anxious first time buyer, declined mortgage don't know why

axlmouth

Hi,

My boyfriend and I have had an offer accepted on a house (£121,000.)
We are looking for a 85% mortgage - that is, we have 15% deposit. As I'm new to all this I went to London and Country for help. My broker put in an application for a mortgage with Nottingham BS, but we were declined and they won't say why.

What has worried me is:
1) my broker made lots of mistakes, such as getting our past AND current addresses wrong. Nottingham made changes and tried again. We still failed. I noticed another mistake, but they said if they correct it and try again it will increase my "search footprint" and that I may get applications declined with other companies just because there have been lots of searches done. Is this true? As far as I know nothing negative has been found, so would I be penalised just because they looked?

2)who should I apply with now? YBS and Leek United look to have good offers but they go on to variable rates and I am worried about our payments rocketing.

3) I am worried about applying in case we get rejected again and it makes my "footprint" even worse, just blowing future chances.

Any advice? Any one else had similar problems?

Sorry to have gone on a bit, thanks for any help or advice.

Amy

Insomniac666

I was rejected on my first application back when properties weren't as expensive, but my second went through sweet as a nut

Cannon_Fodder

Do your own checks of your credit history, using Experian etc. Make sure there is nothing untoward that you were not aware of.

An old mobile phone company could put a default against you, without you noticing, for example.

Nothing major, but if unexplained/not dealt with, the Lender will prefer to take a clean history.

Milliewilly

I was rejected for an ING mortgage a few years ago. Don't know why as I thought it would have sailed through as I have a lot of savings with them and my LTV was only 20%. In the end it was a blessing in disguise as I got a base rate tracker with the Woolwich at +0.17% for life :T

picklepick

The exact same thing happened to us, but with HSBC.

Definitely take a look at your credit report. You can get a free trial with most companies, just make sure you cancel within the 30 day period. Query anything that doesnt seem right to you. There was massive mistakes on mine. Even credit agreements that were made by a previous tennant in our current property who just happened to share the same first name as me.

We made a second application through Abbey which has been accepted. We still dont know why HSBC declined us. We had a 25% deposit and a clean credit history. I think it was because we were applying for a 5 year fix and they dont want to give them out! We have a 4 year fix now which actually works out better for us, its fee free, valuation free etc.

We used London and Country for our second application and I have to say, they were fantastic. Hope you have better luck!