refused mortgage 65%ltv

harrison75_2

Hi all,
My husband and I have been refused a mortgage today on the basis that he has a bad credit rating - the only thing we can think of is that his ex must have defaulted on their joint mortgage (he left there 9 yrs ago - the house was sold and proceeds split in Dec 09) he's requested a credit report from Experian.

We have a 65%LTV for the house we want to buy (£47,500 deposit for £137,500 house) what's the chances of me getting the mortgage on my salary alone, I earn just under £25,000, have a credit card with 5.5k on it and a car loan with 8.5k outstanding?

Any advice gratefully recieved!!

Thanks!

herbiesjp

First things first you need to find out the details on the credit report.

You would need to address these issues irrespective of the property purchase.

£137,500 - £47,500 = £90k mortgage needed

Based on your 25k income you could get the mortgage, however the debts you have may well reduce the mortgage amount you are looking for.

Can you post the monthly payment for the loan?

_Andy_

Wait and see what's on the credit file then approach a whole of market broker.

harrison75_2

Herbiesjp - the loan payment is £153 pm and my cc is 0% minimum payment £25 pm.

Andy - we have got a whole of market broker on the case - but we have to wait for 48hrs to get the experian report.

Thanks

herbiesjp

Your income will be reduced by £1836 to cover the loan.

Although you are on 0% interest with the cc, lenders do not look at that - they will deduct a 3% or 5% monthly payment (depending on which lender chosen)

With those outstanding you will find it difficult to get the mortgage agreed.

If you cleared the cc and put a lower deposit, you would have more options.

Hopefully your adviser will come back with some suggestions for you.

VIGILANT22

Could you not access your file online

harrison75_2

herbiesjp - thanks for that - that's certainly an option.

vigilant22 -apparently not - he was told it would take 48hrs for whatever reason.

Thanks

joolley

Why would it take 48 hrs. For £14 on Equifax or similar amount on Experian you get an instant credit report online. Instant. As in seconds.

Wutang_2

harrison75 wrote: »

herbiesjp - thanks for that - that's certainly an option.

vigilant22 -apparently not - he was told it would take 48hrs for whatever reason.

Thanks

Get yourself subscriptionalised on these and find out now:

http://www.creditexpert.co.uk/

http://www.equifax.co.uk/Products/credit/credit-report.html

Wutang_2

joolley wrote: »

Why would it take 48 hrs. For £14 on Equifax or similar amount on Experian you get an instant credit report online. Instant. As in seconds.

Or the better option - free

Dan_1976

Online reports now take longer, they send out a password via mail for security, the last time I did one they did anyhow.

This is tight, so your ratings would have to be spot on. It may only be a scoring issue. get the report and feedback.