First time buyers, trouble..

Bob01772

Hello everyone. Hopefully someone can help!

We are fist time buyers and are struggling to get a mortgage.
We are trying to get a property with help from the "help to buy" scheme. (5% deposit, 20% government loan and 75% mortgage)
We have been told that there are only 2 lenders who are available, Halifax and Chorley Building Society?

We have been declined for both lenders

Surely there must be more who do this 75% mortgage?

Anyway.. My girlfriends credit is fine, Credit score of 999... So no worries there.
Me on the other hand.. I was unfortunately subject to a DRO In April 2010. I have spent the past 3 years doing all I can to rebuild my life.
My score on experian now reads 907 (good)... Does this actually mean anything with a DRO still on my file??

Now I know things stay on your file for 6 years but surely there must be something I can do to appeal to get the banks to reconsider or at least go through my file?

ACG

Try to look at this from the view of a lender...
You have been in a position where you took on too much debt.
You now have just a 5% deposit.

Would you lend yourself money?

I dont mean this to come across in a way where im having a go, but just look at the facts and take emotion/circumstances out of it.

I dont think you are going to get a mortgage for atleast another year or 2 and i would expect you will need to be putting up a bigger deposit to show you can actually save money and will not end up in a similar position as you were 3 years ago.

kingstreet

There are more lenders than that, although they may not be willing to lend;-

Teachers BS (if you're in education)
NatWest
Woolwich/Barclays
Nationwide
Halifax
Chorley

so far.

What's visible on your other credit files?

ACG

Just to note - do not apply to everyone on that list!

If your having issues you need to speak to a broker otherwise your going to make the whole situation worse.

kingstreet

Yes, that was not intended as an invitation to run up and down the high street having speculative searches done!

Talk to your broker and establish what is visible on all three versions of your credit file before you do anything else...

lawlie

Yes, no doubt that the two mortgage applications you have applied for already will have brought both your scores down slightly, making the chance of getting a mortgage even less with the next search.

Given that most banks have similar lending criteria, and if they see that two lenders have already declined your application, I think you need to take a step back, save a bigger deposit, maybe wait until the DRO comes off the file, before applying again.

I don't know if it is an option for just your g/f to apply?

It's not the news you want to hear I know, but there is no point putting yourself under massive stress now about it.

dotdash79

lawlie wrote: »

Given that most banks have similar lending criteria, and if they see that two lenders have already declined your application.

Lenders can't see if an application was declined only a search was done, for all they know is that the amount offered might be too low, or the offered rate is too high or a survey issue.