Mortgage declined - Abbey

j1mgg

I currently have a shared ownership mortgage where i own 25% and have my dad on the mortgage aswell(in a temp job when taken out). I bought it for £20k in 2000.

I am looking to purchase extra share so got the property valued(£150k). I was looking to purchase an extra 50% but have been advised my dad is too old(65) and if i wanted to do that it would have to be taken over 9 years.

I decided i would try myself for an extra 25%, which in total be £55k total mortgage.

Although it was said i could afford this experian declined me on an unexplained reason. I have signed up to experian site and my score is 729 which it says is fair, but obviously it isnt.

I do have 2 defaults which i settled over 2 years ago but am i correct they stoy on for 6 years

default 1 defaulted 17/03/2004
default 2 defaulted 11/02/2004

I earn £21.6 and have 2 credit cards(taken out in the past 2yrs) and a loan(less than 6 months left, they have a outstanding value of £3k and have not missed any payments in the last 3 years, maybe more.

Should i wait till after march or try another mortgage company?

Thanks for the help but it could be money down the drain(valuation fee + solicitors fee)

powerwin

I'm not an expert, but here are my views:

- My understanding is that a default will stay on a credit file for six years.

- You aren't far away from the six years when your defaults should drop off your credit file, so if you aren't in a major hurry then waiting until they have dropped off will make your circumstances look better, and you should have a better chance of being accepted by your mortgage lender of choice.

- My own view is approaching other lenders is usually a good idea. After all, unless you ask around, how can you be sure you are getting the best deal? So, in the short term you could approach other lenders, and ask them for their views on your situation and ask for a Mortgage Agreement in Principle WITHOUT them running a credit check on your credit file. Make it clear to lenders that they aren't allowed to run a credit check unless you give them express permission, as running too many credit checks can damage your credit rating. If you find a lender that you like the sound of, then you could ask them for their Mortgage Agreement in Principle and let just them run a credit check if they want to.

These are just my thoughts, I'm no expert.

Rgds

j1mgg wrote: »

I currently have a shared ownership mortgage where i own 25% and have my dad on the mortgage aswell(in a temp job when taken out). I bought it for £20k in 2000.

I am looking to purchase extra share so got the property valued(£150k). I was looking to purchase an extra 50% but have been advised my dad is too old(65) and if i wanted to do that it would have to be taken over 9 years.

I decided i would try myself for an extra 25%, which in total be £55k total mortgage.

Although it was said i could afford this experian declined me on an unexplained reason. I have signed up to experian site and my score is 729 which it says is fair, but obviously it isnt.

I do have 2 defaults which i settled over 2 years ago but am i correct they stoy on for 6 years

default 1 defaulted 17/03/2004
default 2 defaulted 11/02/2004

I earn £21.6 and have 2 credit cards(taken out in the past 2yrs) and a loan(less than 6 months left, they have a outstanding value of £3k and have not missed any payments in the last 3 years, maybe more.

Should i wait till after march or try another mortgage company?

Thanks for the help but it could be money down the drain(valuation fee + solicitors fee)

herbiesjp

powerwin wrote: »

ask for a Mortgage Agreement in Principle WITHOUT them running a credit check on your credit file.

Rgds

Most lenders will not do that

An agreement in principle is not really worth much - it is merely an indication.

Many times lenders decline mortgages upon full application and full underwriting of the case.

powerwin

herbiesjp wrote: »

Most lenders will not do that

An agreement in principle is not really worth much - it is merely an indication.

Many times lenders decline mortgages upon full application and full underwriting of the case.

OK, thanks for letting me know.

Rgds