Mortgage declined urgent advice needed. thanks

kinh

Hi there, I have applied for a mortgage via barratts housing, but declined, upon looking at my credit file, a satisfied default has been added to my credit file 5 days ago. (Nothing to do with me) Should be removed company said numerous accounts were open with different DOB, but no credit accounts of such on file.

Gothia must of bought the debt and placed it on my file. as it's under their name.

I think the reason why I got turned down was because of the recent default.

Now, the information I gave to barratts, is this fine to get the mortgage. %5 deposit, 20% government scheme deposit, (£30,000 contribution?) salary 28,000, house value £150,000 so 112,500 mortgage needed? Is this fine?

Once I get the default removed is it worth again trying through barratts/halifax, barratts uses halifax to get the mortgage. I am sure the default is the stumbling block.

My credit file is good, no defaults, ccjs, missed payments. the barratts advisor said something about needing a score of 800 to get mortgage is this right? My score before default was 540, now it's 370.

Is it worth going to a broker now? For second application once default is removed?

thanks

Thrugelmir

The Government doesn't give you a deposit. It lends the money for 5 years interest free. So you need to meet the affordability criteria to repay the entire debt.

kinh

Thrugelmir wrote: »

The Government doesn't give you a deposit. It lends the money for 5 years interest free. So you need to meet the affordability criteria to repay the entire debt.

Yes, I will pay just over £40 a month on interest for the loan at year 6, then when I sell house they get their 20 percent back.

With the figures I gave above do I meet the affordability criteria to repay the debt?

GMS

kinh wrote: »

Yes, I will pay just over £40 a month on interest for the loan at year 6, then when I sell house they get their 20 percent back.

Dangerous exit strategy this. What if prices fall? You only have a 5% equity cushion. It wouldn't take much to find yourself unable to repay by selling. Take into account selling fees and you may find the initial equity all but eroded.

Of course it may all work out fine but it needs consideration

kingstreet

As things stand, it doesn't matter if you go direct, online or via a broker.

You need to resolve this default issue. Then reapply to Halifax for a decision in principle when it no longer appears on your credit history.

kinh

GMS wrote: »

Dangerous exit strategy this. What if prices fall? You only have a 5% equity cushion. It wouldn't take much to find yourself unable to repay by selling. Take into account selling fees and you may find the initial equity all but eroded.

Of course it may all work out fine but it needs consideration

Will be in it for the long term. 10 years minimum, will be making over payments also. In life you got to take risks I guess, and this is an fair way on me getting onto the property ladder.

Also, think of it as renting a property, not really losing out. My mum will also be leaving there and contributing so not bad at all. (It was a single application btw)

So, does anyone think retrying again with barratts/halifax or going to a broker?

someone said this to me; Is it fixed or variable? If the former, over what term? If the latter, how does it move and what's the rate above base?

They didn't even tell me this, why is all confusing?! Which is the best option??

Thrugelmir

kinh wrote: »

then when I sell house they get their 20 percent back.

That's your opinion. Now the basis on which lenders will consider your application.

If you are looking to make a quick profit. I think that you are going to be disappointed.

kinh

Thrugelmir wrote: »

That's your opinion. Now the basis on which lenders will consider your application.

If you are looking to make a quick profit. I think that you are going to be disappointed.

In bold, I am confused in what you mean here. Opinion?

I am not looking to make a quick profit, I don't expect to make anything really for 15 years, I just want to live in a decent home, we pay over 400 a month currently for rent, then water, electrical, etc, makes sense making move, paying the same and owning an asset.

It would be nice if someone can actually answer this also what I asked in the OP?

True what the barratt advisor saying about the 800 points credit scoring to generally get approved?

Halifax strict? Shall I just apply again with them once default comes off, then one more time with a broker if no luck again?

GMS

If Barratt lent the money then their adviser quoting of credit score may be relevant.

As it is the credit agency scores have little bearing on what the lender score requires.

The default is killing it full stop. Ignore the nonsense the Barratt adviser has spouted and follow the good advice given here.

kinh

Great I still have hope then get that default off and do it again. If no luck oh well probably not meant to be.

reapz69

kinh wrote: »

Great I still have hope then get that default off and do it again. If no luck oh well probably not meant to be.

So did u fail the first A.i.p or the D.i.p?