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Can't get approved for a mortgage - no credit problems + big deposit!
the_hatter_2
Posts: 18 Forumite
Hi,
Over the last few years I've careful run all of my accounts to ensure no late payments, defaults,etc etc - basically I have a clean Credit History as far as Experian and Equifax shows (that and I know I've not had any problems with payments).
Also, I've been saving for when the time was right to dip into the market and buy my first house - I've got £40,000 sat in a "high" interest account for my deposit.
My girlfriend and have been looking around and see a few houses we like, but when it comes to applying for a mortgage we got turned down! Using some online comparison sites we liked the look of the Post Office (which I think is actually Bristol & West) but were turned down due to not meeting the lenders criteria - after calling them this turned out to be our joint credit score and the suitably vague answer of "it wasn't high enough" but no more information offered....
Oh, I should mention that my GF also has no payment problems, always paid on time and her Experian report is full of "green circles". We both have good earnings - she is in the mid 40's and I am in the late 30's and the amount we're asking for is well under the theoretical max that banks profess to offer us!
The only thing I can think of is that she is Canadian and has only lived in the UK for 3 years, but during those three years her credit file is solid - with a CC with her bank, HSBC and a car loan with A&L all paid on time every time.
Did we make a bad choice with lender to apply too? Can anybody think of anything else? In terms of "time at address" I have only moved once in the last 5 years - 8 months ago to this current rental property and she has lived in three addresses over the last three years.
Anyway, I'm feeling a bit frustrated right now, prices on property is good but I can't find a lender... when the lenders are throwing out money hand over fist I can't afford the sky high payments on the overpriced houses!
Over the last few years I've careful run all of my accounts to ensure no late payments, defaults,etc etc - basically I have a clean Credit History as far as Experian and Equifax shows (that and I know I've not had any problems with payments).
Also, I've been saving for when the time was right to dip into the market and buy my first house - I've got £40,000 sat in a "high" interest account for my deposit.
My girlfriend and have been looking around and see a few houses we like, but when it comes to applying for a mortgage we got turned down! Using some online comparison sites we liked the look of the Post Office (which I think is actually Bristol & West) but were turned down due to not meeting the lenders criteria - after calling them this turned out to be our joint credit score and the suitably vague answer of "it wasn't high enough" but no more information offered....
Oh, I should mention that my GF also has no payment problems, always paid on time and her Experian report is full of "green circles". We both have good earnings - she is in the mid 40's and I am in the late 30's and the amount we're asking for is well under the theoretical max that banks profess to offer us!
The only thing I can think of is that she is Canadian and has only lived in the UK for 3 years, but during those three years her credit file is solid - with a CC with her bank, HSBC and a car loan with A&L all paid on time every time.
Did we make a bad choice with lender to apply too? Can anybody think of anything else? In terms of "time at address" I have only moved once in the last 5 years - 8 months ago to this current rental property and she has lived in three addresses over the last three years.
Anyway, I'm feeling a bit frustrated right now, prices on property is good but I can't find a lender... when the lenders are throwing out money hand over fist I can't afford the sky high payments on the overpriced houses!
0
Comments
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I think you should go to a mortgage adviser for help rather than making lots of other applications. You've only been knocked back once so it isn't time to panic yet. One thing to check - are you both on the electoral roll?0
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only 3 years history
3 diff address in 3 years...
Is she on the electoral roll?
Has she actually got things on credit... have you actually had things on credit?
What income multiple was you asking for ... im thinking anything more than 3.5 times single or 3 times joint would be a struggle no matter what deposit you have?
Be careful to match who you ask for a mortgage off, as too many refusals will adversly effect ur credit history!
A mortgage advisor would be able to help!
Good luck and well done on the savings lolPlan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
only 3 years history
3 diff address in 3 years...
Is she on the electoral roll?
Has she actually got things on credit... have you actually had things on credit?
What income multiple was you asking for ... im thinking anything more than 3.5 times single or 3 times joint would be a struggle no matter what deposit you have?
Be careful to match who you ask for a mortgage off, as too many refusals will adversly effect ur credit history!
A mortgage advisor would be able to help!
Good luck and well done on the savings lol
Yep, we have both have/had things on credit - she currently has a Visa that's branded Hilton Hotels (no idea who the bank is that produces those) and a unsecured loan with the A&L.
