Messed up with a mortgage search

Careful_girl

I have just spent a week trying to apply for a mortgage which one of the search sites suggested. I ended up speaking to their broker who was suggesting other mortgages which weren't as good. However I trusted that somewhere in the small print it said you won't really get what you ask for and agreed that him searching for me was helpful. He seamed to get all sorts of my information mixed up so much so that I spent the weekend thinking I had had my identity pinched and that my credit information was incorrect. I managed perfectly well on a different search 3 years ago so was confident of the system working (Just this one was more convenient)
Having been told by the search engine that I could buy a house up to £300,000 I found one and have made my offer, which has been accepted. I have a cash buyer for my own property who I do not want to lose.
He has told me tonight that I cannot have any thing like the amount the search engine said. This is not due to a bad credit score just the information I gave initially.
Should I check my credit score? Has all his messing about added a worthless search on my credit score? As I am in such a rush and desperate to persuade someone to lend this obviously extra large amount, I am considering just asking my current bank and mortgage lender for the mortgage because I am a good customer.
Help!

lightspeed

Hi,

It would be useful to post specific details regarding income, debt and equity in current home.

This will give other posters who may be able to help the information they need.

AndrewSmith

Why not post some details such as income, mortgage amount, other debts etc and let's see what the situation is.

Always be very careful of supposed mortgage search sites as generally they will take your information and sell it to the highest bidding mortgage broking firm. Moneysupermarket for example, this is how they work.

Andy

Careful_girl

Equity for deposit £150000
Income £31464
One loan £5368 (Can get paid off as selling the car)
One credit card balance of £2000 which is being tarted around
I pay off everything else.
My husband is not working but applying for jobs. Because he stopped bringing in his salary we cannot afford our urrent mortgage and home. I would not entertain going into arrears so the house is sold.
I have found doing it all on one appplicant I get more money. I can make the repayments, I have checked all the budget. This is a temporary situation whilst my husband gets his job, he had another interview today.

homer_j_3

Rule of thumb is about 3.5 x salary. Even if you were debt free, you would need just under 5 x your salary to get a 300k property.

There are mortgage companies that will look to these stretches but they are not necessarily the best ones for you or the most competetive.There could be consideration for the debt you have reducing your borrowing capability.

What has your broker offered you?

AndrewSmith

What you need is to have the case presented to amore traditional lender who will be prepared to assess the case on it's own individual merit as opposed to a computer making the decision.

Yes, the income stretch is almost 4.77 but with a deposit equal to 50% it is possible that this could be acceptable to some lenders as you have just as much to lose as they do, not necessarily at a much higher rate either.

Which lenders have been approached already and what is the broker proposing?

Andy

Careful_girl

£85,000 a bit short! I wouldn't have minded if the website (one of Martin's links) hadn't said I could have it. This was the information I used to find the best property I could afford. I feel a right fool now. I knew it was a lot but I didn't want to buy another house when my husband got a job. I also didn't want to sighn up with a rental property and be out of the property market.:( Not so careful huh.

AndrewSmith

As I said, you need to be careful with some of the comparison sites out there as the majority are simply lead generation services who then sell your information on, in auctions to brokers etc.

Do you know which lenders have been approached already or is that just the figure that has been calculated by the broker?

I personally think that you have a reasonable chance of success providing the case is presented in the right way to the right lender. This is where a broker with a few years experience under their belt will come in.

When asking a broker for help don't be scared to ask them what experience they have and how long have they been dealing in mortgages. They will be unlikely to risk being de-authorised by lying about this to you as the consequences for mis-informing clients of such things can be severe under the FSA regulations.

Hope this helps

Andy

Careful_girl

He said he was going to ask the Halifax. I have even had a mortgage with them before. They said they were worried about my husband's lack of job but this is on my finances not his. Not that he has any debt problems yet.The broker seemed to get everything confused though. Last Friday after missing an appointment the night before to phone me back, he asked why I alreasy had 2 mortgages outstanding. I had to explain again that as I am still living in my house I have a mortgage. (Part and part to top up my old endowment policy). It all sounds very unprofessional and these people have access to my personal details. I have asked The Alliance and Leicester to phone me, their rates are pretty competitive and I have loads of their products.

MortgageMamma

You are obviously unhappy with the advice you are receiving, don't use any advisor unless you are confident and comfortable with them. What area are you in i might be able to recommend someone?

AndrewSmith

Just be mindful that everytime you approach a lender they will run a credit check on you.

Alliance and Leicester do have competetive products however are sometimes renowned for agreeing an amount at the initial stages which they then decline later on. I have seen this a few times this year already.

Who's name are is the credit card and the loan in currently?

Andy