S.o.s

Ben_Donoghue

Right. House sold for £134,000 buying a house for £174,250.

Current mortgage with the Halifax £106,800. AIP agreed with the Halifax for same mortgage amount. The shortfall for the new house will be made up by equity in property £25,000ish plus cash deposit of £42,000ish. Total deposit £67,000ish.

Now 8 weeks later after solicitors doing all the paperwork etc they've now come back a week before a completion date is to be set and rejected the mortgage offer. Aaaaaaaaaaa!!!!!

My partners credit rating is excellent but mine is poor. Previously had a lot of credit cards and missed payments on them but have paid them off a year or so ago and only hold 2 credit cards now. Lloyds with £4,100 on and Mint with £2,100 on it. Have missed one payment on the Lloyds one in the last six months. No arrears on any accounts. No CCJ's. Have taken out the odd payday loan but have never defaulted on these and always paid off on time.

I earn £35,000 pa and my partner (part time) £6,000-£11,000.

Have appealed to the Halifax saying our LTV was 80%ish and would be 60%ish if we move into the new house. We are current customers and have no arrears. We would be changing from interest only to repayment as well. Term of mortgage 25 years. Our fixed rate 2 year mortgage ends Dec 2012. All we are doing is porting our mortgage but changing to a repayment.

How can they reject us after all this time and a week before an exchange date is going to be set? What can we do if they reject our appeal? Are there any mortgage companies who would take us?

The lower chain are ready to go and this has just put a huge spanner in the works.

I'm worried we won't be able to get a mortgage and this will all fall through.

patman99

Have you tried other mortgage lenders ?. You might find that you can get acceptance elsewhere. Btw, you mention payday loans, if you borrowed from Wonga then you will have a job getting any kind of mortgage or loan with them on your credit history. For some reason Banks really hate them.

A lot of people like to stay loyal to their lenders, but these people are the ones who end up losing-out on good deals elsewhere. Just a thought, but is your mortgage transferable ?. The last 3 lenders I used all allowed the mortgage to be transferred to another property if I move. If it is, then they cannot stop you using the mortgage to fund the move, but they can stop you increasing the mortgage amount.

GMS

patman99 wrote: »

Have you tried other mortgage lenders ?. You might find that you can get acceptance elsewhere. Btw, you mention payday loans, if you borrowed from Wonga then you will have a job getting any kind of mortgage or loan with them on your credit history. For some reason Banks really hate them.

A lot of people like to stay loyal to their lenders, but these people are the ones who end up losing-out on good deals elsewhere. Just a thought, but is your mortgage transferable ?. The last 3 lenders I used all allowed the mortgage to be transferred to another property if I move. If it is, then they cannot stop you using the mortgage to fund the move, but they can stop you increasing the mortgage amount.

A product being portable does not mean you have the right to move it. They can stop it being used to move. Porting is subject to meeting lender criteria at the time.

A lender can choose how to lend their money.

Joe_Bloggs

Your 42000 deposit is a tad funded by Lloyds (owners of Halifax) credit card debt that you occasionally fail to repay and your basic budgeting is supported by wonga type cash. I wonder how you managed to save the 42K -6K.
Good luck on the appeal.
J_B.

ruggedtoast

Have you run an experian report on yourself? The defaults and relatively high card debt will be dragging it down.

Ben_Donoghue

Hi Guys

Thanks for the input.

The £42k is made up of inheritance received from a relative. If we had more time on our hands i.e. our house wasn't up for sale and is now sold then we would use it to pay off the last two credit card debts.

I've checked my experian credit file and the defaults and credit cards are definitely dragging me down. I'm have used Wonga in the past but paid the loan off and haven't used them for two months now. God I'm such an idiot for using them.

We haven't tried other lenders yet but this is our next port of call. We are using Connells mortgage services atm and are throughly unimpressed (railroaded into using them). Going to switch back to my old broker who I wanted to use in the first place to see what he can do for us.

Thrugelmir

Ben_Donoghue wrote: »

The £42k is made up of inheritance received from a relative. If we had more time on our hands i.e. our house wasn't up for sale and is now sold then we would use it to pay off the last two credit card debts.

Was part of the inheritance used to clear existing debts?

Conrad

The issue here is whether such an applicant passes the responsible lending test.

Imagine you are an underwriter. You will be considering if this applicant will miss a mortgage payment, then perhaps another and another and it ends up in a repossession hearing. The underwriter will consider the Judges view of a lender having thought it perfectly ok to lend a large sum to a person that had recently (with 6 months) not been able to pay existing debts on time in full.

The FSA (FOS) might also judge such a loan to have been inappropraite given the evidence to hand.

I think you need to demonstrate a good 12 months of steady debt repayment and to be frank debt reduction so as you don't end up in difficulty down the line. Your'e allready obviosuly up against it to a degree, but imagine having to find the mortgage payment when in 6 months time your car needs £2k work / or you face other INEVITABLE bends in the road.

Not having a pop here, just giving you a straight answer.