HELP first time buyer rejected ???

CashCrammer

Hi i need some help and fast! i was approved for a mortgage from HSBC but i have now gone through the application process as we have found a house and i have now been rejected. i have no idea why as i have never had any loans, overdraft, credit cards, no nothing so how can i be rejected? i earn a decent wage have always shown on my statement that i am more than capable to repay it but declined to let me know why i was declined. can any one help shed some light on this and tell me what i can do next as im worried the house will still be on the market and somebody will put in a higher bid than me even though it has now been accepted. thank you in advance!

oh im 24, would this have anything to do with it?

scotsgraeme

if you have never had any debt at all, that is probably why. you have no credit history, so no history of showing you can repay a loan.
long term, get a credit card, put something on it and pay it off each month, that wil build a picture of how you handle money that lenders can see, they dont see the balance of your current account, so cant see how you manage money that way, only se that you have a blank slate, and that makes them uneasy.
short term, no idea what your next step is other than getting your creidt reports, and possibly speaking to a broker

Notmyrealname

Having no credit doesn't help.
Only being with your current employer a couple of years or so doesn't help.
What is your income and what were you hoping to borrow?

betmunch

More likely its just HSBC's ultra picky criteria
Get a copy of your credit file down to an Independent Mortgage Advisor and they will find whos most likely to accept you.

motherofstudents

Don't panic, as above HSBC are notoriously difficult to get mortgage from but try others and you should be ok. A broker will be able to check it all out for you.

CashCrammer

i have been with my employer 7 months and my salary gross approx £40k, and the mortgage amount is £175000 and i have 10-15% deposit.....thanks for the help guys

Emmzi

7 months = short employment history
deposit = less than 25%
mortgage amount = more than 3 times income

work a bit longer, save a bit harder, buy something cheaper

hazyjo

The mortgage amount is actually more than 4x salary! I think it's very unlikely you'll get that with the lack of credit history, short time in job and your age. As above, you really should be looking at 25% deposit.

Good luck! Definitely speak with an independent broker (not through EA or anything). Keep us informed...

Jx

kingstreet

i was approved for a mortgage from HSBC

Approved for over 4x income at 85% to 90%? I'm surprised at that.

You need a good independent or whole market broker. There are only a handful of lenders who will do over 4x at upto 90% and if you have a short employment history and no existing credit, you might need a non-scoring lender.

Ask friends and relatives for a broker recommendation. Resist the temptation to run up and down the high street having credit checks done. You'll do more harm than good.

Notmyrealname

CashCrammer wrote: »

i have been with my employer 7 months and my salary gross approx £40k, and the mortgage amount is £175000 and i have 10-15% deposit.....thanks for the help guys

Not to be cruel but TBH you've got no chance. You've not been with the employer long enough, you've no credit history and you're wanting to borrow in excess of 4x your income.

Get a credit card and buy your fuel setting up a direct debit to clear it each month. Stay with your employer and ferret away money. In a couple of years, try again.