Would you lend to us?

meerkat_compare

Hi to All,
I'm seeking a little reassurance perhaps as to my and my partners situation.We have sold our current house with the new people moving in on friday, we have a new home to go to also.However after a protracted and shambolic experience with RBS our mortgage application was refused only 10 days ago.We have a new application ongoing but as you can imagine come friday we could be homeless so our nerves are shredded! I would welcome advice from anyone whether or not, going on our details, we should be worrying.

Agreed price - £159000(valued at £160000)
Deposit - £56000
Mortgage req. - £103000

Joint income - £75000
My time with current employer nearly 5 years and my partners 20 years

Credit History - This is where it does become more complicated, I have never borrowed or owed anybody a penny in my life. My partner though is a discharged bankrupt(some 3.5 years now) furthermore after our intial mortgage refusal we checked my partners credit report(reason given for failing) in hindsight I know!! check it first. It stated 2 defaults for nearly £4000 both of which were actually incorrect and after contacting the companies concerned an "oversight" on their part for not updating the credit report.These were corrected with one removed completely and the other stating a date of satisfaction, now the credit looks much better including details of car payments for the last 2 years with no payments missed.

I would welcome any opinions as to whether our details are good enough to obtain a mortgae or should I start looking for a rental? Thanks in advance.

rob7475

I'm no expert, so this is only my opinion. I reckon you should be able to get a mortgage though. Have you tried Beacon home loans? May be best to chat to a broker for better advise. We've used a broker called Metro Finance in the past who seemed OK. They're the only broker we've ever had to use though, so got nothing to compare them to.

opinions4u

meerkat_compare wrote: »

I'm seeking a little reassurance perhaps as to my and my partners situation.We have sold our current house with the new people moving in on friday, we have a new home to go to also.However after a protracted and shambolic experience with RBS our mortgage application was refused only 10 days ago.We have a new application ongoing but as you can imagine come friday we could be homeless so our nerves are shredded!

Delay completion of the sale of your house while you sort things out. Slighlty confused by the 2 bolded phrases appearing to conflict.

I would welcome advice from anyone whether or not, going on our details, we should be worrying.

Agreed price - £159000(valued at £160000)
Deposit - £56000
Mortgage req. - £103000

Joint income - £75000
My time with current employer nearly 5 years and my partners 20 years

Credit History - This is where it does become more complicated, I have never borrowed or owed anybody a penny in my life. My partner though is a discharged bankrupt(some 3.5 years now) furthermore after our intial mortgage refusal we checked my partners credit report(reason given for failing) in hindsight I know!! check it first. It stated 2 defaults for nearly £4000 both of which were actually incorrect and after contacting the companies concerned an "oversight" on their part for not updating the credit report.These were corrected with one removed completely and the other stating a date of satisfaction, now the credit looks much better including details of car payments for the last 2 years with no payments missed.

See a mortgage broker. You have a half decent deposit which may help you get round the bankruptcy and other related issues.

That will give you a better guide on what mortgages you can/can't get and, importantly, how much they'll cost.

Then you can make a more informed buy / rent decision.

Chinkle

Where are you at with your sale/purchase? How can you say you'll be homeless on Friday? Has your solicitor allowed you to exchange without having a mortgage in place on your new home?

You need to see a broker fast, if you don't complete on your new home you will not only be homeless but forfeit your deposit.

Mrs_Bumble

What is your sole income? Do you have any other credit committments at all?

Even with the correction your partners credit history doesn't look great.

Oh and even if there is another lender that might look at an application you are never going to get it through for Friday.

meerkat_compare

Thanks for the replies, to clarify a few things we agreed to the sale of our home for the sole reason that the housing market round our way is set in stone and is going nowhere.Hence when we got an offer we accepted and they have the funds so we could not afford to delay them any longer as their are numerous houses for sale in this area.We have not concluded missives for the place we are "buying" so are not committed to buy so our deposit is quite safe.

The other application I referred to earlier has just been declined the reason being that despite seeing our details and my partners discharge and making us an offer in principle they did not like the fact they are not discharged for 4 years so revised their offer to a 50% deposit-no chance.

We have another offer from the Cheshire Mortgage Corp(all these have been obtained via a broker) but they want a deal at 11.9% with an 8 year tie in.Beggars can't be choosers but idiots make poor decisions so I'm now tempted to sit on my deposit have it earn a little bit more and see how the mortgage market is in a year or two's time.

I've learnt one lesson though, don't believe anything a mortgage company and the like tell you until the money is on the table.I've been told now on every application that everything is fine and no problems were foreseen, this baring in mind that RBS gave us a mortgage back in Feb so my hopes were high! its a strange business :rolleyes:

chambta

Why have RBS declined the mortgage?

meerkat_compare

RBS declined the mortgage they claim on my partners credit report alone, they have been a customer for 25 years mortgages with them previously etc.This being the same credit report which was no problem back in Feb when they offered them a mortgage, frustrating to say the least.

Chinkle

OK, I see. Still if you conclude a sale before a purchase there is always a risk of ending up having to find temporary accommodation.

Don't let that panic you. Plenty of people are selling up and even renting for a while at the moment.

In the meantime, do get a broker onboard as they will check out the whole marketplace for a deal for you.

Good luck

Mrs_Bumble

meerkat_compare wrote: »

RBS declined the mortgage they claim on my partners credit report alone, they have been a customer for 25 years mortgages with them previously etc.This being the same credit report which was no problem back in Feb when they offered them a mortgage, frustrating to say the least.

You were aware of your partners credit history and with all the press etc should have been more wary. First response from a lender is always yay we can do that! but with obvious credit history issues alarm bells should have been ringing loud and clear.

To be honest if I was you I would be more worried about my deposit and financial situation and wouldn't be willing to jump willy nilly.

herbiesjp

Could you not buy in your own name?

There are better lender than Cheshire that might be able to help - Cheshire rates are horrendous and with long tie-ins, and so should only be used as a last resort or with a low mortgage amount.

If I were you I would get a second opinion from a true whole of market mortgage adviser, on options for both a sole or joint application