help please after declined

singhr2

Just wandering if anyone could advise if it is looking realistic we would get a mortgage, after being declined on a joint application.

We have a 10% deposit for a house for £98,000.

We got declined, checked credit reports, I have a poor score (560) due to numerous searches. (salary 17500). Total debts credit card: 4500

Partner has fair score (850). (salary 23400) credit card debts 2300, paying 300 month on loan, due to finish in 12 months.

Both of us have no CCjs, defaults late pmts etc.

It looks like my credit rating will be having a negative effect in the joint mortgage. Would any lenders be willing to lend 88000 for a single application for my partner on her income?

Or is it a case of I need her for her credit, but she needs me for the extra income.

We are FTB, partner has been renting for past 6 years. I just dont want any more searches done if we keep getting declined.

Would any lenders be willing to lend 90% just on partners salary of 23400.

Thanks

Rob

Dave_Ham

Hi Rob,

Firstly, I would be surprised if your score is that low just as a reflection on searches - very surprised indeed.

In any case, I think from both of you there is enough to go at. Engage a decent broker and they will quickly select the most appropriate lender and product.

Potentially a single application would be a goer, although tend to only use this solution as a last resort.

Which lender declined you?

singhr2

Hi Dave,

We got an AIP with HSBC, then they declined. Newcastle accepted us both but upto 80% LTV.

Thanks for your reply Dave

Leeds BS said they would offer upto 85 % as partner is not entitled to vote, so is not on electoral, but has proof of renting same address for past 5 years.

After seeing a broker who entered details onto halifax (not full credit check), they declined on both, but in partners sole offered upto 80%.

On my report, it may also be because I have approx £4000 on credit cards, however I am paying more than min pmt and have not missed any pmts over last 6 years.

Im just a bit nervous that any more searches will have a negative effect on me. I dont how the applications work with one having good credit rating, the other poor. I should have checked the forum here before applying to HSBC!

Regards,

Rob

Dave_Ham

Spot on Rob - HSBC are hard work..

You are correct, you do not want too many more footprints although some of these are just soft foot prints

Are you trying to buy a new build? as cannot otherwise understand why it was capped at 80% in OH name, as this is not typical at Halifax.

Something is definitely amiss with your report, trust me here. Study your Experian and Equifax reports there will be something on there.

Halifax would lend to you otherwise, it may not be at your principal address but your score is too low and for Halifax to straight out decline there is something up.

Check your reports and let us know

singhr2

It is not not a newbuild, but a semi-detached property initially for 105000, but seller agreed at 98,000, so we would need to borrow 88000.

junglist_matty

NatWest are the only bank that will lend 5x salary at the moment; 23400 * 5 is greater than 98,000

HOWEVER, Mortgage lenders require you to do an affordability report. This means that loans and credit cards (however close to being paid off) are considered. Unfortunately for your partner, his £300 a month loan and £2300 credit card debt will be taken into consideration and therefore you won't get a mortgage based only on his salary.

There are various banks that will lend without credit checking... I'd visit a mortgage adviser who will be able to find you a mortgage.

JimmyTheWig

I'd say wait a year.

Pay the credit card debts with the savings.
Pay the loan off over the year as planned (or settle in full with savings if possible / cheaper).
Then spend the next year building your savings back up.
With no debts and no interest on debts, your savings balance should build quite quickly if you are disciplined.

Make sure you pay everything on time in the mean time. Try not to apply for any unnecessary credit.

In a year's time, anything bad on your report will be a year older and so less relevant.


But I agree with Dave. Check your credit reports carefully. Ignore the scores, look at the details. Check open accounts and closed accounts on there.

kingstreet

junglist_matty wrote: »

NatWest are the only bank that will lend 5x salary at the moment; 23400 * 5 is greater than 98,000

There are various banks that will lend without credit checking... I'd visit a mortgage adviser who will be able to find you a mortgage.

Abbey/Santander lend upto 5x, Nationwide around 4.7.

As for credit checks, I don't know a single lender not carrying out a credit search of some description.

I noticed your comment about Cambridge BS in another post, but don't have experience of them as they operate in a specific part of the country not familiar to me.

Dave_Ham

Junglist seems to have got his own mortgage sorted (through an acclaimed broker) and is now an expert.

Cambridge, Ipswich etc. do not credit search to say no by computer. They look at your credit reports and then potentially say no due to adverse credit.

Whilst they are more flexible and manually underwrite, you cannot get any old mortgage through with them.

Not forgetting past masters of the 5 * salary club in Halifax and Woolwich...

OP- genuinely there will be an issue for these fails, either you are not aware or not divluging and there will be an issue in your credit file..

singhr2

Thanks for all the replies, I have checked my credit report and I beleive it is a combination of the searches and Having high Credit Limit Utilisation.

My payments have been fine for the past 6 years, so I guess I should pay off my credit cards first to improve my score.

I may still look at the possibility of my partner applying for a mortgage in her own name, and adding me later down the road.

Regards,

Rob

singhr2

Hi, think we are going to go down the route of my partner applying on her own.

Just a quick question, does anyone know which banks will lend 3.75 x salary or more. (need to borrow 88000 on salary of 23400), I will clear her credit card debt of 2000, so she only has a loan of 300/month left for 12 month to pay).

Alternatively, does anyone know of any good brokers, i have asked friends family but they have not really recommended any good ones.

Thanks,

Rob