Refused mortgage - please help!

badcredit02

Hi, I need some advice please.

I have recently applied for a mortgage with ING, as advised by my IFA, and been refused!

I never thought I was a bad credit rating but turns out that I am. Here;s my scenario:-
1. I have moved address 3 times in the last three years (although all of my bank statements, credit cards etc are still registered at my mum's)
2. I have recently made two late payments on a new credit card I applied for with Virgin and this has come up on my credit check
3. A direct debit bounced back recently, although I was meant to cancel this payment but forgot, this shows on my three months bank statements

As a result of being refused I have just now paid off my two credit cards completely and have contacted my bank to change address.

What I would like to know is if I apply for another mortgage will the above of helped? And also do you know any other mortgage lenders that may be an option for me?

Please help, I am a first time buyer and have found a fantastic property that I am worried I will lose! Many thanks

_Andy_

Property value? Deposit?

herbiesjp

A lot of lenders are very picky who they want to lend to.

Even the slightest "glitch" and they will refuse.

Depending on your overall scenario, you should be able to find someone ok with the address history and missed payments.

Yorkie1

Are you registered on the electoral roll for the address you've put down as your current address for the purposes of the application? You should do that too.

Two late payments, one bounced DD and no matching of addresses would have made you look a risk to the lender. All you can do is get your finances and paperwork in the best possible position, perhaps make one more application somewhere else - and if that is not passed either, then perhaps you'll need to give your record a bit of time to recover. Don't forget that repeated applications will probably leave footprints on your credit record too - and you don't want too many of those either.

aleatory

I'm in a similar boat - anyone know what is the approximate salary/mortgage ratio limit a bank will lend on now? They used to give a hard number pre-crash, i.e. 1:4 or 1:6 but now the banks I've spoken to (including my current mortgage provider) refuse to give such details out, which reduces visibility and ability to shop around even more imo.

herbiesjp

Maximum you can get is 5 times - with squeaky clean credit and good credit score.

Otherwise it will be more around the 3 or 4 times income - all depends on the scenario though and the lender chosen, so there is no hard and fast rule.

betmunch

You can get a little higher than 5 times with the right lender, but again, need squeaky clean credit and decent sized deposit. As well as many other hoops to jump through.