Turned down for mortgage- please help!

Sonofapreacherman

I would be really grateful for some help or even just a sympathetic ear or others experiences.

I know it's not the end of the world but I'm devastated. I have just been turned down for a mortgage due to high levels of credit card debt.
The debt is £29000, accrued paying for a professional degree (now qualified 5 years and paying it off).
I have £80k of equity in my house so will be paying the debt off with the equity.
I want to borrow £149k on a salary of £41k. I will be putting down a deposit of £51k.
I checked my credit report last month and was rated as good. Around that time I transferred one of my credit cards to another provider. Ive just rechecked my credit report and it has dropped by 100 points to fair. It is showing the credit card I moved as being with both the old and new provider, suggesting I have more debt than I do and that my debt has gone up (when it hasn't).
My broker has today submitted a mortgage application to a different lender with whom I had a decision in principle whilst my credit rating was good.
Does anyone have any idea what my chances are or any tips on what I can do?

Mergic

I don't know if is the way to go as I've not got any expertise in this, but couldn't you use the £51k cash to pay off the £29k of debts before applying for a mortgage and then you'll have over £20k cash deposit plus £80k of equity - A potential deposit of £100k with no outstanding debts other than your existing mortgage (if you have one).

Sonofapreacherman

I don't think that would work as I'm using equity from the house sale to pay off the debt. That would mean waiting to apply for the mortgage and likely losing the house we are buying now.
Although it may be the only way is to forget this house, pay off the debts and rent for a while then look for a different house.

Atomix

Mergic wrote: »

I don't know if is the way to go as I've not got any expertise in this, but couldn't you use the £51k cash to pay off the £29k of debts before applying for a mortgage and then you'll have over £20k cash deposit plus £80k of equity - A potential deposit of £100k with no outstanding debts other than your existing mortgage (if you have one).

I think the 51k is his 80k deposit from sale of current home minus the 29k debt = 51k deposit. He needs to sell before realising this money - catch 22?

Atomix

Maybe go into rented for 6 months? With zero cc debts, and 50k deposit = more favourable in the eyes of mortgage co. Also beneficial as you can be cash buyer nothing to sel...

Atomix

Sonofapreacherman wrote: »

I don't think that would work as I'm using equity from the house sale to pay off the debt. That would mean waiting to apply for the mortgage and likely losing the house we are buying now.
Although it may be the only way is to forget this house, pay off the debts and rent for a while then look for a different house.

Just what I said - lol

Mergic

Atomix wrote: »

I think the 51k is his 80k deposit from sale of current home minus the 29k debt = 51k deposit. He needs to sell before realising this money - catch 22?

Right, I miss understood

clarryd

I had problems a few years ago I took a mortgage out with a no quibbles mortgage lender and then once I was sorted I then went to the Halifax and asked them to take it on for me as they could see that I had been paying more than they where asking so I would be good for it.

Not sure if this is an option.