Help: Mortgage, Dealing with Estate Agent and Lloyds account satisfied as Defaulted

carnut1234

Hello all,

Im in need of some assistance. I have put an offer in on a shared ownership house. 25% share and the house is an older house, built in 1978.

We went to see a mortgage advisor yesterday who was going to help us. no charge to us. We have £4000 as a deposit and only need to borrow £34250. a week ago i ran a credit report on myself and my wife and we hit a problem. My score is over 800 and have 1 miss payment from 2 years ago so its pretty good. my wifes report is perfect. never defaulted on any payments apart from a student lloyds overdraft. On the report this shows about 8 months of defaults and its settled but defaulted which has hammered her rating down to just under 600.

Some background on this lloyds thing. It was something my wife had opened when she was at uni. she took advantage of a £700 no charge overdraft which she used up to about £694. My wife had used this account and completely forgotten about it for about 4 years. In this time she had moved and as she forgot about the account hadnt amended her address with lloyds.

About 6 months ago we had a letter forwarded from the people who live in her old place. the letter was from a debt collection saying that if this account isnt paid within 7 days she would be taken to court. the amount due was £1500. so after a phone call to the bank they had said that the account changed from a student to a normal account and that she was being charged £5 a month for using her overdraft. as the balance was pretty much at the £700 it didnt take long to go into arrears. so a few months went on and she had recieved plenty of charges. since there was no movement on this account lloyds had then taken away the overdraft all together and the charges were on the full £700 plus what ever charges were there. so it racked up to £1500 and then we recieved this letter.

For 8 months lloyds had sent out letters(not really sure as we didnt live at the address) and even after 8 months of no response still didnt try any other way of contacting her even though they had 2 mobile numbers and an email address.

anyway as soon as we had the letter we went about sorting out this account. after about 3 weeks of back and forth with the bank trying to explain that the charges are wrong and that ok she didnt change her address but the fact that they had 3 other forms of contacting her never did and allowed her account to get in such a mess. also with some serious customer service issues and actually finding it really hard on who to pay had lead her to send in a serious complaint. lloyds came back, appologies for everything, took all charges off and the account was paid and cleared instantly as we paid off the overdraft. account closed and done.

so we have this credit report and they closed the account with a default even though lloyds had taken responsability.

so with my good credit score and thinking the wifes was also good as she has never faulted ever but has had credit and on £34k shouldnt be an issue.

The mortgage advisor has said due to her credit rating being so low he wouldnt even attempt a joint as it would just decline. so it was up to me to have the mortgage on my own. the only thing that would effect it would be that i do has some credit and obviously working out the expenditure its really tight.

got the answer today and even over 25 ,30 and 35 years they wont lend to me. this was abbey national.

what im wanting to know is there anyway to try and get this lloyds thing sorted quick so that her score goes up and we can joint mortgage on this house.

also i have the estate agent really on me about the solicitor details etc. thing is untill i have a mortgage in priniciple im not paying for a solicitor. what i want to ask is how long would i have to try and sort this mortgage thing out before the estate agent pulls my offer etc.

im really stuck here. i dont want to lose this house. its very rare that an older house comes up in shared ownership and i know its was popular because in 1 day it recieved 6 offers. the mortgage advisor is saying that abbey has said that they would most likely accept a mortgage with just me if i move to puting donw 15% not 10%. its about £1700 more but with solicitor fees and the deposit i just dont think we can do it. waiting on parents to see if they can help.

I would just like some free true advise as i feel everyone i speak to just wants money out of it and being a first time buyer im really not knowledgeable.

anyway sorry for the long thread.

hope you can help

kindest regards

daniel

Dave_Ham

Hi Daniel

You must either earn below average, have considerable unsecured debt or the rent on the 75% must be extremely high not to "afford" this mortgage in sole name.

All 3 would make me question how appropriate the timing is to buy this place.

Its hard to take a view on whether another lender will lend more without knowing further details.

Incidentally, I cannot believe the broker is not charging anything so I would check the paperwork. Being naturally suspicious I would suggest hidden charges or they cannot sell the property.

Our fee on this size mortgage would be about £80

Food for thought, wish you well

carnut1234

Hi, already checked all info and there is absolutley no charge for this broker. In total I have £9500 of debt. £3700 which is a loan and the rest is credit cards. My credit score was good but abbey national had said that they would want a 15% deposit which as said was a problem.

I earn £23000 a year and atleast a 3% bonus.

Dave_Ham

How much is the rent?

In answer to your other question, it is unlikely you will be able to get your Wife on there with a default and unlikely the default can be removed.

Push the bank in question, but I do not think they will back down personally.

I am still amazed the Estate Agent broker is not charging a penny, but acknowledge you have checked..

carnut1234

The rent on the house is £237 through jephson a housing association.

Will try with lloyds.

carnut1234

On another note how about the estate agent. He's really being pushy with getting the solicitor. How long can I really put him off whole I sort a mortgage in principle. What to say to him.