2nd Mortgage application advice

KDR7

Good afternooon Ladies and Gents

Basicaly im looking for some advice and reassurance here.

The scenario is that Me (29) self employed 3 years SA302 and my partner (24) 5 years full time constant employment are looking to buy our first home. We have saved 5% of deposit and have been gifted 5% from money her dad has inherited.

We started out talking to a broker who advised us about looking at Halifax, and we had an agreement in principal with them. However i bank with RBS so spoke to them for a second opinion. The RBS have a first time buyers deal on with no product fee ect and a rate of 4.79%. this looked to good to turn down so we went for a full application, This went to "review" and was subsequently declined by the underwriters.

The reason given was unacceptable banking conduct on a Halifax account that a rarely use. (and if i'm honest with myself should have closed a long time ago.) I have an overdraft on this account which i use and pay back but generally keep around a £0 balance in it. i did however go over the overdraft a couple of times since Jan which was paid back within a matter of days.

this appears to be the only reason that the RBS gave for declining the application. We have looked at Equifax credit reports and they both look OK. I have a few missed payments dating back to 2009 but apart from that nothing since 2003.

We are going back to the broker tomorrow (Monday 29th) who seems to think we may still be ok with Halifax despite the reason for RBS declining but has said there are other lenders to consider.

Having read bits on the Net it does appear that RBS are quite strict on their lending criteria.


I guess im looking for advice as to the more lenient lenders and that there is likely to be a soultion out there.

Thanks for any adivce

Kevin

KDR7

Give this a bump. Hopefully someone around today

Dave_Ham

Hi - I read yesterday and did not comment hugely as had nothing of real value to add.

Your broker recommended Halifax giving full sight of your position, you then went to RBS anyway and were refused. They have limited appetite to lend generally, so at 90% with 5% gifted they are not going to be keen at all.

You then said you are going back to your broker (assuming they are aware of what you have done and are happy) and then asked if there were any flexible banks out there who may take you on.

So if I said approach bank x they will definitely have you, without any sight of your full credit files then you may approach them and further disadvantage yourself with any credit search...!

Your broker has recommended Halifax based upon all of the information available and actually Halifax are lending and more flexible than some of the alternatives..

So really I am wasting my time and yours, stick with your broker.

Good luck

Thrugelmir

KDR7 wrote: »

The reason given was unacceptable banking conduct on a Halifax account that a rarely use. (and if i'm honest with myself should have closed a long time ago.) I have an overdraft on this account which i use and pay back but generally keep around a £0 balance in it. i did however go over the overdraft a couple of times since Jan which was paid back within a matter of days.

From a lenders perspective this suggests that money is tight. How will you cope with an expected large bill when you have a property to maintain and a mortgage to pay?