Ftb: What can we do?!

vespertine

I am new to this board; it always appears when I google, so thought someone might be able to help?!

Hubbie and I have joint income of £84k. Stable, permanent jobs.
Loan of £17k (funding post grad study few years ago)
No credit cards, overdrafts or anything else hiding anywhere.
Low monthly commitments.
Checked credit rating on Experian - both of us rated 'fair'
Only just gone onto electoral role, so possibly not reflected on our credit rating.

Just been declined for £135K discount, 90% mortgage with HSBC
HSBC unhelpful in giving reason; will tell us Monday.
Already have made offer on property that has been accepted.

Question: should we just plough on and apply elsewhere; wait for HSBC and plead our case; forget it and remain in miserable rented house until we die (bitter? )

Thanks for any help.

koexelek

Worth ploughing on , I would say.

HSBC have great rates, but they do " cherry pick" their borrowers , and prefer low loan to values.

I think you would get a 90% mortgage with someone like Halifax, Abbey, RBS, C & G etc, but the rate probably won't be as good as you would have got with HSBC

vespertine

Do you know if it effects our credit rating if we have had a mortgage refused.
Should we only apply to one mortgage at a time?

Mrs_Bumble

The search by HSBC will show as a search by a decline won't.

The problem that you will have is that the more lenders that you approach and the more searches that they carry out will lower your credit score and affect your ability to obtain a mortgage and there aren't that many lenders that will lend at 90%.

You will stand a much better chance of a mortgage if you increase your deposit to 15-20% deposit and you will have a lot more lenders available to you.

ben_Mortgage_consultant

Am not surprised HSBC declined mortgage as they are only accepting around 1 in 4 apps at the moment. Your situation is clear, either approach another 90% LTV lender (RBS/Natwest, Brittania, Halifax, C&G etc are examples) rates will vary from around 6% to 7%. Alternatively increase your deposit to 15% and you rate will fall to a 5%+ deal saving you a considerable sum. Your situation and income dictates that obtaining a mortgage should be possible.

herbiesjp

90% limits the choices available, but I'm sure the other 90% lenders would be more than happy to agree that mortgage for you based on those multiples

A bigger deposit would help with lower rates, but if you only have 10% then other lenders will help.

However, rather than going direct, I would go via a whole of market adviser, just in case there is something about your application that would put you outside of lending criteria with the lenders available.

You do not want to apply to other lenders and get declined again, as numerous credit searches can harm your score with their scoring systems

Ama

A fair credit rating tend not to be good enough these days. I had a "fair" rating but was still declined by the co-op. My rating at the time was 775. I worked on it and it has gone up to 995 out of a possible 999. I recently applied to the same lender and I was accepted straight away.

If I were you, I would get my name on the electral register and make sure it appears on my file before I reapply. It is extremely important and will boost your rating.

expat_one

Its about time the uk caught up with the rest of europe, all this credit rating rubbish and electoral role stuff.
Just because someone chooses not to have credit or chooses to go to europe to work should not make any difference.
people living abroad also have gas, electric bill etc, and also have paid mortgages or rent abroad all of which can be proved. all the electoral role is is a
registration of names to vote in that area, how can a mortgage application depend upon this.
If a brit came to spain and wanted to buy a house with a spanish mortgage, no problem. If a spaniard came to the uk he would find it almost impossible to buy a house here. he would probably get a house for free.:mad:
Come on uk catch up and smell the coffee.
RANT OVER:o

Mrs_Bumble

Expat one -

The lenders in this country have no way of viewing any credit related history and so they are unable to ascertain whether the person applying has maintained credit appropriately.

The electoral role helps with cases of fraud, if the lender can see that the person applying for the mortgage actually lives at the address(es) that they have given it ticks another box in the fraud checklist.

How else can a lender judge?

A spaniard coming here to purchase a property would have to fulfill the same requirement and have credit history here.

Did you maintain a British bank account will you were away? Have you asked them if they will lend? Have you spoken to an independent, whole of market, mortgage broker?

nervousftb_3

expat_one wrote: »

Its about time the uk caught up with the rest of europe, all this credit rating rubbish and electoral role stuff.
Just because someone chooses not to have credit or chooses to go to europe to work should not make any difference.
people living abroad also have gas, electric bill etc, and also have paid mortgages or rent abroad all of which can be proved. all the electoral role is is a
registration of names to vote in that area, how can a mortgage application depend upon this.
If a brit came to spain and wanted to buy a house with a spanish mortgage, no problem. If a spaniard came to the uk he would find it almost impossible to buy a house here. he would probably get a house for free.:mad:
Come on uk catch up and smell the coffee.
RANT OVER:o

so if we did away with credit ratings, how on earth are mortgage companies supposed to assess who will reliably pay them back the hefty loans they give out?! i am not suggesting the system is perfect, but what is the alternative? credit rating is the only way of checking to see a person's record of paying back loans/credit, and this seems pretty fair to me.

herbiesjp

expat_one wrote: »

Its about time the uk caught up with the rest of europe, all this credit rating rubbish and electoral role stuff.
Just because someone chooses not to have credit or chooses to go to europe to work should not make any difference.
people living abroad also have gas, electric bill etc, and also have paid mortgages or rent abroad all of which can be proved. all the electoral role is is a
registration of names to vote in that area, how can a mortgage application depend upon this.
If a brit came to spain and wanted to buy a house with a spanish mortgage, no problem. If a spaniard came to the uk he would find it almost impossible to buy a house here. he would probably get a house for free.:mad:
Come on uk catch up and smell the coffee.
RANT OVER:o

Ex-pats can get mortgages

You just need to know which lenders will offer them to ex-pats based on the circumstances of the individual