Can't get mortgage - Even with 30% deposit!

Tysonator

Hoping someone can help me as I'm really stuck in a jam

I'm 28 years old, though left home at the age of 8 and have never had a permanent address, apart from once when I was 18.

Since then I've either rented rooms from friends, or sofa surfed. I've got my own business now and am desperately trying to get a mortgage as I've never wanted anything more, than to have my own house.

Problem is, I applied and got declined based on the fact that my electoral roll info didn't match up as for the last 10 years there is no record of me.

Whilst I understand this is used for a credit check what I cant work out is why you would get refused if paying a deposit? I'm looking to pay a 30% deposit on the house I wish to purchase. Therefore if I didnt make the repayments etc, the bank/lender would automatically get at least my deposit of me so you would think they would be grabbing my hands off

Is there anything I can do that's actually going to help me? I cant go on the electoral roll as I dont have a permanent address, and feel like im stuck in a catch 22 situation.

Any help / suggestions appreciated.

Ty

Annisele

I'm afraid I can't help with your general problem. However, you're wrong to say that you can't register on the electoral roll without a permanent address - you can't use the usual form, but you can register if you can "declare a local connection". Information for Tower Hamlets is here; google for how it works in your area.

getmore4less

1. Get on the electoral role. (wherever you are living, rent if you have to)

2. Bank account well managed with good income records

3. Establish credit records, never miss a payment

4. Good business records(how many years of accounts do you have).


Lenders want you to pay so need records that support this,
Reposession is last resort.

Tysonator

As I said I cant go on the electoral roll where I am atm, and even if I could.. the banks have told me they want 4yrs of electoral roll info to match up...

2. Bank account well managed with good income records Check

3. Establish credit records, never miss a payment Check, though never had credit cards..

4. Good business records(how many years of accounts do you have).2 yrs accountants

Dave_Ham

Hi there,

I totally appreciate your frustration and do hav some sympathy for your plight.

The issue is as highlighted above that unfortunately, even if you had an 80% deposit the banks cannot see and touch you. They cannot appropriately verify that you have not previously missed payments etc. and therefore will not hit their risk lending criteria.

As previously stated, repossession is their absolute last choice and of no interest to them getting their money back this way.

Only thing I could suggest looking at is if there is a house that you would want that is available for let or to buy and maybe come to a personal (legalised) agreement with the current owner to rent for x for a year (whilst getting yourself on electoral roll etc.) and then buy off of him/her. Not necessarily traditional and likely to cost you more than just buying traditionally but you may not have many options currently.

Good luck

Tysonator

Hi,

Thanks for the suggestion though that is unlikely to happen sadly. I honestly assumed that if I saved up a deposit that I wouldnt have any problems. Sad to see that money doesnt speak

Would a guarantor help in a situation like this or would it still be the same outcome?

Dave_Ham

I appreciate your sentiments.

Quite possibly a guarantor would help although without knowing the full details of both parties it would be impossible to give definitive answer..

Tysonator

I see your a mortgage advisor from your sig, are you independent?

getmore4less

Tysonator wrote: »

As I said I cant go on the electoral roll where I am atm, and even if I could.. the banks have told me they want 4yrs of electoral roll info to match up...

2. Bank account well managed with good income records Check

3. Establish credit records, never miss a payment Check, though never had credit cards..

4. Good business records(how many years of accounts do you have).2 yrs accountants

Fix your Eelectoral role issue
get a CC (that may be an issue as well so do ER first.
another year accounts

try again in a year.


The other option if not tried allready is to talk tothe bank you use for you personal and business accounts, they will have a record of you address.

What have you been using for communication upto now?

Tysonator

getmore4less wrote: »

The other option if not tried allready is to talk tothe bank you use for you personal and business accounts, they will have a record of you address.

What have you been using for communication upto now?

The banks have my address, just its not on the electoral roll. Infact doing a search online it would seem that I am registered on the ER, just 200miles away where my accountants offices are based.. How that has happened I have no idea

GMS

Where are you registered with the Inland Revenue? Where is your bank account registered?

Not being on the voters roll will not help but if you have proveable address history for 3 years you should be able to at least make an application.

Credit scoring could be the reason for decline.

Have you approached your own bank for a mortgage or elsewhere?

How much are you looking to borrow and what income can you prove?