Why cant I get Extra borrowing!!!!

lyndseyk76

Me & My husband are both working full time earning good salaries. Are home is worth £120,000 - £130,000 yet are morgage is 67,000. We was on a fixed low interest morgage until ocober last year and were now on variable. We want to borrow £26,000 to put an extention on our home to make it 4 bed insted of 3 and give us a utility room with small computer / reception room too. :T
Yet we have been knocked back on a great deal (and prob wont get any other) because I had a argos additions account last year and missed 2 months payments, I thought I had paid them online and got a reminder saying they had charged me double, Its wasnt for much (less than 30quid) and most of it was interest & charges for the letter, I settled it the following month (aug 09). We have never missed a payment on our morgage with barcleys, dont have any credit cards or catologues etc. What can I do as it seems silly because of 2 months missed payments (not a default may I add!)
Any ideas??????????

happybroker

get a copy of your credit file and arrange to speak to a good whole of market broker. A good broker should know who will entertain this and who won't, I would be surprised if this couldn't be done if that's all there is to worry about.

herbiesjp

You do not say what your incomes are, but I would think you should be able to still find a mortgage deal.

You are just over 75% borrowing, which is the point at which the rates get better, if you can stay under that level.

Which lender knocked you back?

Have you gone direct to the lender or via a broker?

lyndseyk76

Hi, Our incomes are 22,000 & 19,000. We went to our morgage advisor who we always use but she seems to think noone will offer us a decent rate morgage now (we dont want our payments to be too much per month) We even tried our current morgage borrowers (barcleys) but they said would only borrow us 21,000 and that our house is only worht 110,000 even though 2 houses have sold for 128,000 & 130,000 in the same road! They wanted us to pay 65 pounds to get a evaluation and to go fixed from now with them but said if failed the credit check we would have to stay fixed at that rate!!!! its a nightmare & unbelievable when we earn well and have no credit cards or other loans etc. :mad:

basil1998

my brother in law went to apply for a mortgage and has got turned down due to missing to payments on his moble monthly bills

herbiesjp

They are probably going on indexed values.

If you go for a deal with a new lender, offering free legal fees and valuations, amd adding the arrangement/booking fee to the loan you have nothing to lose.

You will get a survey done, which would hopefully be the figures you are looking at.

Unless there is something else in your situation, not sure why you would not be able to get a mortgage elsewhere.

Being over 75% you will not get the best rates, but you should be able to do what you want.

I would get a second opinion and explain your requirements to another whole of market mortgage adviser and see what they can find.