Help! Mortgage refused due to no credit history

Petal*

Hi everyone - I could really do with some quick advice! My boyfriend is buying a house, he's found the one he wants but has just heard that his mortgage has been declined due to him having no credit history.

Seems crazy that because he's reached the age of 41 and NEVER had any credit (cards, loans etc) that he's seen as a bad risk???

The mortgage that was declined was with a company we'd not heard of before - some spin off of a building society I think. The deal was good, but perhaps they're ultra fussy about who they lend to because it's so good?

Any tips about anyone else he should try? How about if he goes to his bank (Barclays) who he's been with for 20+ years? Are they more likely to say yes as they can see his account activity?

Any urgent advice much appreciated! He got a real bargain with the offer on the house and doesn't want to lose it!

Thanks
Petal

LilacPixie

If it was me I would be going to a local mortgage broker and going through the exact circumstances with him/her.

Petal*

Hi thanks for your quick reply - he went to see a mortgage specialist at the estate agent, and that's who recommended this unheard of lender! But perhaps because my b/f was pushing for the best rate.

I'm guessing you meant an independant mortgage broker rather than one at an estate agent? I still wonder if perhaps going through his bank is a good idea - any thoughts on that?

Thanks again
P

luckyfool

Was it Accord? A big problem could have been if he is not on the voters roll as there are many lenders where that would be a deal breaker. i.e. If no applicants are on the voters roll they just will not lend. His own bank should be a good bet as they will know him better, but a good broker would no this and can also access all the Barclays/Woolwich deals anyway.

herbiesjp

Plenty lenders could still look at this - assuming he meets all other criteria.

What figures was he looking at?

GMS

Credit scoring could cause issues for him as he is likely to have a low score. There are lenders who dont use credit scoring though.

What are the figures?

Income?
Deposit?
Amount required?

Conrad

A smaller Building Society with real Human staff could be the way to go. Larger lenders tend to rely on computer scoring systems which have inherent issues when it comes to certain profiles such as the 41 yr old with no credit. A computer cannot make sense of such a person as there are no nelectronic signposts or marklers for the software to analyise.

blueberrypie

Petal* wrote: »

Hi thanks for your quick reply - he went to see a mortgage specialist at the estate agent, and that's who recommended this unheard of lender! But perhaps because my b/f was pushing for the best rate.

I'm guessing you meant an independant mortgage broker rather than one at an estate agent? I still wonder if perhaps going through his bank is a good idea - any thoughts on that?

The mortgage advisor at his bank is no more independent than the one at the estate agent. He needs to talk to an independent, whole-of-market broker - not a series of "advisors" who are really sales-people.

LilacPixie

What blueberrypie says OP. He needs to go whole of market IMO.

Petal*

Thanks so much guys! Yes I think it was Accord - I think they were linked to Yorkshire BS?

He's buying at £141k with at least a 25% deposit - possibly 30% if it'll help. He earns £33k and, as discussed, no debts!!

He's got an appt with a full Market no-fee Broker tomorrow. Let's hope they can sort him! :-)

Thanks again
P

Petal*

Oh and yes he's on the electoral register - we voted from this address in may elections :-)