Dream house found, declined mortgage by 3 diff companies

delveh

Hi all,

Myself and my partner have found our dream first house however are having trouble getting a mortgage.

We've tried 3 companies, our bank hsbc, post office and northern rock. All 3 declined our mortgage application.

So what do we do next?? We have an appointment with an independent whole of market advisor this week. Are there mortgages out there for us??

Heres the detail:
House - 106k
Deposit - 15% (15900)
My credit score (experian) =776 (fair)

I have 3k of debt outstanding with my bank (pay bk for old credit cards now a loan which will be paid in full this week.)

Any advice greatly appreciated. Thanks

opinions4u

Your next step, seeing an independent, is the right course of action.

You should also get a copy of your credit file (I assume you have). Late payments, missed payments etc might be a problem - even if they happened years ago.

The 776 score is pretty meaningless. Experian don't lend you the money. There are posts on these forums about people with 999 scores not being able to get credit.

delveh

Yes, copy of the credit file has been obtained. I've never missed a payment and my file backs me up on that. I just hope there is a mortgage out there! My partner would be heartbroken!

Crinz

even though the score is meaningless it is still fairly low to be looking around the high street. Search out a whole of market broker to get you the mortgage.

What terms are you trying to do this on? Might be an obvious reason why you are beingg declined. Interest Only? Too short a term? How old are you? Whats your income?

Katieprecious

I also had trouble when searching for a mortgage with my partner, the reason for our rejection was that we are FTB with no credit history. We were rejected with Natwest, Post Office and Co operative but accepted with Halifax, maybe they could help you?

delveh

Thanks for the reply.

In answer to your questions.

Interest Only? No Repayment
Too short a term? 25/30Years
How old are you? Both 23
Whats your income? Me - £22300 Partner - £15600

Anything else? Happy to provide as much as i can to get a better understanding.

My "credit score" has dropped from 906 to 776 in the last 3 weeeks due to the two searches on my file.

delveh

Katieprecious wrote: »

I also had trouble when searching for a mortgage with my partner, the reason for our rejection was that we are FTB with no credit history. We were rejected with Natwest, Post Office and Co operative but accepted with Halifax, maybe they could help you?

Thanks for the info! I'll certainly mention that to the advisor and see what he thinks.

Like i say, just trying to get a better understanding / info as to what is available. 2 days is too long to wait lol.

Unfortunatley false hope by HSBC through the mortgage in principle etc. wasted 2 weeks of our lives!

steve1980

Going on the salaries earned by the both of you (£37,900) the multiplier (very generous at 2.5 times although it could be more 2 times (£75,800) only comes out at £94,750. Take the current debt you have which is £3k (£34,900) then 2 times would come out at £69,800 (£85,700) and 2.5 times £87,250 (£103,150).

As you can see, you're actually short on your amount you need.

Get your loan paid off and see an independent broker, not a mortgage advisor in Bairstow Eves/Abbotts or anyone under the Countrywide banner.

delveh

Loan = Paid by Friday

Independent Broker = Appointment friday.

Cheers!

CloudCuckooLand

You need to allow some time to pass, from the loan being paid off, for the Lender to see the change to your credit report...

Crinz

steve1980 wrote: »

Going on the salaries earned by the both of you (£37,900) the multiplier (very generous at 2.5 times although it could be more 2 times (£75,800) only comes out at £94,750. Take the current debt you have which is £3k (£34,900) then 2 times would come out at £69,800 (£85,700) and 2.5 times £87,250 (£103,150).

As you can see, you're actually short on your amount you need.

Get your loan paid off and see an independent broker, not a mortgage advisor in Bairstow Eves/Abbotts or anyone under the Countrywide banner.

A generous 2.5 times multiplier??? What planet are you on? High street banks still give much more than that. I had a customer offfered a 6x by the system and a joint couple of nearly 5x


Back on topic, there is nothing obvious going against you. Try obviously avoid credit searches as much as possible. Halifax dont log credit search on your file at AIP stage and are well known for being helpful to FTB's with decent deposits.