Mortgages and credit

Touchdown49

Could somebody please give me some advice on credit and mortgages ?

We (me, my wife and 3 young children) have recently relocated (12 months ago) due to work. The company bought the house off me around Christmas time, but for an amount less than I hoped for, leaving me with around £20k deposit. Before the house was sold I was paying mortgage and rent plus bills in both houses which was a real struggle. For this reason, and the fact that our mail was re-directed, some credit card payments were late. I have never missed a mortgage and loan payments have been fine since the house sale.

I enquired through a broker about a mortgage and was told that it had been accepted in principal, then at the last minute was declined, much to the embaressment of everybody our end.

I am now frustrated that I cannot get a mortgage and will have to rent indefinitely. As I don’t know too much about credit etc, could somebody give me some pointers. Have I no chance of getting a mortgage until all my poor credit has disappeared ? Are there some mortgage companies that are more lenient ? Are there any that will sit down and listen to the predicament rather than just look at the numbers ? Am I better off applying myself rather than go through an advisor ? All these questions, but I just done know where to start. My current wage if £46,500, totalling around £53k with bonuses etc, I would be looking to borrow around £200. Any help would be most appreciated.

beecher

You n eed at least a 10% deposit and have to pay fees, stamp duty etc so £20k will not be enough for a £220k house. 90% LTV is high so renting for a while and trying to build up your deposit further seems to be the best idea.

Have you found out what your credit rating is and how much the late credit card payments have impacted onthem? What advice has your broker given you concerning other applications?

shop-to-drop

We have identical income to you funnily enough and last time we remortgaged we were told our maximum borrowing would be around 185K so it may be the amount you want to borrow rather than the late payments that are the problem. I'm sure you'll be able to buy again soon and that advisors here will be along to help. Have you done an experian checkup?

Touchdown49

The amount to borrow was OK according to the broker. For a 220k mortgage I needed 22k which I could get. It seemed that the credit was the issue.

beecher

Touchdown49 wrote: »

The amount to borrow was OK according to the broker. For a 220k mortgage I needed 22k which I could get. It seemed that the credit was the issue.

From what's been written on here, 90% LTV requires a squeaky clean credit file.

Touchdown49

So it looks like I am stuck until either I can get a bigger deposit (unlikely) or until my late paymentsevolve from my credit score, by which time the house prices will have risen ! I should have stayed where I was, reasonable pay and a mortgaged house !!!