joint mortgage - now debt free, what are our chances?

hellzbellz84

ok long one but here we go

i have a house rented out got consent to let etc, so all is good in the hood on that front

I am looking to move in with the bf, found house we love have 15% mortgage BUT we have been turned down for mortgage so far with Nationwide and Halifax (current mortgage is with Halifax already)

I was on a DMP but everything is paid off now, and has been since Dec 2011 - my experian report says 962 - excellent, bf is 900 BUT my Equifax says Poor as one of my creditors has not updated their files. I have asked them to update their files asap and have letters from the creditors confirming all accounts are settled.

What are the chances of ANYONE giving us a mortgage, we earn jointly cicra £70k and are looking to borrow £152k but we are having difficulty getting anyone to give us a mortgage
Yes - i was on a DMP but all is paid off and am now debt free, but noone seems to want to give us the benefit of the doubt

does anyone know of any decent high street lenders that would consider us providing our circumstances?


any advice appareciated

thanks
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Thrugelmir

hellzbellz84 wrote: »

Yes - i was on a DMP but all is paid off and am now debt free, but noone seems to want to give us the benefit of the doubt

You need to prove this beyond all reasonable doubt. By maintaining an excellent credit record for a while longer yet. Being in a DMP suggests that your personal financial skills haven't been great previously. So lenders take the view there's better risks to lend to. On a personal level may seem harsh, but statistical evidence backs the lenders view.

Koicarp

You will need to use a broker. We have just moved TO Halifax from Natwest having come off a DMP in October last year. Like you we are debt free and have a decent income, all but halifax and santander said no to us even with the assistance of the broker.

Dave_Ham

Hi,

Halifax are the most flexible highstreet bank, so if they have said no then this is an issue.

That said, I would be interested in knowing exactly when any defaults were placed and any missed payments in the last 12 months?

This will allow me to give you an indication of your chances through other lenders out there....

Incidentally, the scores Experian and Equifax give you are absolutely worthless as the lenders use the data and apply it in there are own way..

All the best

hellzbellz84

thanks for the advice, no defaults in the last 12 months, everything is zero, but if mortgage companies dont look at experian or equifax, then i dont see the point of them, i was using experian to make sure i was going the right way in terms of credit scoring, but i find it very frustrating that all the hard work i have done in the last year to prove myself is null and void



its annoying that they werent missed payments, they were reduced payments but understandably this effectively breaks the credit agreement

Dave_Ham

The banks use the information, but the scores are provided are a lever to charge you more for the service.

The banks take the data and then apply it in their own systems.

Exactly what dates were the defaults placed?

hellzbellz84

Last one was in April 2011 with HSBC

and i have letters from them (Metropolitan Collection Services) confirming that all accounts with them were settled and closed.

we are going through Principality at the moment, just sent off all our info as our mortgage broker said they would be our last hope... not sure what else i can do to prove that my lesson has been well and truly learnt!!



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Dave_Ham

Unfortunately, you have done the right things in settling and only time can heal from here on in...

How much are you buying for?

Were all of the defaults in joint names?

Unless there is a solution in the above questions, I would think that April 2013 is when you become placeable again...

That said, a lot will depend on purchase price (so loan to value) and if the defaults were in joint names as this may provide a solution.

hellzbellz84

Defaults were in my name only

house is £179k and we have 15% deposit (majority of that is mine - recent famil inheritance) so not sure if OH can get one in his own name....?

thanks Dave Ham for all your advice though so far

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Dave_Ham

If you get no joy, would be looking at mortgage in OH name only and stretching income right out. There are other considerations to this solution and it would obviously not be my preferred choice, although it would additionally secure you a better mortgage rate.

Fingers crossed with Principality...