FTBI - Mortgage Help!! 1st application declined - reason poor credit!

danielfettes

Hi

My partner and I have applied to the Homebuy scheme for first time buyers; this is a 50% equity loan from the government for a property on the open market.

We have put down a reservation fee against a new build property, which is £240 000, of which we only need a mortgage of £115 000. We have £9 000 to cover the £5000 deposit and legal fees.

We earn - 40k together
We owe - 5K together credit card/loan

We have both lived at 1 address for over 10 years, both have worked in our current employment for 2 years.

On my credit report I have 1 default of £64 19/05/2006 which is marked as "settled".
Also I have a catalogue entry for which I have 1 "3" and 1 "2" marked as late payments and the rest is paid on time.

My credit score is 520 (very poor)


My partner has 3 defaults, these are all settled and the most recent default was back in 2003. Also 1 with various late payments which has also been settled in 2001.
For the past 4 years not 1 single payment has been late or missed.
One of the reasons for the defaults was my partner being made redundant twice in 1 year.

Credit score is 644 (poor)

Can you explain why my credit score is lower than my partners?

Also we have been turned down by Halifax but had no chance to explain our circumstances, is this possible when applying for a mortgage?
We have a mortgage advisor who is planning to apply to Abbey for us, if Halifax have declined us is it worth trying Abbey?

We are also worried about too many credit searches on our credit files.

Is there any lender out there who would consider us?

Any help would be appreciated.

Kells_Bells

Hi daniel

I might have a friend who can help, well actually a friend of my boyfriend, but he is a mortgage broker who specialises in these type of cases.

I'm not sure if they have a website, but if you e mail me your contact details I'll get him to give you a call. I know they are very good as they did a mortgage for another friend of ours who couldn't provide any wage slips as he was self employed, and also had a very bad credit rating. My email (don't laugh) is smellykellysharp@yahoo.co.uk.

ps I dont really smell

x Kelly

toonfish

The poor credit along with the fact they you are looking at the homebuy scheme will restrict the lenders available to you. However, don't allow yourself to get forced down the "adverse credit" road with big fees and inappropriate interest rates without speaking to a broker who will thoroghly investigate the standard products first.

This is the biggest mis-selling scandal going on at present IMO.

sandanista

Slightly off topic. I was recently turned down for a 100% mortgage from Woolwich. I currently have a Experian credit score of 606 (poor). However, I recently paid off a default which has not yet been marked as satisfied on my Experian file and I am up-to-date with all my repayments.

Does anyone know if these Experian credit scores are actually meaningful in anyway, or is it just a waste of £5.95 that I could be putting in my piggy bank?

digp

suggest you serve a s.10 "stop notice" (DPA 1998) on the credit agencies AND the relevant companies which have placed a "default" on your file in that respect. This should assist in getting the information off your file and help in clearing it up.

MagsyB

digp wrote: »

suggest you serve a s.10 "stop notice" (DPA 1998) on the credit agencies AND the relevant companies which have placed a "default" on your file in that respect. This should assist in getting the information off your file and help in clearing it up.

Hi Sorry to jump in but I'm in the same kind of position. We have partially settled accounts registered against us (2 each). They were settled in September 2005 when we re-mortgaged with GMAC on a really poor interest rate.

So it will now be on there - I guess - for the next 4 years so again I'm thinking, we will have rubbish rate mortgages until its gone.

We are on a fixed rate at the moment and can re-mortgage in August.

So would this "stop notice" help us as well and if so how is it done?

Thanks
MagsyB

digp

I will post more on this later, but if you are in a hurry search teh CAG forum for more info