Mortgage Advice been declined

Heb162

Hi Everyone



Just looking for a bit of advice Please. We have sold STCout home for £95,000 we have 97,000 outstanding on the mortgage with RBS. Weare looking to buy a home for 125,000 with a 10% deposit which my parents aregifting to us. They are also going to cover the shortfall on the old mortgage.



We decided to use the estate agents broker as my husband hasa one late Credit card in April and Gone over overdraft on another account.Both of these were not actually his fault. I told the adviser this and she is didn’tseem concerned at all. She went aheadand applied for at Northern Rock and nationwide. Both of which declined she didn’treally give is a reason but said there was nothing more she could do.

I looked at our credit file with Experian my score is ‘fair’and husband ‘poor’, however with Equifax mine is ‘excellent’ and my husband ‘good’.How can they be so different? I have now sorted the credit card payment issueand it has been removed from husbands credit file.

I should also mention that the house we are purchasing is currentlyowned by my mum and dad as there were builders also wanting to buy it and thisway it made in chain free and was a cash sale. They bought it for £125.000.

I am hoping someone can tell us where we might be able toget a mortgage from.

Thanks very much

betmunch

first, get out of the Estate Agents office and go see a decent broker. Second, ignore what Equifax and Experian tell you unless they are offing you a mortgage its irrelivant. Based on the info given and making a few assumptions there is only one lender worth trying, and it aint NR or Nationwide! Good Luck

Heb162

thanks also forgot to say i earn £16500, Husband earns 22500. We do have about £8000 betweem us outstanding on ccards.

Thanks

GMS

Heb162 wrote: »

thanks also forgot to say i earn £16500, Husband earns 22500. We do have about £8000 betweem us outstanding on ccards.

Thanks

Was this the reason for the decline? Affordability?

Simon_gloster

betmunch wrote: »

first, get out of the Estate Agents office and go see a decent broker. Second, ignore what Equifax and Experian tell you unless they are offing you a mortgage its irrelivant. Based on the info given and making a few assumptions there is only one lender worth trying, and it aint NR or Nationwide! Good Luck

The main thing is the borrowers are now fully informed of how life and critical illness cover can help clear the mortgage.

As bm said, the good, fair, excellent, masterful comments on your credit reports have no impact whatsoever. Lenders tailored scorecards and decisioning models determine who they lend to predominantly.

Heb162

She didnt realy give a reson just said rent for 6 moths and try again. Although she did say affordability was fine. She said some would lend upto £169.000 It just seams really silly when we only what £17,500 from what we have already! and we only erned £ 28,000 between us when we took that one out.

Thanks for your advice.

betmunch

Heb162 wrote: »

She didnt realy give a reson just said rent for 6 moths and try again. Although she did say affordability was fine. She said some would lend upto £169.000 It just seams really silly when we only what £17,500 from what we have already! and we only erned £ 28,000 between us when we took that one out.

Thanks for your advice.

Definately get a second opinion before you give up.

GMS

Heb162 wrote: »

She didnt realy give a reson just said rent for 6 moths and try again. Although she did say affordability was fine. She said some would lend upto £169.000 It just seams really silly when we only what £17,500 from what we have already! and we only erned £ 28,000 between us when we took that one out.

Thanks for your advice.

Do you have any children?

Dependants and debt will greatly reduce your borrowing ability.

Simon_gloster

Heb,

The income you he is not the issue. Other more lenient lenders out there at 90% may be a shout.

Failing those attempts, a 15% deposit would open up even more doors in 6 months time. Sometimes being knocked back can be a blessing in disgiuise as the most wonderful property will come on the market for you both in the late summer.

Heb162

No we have no children

We have about 8000 between is on credit cards and we do have a 2000 overdraft and my husband has a student loan that comes off his wage but aside from that nothing else.


The only problem with waiting is my parents bought the house for us to buy off them. I just feel bad about it as its their savings and i never escpeted any kind of problem getting a mortgage. So i will try a different broker failing that i will have to rent from them until we can maybe save a bit more money.

Thanks for all your help everyone

Thrugelmir

Heb162 wrote: »

We have about 8000 between is on credit cards and we do have a 2000 overdraft

Combined with an entirely gifted deposit not a risk underwriters with mainstream lenders would consider. You need to demonstrate better management of your personal finances.

Personally I would suggest staying put for a while longer.