Mortgage Denied - Advice Needed Please

herbiesjp

Ah right

So in effect you are supporting 3 dependents - OH and two children. And I think this is where the problem will lie


The maintenence can be used by some lenders - all have different criteria for that though.

This looks like a tough situation, and affordability would need to be looked at really carefully at a personal level, and this is what lenders will be doing.

There are other lenders that could help, but it may be worth getting a second opinion with another whole of market adviser

getmore4less

Look at this from the lenders POV.

You have clearly been over stretching since you have CC debts that have not been cleared, this was with a mortgage of £93k, now you are asking for £147k, over 50% more at 4.2x multiple.

Not looking good even if you clear the debts.

Sell, clear the debts, rent for 6months, get the new business going and then buy once that is proving it will survive.

The last thing you need is an underfunded new business, a very common cause of failure.

hayley77

I thought that it would only be passed to underwriters if you passed a credit check?? I tske it they have had a look into ur bank accounts and then declined, im at the stage that the underwriters have passed onto be valued (im a ftb) Im now worried mine may be declined, although when i call the natwest call centre they say its been ok'd by the underwriters, just waiting on valuation??

Trollfever

We went to see at least 4 mortgage advisors who all told us that our debts wouldn't be a problem

Sounds strange to me.

Skyler

Trollfever wrote: »

Sounds strange to me.

Why?

We have been viewing properties at different estate agents and each offered an appointment with their financial advisors. So we took them up on that offer and went to get some advice with regards to our situation.

Sorry perhaps I should have been more specific and not used the term Mortgage adviser.

Skyler

hayley77 wrote: »

I thought that it would only be passed to underwriters if you passed a credit check?? I tske it they have had a look into ur bank accounts and then declined, im at the stage that the underwriters have passed onto be valued (im a ftb) Im now worried mine may be declined, although when i call the natwest call centre they say its been ok'd by the underwriters, just waiting on valuation??

It passed the initial check and wasn't declined or referred and was passed through to the underwriters.

I keep all of my bank accounts in credit and have never used my overdraft my husband keeps his accounts in credit also.

I've been on maternity leave for the past 9 months and I'm going back to work full time. We saved money to ensure that all of my bills would be covered whilst I was on maternity and I would only be receiving SMP. I'm quite proud of the fact that we managed to do this and for the duration of my maternity leave we haven't been in financial direstraights.

Skyler

herbiesjp wrote: »

Ah right

So in effect you are supporting 3 dependents - OH and two children. And I think this is where the problem will lie


The maintenence can be used by some lenders - all have different criteria for that though.

This looks like a tough situation, and affordability would need to be looked at really carefully at a personal level, and this is what lenders will be doing.

There are other lenders that could help, but it may be worth getting a second opinion with another whole of market adviser

Thank you for your post.

My worked out my income and in total it's £2387 to be exact, this includes Salary, Child Benefit, WTC and CSA payment.

Are you allowed to advise me who another good whole of market adviser would be?

The broker at L&C said he would speak to the underwriters at A&L on Monday but from what has been posted here it looks unlikely that they will reconsider.

Skyler

getmore4less wrote: »

Look at this from the lenders POV.

You have clearly been over stretching since you have CC debts that have not been cleared, this was with a mortgage of £93k, now you are asking for £147k, over 50% more at 4.2x multiple.

Not looking good even if you clear the debts.

Sell, clear the debts, rent for 6months, get the new business going and then buy once that is proving it will survive.

The last thing you need is an underfunded new business, a very common cause of failure.

My total CC debts amount to £14k over 3 cards. I have a loan with my bank which has an outstanding balance of £14k. I have been able to service all of these payments quite comfortably and I have never missed a payment.

I do understand where you are coming from. If I was the lender I would be thinking along those same lines but my repayment history is A1 and I have never defaulted on any loans. My credit report shows that I have 29 accounts of which 25 have been settled. The ones remaining are those mentioned above. The only thing adversely affecting my credit score with Experian is that I have high valued outstanding debt.

My husband is taking money from the sale of the business to use for retraining and to set up the new business once he has completed it. He also needs to ensure that he has sufficient to cover any capital gains tax that he will have to pay.

patchwork_cat

I am not a mortgage advisor, but someone similar to yourself who has used L&C last time and approached them this tiem, too. I am afraid that I don't rate their advice. Our advisor is very uncontactable and whilst they say they are whole of market they will not tell you about, HSBC, YBS , First Direct and a few more. That is because they don't get commission of these banks. As a result we were not offered the 2 best deals in our very specific criteria. Although I am regretting my descion to go to YBS as they seem to be particularly poorly staffed, with forms filled in by them incorrectly and members of staff themselves making policy!!

Skyler

patchwork_cat wrote: »

I am not a mortgage advisor, but someone similar to yourself who has used L&C last time and approached them this tiem, too. I am afraid that I don't rate their advice. Our advisor is very uncontactable and whilst they say they are whole of market they will not tell you about, HSBC, YBS , First Direct and a few more. That is because they don't get commission of these banks. As a result we were not offered the 2 best deals in our very specific criteria. Although I am regretting my descion to go to YBS as they seem to be particularly poorly staffed, with forms filled in by them incorrectly and members of staff themselves making policy!!

Thank you for your post, our advisor seemed to be on the ball. When we discussed the requirements he advised us that due to buying the repossession we would need to find a lender who could move quickly and had a free valuation at least that way if we ended up with an offer accepted but were subsequently outbid we wouldn't lose any money.

The deal he came back with was a 2yr fixed rate with A&L at an initial rate of 3.99% increasing to 4.99% after the two years This was with a LTV of a maximum of 75% and a 30 year mortgage. We went for the 2yrs because we considered that it would take my husband 6 months to retrain and start up the business. Then all being well and the business is successful we would be in a better position financially when we came to look again with a view to reducing the term.