Declined for 2 late payments...

SilentBob

Mortgage application (95% LTV) declined by Ipswich due to 2 late payments to credit cards, one in 2008, the other in 2010. Both accounts have since been fine with no issues, no other outstanding problems at all in our credit.

According to someone at Ipswich, they only loan to "clean credit" applicants....how much cleaner can my wife I be?

The application has been put through for re-assessment but I am not holding out much hope as they have already said no once.

I am seriously disappointed with this especially as the Halifax had already agreed to loan us the mortgage but had to withdraw the offer due to overexposure on the site we are buying. Is there anything else that we can do regarding this as my wife and I have paid out around £2k in fee's for solicitors etc based on us being told that we originally had the Halifax mortgage and then being told that there appeared to be no issue with our Ipswich application until it went to underwriters and they are holding this historical stuff against us (despite as mentioned all accounts now being fine, and the missed payments being for about £22!)

Conrad

Maybe Leeds could help. Is it a new property site? If so, thats quite a detterant for lenders.
95% is very high risk lending hence why they are so picky about your credit history.

In the event of repossesion a lender will loose money as your 5% will no way cover all the costs, arrears, fees, security, locksmiths, police escort, perhaps willfull damage and so on. Almost on one in the world wants this sort of risk now.

SilentBob

Yes it's a new build, there is no problem with regards my wife and I being able to pay back the mortgage, we earn in excess of £60k a year, it's affordable, just Ipswich being really very picky!

Conrad

SilentBob wrote: »

Yes it's a new build, there is no problem with regards my wife and I being able to pay back the mortgage, we earn in excess of £60k a year, it's affordable, just Ipswich being really very picky!

No Ipswich are not being picky. This is ultra high risk business, what with 95% and newbuild. Who wants an 'asset' like that on thier books! Earnings are irrelevant. You say you have no problem with paying on time, so how come the late payments - most people never make a single late payment in thier lives.

£60k a year, can you not save 10% then, afterall you say affordability is not an issue so presumably saving is also not an issue? Would open up many more options.

SouthCoast

Declined for 2 late payments...

This is not a "clean" credit file.

SilentBob

The late payments were due firstly to moving house, and secondly changing bank account (direct debit wasn't set up on time with new account!)

betmunch

SilentBob wrote: »

Mortgage application (95% LTV) declined by Ipswich due to 2 late payments to credit cards, one in 2008, the other in 2010. Both accounts have since been fine with no issues, no other outstanding problems at all in our credit.

According to someone at Ipswich, they only loan to "clean credit" applicants....how much cleaner can my wife I be?

Love it! You can be 2 less late payments cleaner, just from your post!

You are experiencing exactly how difficult it is to get loans these days.

Also it worth noting that you are lucky they have given you the exact reason, many lenders just refer you back to your credit file, while you have the exact reason for the decline

I'm not surprised Halifax would lend, but Ipswich is a much smaller lender who will be (as you have discovered) much tighter criteria.

Dave_Ham

I can recall most of your other threads and therefore am aware how hard you must have worked to try and pull all of this together so do feel for you...

That said, I cannot recall how many times I or others asked if there was anything in the credit reports as they are mega fussy and you said no, no, no all green pebbles - apart from those 2.

Whether I think this is picky or not (and I do by the way) it is in their criteria, no adverse at 90 or 95% and this is adverse...

What about an application in just your name (given your wife having the 2 markers I think?)

Good luck

ItMightBeUsefulOneDay

betmunch wrote: »

You are experiencing exactly how difficult it is to get loans these days.

This is spot on. :T

SilentBob - the banks don't have to lend, they don't want to lend and are doing their best not to lend.

You are trying to combine the two worst options (v.high LTV + newbuild) on a mortgage with a less than perfect credit history. It doesn't matter how minor these two blips are, it's all the excuse needed for the bank to say no.

Use this as a learning experience. Save, save and save some more. Aim for a 15% or more deposit - you earn enough to be able to save a decent deposit with effort. Cut back your outgoings and graft for it. Not only will you get a better rate (saving you 000's in interest long term) but you'll be protecting yourself from negative equity if house prices continue to fall.

betmunch

ItMightBeUsefulOneDay wrote: »

This is spot on. :T

Easy. People will start to think I know what I am doing!

SilentBob

We have "saved, saved and saved", we have got together the deposit ourselves now, but have £18k negative equity in our property which is basically only going to increase as prices are just not going up.

It just all seems to stupid that we can't go with Halifax due to overexposure despite wanting to settle in new house for entire mortgage period, and this lot won't lend to us due to these 2 ever so minor things, makes me wonder how people on lower income (and less secure jobs) manage to get a mortgage in the first place!

There is the option of Abbey (santander), however, this will be a newbuy and given the state of Spanish banks at the moment, do we really want to go there?

Alternatively I can find another house that Halifax might loan to us as they aren't "overexposed"