Mortgage Help.

triffid123

My wife and i have split up and i find myself squatting at my mothers and there is no room for me here really. I have a decent wage, yearly minimum 32k per year although my last p60 was over 45k and the one previous was 37k+. I have a steady job i have been at for 20+ years. Although i have had a few credits accounts over the last 6 years, 22, 13 of which are paid off. I have not missed any payments during this 6 year time and my payment history is excellent. But unfortunatly i have quite a few credit searches on my account over the last year and especially over the last 6 mont6hs and that coupled with the fact i am using 65% of my credit is stopping me getting a mortgage it seems.
The mortgage is quite small, 85k and i have 15% deposit to put down I have been refused by only one lender through a broker and my mother offered to go a joint application, or guarentee the morgage for me when i try again.
The question is this, my mother is in her mid 60s, she is retired but has her own property that is paid off and is worth double the value of the property i am trying to buy, as said she is willing to be named on the mortgage as we both know i have no problem paying for this as 80% of my wage is my own each month. Would it be better to try for a joint morgage with my retired mother who would be using her house as collateral? or would the fact she was retired only make my application less likely to succeed?
Do high street lenders accept this when applying for mortages?

Dave_Ham

This should be achievable on your own, so lets start from the top..

How much do you owe and monthly credit commitment?

Who declined you - Santander?

triffid123

Thanks for the answer Dave Ham
Ok, heres my outgoings.
I have a loan, 1/3rd paid , 2 years to run with a payment of £250 per month, approx £7300 left to pay and about £7500 over 3 credit cards, so the total amount payable is just under 15k, minimum payments for these are around £250, although i am going to pay off £3500 (the largest of the cards) within the next 7 days.
My wage is £2100 minimum after tax per month, although as i said, my yearly wages far exceeds my minimum (over 45k last year and over 37k the previous year with p60s to show)

The Mortgage was tried through Nationwide.

Dave_Ham

This is a bit strange, I am surprised you were declined outright??

You need to quickly get your Experian report, just the £2 variety and see what it says.

I would fancy this is achievable for you, given the information supplied and that credit file report...

Nationwide are slightly stricter than other lenders, but usually quite reasonable...

triffid123

I have copys of both my credit reports here, i have been subscribing to equifax for the last year or so, and after i got declined i subsribed to experian this afternoon to see what the problem was.

Both show almost the same in terms of accounts and how i handled them, but there are far more searches on experian than on equifax, i have 19 in the last year and 7 in the last 6 months (opposed to 7 in the last 2 years in equifax and 3 in the last 6 months), i was unawair this messed your credit record this bad until today.

triffid123

Also i have done credit scores through them both, i know these are pretty usless when it comes to lenders own criteria but equifax shows me as good and experian shows me as poor and goes on to say that this is because i use 65% of my credit and have so much searches.

Dave_Ham

Forget the searches, it has an impact but is not a dealbreaker.

I would expect a decent broker will sort this, would suggest a new one...

All the best

triffid123

Thanks for your help Dave, your lightned my spirits somewhat.

Experian_company_representative

Bear in mind that only credit application search footprints can be fed into scoring. Other types, such as quotes and ID checks, don't count. More in our searches fact sheet. The difference in the volume of search footprints between your credit reports simply reflects where lenders are placing their enquiries.

James Jones

triffid123

Dave Ham, i took your advise and you were right, a decent broker was what i needed, all sorted now, thanks for your help once again.

Dave_Ham

Most welcome...

All the best