Mortgage rejection

smileyx

Sorry if I am writing this in the wrong place, but for some reason I cannot post under the "mortgage" section

My partner and I just applied for a mortgage, however, today they said we were declined... they would not give us a reason why? is this normal practice?

I instantly went on credit expert and checked my credit report... My credit rating is 899 and classed as "good". I do have outstanding CC balances of £5000 in total, but I pay more than the minimum off each month. I have NEVER missed a payment on anything. I have a car on finance with £4000 outstanding. Also I go into my AGREED overdraft every month but I also come out of it every month.

I did notice that there is an address linked to me, that I have never lived at. This was recorded on my file in 2006. Again, I have never lived here, but for some reason my old bank who I held my student account has linked this address... could this be the culprit to my rejection??

Other than that, my partner has had very little credit... a mobile phone contract and some tools on finance... could his lack of credit be the cause... we are at a loss as to why we have been declined... can anybody come up with a suggestion as to why?! Our combined incomes are £50,000 a yr with no dependents... so we can afford the mortgage.

PLEASE HELP X

CLAPTON

what size of mortgage did you ask for?
how big is your deposit?

smileyx

It was a 100% mortgage with RBS through strata homes, a partnership between the two to get newbies on the ladder. It was only for £99,999

PNPSUKNET

newbuild, 100% mortgage there you go.

smileyx

?? can you please elaborate PNP?

Consumerist

It would seem sensible to have at least 10% as a deposit. On the face of it you should be able to afford that. The bank may be wondering why you need a 100% mortgage on your joint incomes.

The outlook for house prices, at the moment, is that they are likely to come down over the next year and the bank is probably not happy about the prospect of negative equity this time next year. The more you can save for a deposit the happier the bank is likely to be and the better the rate you are likely to get.

Edit
Oops! Sorry PNP. I seem to have butted in.

smileyx

It seems silly really, why are they offering 100% mortgages when they are not willing to give them out? I am really dissapointed, I am sick of renting

Consumerist

I would also investigate that unknown address on your file - just in case.

Edit
You may find this Guardian article of some interest.

ManicMum

Hello

I would also ask why you have £5k credit cards and £4k car loan on £50k joint income. If I were you, I would get shot of them as soon as possible. ANything like that will not help you at the moment.

I understand you are sick of renting but wait a year, get shot of the loans and save a deposit and by then there is good chance prices will have dropped further so you may be glad. every cloud eh?!

smileyx

Thanks

With regards to the address, I have just figured it is an ex partners address... however, I have never lived there - I am guessing that when I was a student I got some of my mail delivered to his. But at no point did I live there. I do believe he has a rubbish credit history. I have contacted experian to attempt to get it removed from my file.

I guess I have no choice but to wait at least a year now, as you should never apply for more than one mortgage close together, right?... I just think it would take forever to save a 10k let alone anymore for a deposit.

somethingcorporate

The harsh truth is if you cannot afford to save for a deposit then it is unlikely you can afford the incidental costs of owning a house.

100% mortgage on a new build is insane, you'd be stuck in NE for ages.

Get rid of the debts, save up a deposit and be in a much strong position in 12 months time.