FTB struggling for mortgage acceptance

helenjackson21

I have been in the process of buying a house now for 6 months. I have 15k deposit that my mum is giving me. Originally after a house at 70k and had a mortgage agreed in principal through a broker with abbey with a 85% LTV. After many months of viewings and biddings have had an offer accepted at 91k for a different, much better property. Before I made the offer I contacted my broker and asked if I could be accepted for a 90%LTV with abbey as the 15k needs to cover legal fees and moving costs and at 15% deposit would be 14,800. He said this would be fine as my credit score is good.
After doing the full application 5 months after the original MIP was agreed I was declined. My broker tried to increase the LTV to 85% and still declined. He contacted them and they said its not because of credit rating but just that they have changed their lending criteria since Jan???

Broker then tried Nationwide who declined 90% LTV

He advised me to go to my bank (natwest) next. I am actually trying Britannia as I have heard they regualrly give 10% deposit mortgages and they dont use brokers.

Does anyone know of any reasons why Natwest might be better than Britannia and how likely are they to accept me at 90% LTV? Really dont want to lose the house but equally dont want another unnecessary credit check on my file? confused and very stressed! would not have offered them 91k on the property if i had know there would be a problem with 90% LTV!

CBR600F_2

I'm not really sure how it works, but Natwest might be better in that if you bank with them, they can sit in the dark, in their underpants, and pore through your banking history with them. Again, just guessing, but that might mitigate the harshness of credit searches.

I came to this conclusion whilst fighting crime. When they did my AIP, they didn't do a credit search. Because they have a sort of internal credit worthiness based on your finances with them.

liubeliu

I thought Britannia were one of the more harsher lenders when considering who to lend to.

brit1234

How much money have you saved for a deposit yourself. It maybe worth saving for six months to get a better LTV.

Dave_Ham

Do not do anything just yet and certainly leave Britannia well alone..

There must be an underlying reason why Abbey and Nationwide have declined at 90% - we need to start here in order to get to the best solution..

Have you got yours and/or partners Experian & Equifax credit reports. Ever had a CCJ, default or any adverse credit data?

helenjackson21

I have had my credit report and it was good, no defaults not had a credit card since i was 19 (am now 25) and I earn 25k a year in a stable permanent job that I have been in for 3 years.

My mum is giving me 15k for deposit. I think I am going to have to save some more up from the replies above, shame as the property is perfect. Only had an initial telephone converstaion with Britannia on Friday as a friend recommened them - got my full appointment thurs but tempted not to bother really if they are going to decline too!

Broker seems to think that the criteria for lending has tightened since Jan and thats why the sudden decline.

Thanks

Dave_Ham

If this was the case, then Nationwide would have lent to you. Unless your broker has made a significant typo or submitted mis-information...?

90% mortgages are available and given what you have said, they should have been availbable to you.

That said, if you can get to 85% and save a bit more then not a disaster. If you want the house, get a decent broker (not the Britannia MA) and go and get it..

Good luck whatever you decide upon...

Joe_Bloggs

This may sound critical but it is more quizzical. If an individual has not had any credit for six years and has not been able to save a deposit in all that time then how can they demonstrate that they can handle the burdon of a mortgage.
J_B.

Dave_Ham

Joe_Bloggs wrote: »

This may sound critical but it is more quizzical. If an individual has not had any credit for six years and has not been able to save a deposit in all that time then how can they demonstrate that they can handle the burdon of a mortgage.
J_B.

I would imagine a key consideration is what rent has been paid vs what any new mortgage monthly payment would be?

Joe_Bloggs

I know paying rent without fail is a sign of good conduct and is allowed to be included on a credit report. I ask is it/was it/will it be general practise for housing rental payments to be there ?

Mobile phone contract payments are considered a line of credit. Miss one and you could miss your mortgage. Current account conduct is another reported factor.

I can understand renting and other costs, changes in circumstances etc. minimising the ability to save. However it does not inspire me with confidence if this is the case. Not that my opinion matters in anyway.

I too wish the aforementioned better luck and mortgage success
J_B.