turned down by bank

butterflyer

deleted awaiting further advice from financial advisor

anxious_first_time_buyer

butterflyer wrote: »

hi been reading posts but first time posted.looking for some advice please. we are first time buyers but with 75% deposit having been left some money in will. credit report isnt brilliant, shows 3 defaults from 2005 which were paid soon after and came to around£1,000. and a ccj from 2005 for £200 which was paid within months, since 2005 no problems, run our bank account well with no overdraft or charges. however we found out today that our bank(nat west) has declined the mortgage. got a meeting with a broker tomorrow but is it realistic he might be able to secure a mortgage for us, or is it inevitable we will be declined everywhere.very frustrating as we have all savings with the bank,thanks

Hi... I have also been turned down by my own bank NatWest recently due to a CCJ in 2007. The reason they turned you down is that they do not like bad credit people, in fact, no high street banks do.

My possible advise is you might try to go to a specialist broker and get a adverse mortgage like me.

My broker has just helped me to submit an application to PLATFORM and mortgage has been agreed in principle for only 25% deposit. At first, I would think their interest rate will be fly high like 8-10% but amazingly my broker has managed to get me a reasonable rate of 4.99% fixed for 3 yrs.

I don't know whether it's a dream too good to come true but PLATFORM has been informed about my CCJ before I got the mortgage in principle. Therefore, I hope everything will run smooth after the formal application.

Tuscan

we are kind of in the same situation as you, bar the fact we already have a mortgage but want to move and down size and clear all debts. we have some defaults and a large CCJ all being paid monthly at the moment.

our plan was to wait another 18 months or so and hope the lenders relax there criteria a bit then sell up clear all debts and this will still leave around a 60 percent deposit to put down on a new house as we have a very large equity in our current home.

based on most of the advice ive picked up on these forums it seems we will have little chance of a mortgage offer untill the CCJ has been settled for a few years or even until its removed from the credit files (6yrs) which we cant do without selling the house. so we are going to sell up clear debts then rent until we can get a mortgage again.

we want to move as we have a baby daughter now and dont want to bring her up were we live now, we are going from Thurrock Essex to a rural village in Suffolk.

we will have around 80k in cash left after the sale and debts are paid so will take advice as to what to do with that cash until we need it for the deposit. have been thinking of buying outright a cheap flat to rent, or just put the cash in a isa..

might be something you could do..

Batchy

it will take you about 10 years to put that money 80k into an ISA... as there is a yearly LIMIT of around 4k per annum...

Bond would be best bet, if you have long term goals... 80k on flat may lose you money, or gain you money depending on future values

Good luck

Tuscan

Thanks Batchy

at the moment we are at the mercy of house prices, our house has dropped by about 50k since the CC although still have about 100k equity as bought at the right time.

for us its just a matter of waiting a while and seeing were house prices are going, on a plus point where we are now will prob rise faster than where we are going and property used to move fast here as we are very central and have great links to London and Kent etc and come under the Thames gateway so may even get a rise with the Olympics etc. also my development tends to be very popular with buyers looking in the area.

just a waiting game although every month that passes the mortgage and debts are coming down:o

PS not meaning to highjack your thread Butterflyer