First time buyer

haisharif

Hi All,
This is my first mail to the forums and I am first time buyer so please excuse me if I don't use proper terminology while explaining my issue.

After 2+ years of saving and 3 months of search, I opted to buy a new build house providing the fact that New house has better floorplan and its neat and tidy. While searching I did some analysis that I am allowed to borrow around 200 K based on my salary. I have 30K savings and my offer got accepted for 210K. Its a new build off-plan house.

The first blow was that the sales agent (Builder) told me that I can choose only their recommended mortgage adviser and solicitor. I agreed to this condition as the sales executive told me that it will help to accelerate the exchange of contract if I go with their mortgage advisers and solicitors or else I have to pay the full amount without any discount. Then I reserved the house paying 1000 Pounds. After couple of days I called up the mortgage adviser and sent all the required docs for the mortgage application as suggested by him. I was very confident about mortgage as I never had any issues with my credit history. Most of the lenders have strict constraints for new build property and there are very few lenders out their who are ready to lend 85% LTV for a new build. So after discussing with the adviser we decided to go with Nationwide. After a weeks time, the adviser told me that my application got rejected because of bad credit. I went online credit expert to check my credit report and I found few wrong info as below.
-> My credit card balance it shows is 2 months old though I clear my credit card bill every month, unfortunately it has been updated when the balance was high and the report show I have high outstanding balance.
-> Me and my brother share same surname and first name and we live in same addres presently so they have included my brothers details in my report. So according to the report, I have two mobile contract, 4 bank accounts, and more than 6 credit searches since 12 months.
-> I did register for electoral two months ago as I moved in to this new rental house 4 months ago. Its yet to get updated online and the report shows that I dont have electoral registration.

I called up all the related agencies to correct. Everyone is blaming other and they say it will take 6-8 weeks to correct all the information. Meanwhile I asked my adviser to explain all these to Nationwide to push the application but he came back and told me that they will agree for 80% LTV but it will be tough to get 85% LTV and I dont have such saving and I am sure I wont be able to manage as 30% is my final threshold I can push myself. Now I am really worried to go to any other bank as my credit report has a search from Nationwide.

Any suggestions/recommendation are welcome.

Regards
Sharif

wymondham

A couple of things, never use a mortgage advisor/solicitor tied to the builder - they can't possibly be acting in your best interest, or at the very least have split loyalties (guess who pays them more??!)

Secondly you mention "there are very few lenders out their who are ready to lend 85% LTV for a new build". Does this ring alarm bells with you? - it should... it means the lender expects this property to lose value, so you're contribution will be lost first!

Is it vital you purchase now? if so, what about a different 'pre-loved' property, to protect your investment more??

Good luck in your purchase...

haisharif

Hi, Thanks for the response.

I correct my words, I have max of 30 K deposit which I cant push further.

1000 Pounds is to reserve the house and to take off from the market.

I never had any problem with my credit in past and was very sure about my mortgage application going through.

I had 1070 GBP outstanding balance in Credit card last month and I payed it off before the last day but the credit report got updated before that and since then it didnt update.

We never had any issues with the names as we have different date of births and different second name. I m living in this country since 3 years and my brother joined since last year. I never thought such a developed country can have such a flaw in the system. How can they mix two identities just because they share same first name and surname and address.

I never thought that electoral registration is such a important thing to do and was very busy since we moved in to this new house. I know i am being silly here but humans do get lazy.

I guess its Credit expert who has to be blames. Such a responsible organization doing such silly mistakes are not permissible. How can they mix up two identities with different DOB and different second name.

That advisor is a big junk. I m planning to call the builder and remove this guy from their list of advisers.

I cant raise 20%. my max limit is 15% and now I m begining to think, is it a good deal. The house was priced for 240 K and after negotiating we got it for 210 K with 5 k updates as its a new build off plan house. This was the best deal we got around for a 3 bed house .

Thanks

haisharif

Yah we liked the property and all the pre-loved properties, we didnt like the floorplan and we where a bit paranoid about the condition. New build comes with 10 year NHBC guarantee and we have the option to choose our interiors as its OFF PLAN.

Thanks