FTB Mortgage

danielw_2

Hi there,

A little lost here... 22 year old FTB, good sized deposit (25%+) looking for a fixed rate mortgage (ideally 5 years) on a propperty of 70k. Full time employed (15.5K per annum) with same company for near 4 years.

Met with a couple of independant advisors who were helpful, spent a bit of time with each who both said I should have no problems. Unfortunately none of the packages they had to offer could beat what HSBC had direct - 4.99%, no set up fee.

Spoke to HSBC today (who I have banked with since I was 15 and have all my savings) and they declined the application as I had no credit history, bearing in mind my wage has always been payed into HSBC, so they can see my in goings & out goings, which would show the repayments (c £298 per month) would easily be covered.

They advised I check with Experian, which shows I have an 'Excelent' rating (972). So now I'm a little lost and un sure how to procede. I have contacted one of the advisors I have been in contact with, but this was quite late on a friday afternoon. Just wondering if you guys had any advice? I know I should get a credit card or something to build up a credit history, but I would rather not loose this house.

Any advise would be greatly appreciated,

Cheers,

Daniel

Kavanne

get a credit card. use and pay off in full for 12 months. reapply for mortgage.

suzy83

danielw wrote: »

Hi there,

A little lost here... 22 year old FTB, good sized deposit (25%+) looking for a fixed rate mortgage (ideally 5 years) on a propperty of 70k. Full time employed (15.5K per annum) with same company for near 4 years.

Met with a couple of independant advisors who were helpful, spent a bit of time with each who both said I should have no problems. Unfortunately none of the packages they had to offer could beat what HSBC had direct - 4.99%, no set up fee.

Spoke to HSBC today (who I have banked with since I was 15 and have all my savings) and they declined the application as I had no credit history, bearing in mind my wage has always been payed into HSBC, so they can see my in goings & out goings, which would show the repayments (c £298 per month) would easily be covered.

They advised I check with Experian, which shows I have an 'Excelent' rating (972). So now I'm a little lost and un sure how to procede. I have contacted one of the advisors I have been in contact with, but this was quite late on a friday afternoon. Just wondering if you guys had any advice? I know I should get a credit card or something to build up a credit history, but I would rather not loose this house.

Any advise would be greatly appreciated,

Cheers,

Daniel

Hi Daniel,

I think the problem your having is because you've not had credit in the past and its showing that you are at risk to the mortgage company.

Sounds daft doesn't it??!!

Lendershave got really picky who they accept now. It might be that you have to get a mortgage with a sub lender instead of a prime lender. I know a few people who have had to down this route just to get on the property ladder. Then after the fixed period is over they can then approach a prime lender such as Halifax. Your Financial Advisor will be able to explain this to you as im no expert. The only problem with going with a sub lender is that you will have to pay a higher rate, I.E 6%.

Good Luck

Kavanne

oh yes (ignore my first post at the moment!!), go back to your independent advisors and tell them your situation and that you've been declined by hsbc. ask them if they honestly think they can get you accepted with anyone and what rate you might be able to get.


if they think nothing or you're declined again, do what i said above

danielw_2

Do you have any names/contacts for a sub-lender? Sounds like something worth at least looking into,

Cheers

suzy83

danielw wrote: »

Do you have any names/contacts for a sub-lender? Sounds like something worth at least looking into,

Cheers

Hi, The only one i no is Beacon Homeloans, however, im sure there are a few more out there.

herbiesjp

Do not go the sub prime route first

Investigate other high street options first, in order to find more competitive rates

Just because HSBC does not want your custom, does not mean all lenders will have the same response

danielw_2

Anything other than a High Street lender will be looked at as a very last option, was really just seeing if there were other options.

After the standard route I may look into the posibility of using my parents propperty as a guarantee against the mortgage, but thats another discussion for another day