Mortgage application turned down

jonny_power

We're FTB's, applied for a 90% LTV with Northern Rock. After an AIP they backtracked and can only lend to us at 85% because apparently my wife has a low (not bad) credit history. She doesn't have a CC, loan etc and so it's not surprising that she doesn't have much on her record. Our broker was annoyed, but says that Santander (who we also have an AIP with) won't be a problem and so we're not too worried (although obviously more applications have an impact on our credit history). Is there any quick way my wife could boost her credit history? should she apply for a credit card?

kingstreet

I would advise against a card application now. It's likely to do more harm than good as she doesn't have time to get any decent account conduct in to increase her attractiveness on a credit score.

jonny_power

kingstreet wrote: »

I would advise against a card application now. It's likely to do more harm than good as she doesn't have time to get any decent account conduct in to increase her attractiveness on a credit score.

That's what I was worried about. Thanks

Bigsmak

Its very hard to to get a 90% LTV these days.

I would find somewhere cheaper where your deposit is worth more.

Or find more of a deposit.

Not the answers you wanted, but right now with the way the lenders are acting, these are your best options.

Thrugelmir

How long will it take you save a further 5% deposit ?

jonny_power

Thrugelmir wrote: »

How long will it take you save a further 5% deposit ?

We just about have enough for an 85% but we're trying to keep the 5% aside because we have no furniture and want to decorate the house. We'll try with Santander and then consider our other option (stretching to 85% LTV and begging/borrowing for furniture for the place). Just frustrating that my wife who is such a good saver and has never needed a credit card is having that penalised.

Bigsmak

jonny_power wrote: »

We just about have enough for an 85% but we're trying to keep the 5% aside because we have no furniture and want to decorate the house. We'll try with Santander and then consider our other option (stretching to 85% LTV and begging/borrowing for furniture for the place). Just frustrating that my wife who is such a good saver and has never needed a credit card is having that penalised.

Credit checks are a pain in the behind..

Ask yourself with regards to the furniture and decoration, can you hold off on these for a couple of months or maybe get help from friends / family? I know its not an ideal situation, but its better having a roof over your head with horrible wallpaper than not having a roof at all!

Good luck anyway and please let us know what you decide to do and how it works out.

jonny_power

Bigsmak wrote: »

Credit checks are a pain in the behind..

Ask yourself with regards to the furniture and decoration, can you hold off on these for a couple of months or maybe get help from friends / family? I know its not an ideal situation, but its better having a roof over your head with horrible wallpaper than not having a roof at all!

Good luck anyway and please let us know what you decide to do and how it works out.

I think that's why we're trying the ideal situation first, and if not we'll go to our backup plan. Thanks for your help, will keep you posted!

GMS

There is a 90% lender in the market with no credit scoring. Might be worth a try.

Ask your broker

grogsy

I can confirm what GMS has said as I have just been approved for a 90% LTV with a poor credit rating. ;-)

pompeyred

Where are these 90%ltv with less than perfect scores.......?

Can you say who they are, how to apply etc...? It's a genuine question, I could at best only be offered 75% and I have a single 4 year old default. The mortgage was only going to represent 2.2x income but I can find nothing better.