declined for mortgage, help!!!

base2001

Hi

wondering if some one could advise?
i recently got turned down for a mortgage from northern rock for £90000
i'm a first time buyer with full time job for same company for 2 year 6 months,
earn £18500 per year.. also was 100% mortgage....
My credit history isnt too good,:embarasse, my credit card is over limit by £900 so guessing this will really have something to do with it, but if i get it paid off asap and re-apply will i stand a better chance?
i got my credit file from experian and equifax
which is like this
Experian
catalogue 000000005543
cdt card (overlimit) 000000000012
cdt card 000000000
loan never missed/late

mob discon in 04/05 000001110111
Mob Current never missed/late
tv/inter(closed) 3111100000

Equifax
everything sames as above but this one says i have a default for the tv/internet account

also when i called a broker to see about mortgage i advised them, that my g/f credit history is very poor and a few defaults so they advise against doing a credit check with both as joint, but on my credit file (equifax) her name appears!! so not happy about this, so shall i contact the mortgage broker about this as i didnt agree to this?
Northern rock application was with another broker and showed up on experian notes..

any help really appreciated
Thanks

dunstonh

I think your problem is the following:
1 - nearly 5x income (thats high)
2 - no deposit, hence 100% mortgage (no deposit suggest limited or no savings which is not good when buying a house)
3 - default shows on your file (obviously not good)
4 - bad timing as lenders are being a bit more fussy now

If you have lived at the same address as your g/f then she may appear on there by association. Although if the mortgage criteria could be met by you alone, then there wouldnt be a problem.

I'm not so much sure that bad credit is an issue but more of you trying to borrow more than you can realistically get from a mainstream lender with no deposit.

wisbech_lad

yes, you are trying to borrow too much. 70,000 would be more realistic.

base2001

well it was the mortgage adviser who wanted to get this, i'm actually wanting £75000 to £80000, i/m trying to buy the house i'm currently living in, which my father owns and my g/f doesnt currently live with me.

Coops10

Don't think that I'm being nasty, but I think you need to spend a bit of time making your credit file look a bit better before anyone considers lending you £90,000, with no security at all.

A mortgage lender will look at the fact that you have a credit card which is quite highly over it's limit, they will see several missed payments on various things, and then they will see that you had a mobile phone disconnected. I'm sure the sum of these bills won't equate to what your mortgage payment will be.

I would get everything up to date or cleared, and give yourself around 6 months of good payment history before retrying.

dipsy

You could try sub-prime lenders, but they will charge you higher interest....

Coops10

There is only one sub prime lender that will lend 100% that i know of off of the top of my head. It's not just about getting a mortgage, you have to ask whether you can maintain the payments.