We're both on the Electoral Register and voted last week so that should not be an issue.
We were asking for a loan of 160,000 and using my 40,000 as a deposit. In terms of the amount we are asking vs our earnings we basically asking for significantly less than three times our combined earnings.
Okay, so maybe we should go see the mortgage advisor, though but I don't understand what they do that ensures an approval vs. me filling in the on-line application form?0 -
the_hatter wrote: »Okay, so maybe we should go see the mortgage advisor, though but I don't understand what they do that ensures an approval vs. me filling in the on-line application form?
they'll have the experience to have a better idea of which lender is best for you and why the PO knocked you back. They will look at all your details and maybe see a problem you've missed. It isn't so much to help with the application itself, but to advise on which application to make - if you just lurch from lender to lender your credit file will take a hit.0 -
Ok. Simple answer. You have few problems and this is mainly due to your partner being canadian. Does'nt matter how long you have been here but you are considered foreign.
Only 3 banks and building societies are know to accept you, only if you bank with them. Feel free for other advisors to correct me. Success is usually only via HSBC, Lloyds, and halifax. AS STATED BANKING WITH THEM.
You also have another problem. You state that you partner has an unsecured loan and also credit card. You have not actually stated the amount of liabilities you have.
From just these two things, you may actually be borrowing too much.
You have not even told us your total income (salary).
Two options:
Seek an independent advisor or go window shopping.Motto: 'If you don't ask, you don't get!!'
Remember to say thank you to people who help you out!
Also, thank you to people who help me out.0 -
TEDDYRUKSPIN wrote: »Ok. Simple answer. You have few problems and this is mainly due to your partner being canadian. Does'nt matter how long you have been here but you are considered foreign.
Only 3 banks and building societies are know to accept you, only if you bank with them. Feel free for other advisors to correct me. Success is usually only via HSBC, Lloyds, and halifax. AS STATED BANKING WITH THEM.
You also have another problem. You state that you partner has an unsecured loan and also credit card. You have not actually stated the amount of liabilities you have.
From just these two things, you may actually be borrowing too much.
You have not even told us your total income (salary).
Two options:
Seek an independent advisor or go window shopping.
Thanks, I didn't realise that the Canadian thing would be that much of a problem - even with me as the primary name? Okay, so we're limited on banks for another year or so until she can qualify for citizenship? As it happens my GF has her bank account with the HSBC so I guess asking them is one option.
Her CC has a very small limit - £3500, and her loan only has another year to pay, so about £3000 left on that *from memory*!
Our salary is £38,500 for me and £43,000 for her this is before any bonus schemes etc...
Time to call the morgtage advisor!0 -
I think you should go to a mortgage adviser for help rather than making lots of other applications. You've only been knocked back once so it isn't time to panic yet. One thing to check - are you both on the electoral roll?
Being the OH in this situation, I think I've isolated the problem. I wasn't on the electoral roll for the second place I lived, meaning there are records for me in 06-07 and 08-09 but *not* 07-08.
By chance I was living in a new flat, so I filled out the electoral roll in 06-07 because there was no one on it for that address.
For 07-08, my housemate and I somehow didn't get added to it and didn't chase it up as we didn't realise it's importance. Doh!
Apart from that, all green circles and an Excellent credit score. Would that *really* stand in the way of getting a mortgage? or a mortgage at a competitive rate??0 -
A international can have a mortgage with the NatWest as long as they have 20% deposit if they don't have indefinate leave to remain. Don't know if this is the same with other companies.0
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Just thought I'd follow up on this thread and confirm that yes, we were able to get a mortgage with NatWest.
Have to say too that the process was very painless -- applied over the telephone at our convenience, sent in paperwork and the got updated by text to confirm status.
After dropping paperwork off to the branch on Friday, we got a text on Monday morning 9am to say all had been received. An hour later telephone call to confirm that our mortgage was approved.
Have to say in this scenario that going direct was far better than the brokers we consulted. Plus, some banks offer better rates by going direct as they are still keen to keep their presence on the High Street.0 -
I couldn't see any reason at all why you would be refused, good income for both, big deposit, LTV of 75%.
Glad you got it sorted.0
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