Mortgage Refusal from Leeds BS

emobunnie

I have been to the Leeds for a mortgage as a first time buyer, I have an income of £20,000 with very little outgoings. I am buying from my mother and she is gifting me half of the house, Value of house is £130,000 and i'm asking for mortgage of £80,000 to pay my mother and to carry out modernisation work. This still leave quite A LOT OF EQUITY IN THE HOUSE.
When they did a credit check they told me i had defaulted on a telephone contract to the amount of £47 to which I was unaware, I was told to contact credit reference agency and sort it out then come back. I paid the £47, waited for it to show on the report, went back to the bank and they declined saying they won't do anything for 3 years and refered me to a broker," If I Were You".

I spoke to the broker for a couple of minutes who said that she would get back to me later that day to give a decision.
3 mins later she called me back saying that they can't do anything for me.

My question is that i'm sure there are people out there who have more than a £47 debt and have been given a mortgage. And how could the broker possibly search all options within the short time.

amnblog

Where is mum going to live after all this has taken place.

That information may have made the case too difficult for the broker.

kingstreet

Family purchase at undervalue requires a proper sale to take place. Your mother cannot sell you the property and continue to live in it. Is that your plan?

As to the default, many lenders would not have too much of a problem with a satisfied default for £47, as long as the case stacks up. Why did you pick Leeds BS in the first place?