Help!!! First Time Buyer not having any luck with Mortgage!!

Spend-a-holic

Help!!!


I am a first time buyer looking to purchase a property with my partner. The property is valued at £159,950, its a new build. We have a deposit of £35k and I have managed to negotiate a 5% deposit from the builder (strata), but I seem to be having difficulty boring the remaining £116,950. I am using a mortgage broker who seems to be useless.

I earn £20459 and my partner earns £13500. We both work full time but I only started my job on 26 March and am on probation for 6 months. The mortgage advisor has tried Nationwide and Standard Life but both have said no. :eek: Although I think Standard Life said no because on our income they weren't willing to lend enough. We have not had an feedback as to why we were turned down but I think the advisor is doing applications online, not sure if this would be a problem.

Is it advisable for us to stay with this advisor or would we better approaching a lender direct to state our case?? Also is it unreasonable for me to expect to get a mortgage for £116,950 on our incomes???:o

We can potentially put down another couple of thousand as a deposit.

I don't know what to do......Any advice would be very welcome

morgani

Based on the 5% deposit (almost £8k) from builders and your £35k total of £43k then you have a deposit of aprox 26.875% of the purchase price.
If you try the abbey website you can borrow this.

http://www.abbey.co.uk/csgs/Satellite?cid=1127562735659&mbType=2&pagename=Abbey%2FGSProducto%2FGS_SubcategoriaP

also on Alliance & Leicester you can borrow more than enough!

http://www.alliance-leicester.co.uk/mortgages/index.asp?page=affordabilitycalc

If not I know a broker who does mortgages but have only used them for insurance but there website is

https://www.stein.co.uk

Hope all this helps

Ian

Spend-a-holic

Thanks for that!!!

Do you know if its worth me waiting to see if the mortgage advisor I was using can find out why we were turned down first??

I don't want to damage my credit score too much by applying all over.

I think A& L look like best option. I don't know if to just go down and see them and see what they say or wait fr the mortgage guy to call back. He said he would today but hasn't.:mad:

morgani

You could go to A & L or whoever and just make sure they don't do a credit search yet. So just get guide figures and make sure what you can get.

Then if things look good and yur mortgage brokers still messing about, call him tell him you no longer wish for them to act on your behalf and then go ahead yourself.

totally up to you though really.

Spend-a-holic

Thanks again!!!

The mortgage broker was suggested by the builder. But we are free not to use him. So I think I may give A & L a go. They look promising. I may try on Saturday to get into one of the branches and see what they say then I can give broker till Tuesday to call back.

Thanks:A

liz105

how is your credit score? If you're both squeaky clean then I cant understand what the problem is, its not like your asking for a 100% mortgage on a £250k property is it?! :-)

Spend-a-holic

credit scores seem fine. I have 2 loans with payments of £264 combined which have never been missed and a couple of credit cards. No missed payments or anything on either report from what I can see. I really don't understand problem unless the broker put details in wrong or something on the form. I think the second decline from Standard Life was simply that they would not lend us the required amount on our income (I checked on their website after the fact) but I think this is a very large fact for the broker to miss????

morgani

as liz105 said if theres no problem with your credit score then there should not be a problem. You may be better on your own as you will notice errors on forms as you know your details.

Best of luck and hope you get sorted

kingkano

Dont forget to subtract loan repayment x 12 from your income when doing the maths. in this case Your income = 20459 + 13500 - (12 x 264) = 30791.

For the mortgage you want it does seem strange that they wont lend enough (3.75x income)? Esp. with such a huge deposit....

Grill the broker.... he obviously is NOT doing a very good job here. And having done 2 applications without getting better explanations seems odd.

Good luck

RedTomato

Spend-a-holic wrote: »

Thanks again!!!

The mortgage broker was suggested by the builder.
Thanks:A

I would definitely try another broker so that you have some independence. Also, try phoning a few of the mortgage providers direct and give them your figures over the phone without giving out your name. Mostly their staff will be helpful in telling you which product should be available to you.

Milky_Mocha

Spend-a-holic wrote: »

Help!!!


We both work full time but I only started my job on 26 March and am on probation for 6 months.

Could this be the problem? I don't know if the lenders you tried are fussy about this but I know most lenders won't touch someone who is on probation. As you were rejected at the AIP stage then the reason would be either your credit rating or a combination of other information on the form such as how long you've been in your current employment, how long you've held your bank account for, whether the product you are applying for is allowed for first time buyers, etc.