Cant Get Mortgage Due to Debt

NorthernJ

Help please i need to understand,
i have recently sold my house, and put an offer on another, i have started the process of looking for the best mortgage through a whole of market broker, i have disappointingly been refused a mortgage by not one but two lenders, i am now concerned of two searches on my file,
The broker checked everything affordability, credit file & score and this all stacks up, none of the lenders have given clear reasons for the refusal, i was told i passed on credit score and file search etc,
i am looking to borrow 90% LTV, with the remaining equity i have committed to clearing 75% of my £21k debt showing (not that i cant manage the payments) but i sold to downsize to have a more comfortable situation and clear some debt at the same time. Even the broker is confused as to why i have been refused, I am at my wits end and not sure what to do next, my sale can complete at any time, and im about to lose my dream home. Please help . Thanks

Thrugelmir

Your current debt level is undoubtably the issue. Lenders aren't interested in taking the risk that is posed. 65% of £21k still leaves you with a high level of unsecured debt.

NorthernJ

Thanks for the quick reply, most of the debt was to invest in the property i have just sold to make it more sale-able, modern appealing, cosmetic changes which has enabled the property to sell in 2 days

Would it make a difference if i cleared 90% or all the debt?

Still trying to be optimistic here cant understand what the issue is surely its about can i afford the mortgage, but perhaps not, i may become the example to go back into renting which is far from what i was looking to achieve can anyone help, is there any lenders that will look at this

Dave_Ham

Do not do anything rash.

Have you got copies of your Experian, Equifax and Call Credit files?

Which lenders have declined you and did they/broker give a reason why?

What is your income and how much are you looking to borrow?

NorthernJ

Hello Dave, yes i checked all reports through checkmyfile.com they give you a view of all credit reference agency's and there was no issues with my credit file it shows the debt and the fact i have never missed ANY payments in years, the credit score was showing 4 or 5 star rating, Nationwide refused, i then went to skiptons and they have also refused, i have sold my current property to downsize and at the same time clear the debt, after looking again tonight i can clear 80% of my current debt leaving around £4.2k Left to pay,
my income basic is £55k Bonus monthly £2k P60 shows over the last 3 years £90k, £71k, £83k on the last one, i am looking to borrow £223,200
The broker is about to apply to another lender tomorrow but im losing all hope, i have sent another message tonight saying rather than clearing 65% of debt due to bonus earnings this month i can clear now 80% on sale completion which can also go ahead a couple of weeks before i buy mine new home, not sure that makes a difference, i also said i can have the solicitors make the debt payments rather than me doing it at the risk i may not clear them,

Dave_Ham

Nationwide hate unsecured credit, bad broker call.

Which lender are you applying too tomorrow, ask your broker why them and if no sensible answer tell them not to do it.

Please tell us it is not Santander..

NorthernJ

No he suggested Furness? Santander is who my current mortgage is with for the past 6 years

Dave_Ham

Why Furness?

Is this is a newly built property you are buying?

NorthernJ

yes its classed as a new build due to the fact no one as lived in the property since it was built 4 years ago

Dave_Ham

Newbuild is not necessarily my specialist subject, but I would hold on.

Whilst being more expensive, you may be better not clearing debt (subject to affordability) and buying with a lower loan to value.

This would potentially bring in some other lenders that may be more flexible on the unsecured credit.

I do not hold out too much hope on Furness, but not used them for a while.

NorthernJ

i have also suggested 85% LTV but the debt would remain, the fact the debt monthly payments have never been missed shows i can afford to pay them, if the 85% was my only option i would be more than happy, would you know of any lenders that would look at my situation?