Rejection on application for shared ownership mortgage - late payments on credit file

CurleyFurley

Hello everyone,

I've recently applied for a shared ownership mortgage (95% LTV of share) and I've been rejected once formally (showing as a credit search on my report) and once informally. This is due to 4 late payments - 3 in 2010 and 1 in 2009.

I believe they are on there correctly.

I have ongoing credit arrangements and haven't had a late payment since September 2010.

Does anyone have a recommendation as to how I am going to ever get a mortgage with these late payments showing?

Thanks in advance!

betmunch

You need to be absolutely pristine to get 95% LTV. Which lender did you try? You may simply have to wait until credit conditions ease up a bit

Thrugelmir

CurleyFurley wrote: »

I have ongoing credit arrangements and haven't had a late payment since September 2010.

Reduce by as much as possible in order to improve your credit rating. Also a lender will take the view you are borrowing the deposit.

leereni

I don't understand how you've got 95% LTV on a shared ownership property. Do you mean 95% of the share (eg. Your share is 50% of a £200,000 property therefore your mortgage would be £100,000 and based on the LTV ou are applying for you would borrow £95,000)? Or are you talking about Irstbuy/Newbuy?

You'll do well to find somewhere that offers a 95% LTV on shared ownership properties with missed payments. Shared ownership are looked at with more risk.

opinions4u

Bigger deposit.

More time between missed payments and application.

poppy10_2

leereni wrote: »

I don't understand how you've got 95% LTV on a shared ownership property. Do you mean 95% of the share?

Let's read that again:

CurleyFurley wrote: »

I've recently applied for a shared ownership mortgage (95% LTV of share)

CurleyFurley

Thanks everyone for the reply.

I approached Leeds BS and Saffron BS which I think are possibly the only 2 who would consider lending the amount I wanted for that purpose.

Leeds said they need 4 years entirely spotless and Saffron 3 years. However, this was with me making informal enquiries, telling them what was on my report.

At the time of first application there was a big red 4, late payment marker, from T-Mobile within the last month which presumably led to the decline. This did in fact relate to a complaint with T-Mobile and they've agreed in writing to remove it from my credit report - I know I should have checked my report beforehand.

I've read elsewhere on this forum that the lenders don't see the code 1 markers, is this correct? As these will be only things on there: March 09, March 10, June 10 and September 10 (all code 1s).

I should be able to get a 10% deposit together as well so it may be that there will be more lenders/ a more lenient attitude towards me.

What do you think?


Thanks,


Sam