Turned down for a mortgage.... Advice needed

DefaultMan

Firstly, I apologise if I have posted in the wrong area I'm a long time reader 1st time poster!

My girlfriend and I have recently been turned down for a mortgage, due to failing a credit report. We were advised by our mortgage broker to check our experian report and see what could have caused this.


The only negative on either of us was a default on a £1000 credit card bill from 2009, that was not settled till early 2011. The delay in payment of this is partly due to me moving and not changing over all of my accounts to a new address.

Our mortgage broker has now told us that we won't be able to get a mortgage because of this.

Since I paid the bill I have had a 2nd credit card with the same High street bank and a loan with them. None of which I have ever defaulted, and have probably contributed to my current credit score of 900.

Would love some advice on what should be my next step?
Can this be removed? If so how and chances of this?
Does the default go with the start date or the day I paid it?
Is Mortgage Broker talking Rubbish? (I really hope she is)
Am I doomed to pay over inflated rental prices for the next 10 years?!!!!

Any help welcome
DefaultMan

Dave_Ham

Certainly not doomed, but not necessarily trash talk from the broker either.

What % deposit do you have vs the purchase price?

Have you got your Experian and Equifax reports and which lender has declined you?

Is this an in house Estate Agent advisor and have you been bidding on a property, or approaching this as mortgage first?

DefaultMan

Dave_Ham wrote: »

Certainly not doomed, but not necessarily trash talk from the broker either.

What % deposit do you have vs the purchase price?

Have you got your Experian and Equifax reports and which lender has declined you?

Is this an in house Estate Agent advisor and have you been bidding on a property, or approaching this as mortgage first?

We have a 15% deposit against 300k mortgage, But the other major issue is my partner only has one years accounts as selfemployed, so it limits the lenders available to us. Although her accountant has offered a forecast for the next 3 years.

I have an Experian report, We went down the mortgage advice route 1st before we started offering but did not realise that we would not get offered the amount we were told we could borrow. We have seen properties but not had any offers accepted .

The Advisor was an E/A inhouse advisor.

Still sure we're not doomed??:rotfl:

GMS

What incomes?

Dave_Ham

Definitely not doomed, I assume your earnings are enough?

You have typically not had the best type of advisor, although definitely worth getting at least your Equifax reports too..

I would fancy there is enough to go at...

Crashandburn

How far off are you from two years books? Reason for asking it mainly due to todays date. If running Apr\Apr, can the accountant get another return done ASAP as this would strengthen your position. Personally not sure how 3 years projections can help, but I would say a more detailed 1 years would be better.

The E/A adviser is right in saying you are very limited to the number of lenders and probably best to sit down with someone more experienced as the others have said. But in saying that, is it also worth a chat with your own bank/business bank due to your history with them?

Let_Us_See

Difficult...........but perhaps not doomed. As well as the default you are also restricted to a small number of lenders willing to consider one year accounts, and your EA adviser may only have had access to a small panel of lenders and therefore considered this application unplaceable.

I believe the strength of your partner's accounts will make or break this application rather than the default. you need to find an adviser with the time to have a good "root" around.

PS. Very brave, or naive, accountant prepared to provide a three year forecast

Crashandburn

Let_Us_See wrote: »

PS. Very brave, or naive, accountant prepared to provide a three year forecast

Thats what I thought. Unless Mystic Meg is now FCCA

happycamel_2

I'd say naive and dangerous, the detailed one year projection is a much better idea.

Thrugelmir

DefaultMan wrote: »

Can this be removed? If so how and chances of this?

Zero, Change of address is not an acceptable excuse, Onus is on borrower to notify.

The only negative

That's where borrowers and lenders part Company. "Only" is viewed seriously by lenders. The manner in which you handle your personal finances tells them more about you than you might imagine.

In a contracting lending market lenders use previous history to filter through applications.

Time will heal your credit record. Also a larger deposit will open more doors.

So if you can afford a £250k repayment mortgage. You should be able to save up steadily to increase the size of your deposit.