Getting a mortgage looks doubtful - anyone have any suggestions?

gibhouse8

Hi there

To cut a long story short, been trying to get a mortgage through a broker and not having much success. Tried various lenders, Nationwide (who we had a mortgage with previously) Abbey, C&G and Yorkshire Bank and all have declined us an AIP on the basis we have a low credit score. Our credit is not brilliant, we have lots of other debts including car finance, loans credit cards, mainly due to the fact we got married last year and I have previously been a trainee solicitor and have only just qualified. We also have about 7 missed payments on my husbands credit file which are totally our fault as we havent been organised enough and so things have been paid late, although we have never missed a mortgage payment. All of our accounts are satisfactory except for one where its showing as a late payment - but this is out of date as its been paid now. Sold our house in March so we could clear some of our debts, OD's are now gone and 1 store card and credit card so are in a better position financially and are now sorted but doesnt take away from the missed payments on our score I guess. There also seem to be an awful lot of searches on there which again cant help. Anyway, have been trying for 90% mortgages but no luck with the above lenders. Tried 85% - no luck with Abbey but got an AIP with NatWest. I'm very suspicious about this though as if no other lenders have accepted us, the only reason they must have done is because no credit check has been done on us at the AIP stage. Got our credit reports and there is no NatWest search on there so don't hold out much hope of the full application going through.

I suppose my question is, does anyone think we will get a mortgage with anyone? My husband and I are both professionals and earn in excess of £73000 between us so our affordability is fine (we want to borrow £153000) and as we have good professional jobs our salaries will only increase as we move up the ladder, so think we would be a good investment now we have finally sorted our finances out and are earning decent money. Has anyone got experience with sub-prime lenders and can recommend any as I think this is what we might need? I've also heard Ipswich BS and Saffron do individual underwriting and are less harsh on credit score. Has anyone got any experience of this? Any advice would be much appreciated as we have seen a house we love and can feel it slipping away with every rejection. (Sorry I realise I ddint really cut the long story short after all!)

opinions4u

We also have about 7 missed payments on my husbands credit file which are totally our fault as we havent been organised enough and so things have been paid late,

I think you are beginning to see that the Credit Crunch has turned these oversights in to a major problem for you. Not a mistake to repeat, me thinks.

gibhouse8 wrote: »

I suppose my question is, does anyone think we will get a mortgage with anyone?

Stick with the Nat West plan for now but a fallback position would be to save a 25% deposit - that will open more doors. Nat West may be more flexible because of lending commitments made to their masters HM Government.

My husband and I are both professionals and earn in excess of £73000 between us so our affordability is fine (we want to borrow £153000) and as we have good professional jobs our salaries will only increase as we move up the ladder, so think we would be a good investment now we have finally sorted our finances out and are earning decent money.

Solicitors can and do lose their jobs. The white collar worker is not necessarily a better risk in this day and age.

ItMightBeUsefulOneDay

Banks are very reluctant to lend at the moment and are therefore cherry picking the most "credit worthy" applicants out there for their limited fund pool. Their fingers are still smoking from the burns they got off the CDS and sub-prime gambles.

If Natwest back out when you actually apply then try saving a larger deposit would be my suggestion. This opens the door to better deals and more willing lending - the banks see your deposit as "their" cushion against any default.