Santander mortgage application problem

CazuaLL

evoke wrote: »

You've got a child on the way in October. How will you pay the rent and mortgage (after the first year of free money from your employer)?

I will be working as from 2 weeks after the baby is born, as i get 2 weeks full paternity pay then ill be back to work. (I will be a dad not a mum lol)

narabanekeater wrote: »

you earn too much to get WTC im affraid but do double check on entitled to website (assuming this is your only child)

Yes I will be entitled and I already have a quote from HMRevenue.

GDB2222 wrote: »

The Abbey calculator gives these values when I enter your data (assuming there are no outstanding credit cards, etc)

These calculations are based on interest only which is C & I over 300 months.

Low scoring applicant: £0

Medium scoring applicant:£39,666

High scoring applicant: £50,205

So, it all looks fine, except that your credit score is low, or perhaps you have some other outgoings you have not mentioned.

My credit score is low? but I have nothing against my name?

Any help would be great, thanks

Liam

evoke

And that can make it low too. If you have no HISTORY of positive credit transactions then that, in itself, can give you a low score. After all, as the lender can see no history of having paid back any loans or other credit, how can they assess the risk that you will or will not pay back any money they lend you?

And apologies for getting your sex wrong. You came across as a bird! LOL.

GDB2222

CazuaLL wrote: »

My credit score is low? but I have nothing against my name?

Any help would be great, thanks

Liam

I think that's what you said the girl from Santander said? Credit scores are an arcane science as far as I can see, and the formulae used are a closely guarded secret. It actually seems to help to have a few credit cards, provided they are kept up to date with regular payments. Otherwise, you don't appear on the credit-rating agency's database at all. I would definitely get your credit score, which you can get online, but I can't remember how. Sorry.

There's an article on MSE about how to raise your score. http://www.moneysavingexpert.com/loans/credit-rating-credit-score

CazuaLL

evoke wrote: »

And that can make it low too. If you have no HISTORY of positive credit transactions then that, in itself, can give you a low score. After all, as the lender can see no history of having paid back any loans or other credit, how can they assess the risk that you will or will not pay back any money they lend you?

And apologies for getting your sex wrong. You came across as a bird! LOL.

Just checked my credit report on equifax, my loan is still showing as unsettled as it hasnt updated. But the bank has proof of this so hopefully underwriting make the right call.

Also just checked it fully, got 4 credit accounts up to date and 8 accounts settled including 2 loans and 3 phone accounts and 2 credit cards, so tbh I cant see the problem.

GDB2222

CazuaLL wrote: »

Just checked my credit report on equifax, my loan is still showing as unsettled as it hasnt updated. But the bank has proof of this so hopefully underwriting make the right call.

Also just checked it fully, got 4 credit accounts up to date and 8 accounts settled including 2 loans and 3 phone accounts and 2 credit cards, so tbh I cant see the problem.

Just stick all that data in the credit score checker on the MSE page I just posted a link to.

You can get your actual score from Equifax (I think) if you use one of the other links on that page.

Thrugelmir

CazuaLL wrote: »

Just checked my credit report on equifax,

The issue boils down to affordability and lack of deposit.

Could you purchase a cheaper property under the scheme?

As £7k of your own money invested into a property valued at a £140k will give no degree of confidence to the lender.

CazuaLL

Thrugelmir wrote: »

The issue boils down to affordability and lack of deposit.

Could you purchase a cheaper property under the scheme?

As £7k of your own money invested into a property valued at a £140k will give no degree of confidence to the lender.

Im buying a 25% share of a 140,000 property, so a 7k deposit is a 20% which is fine otherwise, do you really think the lady from santander (the mortgage advisoir) would of let me go ahead and apply for the mortgage after 2.5 hours of long in depth money talks.

Ive also spoke to many tennants in the same block who got their flat in the same way and they all paid a 5% deposit (£1750) of the 25% share of the £140,000 property and they all earn less than me, its very strange seeing as im paying £5250 more than them on my deposit.

Thrugelmir

CazuaLL wrote: »

Im buying a 25% share of a 140,000 property, so a 7k deposit is a 20% which is fine otherwise, do you really think the lady from santander (the mortgage advisoir) would of let me go ahead and apply for the mortgage after 2.5 hours of long in depth money talks.

The mortgage advisor has no say in approving the mortgage. That's a role of the underwriter, a faceless nameless person.

CazuaLL

Thrugelmir wrote: »

The mortgage advisor has no say in approving the mortgage. That's a role of the underwriter, a faceless nameless person.

Exactly my problem, ive had extensive talks with the advisior and she says its all fine which is annoying how a computer can decide otherwise, this is the main reason why I am quite annoyed/frustrated about this.

Really disheartening to know I have a kid on the way in 5 weeks, I work and earn a decent wage and people in the same block paid a £1750 deposit and earn less cash and they got approved no problem. Wednesday best be good news otherwise ill be fuming.

san09

Having some probs of our own house-buying, so know how you feel.
Just wanted to wish you best of luck for Wednesday.
I'll keep my fingers crossed;)