Can't get a mortgage.

Robbo17

Me and my partner have recently applied for a shared equity mortgage (80/20) but no one wants to lend us the money. We both have very good credit and everything is satisfactory on our reports. All we want in life is a mortgage but can't get one. We have little debt and always pay debt on time. Only thing I have bad on report is a few searches getting accounts to show lenders I can manage credit. I have 10 accounts in total all satisfactory. We tick all the boxes like jobs, income, deposit ect. Just can't get my head around it. Can anyone advise?

_Andy_

What reasons have you been given for the decline?
Who has declined you?
Have you spoken to a whole of market mortgage broker?

Robbo17

Halifax declined us. Said our score was to low?? I don't know what to do now? The house is 175k and we have 5% deposit so need a 133k loan. Mortgage adviser done it for us.

opinions4u

All we want in life is a mortgage

Why would anybody want a mortgage? I've spent 20 years trying to get rid of one.

I have 10 accounts in total

How many? What do you owe? How much are the monthly payments? Do you pay more than minimum payments?

(Worth asking them if they've keyed the purchase price and deposit, including builder's bit, correctly).

HappyMJ

Robbo17 wrote: »

Me and my partner have recently applied for a shared equity mortgage (80/20) but no one wants to lend us the money. We both have very good credit and everything is satisfactory on our reports. All we want in life is a mortgage but can't get one. We have little debt and always pay debt on time. Only thing I have bad on report is a few searches getting accounts to show lenders I can manage credit. I have 10 accounts in total all satisfactory. We tick all the boxes like jobs, income, deposit ect. Just can't get my head around it. Can anyone advise?

The problem is that you have debt. If you want to buy a house you should have no debt at all and 10% deposit saved up. 5% is the absolute minimum but the interest rates are punitive at that level.

Keep saving. Use your 5% saved up so far and pay off any outstanding debt and don't even think about buying until you have 10% saved as cash in the bank and no debts!!!

originalmiscellany

5% of 175k would not take your mortgage down to 133k.

5% of 175 = 8.5k... Unless you have other savings?

What's your total combined income?

Robbo17

I just want a nice 1st home. I have 2 current accounts Balance £0 2 credit cards total of about £800 I pay minimum payment plus at least £50 each month on top. Mobile phone and broadband 3 catalogues which amount to about £800 too and do the same minimum payment plus extra on top. Plus one settled account. Only reason I have them is to show lenders I can manage debt.

Robbo17

It's shared equity so we only need 80% of house price then 5% deposit off that. Our joint income is 41k and repayments would have been 650pm

Mrs_Z

Here's what to do:

1 Pay off all your outstanding debts
2 SAVE for a 20% deposit
3 Then apply again

We all want nice things in life, unfortunately most of us need save and save and save and go without other niceties in the meantime. Hard but that's the way it is, I'm afraid.

Robbo17

We really need a house now and have found the dream home. I live with my parents and am 26 so would rather do it sooner rather than later. The offer is there and perfect they just won't give us it!

poppy10_2

Robbo17 wrote: »

We really need a house now and have found the dream home. I live with my parents and am 26 so would rather do it sooner rather than later. The offer is there and perfect they just won't give us it!

You can't always get what you want, when you want. For such a major life-changing purchase you need to be prepared to knuckle down and work for it. If you can't even pay off your catalogue bills you shouldn't really be looking to spend tens of thousands of pounds on a house at this stage of your life.

Read this again:

Mrs_Z wrote: »

Here's what to do:

1 Pay off all your outstanding debts
2 SAVE for a 20% deposit
3 Then apply again

We all want nice things in life, unfortunately most of us need save and save and save and go without other niceties in the meantime. Hard but that's the way it is, I'm afraid.