Can't get a mortgage.

Robbo17

I can pay the credit cards and catalogues I only put balances on them to show I can manage debt because if I didn't have them I wouldn't have any history of debt which I was told can affect your credit score. We can afford the mortgage repayment comfortably it's not a problem. I want advise on how to get a mortgage not how to manage debt which I am quite capable of.

beecher2

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!

Not sure what advice you're looking for - you want something you can't have, at least at the moment. Get yourself into a position where you can buy somewhere - as has already been said, start with clearing your debts and then build up your deposit.

edit: paying off your credit card in full each month shows you can manage debt - this isn't what you've been doing.

Robbo17

So what your saying is you cant get a mortgage with little debt?? I'm asking why you think iv been declined? other threads people owe thousands and get a mortgage. I owe next to nothing and can pay everything today but will still get declined. Iv worked hard for my money and what deposit I have which is all they say they require so what's the problem?????

SUESMITH_2

try an independent financial adviser and see what they can come up with.

you really need to start saving hard though, every penny on your deposit is a penny you don't have to pay back on your mortgage.

beecher2

Robbo17 wrote: »

So what your saying is you cant get a mortgage with little debt?? I'm asking why you think iv been declined? other threads people owe thousands and get a mortgage. I owe next to nothing and can pay everything today but will still get declined. Iv worked hard for my money and what deposit I have which is all they say they require so what's the problem?????

Halifax say you've been declined because of a low credit scoring. Get copies of your credit files and take them to a mortgage adviser to see if you have any options. With a minimal deposit and shared equity, you may well have problems but no-one here can tell you for sure so see an independent adviser.

opinions4u

Robbo17 wrote: »

So what your saying is you cant get a mortgage with little debt?? I'm asking why you think iv been declined? other threads people owe thousands and get a mortgage. I owe next to nothing and can pay everything today but will still get declined. Iv worked hard for my money and what deposit I have which is all they say they require so what's the problem?????

Perhaps the main problem is that your "dream home" is on a builder incentivised deal requiring minimum personal stake from you.

Any lender willing to take on a risk like that will cherry pick applicants. If you're not perfect I can understand them not lending to you.

Robbo17

Thanks sue and beecher, I think that's what I will have to do. Just stressing me out right now. Fingers crossed something comes up.

Robbo17

opinions4u wrote: »

Perhaps the main problem is that your "dream home" is on a builder incentivised deal requiring minimum personal stake from you.

Any lender willing to take on a risk like that will cherry pick applicants. If you're not perfect I can understand them not lending to you.

There is not much risk for them because if I do default which is very unlikey then they get to reposses my house. They should not offer people these deals if there is to much 'risk' for them.

rising_from_the_ashes

Robbo17 wrote: »

I can pay the credit cards and catalogues I only put balances on them to show I can manage debt because if I didn't have them I wouldn't have any history of debt which I was told can affect your credit score. We can afford the mortgage repayment comfortably it's not a problem. I want advise on how to get a mortgage not how to manage debt which I am quite capable of.

No - you get a credit card (or similar), use it and pay in full each month - this is how you build up your history to show you can handle having credit available to you and not abusing it .... not by having debt as this shows you can't pay things off!

Pay everything off, use your credit card for something like groceries or fuel each month and clear it each month, and save a bit more for a deposit.

GMS

Robbo17 wrote: »

There is not much risk for them because if I do default which is very unlikey then they get to reposses my house. They should not offer people these deals if there is to much 'risk' for them.

Repossession is not always guaranteed to get a lender their money back. Costs soon mount up with a repossession and the property will often be sold for less than the market value.

If you only have a 5% deposit then there is little room for any reduction in sale price and room to swallow the costs.

Repossessing a property with a 50% LTV debt will result in full settlement, anything at 90% plus is likely to incur a shortfall.