Single mum trouble getting a mortgage

sofedup123

:mad:
Hi, I am new on here and just at my wits end wondering if anyone has any gems of information they can pass on?

Brief overview of my details, I am a single mum, self employed freelancer so I don't work on a contract but get my work via word of mouth or via agencies, I have been doing this for approx 8 years. I have an accountant and can supply (over) 2 yrs accounts, bank statements etc.

I am going through a pretty horrible divorce and am hoping to secure the family home it's been agreed in the divorce settlement I get the house but I need to get a mortgage to carry on living there.

The mortgage is £80k the value of the home is around £320k my income including maintenance and WFTC is around £29k

I have been turned down by 2 mortgage companies so far one is the Nationwide who the current mortgate (joint with my ex) is with and one with Northern Rock which was applied for via an IFA, he is now trying RBS but I am worried that all these checks are going to have a negative impact on my credit rating.

Nationwide turned it down as wouldnt' accept my tax credits as part of my income and the fact that the maintenance has not been subject to a court order for over 2 years and my income is too low to get £80k Income after deductions etc is aprox £9K.

Northern Rock accepted all the above then according to the IFA changed the goalposts at the end of the process and wouldn't accept the tax credits and were iffy about the maintenance.

I am between a rock and a hard place I have to work part time as my kids are still young I rely on the TCs and maintenance to bump up my income. I can't find any part time work locally which pays as much as I get freelancing and allows me to have all the school hols off!!

Any help would be most appreciated, I now have a contact with Lloyds but am worried they will do the same go through the whole process only to turn me down at the last hurdle, IFA said it's frustrating as he or me won't get to talk to the underwriter who makes the final decision, I have tried contacting my IFA recently but he is now not returning my calls or email so I am really fed up and confused!
HELP!

beecher2

This isn't answering your question, but have you thought of selling up and using your equity to buy somewhere outright?

VIGILANT22

Who do you bank with?

sofedup123

Don't want to move kids in a great school also cost of moving would mean I could not afford a 3 bed house in same area. Have fab neighbours help me with kids when I am stuck etc. Can't sell until ex off mortgage

VIGILANT22

Did you see my post, who do you bank with?

sofedup123

Yes did see it 'abbey' or Santander as they are now called! trying to do this at work and have to be 'careful' !!!!!

Conrad

An IFA is a general practioner thats spreads thier time over various arenas such as insurance and retiment plannig.

You might do well to see a dedicated reputable small borker that does nothing but mortgages, meaning for example he has more time to sit down with lender reps, more time to call those tiny Building Socities and register with them etc.

Sounds to me like he's no good. I speak with underwriters every day no problem.

Furthermore, I would'nt count on RBS - they literally were minutes from complete meltdown until the Gov't bailed them, and they have billions in toxic debt to deal with, including new toxics now emmerging such as loans on UK shopping centres which have halved in value.

ladymarmalade222

Hi

I have found that Abbey have taken tax credits and maintenance (showed proof via Direct Debit into account) with my mortgage.

Mine was for remortgage though (borrowed additional funds) and was a couple of years ago. I am unsure whether they have changed this.

I have been with them for my mortgage for 16 years now as they have always matched any rates I have been offered in the past. Luckily I am now on 0.49 above Base Rate Lifetime Tracker!

Hope this helps

Conrad

Abbey are nightmarish to deal with on AVERAGE (always the odd exception)

Lloyds were bailed out by Gov't too.

sofedup123

Thats interesting all of you!! I now don't have a good feeling about this IFA this has been going on since early December!
Was also told that if this had been before banking crisis the banks would be 'throwing' money at me! ha ha!!
Half term next week will have to call in favours get kids looked after for a couple of hours and visit my local bank just fed up as each one I apply for means more credit checks, stupid thing is 6 years ago (married then) I couldn't get a loan for a car as I didn't have a credit record, always in credit always paid off my CC on time etc never had any debt! Just p*ssed off with how the banks always seem to have it their way. Been told by the IFA that RBS will charge a £99 fee if I drop out of their offer (if I get one) HUH I said can I charge them £99 if they don't accept me?, answer..........NO!

herbiesjp

Based on your verifiable income and LTV this should be pretty easy to get agreed.

Your IFA doea not seem to be doing you any favours in all of this.

Discussing with lenders beforehand, and getting agreement from an underwriter seems a logical thing to do.

I think you would be best seeking a second opinion, rather than applying direct, as you have rightly stated, it could be causing more harm to your credit file.