Refused for Former Sins :(

jmd4211

Hi there,

Just courting some casual advice really as regards my current situation - some of the key facts stated below.

- I currently have a small mortgage on a property (I was fortunate enough to inherit some money in 2008). The current outstanding mortgage is with the C&G, and I have £43000 outstanding against a property that Im selling for £215,000

- The sale of that property is now going through, and I have had an offer accepted on a property at £258,000, for which I will be looking to borrow £120,000, so still very low LTV

- Although I wasnt a careful student, moneywise, I have just one default on my record, from 2006, settled in full in 2007.

- After provisionally accepting my application, C&G have declined it following the credit check. We have got them to confirm that it is indeed as a result of this default. (Even though this happened before the original mortgage was taken in 2008, and I have never missed a mortgage payment with them).

- I have passed a preliminary check with Halifax, but have seen in another couple of threads here that that means nothing with bad credit.

So my question is, if C&G turn down my appeal to their decision to reject, should I be concerned? Even with such a low LTV ratio?

Any thoughts gladly received.

Thrugelmir

jmd4211 wrote: »

So my question is, if C&G turn down my appeal to their decision to reject, should I be concerned? Even with such a low LTV ratio?

I wouldn't be concerned. As there's little you can do. Lenders are setting the terms of their new business very strictly.

jmd4211

I suppose my question more was am I likely, under my circumstances, to be able to find a reasonably priced mortgage anywhere?

Thrugelmir

Make some enquiries by calling lenders. You've identified the issue to highlight.

Dave_Ham

Few things:

Firstly get your Experian and Equifax reports to confirm exact date of default. Be mindful that at 6 years from default date, they come off your credit report

What is the additional money for as my tired maths suggests a 40k extra left over?

Have you had credit since the default, aside from the mortgage?

jmd4211

Have submitted both of the reports to the C&G, I have had 2 credit cards, one of which has been paid off since January this year, though I had one month late payments in October and November of last year.

The default is September 2006, and the £40k is to pay off my student loan, a secured loan that has been perfectly maintained, and also to improve the place I am purchasing.

Dave_Ham

Ok, so you would be fine in September I would think, although guessing this is too long...

I doubt the appeal will be successful as they generally are not..

Halifax have potential, but if they audit the file again it will be declined..

I wish you luck and would be happy to be proved incorrect. Much more chance Halifax not auditing case than C&G appeal success...

jmd4211

Are there any more lenient lenders, without going down the road of a ridiculously high interest rate?

Dave_Ham

I still think you may be ok with Halifax, subject to audit...

Still, you can easily find a near prime lender with rates of 4-5% with everything declared and the lender being privy to all information..

Most of these exclusively deal with brokers, so maybe find a decent, local one see what is on the table for you..

That said if you cannot wait till September when the default drops off....

jmd4211

Thanks for the advice, I really thought it would be ok given that they lent me for my existing place only 2 years after the default and the low LTV and so have had a bid accepted for a place and have paid a £1500 deposit to secure it I really want it, too.

Dave_Ham

Things have tightened recently, combined with credit records have been upgraded. There is every chance the default may not have been showing on your file when you first got the mortgage and linked addresses or sharing information may have then found its way.

The variables you quote help, but do not mitigate the default I am afraid...