Trying to get a mortgage

Triplehelix

Hi, this is my first post here, so firstly hello!

I came for some advice, I have managed to save £9k for a deposit for a first time buyer mortgage, however have been turned down by my bank!

They say it was due to credit score, I have never missed a payment on anything, so checked myself and credit rating is FAIR. The mortgage amount I want is £81000, so my deposit makes LTV 90%.

I know from reading posts before, that there are some very knowledgable people on here, I was wondering if I will ever get a mortgage with a 'fair' credit rating.

All responses greatly appreciated.

ACG

There are lenders who dont credit score.

Why is your rating fair if you have never had a missed payment? Have you had much credit in the past?

GMS

Which bank turned you down?

Triplehelix

According to report its due to a fair bit of credit in the past, paid off 3/4 of it, still have a couple of unsecured loans. But have never been in default

Triplehelix

It was Santander that turned me down.

Forgot the bit that really confused me, my mortgage repayments would be less than I currently pay in rent!

GMS

90% mortgages are difficult to obtain. Having unsecured debt could be the reason for the score.

Lenders will not take the fact that you can pay rent as a reason to give a mortgage. You could if you choose walk away from the rent but the mortgage is a long term commitment.

It is frustrating but unfortunately lenders need to satisfy themselves that you can afford the mortgage. If they believe you can't then they will decline.

Triplehelix

GMS, thanks for the reply, that cleared up the rent confusion issue! Is it still worth me applying through a broker? Will anyone lend with this credit score?

GMS

Impossible to say without knowing your circumstances. Did you check affordability with Santander before applying?

Get copies of your credit reports and pass to a broker. They should be able to tell you if it looks likely or not.

Also try for £100 less than the 90%. Sounds daft but the credit scoring can sometimes be easier at 89.99% then it is at 90%.

Triplehelix

Again thank you for your help

Triplehelix

Santander did the affordability and it was ok, they hold all my accounts and have done for 15 years.

Triplehelix

Would a guarantor change my chances?