Help please, selling house but can't get new mortgage!

Patbcn

Hi there,

I need some advice.

We put our house in the market a couple of months ago trying to downsized and pay off the debts with the sale.

We have now a buyer, they are ready to proceed and we have found a house we like. We put an offer down that has been accepted.

My partner is self-employed and we have paid late the mortgage in some occasions in the past (that's why we want to sell and get a mortgage that will be half of what we have now) and we also have 50% deposit to put down.

We haven't sent any of the selling 'solicitors' papers back, so it is possible to withdraw our sale without getting penalised by the Estate agent asking for their fees.

Can somebody advice please? thanks

Dave_Ham

Ok firstly, I think it is a little bit of a poor show to be effectively buying and selling houses to real people, without having the backup of a mortgage.

Will put this down to naivety rather than selfishness.

In any case, there will be a solution given the loan to value. How reasonably priced the rates are is dependent upon some of the answers below:

Are any mortgage arrears showing on your Experian/Equifax report in the last 12 months/24 months and 36 months

Have you any defaults - if yes how much and when
Have you any CCJ's - as above

How many missed payments - approximately in the last 2 years

There will be a solution, just need to make sure it is practical

gingeralan

You can pull out any time before exchange of contracts, and the estate agents fees only become payable after completion. Neither of these have happened in this occasion so you are able to pull out.

Thrugelmir

Why not sell, clear your debts and rent.

In the current market having a proceedable buyer is a big plus.

CLAPTON

have you tried a mortgage advisor?

Patbcn

Hi,

we have never had any CCJ's or IVA or bankrupcy.

We have paid late our monthly mortgage but we have always been making payments and they have always been really helpful and understanding whenever we were late (it's with Standard life).

I have never missed any payments of my loan or CC's but my parntner has missed some CC payments date and that's has been paid straight away getting the odd late payment fee of £12 from them but probably only 1 or 2 in the last year.

We are not selfish so in our case I think is naivity. We both have said to our selves how embarassing we never thought about not being able to get a mortgage because to be honest when we have looked online for quotes, etc everything looked ok.

It is very stressful and frustated, I have spoken to an independent Broker the Mortgage Advice Bureau that has so far apply with Halifax and fail.

We thought having 50% deposit and the idea of being debt free we will be the perfect candidates... so yes completely naives!

Thrugelmir

Patbcn wrote: »

We thought having 50% deposit and the idea of being debt free we will be the perfect candidates... so yes completely naives!

Your credit history now precludes this. As it identifies to a lender your attitude towards money (in the broadest sense).

Patbcn

Thrugelmir wrote: »

Why not sell, clear your debts and rent.

In the current market having a proceedable buyer is a big plus.

HI yes,

we have thought about renting and that's still one of the options but living in Oxford is also a very expensive option that will mean wasting a lot of money and not being able to save much.

Some cheaper properties are available outside the city but we will have then to consider the travelling costs, etc but it's an option.

Dave_Ham

Firstly, forget the highstreet.

If Halifax said no, so will almost every other highstreet lender - unless you have your primary bank account with them and then dependent upon who they are.

Do not let this broker or any other credit search you without justifying why. A DIP with Nationwide, Santander, HSBC or Woolwich will almost certainly result in a fail.

So, you now need to choose between renting or paying between 4.5% - 7% interest rates for the next couple of years..

All the best

Patbcn

Dave_Ham wrote: »

Are any mortgage arrears showing on your Experian/Equifax report in the last 12 months/24 months and 36 months


How many missed payments - approximately in the last 2 years

There will be a solution, just need to make sure it is practical

Hi David,

thanks for your answers.

I haven't seen my credit report yet I am about to get it (I have a Santander reward account that apparently includes it) but it will be on my partner's report as the mortgage it's only in his name.
The new mortgage will be a join application.

He is self-employed and with the difficult economic climate I believe he has always been late for the past 3 years but always kept making payments to cover the monthly mortgage.

We thought we were doing the right thing and at the moment renting seems the only solution.

If we decide to rent, how long it takes before we can apply for a mortgage again? some lenders seems to ask for the past 12 months clear of missed payments, is that correct?

thanks

Patbcn

Dave_Ham wrote: »

So, you now need to choose between renting or paying between 4.5% - 7% interest rates for the next couple of years..

All the best

How can we get hold of those mortgages with interest between 4.5% and 7%.

I have had a adverse credit mortgage quote that had like £3.500 extra in fees what i thought it was crazy to paid that.

(By the way I am Spanish just in case you are feeling upset by my grammar or ortographic mistakes but I am trying my best! boyfriend is English though!)