Mortgage and credit check = failed

herbiesjp

The fact it was for a small amount may mean some lenders "ignoring" it.

Communications companies and catalogue companies do have a bit of a reputation of maikng errors in this respect.

Again, not all lender are the same so another lender could well agree the mortgage for you without too much hassle.

Nationwide however have always turned away cases like these unless it can be proved it has been a mistake. You do not have this proof, and so they will not agree the mortgage

Enigma80

Well I just received a call back from my mortgage advisor who basically said there was only lender prepared to lend but that would be at a 75% LTV which would mean another £20k which we can't afford.

It also appears that my wife's problem is secondary, and the main issue is my credit card payments. I've basically missed a few in the past year which has seriously dented my credit report. What he also noted as 'odd' was that my credit score was still higher than my wife's.

Looks like we'll have to rent instead then

Sunny2good

Hi,

sorry to hear about the problems you are facing. Reminds me somewhat of my story not that long ago. i had similar woes with one mobile phone company and no matter how many times i wrote to them, they would not listen. Thing is that i was also unaware of the default being present there as mobile phones companies are not required by law to send out default notices, so they never do. This settled default was the only negative thing on my file. Everything else was perfect with no late payments or overdrafts at all. my partners history was a perfect one too. I only found out when i checked my credit reports before applying for a mortgage.

i put notices of correction on both equifax and experian, crossed my fingers and applied to abbey through a broker. Got declined by abbey. tried again with halifax using mortgage broker, got declined again. but i did not give up.. Got hold of all eveidence that i can afford the mortgage easily and that apart from this, my credit history is a perfect one. I walked into natwest as i heard their process is a bit lenient. Spoke to one of their mortgage advisers who was very helpfull and understood my situation. he gave me some good tips and put me on phone to their mortgage centre. was on the phone for nearly 45 minutes and you cannot beleive my excitement when i was told that i passed credit check and have a AIP. Applied jointly to one of the their mortgages same day and had a mortgage offer within 2 weeks subject to survey.

i have now received the official offer and will be completing soon. Everyones circumstances are different but my advice will be to try Natwest, cos you might get lucky

All the best,

Sunny

Conrad

Late card payments would indicate pressure on your finances and as such a mortgage underwriter would have difficulty approving your case as it would'nt pass the FSA's guidance on responsible lending. The FSA would expect the underwriter to ask you to demonstrate good account conduct over a reasonable period of time (say 2 or 3 years).

As for Sunny's suggestion of Natwest, well thats the lender that was minutes from bankcruptcy until the Gov.t bailout so they are the last lender I would try as they have billions in bad debt they are trying to pay down and as such take only the best cases. I think Sunny was just lucky or in fact his case was indeed a low risk. For someone with recent history of late payments I'd say N West would not be helpful.

Enigma80

Thanks Sunny. Well my wife banks with Natwest and I with Barclays. We're going to try both and actually take our credit reports along with us so they get a clearer idea of what to expect. I'm hoping that the CC being with Barclays might help with the matter.

Another factor that might be problematic is that I'm on contract. This issue alone wasn't a problem, but combined with the credit problem it may pose a greater threat.

Conrad

There is no way those lenders can offer you a mortgage if you do not have a permanent contract unless the contract has been worked for some time and is to continue for at least another year.

Barclays to not make lending decisions - Woolwich are the company within Barclays that get to decide but you will see a fair few posts around here about woolwich taking 3 months and then declining.

Nat West are part of RBS that have billions in bad debt so a very unlikely option.

I'd love to offer hope and be positive, but that would be a falsehood designed to get a thanks which some would seek on this board. I prefer Simon Cowell honesty.
You need to make sure you pay everything on time in full and retry in a year or so, unless you get some stroke of luck

Good luck

Enigma80

I've been in my current role (in academia) for 2yrs, and has been extended once already, Nationwide didn't have a problem with this at all.

Well our current options are to:

1. find another £20-£30K from family members (difficult as it stands) to get a lower LTV which might make it easier.
2. find a much smaller/cheaper property like a flat or something just so we can get on the property ladder; we don't want to miss the opportunity of relatively low prices
3. Shared housing scheme - not sure about this
4. rent for a year or so
5. stay with my parents and save some more for another year: but carry on struggling with space (not ideal for baby).
6. A friend suggested going on the housing register would be cheaper than renting and if my contract doesn't renew I won't be thrown out.

punksluck

I'm surprised that you are not already on the housing register. many people ignore this opportunity because of the stigma attached to council properties. Myself and my girlfriend signed on the list 8 months ago and we live in Surrey. About 2 Weeks ago, we got a phone call from Waverley Council offering us a property. When we went to view it turned out to be a semi-detached cottage with character features!
We are now going to spend money getting the house to a good standard and will buy it when we qualify for our discount.
Please don't ever rule out council properties because there are some real gems out there and you never know your luck. Anyway, it's free to register so you have nothing to lose - after all, you can always turn it down if it's not suitable.

Pammy

Sunny2good wrote: »

Hi,

sorry to hear about the problems you are facing. Reminds me somewhat of my story not that long ago. i had similar woes with one mobile phone company and no matter how many times i wrote to them, they would not listen. Thing is that i was also unaware of the default being present there as mobile phones companies are not required by law to send out default notices, so they never do. This settled default was the only negative thing on my file. Everything else was perfect with no late payments or overdrafts at all. my partners history was a perfect one too. I only found out when i checked my credit reports before applying for a mortgage.

i put notices of correction on both equifax and experian, crossed my fingers and applied to abbey through a broker. Got declined by abbey. tried again with halifax using mortgage broker, got declined again. but i did not give up.. Got hold of all eveidence that i can afford the mortgage easily and that apart from this, my credit history is a perfect one. I walked into natwest as i heard their process is a bit lenient. Spoke to one of their mortgage advisers who was very helpfull and understood my situation. he gave me some good tips and put me on phone to their mortgage centre. was on the phone for nearly 45 minutes and you cannot beleive my excitement when i was told that i passed credit check and have a AIP. Applied jointly to one of the their mortgages same day and had a mortgage offer within 2 weeks subject to survey.

i have now received the official offer and will be completing soon. Everyones circumstances are different but my advice will be to try Natwest, cos you might get lucky

All the best,

Sunny

Hooray. Thank you Sunny, finally a postive post from someone with a default. I am in the same situation as you were in. Mobile phone company from 2005 and was turned down by Abby and have been too scared to apply again due to the stress. I have also been given condradictory advice from brokers, so I have lost faith.

Im so pleased to hear a positive outcome as either I read lots of doom and gloom or people never post the outcome.

Conrad

It's difficult for any broker to give definitive predictions because in the end lenders are staffed by Humans with all thier frailties. One day an underwriter may wave a case through, the next say after a stressful meeting about arrears on a past case he'd agreed, he might decline.