poor credit score-mortgages

knosher

hello to all.
I am a first time buyer and have recently made an offer on a house of 124k
I applied to first active about a 100% mortgage but was rejected due to having a poor credit score.
I am going to meet my estate agents mortgage advisor on saturday. we earn 40k a year before tax and i only have debt of 1200 on credit cards.
Anyway my question is , is it likely they will be able to find me a 100% mortgage when i go to see them, considering my earnings but also my poor credit score. The internet searches i have carried out are not very clear on this.
Your help would be greatly appreciated.

Thanks

Leon_W

Don't wish to be rude but shouldn't you have sorted out the finances before offering on a property ?

Anyway, First Active don't do 100% loans so I guess this went through RBS who do.

The thing is, most mainstream lenders will only lend 100% if you have a pretty good credit record. If you have a CCJ or Default then you've blown it.

You don't say why you have a poor credit record so can you expand a bit as this will have the greatest impact on your success in securing a loan ?

On a positive, the income seems OK

knosher

No offence taken.
One of my friends is mortgage manager at Rbs so i contacted him before i offerd on the house and he told me there would not be a problem, obviously this fell through so now a once reliable friend has proved unreliable.

I have a poor credit history due to late monthly repayments and been consistantly overdrawn.

Is it likely i will still be able to get some sort of 100% no deposit mortgage in any way shape or form.

Leon_W

Consistently overdrawn within limits ?

And are these late monthly payments on a credit card or loan ? There is a difference.

I feel as long as there are no CCJs or Defaults it can be done, so it is best to see a whole of market broker (a lot of estate agents are NOT and use a panel of lenders).

You have to put yourself in the lenders shoes sometimes. How come someone with a joint income of £40k makes late repayments. To be honest, I'm not sure either.

I would like to point you in the direction of people who can help, but unfortunately this constitutes advice which I cannot give here.

I wish you the best of luck.

digp

try somewhere like GMAC - but be prepared to pay a v high interest rate

herbiesjp

knosher wrote:

hello to all.
I am a first time buyer and have recently made an offer on a house of 124k
I applied to first active about a 100% mortgage but was rejected due to having a poor credit score.
I am going to meet my estate agents mortgage advisor on saturday. we earn 40k a year before tax and i only have debt of 1200 on credit cards.
Anyway my question is , is it likely they will be able to find me a 100% mortgage when i go to see them, considering my earnings but also my poor credit score. The internet searches i have carried out are not very clear on this.
Your help would be greatly appreciated.

Thanks

Have you both got a copy of your credit reports from either Equifax or Experian?

This would highlight to an adviser where the problem lies, and the help them pinpoint a lender that would be able to help.

At 100% though, the range of lenders is restricted somewhat.

HTH

Leon_W

Sorry digp but that is nonsense.

GMAC do not lend 100%. They also charge a comensurate rate to the risk so you are wrong on both counts.

It's lucky I am here as otherwise knosher may have acted on your "advice" and got himself another credit search for something that GMAC can't even do.

Have you ever heard the phrase "A little knowledge is a dangerous thing" ?

Look it up.

regularsaver1

Leon - you'd be amazed. i spoke a guy yesterday who said he was exchanging friday, but he'd not even sorted his mortgage and was did not think lender would have to do a survey and stropped. he thought app and offer would take half an hour??????

Leon_W

Takes allsorts Regular.

The thing is in my job I am constantly amazed ! As with most brokers we could all tell stories that will make your hair curl. That said I think the OP got let down by his mate so that is kind of understandable.

The only consistent advice this board actually gives is to SPEAK TO A WHOLE OF MARKET BROKER. THE best possible advice. Unfortunately posters like the OP got let down, but most of them pose a question without much detail and expect a (mostly) unqualified bunch of armchair amateurs to give them "advice" !! GMAC ? My God. Crazy.

The most sensible answer to pretty much 99% of the questions posted on this forum cannot be answered in a couple of lines. Everyones different so the best advice anyone can give is SPEAK TO AN ADVISER !!!!!

digp

Leon_W wrote:

Sorry digp but that is nonsense.

GMAC do not lend 100%. They also charge a comensurate rate to the risk so you are wrong on both counts.

It's lucky I am here as otherwise knosher may have acted on your "advice" and got himself another credit search for something that GMAC can't even do.

Have you ever heard the phrase "A little knowledge is a dangerous thing" ?

Look it up.

Okay, I'm sorry. I stand corrected. I was paying more attention to his poor credit than the fact he wanted a 100% mortgage.

Leon_W

Yep, no problem digp.

I guess the point I am trying to make is, sometimes these things need thinking about for more than 5 seconds as anything written here could have a seriously bad outcome on somebody elses life !

Regards
Leon