Mortgage Credit Score Help

stablemaverick

Hi All

I'm after a bit of advice.

Myself and my girlfirend recently applied for a joint mortgage with HSBC as FTB, we have a combined income of £70k about £1.5k left a month after all bills including credit commitments and rent of £800 and food etc. the Mortgage repayments equate to an additional monthly cost of £50 compared to our rent.

Neither of us have any late payments for over 3 years and no defaults or ccjs. However, a few months ago i attempted to apply for an hsbc credit card (we bank with hsbc and our application is through hsbc) as i wanted to BT the balance off barclaycard, however, the offer didn't cover my outstanding credit on one card and so therefore i declined their offer and attempted again to apply and again, and again, and again (you can see where this is going) until it started to be declined.

Me thinking that this wasn't hitting my credit file (as i have equifax not experian) continued to do this thinking it was because my electoral roll data hadn't been updated (we recently moved at the time), until a point where a cortesey call from hsbc alerted me to the issue (shoot)

Anyways, now i have about 20 applications for an hsbc credit card on my experian account (nothing on equifax) and my mortgage app with hsbc has been refered to the credit manager as it failed scoring. We are awaiting the credit manager to bypass the scoring (fingers crossed)

Cut a long one short, is there anyone that clarify if they know of sympathetic lenders who i could explain the situation to (if hsbc decline) so we can progress with buying out dream home? I know these searches will be on my report for 6 months to a year, but don't want to wait this long as paying rent is just "dead money" to an extent.

Please let me know if i can provide further clarity.
Thanks
Mav.

kingstreet

Searches remain on file for two years.

I'd wait and see what happens with HSBC before I worried about anything else. Hopefully they'll be able to see the situation for what it is - absolute muppetry.

Come back if you aren't successful with them.

stablemaverick

Thanks KingStreet, i'm hoping the response will be positive, however, i would like to get my ducks lined up in the meantime, in case its a negative.

Can an independant mortgage advisor have access to this sort of 'in house' knowledge on scoring, what is seen as acceptable and what is not?

Thanks

kingstreet

Chances are you'll initially fail with any credit scoring lender.

What I would do is provide an explanation to the lender before I even submitted the application, so they knew what to expect in advance.

The decisions are pass, refer or fail. In the latter two cases I'd hope to see a bit of common sense prevail even if "computer says no" is the initial result.

You should be fine.

stablemaverick

Thank you, we did explain during the application process, the mortagage manager said it would be fine, however, we are still awaiting a result.

I'll keep you updated on the result and then we can talk next steps.
Thanks Kingstreet

Meeper

Where are you, geographically?

Experian_company_representative

Previous searches stay on your Experian report for ONE year.

You could add a note to your Experian report explaining what has happened and future enquirers would see this.

James Jones

kingstreet

Experian_company_representative wrote: »

Previous searches stay on your Experian report for ONE year.

You could add a note to your Experian report explaining what has happened and future enquirers would see this.

James Jones

James - is it one year for the other two as well? Can't think where I got two years from!

stablemaverick

All,

Hello, a bit of an update. What a palava the last 2 weeks have been, HSBC have been sooo slow.

Anyways, we heard yesterday that our applicatioon has been declined, based on three areas (none of which were my searches you'll be glad to know)

1. We are looking to borrow at 90% LTV (although they offer this mortgage, seems to me like they don't want to offer like that - even though our term is 23 years - mortgage £165600 - Silly)
2. We have slightly high unsecured borrowing - Around £15k between us inc student loans (Although joint income is 70K - both have permenant contracts and i also get additional £9k bonus which they wouldn't accept into the mix) No defaults, ccjs, late payments in 4 years
3. Apparently, the icing on the cake is not those two, but the fact that my girlfreind uses her OD all the time (currently £1500) with HSBC, of which it becomes a credit balance every pay day. She also, does not have any credit cards.

We are in the process of having the mortgage manager ask the underwriter if whether we pay off and close down the OD (we can do this by tomorrow morning, but puts us 1 month back with exchange - that will not cause us a problem) as to whether this will allow the approval. Unsure as to what they will say, but, in the mean time, i have a Q.

Based on the above assessment, and the fact that we will pay off and close down the OD even if HSBC still do not approve, can anyone (not advise) but guide me on a mortgage lender who will lend at 90% LTV on a 23 year term on the same repayment amount as HSBC would lend? HSBC is where our joint current account is kept, however, i have had a lloyds Current account for 10 years, but their lending looks to be an extra £100 a month over what HSBC repayments would be?

Any guidance would be greatly appreciated. We have not given up hope, but hoping to get all this sorted out.

Thanks
Mav

Thrugelmir

The icing on the cake is a £70k a year income and an apparent inability to manage your finances properly.

Even the deposit is partly funded by credit card balances that you are attempting to maintain on 0% accounts.

Your choice what you do with your money. So the power is in your hands to rectify the situation.

A few months of addressing matters head on. Then no reason why HSBC won't take a different view.

stablemaverick

Thrugelmir, if you do not have any guidance to provide on what the plausible options might be then please refrain yourself from replying to my posts.

Others out there in a similar situation, might find this thread helpful, and trolling it, this will not provide any help to anyone in the long term.