FD mortgage puzzle

ftm

Hi all,
I am a EU citizen who has been living in London for 8 months so far.
I have been working in a permanent job position for the same time. My base salary is 60k. I don't have credit card in UK no debts no bad credit history at all.
I have just been refused a first direct offset mortgage for a 162k over a new flat in central London priced 250k.
Does anyone know what's the criteria they use, i cannot think of anything else than having been here for just 8 months.
Could you please tell me if there is some other option for an offset mortgage that i can follow? (i can increase deposit if needed).

Thanks in advance.

kingstreet

Your problem is you've applied to the pickiest lender in the UK, without a three year UK address history. I can't see any other reason why you'd be declined.

ftm

Do you reckon i have any chances with some other lender considering the credit check footprint FD left?

kingstreet

I believe other lenders will accept you willingly. It may be a good idea to find yourself a good independent broker who will find you a deal with a smaller non-credit scoring building society. Lenders like this look at each case on its merits, rather than the "computer says no" mentality of the bigger firms.

ftm

the problem is that I need an offset mortgage and there aren't so many offers for that.
Do you think Barclays will reject it as well?

getmore4less

Need an offset?

why do you think this?

Conrad

You will struggle with all lenders as they all must have 3 years UK credit history as their systems cannot search foreign denominations.

You might find HSBC useful has they have a particularly international approach.

No one 'needs' an offset mortgage.
If HSBC decline then there are a couple of small specialist lenders for this, which an EXPERIENCED mortgage broker will know of.

ftm

Beside the offset that is not the main issue, I know people with less than one year address history getting mortgage with FD for a much higher salary to loan ratio.
What i just want to know is whether is worth or not trying with someone else. I understand here different people have different opinions.

Conrad

ftm wrote: »

I understand here different people have different opinions.

Facts are inalieable and not a matter of opinion. It is a fact that a non permanent resident will need 3 years extensive credit history in the UK (i'e not just that they happen to have had a UK Bank account).

The only exception is HSBC and a couple of small specialist lenders.

Credit scoring software is designed to track 3 years financial footprints in the uk, and if a year or two show nothing (as the applicant was abroad), then of course the software alogrythms will simply fail the case.
oThe exception would be where its a permanent UK resident that has had some time abroad, but even then it's hit n miss.

Try your own Bank first.

Lenders also do not like new to the UK applicants as such people are statistically MUCH more likely to dissapear abroad if they get into arrears, and this makes a repossession process more complex.

kingstreet

Don't First Direct and HSBC share an underwriting system and mortgage centre in Sheffield? Is he's declined by one, won't he be automatically declined by the other?