First Time Buyer Mortgage

Khan86

Hello Everyone,

This is my first post and I just would like some general advice, I am 25 years old and about a year ago set up for a mortgage meeting with the advisor from a estate agents, found a property, was given verbal agreement for a mortgage, no issues on a property valued at £65,000 at 10% deposit (my parents were helping with the deposit). Anyways that fell through due to the property.

Fast forward a year, I am in a similar position, in fact i am earning maybe £200 more a year, I have reduced my interest free overdraft from 1000 owed to have a positive balance of 1000 plus and looked back into getting a property. After acceptance last time and looking at a property of £60000 with 10% deposit again i thought it would be a formality. The first mortgage the advisor told me that i didnt get due to my credit score being too low and then the second i had the exact same issue. ( i appreciate the advisors use a restricted panel). Anyways I checked my credit score, there were minimal issues and i had a score of 730 (which is decent i thought) always on electrol roll, no bad credit/loans/credit cards etc.

I then rang HSBC went through all the information, then they also said no stating I just dont meet their criteria. I thought it may be the deposit but alot of companies offer a LTV at 90% so just wondered if anyone could shed some light on why I could not get a mortgage or have suffered similar fate? or possibly give me advice on my next steps?

Thankyou in Advance

Khan86

May I add for the last 15 odd months I have been working Overtime etc and managed to save 200 per month in both an ISA and a savings account. (showing I can manage money) I do have a student loan but that is irrelevant i presume. I have just started a new job, which I recognise could be an issue but literally this time last year I had started a new job when I looked at the previous mortgage i was offered.

Thrugelmir

You basic salary could possibly be an issue. If working overtime is the only way you can save every month. Then your finances could be severely stretched if you had all the associated cost of property ownership.

ACG

HSBC on the 90% are very hard to get a deal with....take a look on these forums for confirmation of that.

You should maybe look for a whole of market advisor. Take your credit report with you and see what they come up with. There are lenders who wont look at people with a less than squeeky clean past.

powerwin

Khan86 wrote: »

I then rang HSBC went through all the information, then they also said no stating I just dont meet their criteria. I thought it may be the deposit but alot of companies offer a LTV at 90% so just wondered if anyone could shed some light on why I could not get a mortgage or have suffered similar fate? or possibly give me advice on my next steps?

What's your salary?

Either they don't think you can afford it, or it may just be that the mortgage you want is just too small for them. If it's a small mortgage there's not enough profit in them, so they may have a minimum borrowing amount.

I would try some other mortgage providers.

Rgds

PedroMatias

Khan86 wrote: »

Hello Everyone,

This is my first post and I just would like some general advice, I am 25 years old and about a year ago set up for a mortgage meeting with the advisor from a estate agents, found a property, was given verbal agreement for a mortgage, no issues on a property valued at £65,000 at 10% deposit (my parents were helping with the deposit). Anyways that fell through due to the property.

Fast forward a year, I am in a similar position, in fact i am earning maybe £200 more a year, I have reduced my interest free overdraft from 1000 owed to have a positive balance of 1000 plus and looked back into getting a property. After acceptance last time and looking at a property of £60000 with 10% deposit again i thought it would be a formality. The first mortgage the advisor told me that i didnt get due to my credit score being too low and then the second i had the exact same issue. ( i appreciate the advisors use a restricted panel). Anyways I checked my credit score, there were minimal issues and i had a score of 730 (which is decent i thought) always on electrol roll, no bad credit/loans/credit cards etc.

I then rang HSBC went through all the information, then they also said no stating I just dont meet their criteria. I thought it may be the deposit but alot of companies offer a LTV at 90% so just wondered if anyone could shed some light on why I could not get a mortgage or have suffered similar fate? or possibly give me advice on my next steps?

Thankyou in Advance

Although the scores should never be taken as gospel, for your score to be 730 there must be a number of things significantly wrong with your credit report. I'd suggest these things need to be addressed before a lender will give you a mortgage. What's dragging your score down?

maninthestreet

In increase in your income of just £200 in a year isn't much - perhaps you meant £2000?
What other debts do you currently have?

Khan86

Ok my salary was £14,600 (when I got my mortgage quote a year ago) since then that job ended and I worked for other companies for roughly less money about £13,000, random jobs contract work for various agencies.

But then recently I got another job now paying £14,800, full time (the details I gave to the advisor).

I genuinely have no bad credit, I have a student loan (which does not count) I thought possibly the fact I dont have much credit at all that could be an issue. I live with family, i just pay rent, I do have a mobile bill and a few other frequent payments but not often.

I guess the fact there is minimal profit in it for the company I consider that to be high on the agenda.

As an update I had a phone conversation with an advisor from First Direct (who I think are affiliated with HSBC) and they in principal agreed to a mortgage at the rates given, but I would have to open an account with them for my current account. But this is subject to getting through a probation period.

Thanks for the responses so far, if you need any more info from me just let me know.