Turned down, advice required please

Colapola

Hi,

I hope someone can advise here.

I am looking to get a joint first time mortgage for a property costing £280,000 with a deposit of £60,000

I have two defaults from, one from 2005 and another from 2006. Together they come in at just over £500, all were paid off in full and settled.

The rest of my credit history is great, no late payments, nothing else.

A combined income of £84,000

I have had loans, which have all been paid off.

We have been turned down by RBS and Halifax. Halifax was a soft search so no footprint on the credit file.

As we don't want to leave a credit footprint our broker was going to try again with BM Solutions, but looking at their site the deals don't seem great.

The other alternative was to go to the Woolwich.

Can anyone advise on if there is anything we can do?

opinions4u

If you can get your lending below 75% (e.g. a £70k deposit) the mainstream lenders would probably be more interested.

The alternative outlined by your broker is a reasonable course of action in the circumstance though.

Colapola

Cheers for that.

So will £70,000 make a huge difference then?

Is there any point in Woolwich if RBS and Halifax did a flat no.

getmore4less

Who do you bank with?

In the past I have found my main bank have been more open to deals based on affordability.

This was for higher lending, rather than a not so good credit record.

With this level of income you should be able to boost that deposit quickly.

TMSL

i would look at lenders like principality or itl (stroud & swindon), especially stroud and swindon as they manually underwrite, us brokers can get the cases verbally agreed as well via the underwriters before submitting.

happybroker

Coventry/ Godiva could also be an option but like conrad says, if you are using a broker ITL can be very helpfull, the business development managers that we deal with actually have a lending mandate too (or at least did!!) which is excellent.

Colapola

Cheers for all the advice.

We were actually turned down by Abby 8 months ago, which is my own bank. It actually went to the underwriters on that occassion, it wasnt a flat no but they came back with a decline.

But the broker spoke to the buisness manager and the underwriter who claim we have a good chance of being accepted now by them.

Obviously I'm concerned about leaving footprints as they don't do a soft search.

I'm not sure what to do?

I have no concerns with my bank account, but do they check this when its your own bank or do they go on the credit score alone.

The buisness manager mentioned that Abby have changed their criteria in the last 8 months but what is unclear is if thats in my favor or not.

happybroker

the abbey are certainly not more flexible than 8 months ago, maybe even tighter. Brokers don't get direct access to underwriters either I'm afraid.

Is the broker in an estate agency? If so they may not have access to the smaller bilding societies that Conrad & I mentioned earlier.

Woolwich have a line for brokers to ring to et an agreement in principle from a real, human underwriter (yes they are still out there!!), I'm surprised you broker hasn't spoken to them if that's who you bank with.

Colapola

It was the buisness manager who the broker spoke to at abbey
. It is abbey who I bank with

Colapola

Not sure if my previous reply was clear as I wrote it on my phone

So I bank with Abbey and was declined by them 8 months ago.

I did indeed mention your suggestions, they are all of the market as I understand it.

The broker has been great in my opinion but I'm not sure if going back to Abbey is a good idea.

I'm also not clear what the role of the business manager is, apparently the Abbey one did speak to the underwriters to have a quick look.

I did concede and agreed to try Abbey again, but it was late on Friday so is happening tomorrow.

Would you advise to hold of?