Getting a 90% mortgage...

Chris741

I've been renting for a while, deciding where to settle after moving back to Yorkshire 3 years ago. I only have a small deposit but I've heard that most lenders are now offering 90% mortgages again. There are some very reasonable properties in my price range which is around £185,000. I have £25,000 in savings.

I phoned LLoyds TSB and went through their mortgage application process. They told me that based on my credit search, they could only offer me a 65% mortgage.

He said that the credit check came back as a "C". We discussed it and came to the conclusion that it was probably low because I dont have any credit history and I've also moved house a few times. I argued that this shouldnt be enough to prevent me getting a mortgage but was told basically that "computer says no".

I'm a company director drawing more than £50,000 a year from the business which I have been doing for the last four years. My business makes a healthy profit. I'm prepared to provide bank statements, accountancy records etc as proof of earnings. The rent I've been paying for the last three years has been roughly the same as the mortgage payments would be. I have some other personal assets worth around £10,000 I have no dependencies, no other outgoings than the usual rent and utilities. I have no forms of credit, no credit cards or loans. I'm 100% debt free.

I'm a low risk proposition to any lender but after contacting LLoyds TSB today and getting this bad news, I'm concerned that I may not be able to get a mortgage at all. Do most of the banks use the same or similar credit checking?

Can you suggest a lender that is prepared to ignore the credit reference and look at the real facts? Perhaps I should go see an independant financial advisor?

kingstreet

Lenders look at the overall quality of an application. A credit score is a total based on all the answers given on an application. Some lenders have higher scores than others.

Your low deposit is a big issue. SOME lenders offer 90% mortgages, many top-out at 80% or 85% these days as 90% lending is considered riskier.

Effectively, you are self-employed, have little credit history, a poor residence history and the low deposit issues working against you. You have been offered a mortgage, based on the risk that particular lender thought you posed, so you haven't been declined.

I'd suggest contacting a smaller building society in your area. These smaller firms sometimes take each case on its merits and don't credit score. There's more human interaction in the process and this may aid you.

Trollfever

I'm a low risk proposition to any lender

Not with 90% LTV in a static or falling market.

little_miss_muppet_face

Chris741 wrote: »

I've been renting for a while, deciding where to settle after moving back to Yorkshire 3 years ago. I only have a small deposit but I've heard that most lenders are now offering 90% mortgages again. There are some very reasonable properties in my price range which is around £185,000. I have £25,000 in savings.

I phoned LLoyds TSB and went through their mortgage application process. They told me that based on my credit search, they could only offer me a 65% mortgage.

He said that the credit check came back as a "C". We discussed it and came to the conclusion that it was probably low because I dont have any credit history and I've also moved house a few times. I argued that this shouldnt be enough to prevent me getting a mortgage but was told basically that "computer says no".

I'm a company director drawing more than £50,000 a year from the business which I have been doing for the last four years. My business makes a healthy profit. I'm prepared to provide bank statements, accountancy records etc as proof of earnings. The rent I've been paying for the last three years has been roughly the same as the mortgage payments would be. I have some other personal assets worth around £10,000 I have no dependencies, no other outgoings than the usual rent and utilities. I have no forms of credit, no credit cards or loans. I'm 100% debt free.

I'm a low risk proposition to any lender but after contacting LLoyds TSB today and getting this bad news, I'm concerned that I may not be able to get a mortgage at all. Do most of the banks use the same or similar credit checking?

Can you suggest a lender that is prepared to ignore the credit reference and look at the real facts? Perhaps I should go see an independant financial advisor?

This could have been me that wrote your post.. we also applied with our bank Lloyds TSB (Current Account and Mortgage customers) We also asked for 185k with a 25 - 30k deposit, and they came back to us with a C pass, and 35% deposit required. I spoke with an advisor who told me not to stress as Lloyds are not being very flexible with there mortgages just now, big deposits are required, does not mean that you cant get a 90% LTV elsewhere.. good luck in your search

Chris741

Thanks for your replies.

I will contact an IFA.

kingstreet

Chris741 wrote: »

Thanks for your replies.

I will contact an IFA.

Your best bet would be an independent or whole market mortgage broker. Most IFAs specialise and may simply refer you to a mortgage broker themselves.

An independent would charge a fee but access all deals, including those available direct from lenders, refunding to you any commission paid to them. A whole market broker would only look at commission paying deals and you'd have to look at the direct deals yourself.

KingElvis

warrenhill wrote: »

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