTER system and shared with other lenders. Discrepancies in income, address etc will show up and you could find yourself flagged for a fraudulent application, making it very difficult to get any credit in the future. I would be very careful before doing anything like that.

jonnyk

OK, thanks. Looks like I'm waiting for my electoral roll application to be processed to prove my residency at my current address, which I've been told will happen on 28 May. Are there any recommended methods to accelerate this process, or is it just a case of waiting?

jonnyk

Hi,

Update regarding my dream move...

Following my initial rejection, Halifax rang me uninvited last week to say that they had good news and that I'd now been accepted for a mortgage up to £99,000 with a deposit of £1,000, under the terms of the FTBI mortgage. Great I thought, I can move on to the next step of my new home pursuit. An Agreement in Prinicple arrived through the post, which I attached to my FTBI application and submitted to the housing association.

The next step was for the housing association to review my application and to see if I met the criteria for government assistance. This came back positive - they would contribute 45% of the property and I had to find the remaining 55%. This was great news, as 55% of the property would be £96,500, within the mortgage I could get. With everything in place to secure my home, I put a £500 reservation fee down as there was quite a bit of interest.

I arranged an appointment with Halifax last night to formally apply for a mortgage, when the lady who I have been dealing with rang me beforehand to say that I now can't get the mortgage she said I could - they will only offer 50% of the value of the property and I need a minimum of £8,000 deposit.

This has left me screwed.

Can they do this?

Why did the mortgage advisor originally ring me to say that I could get a mortgage for £99,000 when she knew my exact circumstances and had all my details for the credit scoring, and had previously rejected me?

I now need to reapply for the government scheme to try and get the full 50% and hope that, with the help of my parents, I can raise the extra £7,000 deposit.

Halifax have said that I am on their lowest band of credit rating, which I find extremely difficult to believe as the only blip in my profile came in February when I overlooked a credit card payment and was late by a couple of days. This was with Halifax, but I've been told this shouldn't have that big an impact on my score. In the meantime they have increased my credit limit without me asking, and I have other credit accounts with perfect history. So I think that they're history is not factual. I've spent quite a bit of time sorting my history out through Experian, I found that there were a few inaccuracies that now have been corrected. The mortgage advisor has said that it might take about 6 weeks for this to be reflected on their system.

Do I have any other options other than to try and cough up the extra few grand and plead with the HA to increase their equity stake?

Could I appeal for a manual review from a branch manager, considering I believe my credit history to be inaccurate?

I'm pretty annoyed with things - I've set my heart on this place and will be absolutely gutted if things fall through...

jonnyk

I did have an appointment arranged with Nationwide which I cancelled last week after I was told by Halifax I could get the mortgage I was after with £1,000 deposit. Now my Halifax application has been made formal and they've done a full credit search (rather than a soft search that doesn't appear on your history), I'm wary of reapproaching Nationwide in case another search will wreck my chances of getting any mortgage from anybody in the short-term. I feel a bit cornered, and I'm not happy with Halifax because they were completely aware of my circumstances and the shared ownership scheme I'd intended to purchase under, when they told me I could get a mortgage which I couldn't.