New Gov 95% Morgage Scheme

dazza2004230277

Hi All, Just wanted some advise.

I wanted to obtain and make use of the new 95% GOVERNMENT scheme, we own our home and are looking to upsize. I am a higher earner, lets say 75k a year + and have a "good" credit rating. I subscribe to Experian and currently points are 940. However I have about 15k worth of credit cards. I applied through my bank, Natwest and have to be honest have been gobsmacked by poor service and advise. I had an appointment intially and asked them based upon my credit card debt and my yearly salary would then recoemend I apply for the 95% morgage scheme or do they feel it would be better to hold fire and clear some more of my cards. They advised based upon my good salary and credit score I should be fine on a 95LTV. They also advised I could include my stamp duty as part of my morage application on 95 LTV.
I had an appointment a week ago and went through 2 hour application, affordablity side easily can afford however when credit score was done it came back rejected!
I spoke with Experian they advised no adverse marks, etc no CCJ... I assume that it is my amount of debt and that in order to obtain a 95 LTV morgage you need a squeeky clean "excellant" credit rating...
It seems to me that its all well and good the government telling everyone what a wondeful scheme but how many young people have a excellant rating? Mine is good and only 20 points away from excellant.
Would you recoemend I clear the cards, monitor the rating and once its back at excellant re-apply? or do any of you recomend anything esle.
Crazy thing was I talked to an independant advisor after my poor service with Natwest and with a 15% deposit application was approved in principle! with another lender so I think I may have answered my own quetsion but would appreciate feedback...Natwest put my application into appeal! I found out yesterday that I never had right to appeal so even more poor advise and service, shocking really after 20 years with that bank!....:) I also found out that with an LTV 95% you cant put your stamp duty in with your morgage.

Thrugelmir

Credit score means nothing. £15k of debt does make a difference.

So don't believe your own propaganda. As the real world thinks differently.

dazza2004230277

Thanks. But surely less credit card debt improves credit rating points and teh better the credit score the more likely you get to be accepted for a loan application etc. Of course the less debt you have the better.

Experian_company_representative

Reducing the balance on your credit cards and keeping the accounts open is likely to help your Experian Credit Score and any credit rating calculated by a lender. Lender's scores, particularly those of mortgage providers, look at affordability as well as default risk.

James

dazza2004230277

Hi James

Thanks, I assume though affordability will be an underwriter looking at the application and the credit score will be via there computer system.

brettcta

we've recently applied for & been offered a mortgage on a local lend a hand scheme. we've both got reasonably good credit histories (mrs' is impeccable but there's not much on it) and mine is fine from the last 18 months (only a couple of late payments historically), but as has been mentioned above, it's the debt you currently have that can cause the issue.

prior to applying i managed to pay off £3,500 with money i had saved in a safe to which i didn't have the key. between us now (apart from the mortgage which hasn't started yet), we have around £800 debt total (mostly my visa which is paid in full every month). neither of us are high earners but we've found the key to be the level of debt you have at the point of application.

funnily enough now i think of it, the bank didn't even ask to see bank statements from either of us (which is handy because i'm a keen Matched Bettor)