Mortgage Hell !!! - Advice Required

aj9648

My friend and I have recently started looking at purchasing a house. But trying to get a mortgage has been the nightmare or our lives and I just wanted to sound a few people out and get your thoughts.

We both have enough income to be able to purchase the house. We did an application through one of the brokers and with Nationwide and we were declined. We did a similar application with Halifax and also declined.

So before we did anymore applications we obtained a credit report from Experian. There seems to be no problem with this - my friend has missed a couple of payments on credit cards, but that was 12 months ago. The only problem we could see was that both of us had moved around a lot 4 different addresses each in the last 3 years.

We did a soft application/search with Bristol and West and again "computer said no!!!" This was more bizarre as this particular mortgage allowed missed CC payments and even a CCJ.

We have no idea what to do next. Are we allowed to ring up Nationwide and ask why we were declined?

Any advice anyone could give us?

Thanks

herbiesjp

Did you show your credit report to your broker?

LisaT186

Definitely phone up the lenders concerned and see if they can tell you anymore. If they tell you to get your credit reports at least you can say they're in front of you!

Moving around a lot won't help your credit score. Are you on the electoral register? Have you taken your experian creit file back to your broker to see for his comments?

Unfortunately from what you have said, it's difficult to shed any light. Let us know if you have any further info once you've called.

aj9648

Thanks - I am going to call them. Do you know who I need to call specifically?

LisaT186

Nationwide
Existing customers: 08457 30 20 10
New Applications: 0800 30 20 10

One of these should get you through and redirected if necessary! Try the free one first Let us know how you get on

aj9648

Just rang nationwide and not that helpful to be honest!!! She said our LTV was too high - and we needed a higher deposit - I though 5% would have been enough !!!

We have been over commited on Credit - I know that our total credit we owe is around £2500 so I did not see that as an issue.............

So no idea what is wrong with us !!!!!

herbiesjp

Let's start at the beginning then:

What is te purchase price?
What is your deposit?
What is the mortgage amount needed?

WHat is your income?
What is your partner's income?

Is the £2500 a loan or credit card? Do you have any other loans or credit cards at all?

HelpWhereIcan

IMHO, this has less to do with your credit file than you seem to think/been led to believe.

The fact that you have had a number of addresses in the last 3 years, the Nationwide have said you did not have enough deposit etc hint to me that there is an issue with the 'overall profile' as far as a lender is concerned.

How long have you both been in your current jobs?

What do you do for a living?

Your credit file, the answers to these, the info herbiesjp is asking for and whether you are on the electoral roll as LisaT186 says should give your broker enough to go on to establish which lenders may look favourably on application from you.

DO NOT make repeated attempts to get a decision in principle as each credit search can help to reduce your overall score.

What are you chances of getting some additional deposit together? Are parents in a position to help with the deposit or as 'guarantors'?

It may well be a case that you would be better waiting 6 months or so (till you have more deposit, been in jobs longer etc.

Who do you bank with? Has your broker tried them (sometimes a relationship with a lender can help). What conversations has your broker had with you about the reasons for the decline? What calls has he made to the Halifax/Nationwide/B&W about their reasons for decline?

Hope this helps & good luck

aj9648

What is te purchase price?
£235,000

What is your deposit?
3% - preferably

What is the mortgage amount needed?
£228,000

WHat is your income?
£28,000

What is your partner's income?
£27,000

Is the £2500 a loan or credit card? Do you have any other loans or credit cards at all?
All credit cards and no loans. I have other credit cards that I have not used in a while.

aj9648

When I spoke to Nationwide, they also mentioned something about a Delphi Risk Information. I have no idea what this is and they were vague about it. But basically they said we were hgh risk on this account too.

herbiesjp

If you only have 3% deposit that will be one of the reasons Nationwide have said no - they only go up to 95% lending.

Most lender will go up to 95% lending, or you end up on one of their 100% mortgage schemes.

Halifax do 97% lending howver they have declined you also. Have you spoken to them and asked them why they have declined you? It may be worth a call to them also

Your income figures look fine to get the mortgage amount you want (assuming the actual mortgage figures are indeed affordable) with some lenders who are more flexible with their underwriting

"a Delphi risk information" are you sure you heard correctly? This bit does not make any sense. Is there anything on your credit file by the name of Adelphi?