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I made a mess of loan application - can I fix it?
leftieM
Posts: 2,181 Forumite
We applied to borrow 40k to do an extension. We applied to our current lender A&L. This would have taken the mortgage from 67k to 107k. We've just received a letter saying they'll lend us just 14k. We're stumped - my OH earns 24.5k and we get £1267 in tax credits so according to their calculator we can borrow 115k. They had agreed to lend us an eye watering 130k last September.
We think the problem is our credit cards. I was very foolish. I didn't pay them off as I thought that the total credit card debt would come off the amount they'd lend us but it's more complicated than this (it appears to be a multiple). We have 2600 on one and 1500 on another. We should have paid both off (the money is set aside) but presumably they have shown up on our credit record and A&L has lowered the borrowing limit accordingly.
Is there anything we can do? If we clear the ccs can we negotiate with the lender or try another one? Will the credit check they did mean no-one else will touch us?
I'm really gutted. We've just paid the costs for house sales falling through and now we may not be able to extend either.
We think the problem is our credit cards. I was very foolish. I didn't pay them off as I thought that the total credit card debt would come off the amount they'd lend us but it's more complicated than this (it appears to be a multiple). We have 2600 on one and 1500 on another. We should have paid both off (the money is set aside) but presumably they have shown up on our credit record and A&L has lowered the borrowing limit accordingly.
Is there anything we can do? If we clear the ccs can we negotiate with the lender or try another one? Will the credit check they did mean no-one else will touch us?
I'm really gutted. We've just paid the costs for house sales falling through and now we may not be able to extend either.
Stercus accidit
0
Comments
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Pay off the cards and you should be able to reapply but you may have to send the final settlement statemnents as it takes time for the credit checks to catch upI like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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We contacted A&L this morning and it's an affordability issue - they will lend us 81k based on the further loans criteria but 115k based on mortgage criteria. We seem to be snookered! How do people fund extensions?? Can you build one using a personal loan and then remortgage when you've increased the value of the house? Do people just save up?Stercus accidit0
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