Cannot get a mortgage agreed...

melt71

My partner and I have applied for 3 mortgages over the last 6 months - all of them have been refused. I had a voluntary repossesion of my previous house which has been resolved and the arrangement was settled over 18 months ago, I have a letter from the building society concerned confirming that the arrangement is complete.

The mortgage lenders we applied to knew all about this repossesion from day one and one refused to deal with us because of the repossession, but two of them said it wasn't a problem, then weeks later they both finally said ‘No’ to our application.

We have been completely open about everything from the beginning, we haven’t tried to hide anything and to be honest I’m starting to feel victimised by all of this.

If all of these problems had come from the fact that I have had the previous repossession then ok, but they knew that from day one, so I don’t understand why it has taken them weeks to decide they don’t want to give us a mortgage!

We do not have any debt except one small loan that we could pay off with our savings if we wanted to (we have approx £9000 in savings).
We earn more than enough to cover the £90000 mortgage and the house itself is worth £160000 so there is also a large amount of equity involved as I am buying the house from my ex-husband.

My partner and I both have steady jobs and have done for a number of years.
We already live at the house we are planning to buy (me for 8 years) so again this shows that our lives are quite settled, in other words, we’re not planning to go anywhere this is our home, we WANT to buy it and are happy to pay the mortgage.
Other than the repossession (which they knew all about), we both have reasonably good credit records i.e. no bad debts, CCJ’s, no outstanding credit card debts etc which our credit records show.

We are in a pretty good financial state at the moment, debt free and quite a large disposable income, so if we can’t get a mortgage now, I don’t think we’ll ever get one. The lenders seem to be seeing something completely different.

We are dealing with a Financial Advisor who is as surprised as us that this last mortgage has been refused. Do any of you have any advice on how we can improve our credit rating or will we have to wait for 6 years until the repossession will not be such a problem?

Thanks,

Mel

Compensationitis

It's a bit early yet, which lenders have you tried?

melt71

Compensationitis wrote:

It's a bit early yet, which lenders have you tried?

First Active - we applied to them ourselves and they (eventually) refused because of the repossession

Not sure about the 2nd application as it was through a Finacial Advisor.

The 3rd one was Abbey and they got right up to the point of signing it off and then decided they didn't want to deal with us.

Thanks for your reply.

Compensationitis

Who were you with on the last mortgage?

What part of the coutry are you in?

mrcow

This is spam :rolleyes:

Compensationitis

This is advertising.

bridiej

Hi everyone

I have deleted these posts for the time being until AbCon have a chance to look and see whether these are indeed spam / advertising.

I cant check the board constantly today as busy with work but would be greatful if you see anymore of these if you could click the "Report this post" button and advise AbCon directly.

Thanks

Bridiej

zzzLazyDaisy

Have you tried asking your current bank for a mortgage? At least you are known to them. It might not be the best deal around, but you could move once you'd established a good payment history.

melt71

zzzLazyDaisy wrote:

Have you tried asking your current bank for a mortgage? At least you are known to them. It might not be the best deal around, but you could move once you'd established a good payment history.

Hi, my current bank is Barclays and they use The Woolwich for their mortgages who I don't think will deal with me due to the previous repossession. I had thought of that, but it seemed like a non-runner.

Thanks for your reply,

I'm sure we'll sort something (with the help of our financial advisor) but I really want to try and sort out our credit rating as I don't want to go through this ever again, it's been really stressful.

If any body has any ideas how we can do that, I would be grateful. I've started by applying for our credit reports again, my partner wasn't on the Electoral Roll (we thought he was) even though he is registered at this address and pays council tax etc so we have sorted this out today, I'm also going to close all of our old store card and credit card accounts that we no longer use as I've heard this can help. Any other ideas?

Thanks

melt71

Compensationitis wrote:

Who were you with on the last mortgage?

What part of the coutry are you in?

We haven't got a mortgage at the moment. The house is currently owned by my ex husband and my partner and I are buying it as part of the divorce settlement. My ex currently has the mortgage with Abbey (who have just refused a mortgage to me and my partner!).

I'm not sure why it's relevant but we are in Dorset.

Thanks

zzzLazyDaisy

I would keep at least one of the CC's. The reason? Even if you don't use it, it is still on your credit record - and assuming it has no defaults, it counts towards a good credit history. But too many may be a problem as a potential lender sees the total available credit, and for all they know, you may be up to your limit on all of them.

I believe it takes 6 years for a debt or missed payment to be removed from your credit record (although I am sure someone will correct me if I'm wrong on that). Have you checked with the credit reference agencies to make sure there is nothing else on your file that could be causing this?

I don't suppose your BF has an account with a different bank, that might be willing to consider giving you a mortgage?