please help! mortgage probs.

bumgum

hi.

long story short.
sold our house, need another mortgage to buy another one.
mortgage is with c&g, they told us we need a deposit of 35% because the credit rating came back as 'fair' (it was around 871 points - checked experian).
we thought our credit rating wouldn't be a problem, so we worked the figures around a 10% deposit - so we are devastated.

there is no way we can afford a 35% deposit, but we can pay all our credit card/loans off with the money we recieve from our house sale. - if we did that, would our credit rating go up instantly so we'd be able to have a lower deposit, or not?

please help, as i'm getting a bit stressed.

thankyou.

casualwalks

Consult a broker, they might be able to find you a better deal.

pledgeX

As already mentioned. Shop around. There might be better offers available.

I don't really understand your situation. As I understand it, you need to buy a house, but you only have enough for a 10% deposit? If you pay off your CC/bills then you'll have even less than 10%.

If that is the case, then unless you're both on seriously good money, I think you will struggle to get a mortgage. 10% is the very lowest deposit amount lenders are willing to lend on at the minute I believe, and given the fact that you have outstanding loans etc, I think you're going to be very very hard pushed to get a mortgage at the moment.

Bigsmak

Its hard to get a mortgage at the moment with just 10% deposit. Its can be hard with 15% if your credit rating is not great.

Good luck but i do think you should shop around as there are many companies offering good deals right now.

Also - Have you considered buying somewhere cheaper where your 10% will turn into 15% or more?

Thrugelmir

Did the C&G actually say that you needed a 35% deposit?

Or is it the case that due your financial situation (i.e. affordability) that the amount they will lend requires you to find a 35% deposit.

A totally different take on the situation.

How much debt do you have besides the mortgage?

Conrad

Usualy C&G stipulate a 35% deposit for low scoring clients, quite common in fact.