Bad news

BarmyBubba

My mortgage broker rang me this morning to tell me my application had been declined by Northern Rock for a poor credit rating (was made redunant in March so missed a couple of my monthly payments).

Spoke to my own bank The Halifax and have managed to get one...after they have done the credit checks. Must help being a customer with them...oh and also living in Halifax.

Sounds like things will go pretty quick. Fingers crossed.

danielle21_2

Hello again Barmybubba

We also got knocked back from Northern Rock due to my partner been 20. I also bank with Halifax & a mortgage broker told me they were 2nd best after Northern Rock - although NR's rate was lower, the deal seemed fishy to us so we were umming & rrring about just going with Halifax anyway.

Cut a long story short, we went direct to Halifax and got a mortgage in principle & within 3/4 days of the surveyor going to see our house we got the mortgage offer. Although halifax charge very high higher lending charges I do actually think there worth getting for the first mortgage to get you on the ladder.

BarmyBubba

thanks for that Danielle.

I dont know why I didnt try them first to be honest. I just thought getting a mortgage broker would be the best way...especially as a FTB.

Going by your experience it does sound like they dont mess about. As I said on other thread I was told Northern Rock would take 4-12 weeks.

Is yours going through then? How soon do you expect to move in?

danielle21_2

Well... were buying a previously part exchanged property through Barratt so its empty. We sorted our mortgage out late June & instructed solicitors that same week. Solicitors are just awaiting on Yorkshire Water drainage search and these are expected back in the next couple of days. Then I think the solicitor agrees a exchange & completion date. Barratt previously told us we should exchange on 21st July and complete on 28th. Have you found a property yet?

BarmyBubba

Found property, its been accepted. I know him, he has moved to Thailand. Dread to think why. So he is not part of a chain either.

Got solicitors sorted, but they arent going to start their surveys until they receive the mortgage offer which should be any min now.

danielle21_2

Lovely, I will update you when I here back from my solicitor - hopefully this week and this will give you a rough idea of what timeframe ur looking at. Its a !!!!!! not been able to move straight in isnt it??! especially when there's no chain! - Barratts are giving us access to clean the house the day after exchange - were very tempted to get a key cut & just move in before completion, however, if anyone finds out I dont know what the circumstances would be!!!!

Hope all goes well.

BarmyBubba

I am ready to jump out of the window.

The Halifax has just rung back and said I failed their final credit check because of a late payment on my credit card three months ago (when made redundant). This even though I am up to date and even paid off about £350 of the balance.

Anyway, they suggested trying with Birmingham Midshires (who?) who 'help out' those who they deem a higher risk. Anyway, I have passed all credit checks but my mortgage repayment has now gone up to £664 a month for the first two years...over 35 years.

Am I mad to take it?

Jorgan_2

Be careful BarmyBubba, if you have to many credit scores in a short period of time it may affect your overall credit score. Have you sought the advice of a whole of life broker, who may be able to advise you?

danielle21_2

Yeh barmybubba each time a company do a search it leaves a 'footprint' on ur credit file so it could affect you in the long run. Never heard of the Birmingham mortgage company but I would definately take it if they accept you as it gets ur foot on the ladder & u can reduce the term of the mortgage once you come to re-mortgage. That's my plan, my rate isnt ideal but its got us on the ladder.

BarmyBubba

Birmingham have done all the relevant checks and are happy - in fact it was the same bloke at the Halifax who did the checks as they use the same system. Baffled? Me too.

But he has assured me there definately wont be a problem now. I get £350 cashback upon completion of the mortgage deal and the valuation is free. So not too bad.

Looks like I am gonna get myself a house, but lose my social life (

But as you say Danielle, its getting my foot on the ladder.

danielle21_2

Fantastic! its all happening quickly!! u wont necessarily lose a social life, im a real big spender on clothes etc but im just gonna hav 2 cut down & if there is money left i'l go out with it. What area are you from?