Help with mortgage

Iceman100

I have recently applied for a 2 year fixed mortgage with first direct and was declined . I then went on to experian to check my credit score which was fair , I have never missed any payments or been in arrears although I have applied for 4 items on credit in the last 5 months . Does this really have a negative effect on my score enough for me to be declined a mortgage ?? My situation is that me and my girlfriend want to move home but I have a flat which I bought 6 years ago with a northern rock together mortgage , I basically owe what the flat is worth so I'm going to rent it out . I have a 10 % deposit for the new home so my main question is do need to tell the new lender that I already have an existing mortgage even though it will be covered by the rental income ?

Dave_Ham

This is not easy to achieve and certainly not a First Direct case at 90% loan to value.

You need to ask First Direct why they declined, was it just in your name or your name and OH?

Have you checked their credit file if so?

Have you checked all 3 agencies, Experian, Equifax and Call Credit?

FD are amongst the most selective, but many of the top tier lenders will not extend 90% LTV products to someone with a ressie on consent to let already - assuming it is.

If you did not declare, they may have declined on that basis or on affordability as they will see the commitment on your file.

Good luck

Iceman100

Thanks for the reply . I have only checked with experian so far as I assumed they would all give me the same result . the first direct was a joint application but her credit score is good , i did declare I had a nr mortgage but my salary should be enough to cover both mortgages in the event that I couldn't get someone to rent my flat . Not sure If I should try and apply to other mortgage company's or is this going to have a detrimental effect on my credit score ?

kingstreet

If you've already had four or five searches in the last six months, you need a broker to find a home for this mortgage. Any more speculative searches and you could find yourself stuck for the next six months or more.

Get the other credit files. The information is not always the same.

Equifax

https://www.econsumer.equifax.co.uk/...erletter.ehtml

Experian

https://secure.wiseconsumer.uk.exper...x.html?data=00

CallCredit

https://www.callcredit.co.uk/stat-re...pl=regPurchase

Dave_Ham

Agreed..

Also, I hope you say her credit file is good based upon checking..

Many clients historically have told me all good and then when declined and we check the credit file, an old default turns up for utilities when moved out, bank account forgot about etc.

Main reason I now always get credit files in advance to ensure we do not waste the credit searches.

Whilst you do not need anymore searches, it is currently not going to cause you a huge issue although will if more are placed..

tarkytarks

I have a mortgage with first direct, they accepted us no problems, even though I have another mortgage (with HSBC so i guess they had all the details since FD mortgages are though HSBC) in my name for a house that my ex lives in (i comtribute half to it monthly). So in my experience they were fine with it. But they do check affordability so if you have lots of other debts and monthly outgoings and not much savings it might be a reason for them to decline.

GMS

tarkytarks wrote: »

I have a mortgage with first direct, they accepted us no problems, even though I have another mortgage (with HSBC so i guess they had all the details since FD mortgages are though HSBC) in my name for a house that my ex lives in (i comtribute half to it monthly). So in my experience they were fine with it. But they do check affordability so if you have lots of other debts and monthly outgoings and not much savings it might be a reason for them to decline.

What Loan to Value on the First Direct mortgage?