Mortgage refused

laineymoo

Hi just after some advice.

In 2001 I was a student and run up some debt (approx 15k) on store cards/credit cards. As i was only working part time I decided to go to a debt management company Gregory Penningtons. (I never missed any payments before I went with GP, I only went with them because I had no life for paying the debts).

I was with GP for approx 4 years and never missed any payment, however once I qualified I got a good job over 60k a year and managed to save up the money and pay off what was left of my debts this was last year.

My problem now is GP paid 2 of my creditors late!!! I went into Default with 2 Creditors due to GP. The way GP worked was every 6 months they would re arrange by negotiating with my creditor on how much I would pay them each month, during the negotiation period they wouldnt pay my creditor!!!!!

Anyway I before the recession happened i managed to get a mortgage with northern rock, then i sold that property and made a large profit, and bought another property getting a mortgage with birmingham midshires. Now I want to sell the property and I cant seem to get a mortgage!!!

My Credit rating has went up from bad to good now in the past 12 months, Iv been offered credit cards from my bank and getting offered personal loans but am being refused a mortgage due to my credit history?!

I have no loans or debt and i have an excellent paying job, I have 45k worth of equity in my property which i plan to use as a deposit for my next property and i havent took out any credit since 2001. I have all the proof and evidence that i paid GP on time each month as per my agreement with them. However when applying for a mortgage as Little britain would say "COMPUTER SAYS NO".

I just checked my credit account i have 4 accounts which show i paid in full each month and excellent history with, 2 accounts which went to default due to late payment, and 1 account which shows it was paid off in full. All accounts state settled.

brians_daughter

i would suggest you seek advice from a whole of market independent (no fee) mortgage advisor. I am sure if you ask someone could recommend someone for you. I was in a similar situ re mortgage but a MA sorted one for me, taht actually worked out cheaper than what i originally wanted - and still fit all my criteria! They will gather all info and advise of what products you are likely to be accepted for - much better than applying 'blindly' to be declined.

they would need to know the basics initially ie deposit you have, what £ is required, debts etc but it can be a very quick process to get things rolling
hth

dfh

Hi,
It is better to apply at a Branch so you can talk to the advisor and explain your circumstances.Alternately,you can appeal against the decision by writing to them sending all relevant paperwork and asking them to reconsider their decision.

laineymoo

Hi Thanks

It was an independent mortgage advisor we tried and who we always usually go to year after year. He tried Halifax (I knew we would get refused as one of my debt was thru them) then he tried lloyds tsb (my bank) which also refused me.

So i went into tsb today spoke to the bank manager explained everything and he was away to find my refused application and look at it closely. I handed in all my bank statements dating back to 2001 as well showing proof i paid GP on time each month and never missed a payment. He said it could take a few weeks to go through everything.

All our mortgage broker said was to speak to the bank, he said he didnt want to keep applying and effect my credit score

laineymoo

Has anyone with previous bad credit, but improving credit managed to get a mortgage in the past year?

Mrs_Bumble

Your credit file will show arrangements to pay as well as the defaults, and the level of the amount of debt at the time will influence the whole profile. The market has changed a lot in the last 6 months and where the arrangements/defaults probably wouldn't have been a problem they are now.

How long ago were the arrangements commenced and when did you pay them all off completely.

How much were the 2 defaulted accounts defaulted for?

Lloyds TSB and Halifax are all the same company now.

Who do you actually bank with?

laineymoo

Hi Mrs bramble. I paid all debts off in January of this year. I defaulted at £160 on one account and £80 on the other. Am so mad about it because i paid my debt management company on time and it was them that caused me to default. I run up the debts in 2001 which was same time i went to a debt management company.

Its Lloyds I bank with.


I just find it so frustrating!!!!!!

Adverts on tv tell you if your having problems paying back credit to phone and speak to someone or use debt management companies and I did this and I appear to be in alot worse mess than what i was when i was paying my debt myself!!!

Surly any company reviewing my credit history would realise that i have no debt or loands taken out since 2001 when i went on my debt management, and i never missed a payment with my debt management company either, then i paid off all my debt in full!!!! I earn alot a year compared to most people and i have 45 grands worth of equity in my flat, plus no loans or direct debits or nothing. Iv also had 2 mortgages in past 4 years and iv never missed 1 payment on them either and with both mortgages i put down a 20% deposit each time. Plus i have savings.


I just want to scream!!! am desperate to sell my current property and move into a house

laineymoo

I meant to ask what about if my parents were willing to be a gaurentor would this help? or is this only applicable to first time buyers???

dunstonh

i would suggest you seek advice from a whole of market independent (no fee) mortgage advisor.

There is no such thing as a no fee independent mortgage adviser. By definition that means they are fee based. However, that doesnt mean they are more expensive than commission based ones as you would expect the independent to include non commission deals which may be cheaper than commission based deals. So, a fee of say £500 to the independent mortgage adviser may save more than £500 on the mortgage deal compared to a fees free whole of market mortgage adviser.

Mrs_Bumble

I agree totally with dunstonh above, you need a lender that will look at the whole profile and not just the score, they are small defaults, find an independent whole of market adviser.

In relation to the debt management company they very often cause more problems than they solve.

dfh

Mrs_Bumble wrote: »

I agree totally with dunstonh above, you need a lender that will look at the whole profile and not just the score, they are small defaults, find an independent whole of market adviser.

In relation to the debt management company they very often cause more problems than they solve.

This is completely off topic but the name dunston made me smile as I was just watching the film "Dunston Checks in".It is a bout a big APE that creates havoc in a hotel in New York