FTB HTB2 RBS Mortgage Declined... now what?

Debt_Free_Chick

I'm not entirely convinced that the default is the only issue. I'd imagine that the car finance payment might impact any affordability criteria they have. It's rather a lot for simply "owning" a car - on top of the usual running costs.

kingstreet

adamck wrote: »

The only default we have is SETTLED and had been for 3 years.
We asked the mortgage advisor about it and he said he was sure it would be ok.
I did listen, I listened to our mortgage advisor!

My question isn't an argument, it's where do I go now...
I can't get the default removed even though it's old and settled.
Do I give up? Or try a broker?

I do not think you will get a 95% mortgage from any lender with a visible default.

Is it visible on all three versions of the applicant's credit file?

adamck

I very much doubt its affordability.
We asked to lend almost 50K less than they where offering based on our salary.
Each month we have around £1000 space cash after paying house bills, car, fuel etc...
This is reflected in our savings/bank statements which show us placing £1000 a month into savings...

We could get rid of the car... but would shave to dip into the savings to buy another car and i don't think that is causing us an issue as we have no other credit to pay off.

My OP was a rant as I'm angry that such a minor thing has stopped us getting on with our lives. But ranting about it won't get anything done, we have already begged O2 who didn't want to help us.

I was more wondering if we had a choice other than somehow find £40K as a deposit, have a guarantor or wait 3 years for the default to be removed.

Im just at a loss now... i really don't want to wait 3 years to get on the ladder just waiting for a deposit to go...

I can't afford any of the houses were looking at on my own just yet.

leccyblue

Hi,

I think you just have to accept that at 95% LTV, with a default - it's not happening. Unless you can persuade O2 to remove the default as a gesture of goodwill. Doubtful, since it's a true reflection of the payment history - and not an error. Or unless you can persuade someone to put their cash or home at risk to be a guarantor.

Focus your attentions on saving. You say you are saving £1,000 a month - which means 12 months from now you'll have £20k saved including the £8k you already have. That's a 15% deposit on a £130k house. At 85% LTV you may be OK but you'd need to see an independent whole of market broker that has experience of dealing with adverse credit. You need a broker that says "yes it's not ideal, but based on my experience lender x will more than likely accept this" rather than "it shouldn't be a problem".

Plus at 85% LTV you'll get a much better rate.

Gordon_Hose

O2 have already told the OP they won't remove the default because it would mean they are lying about account conduct.

If you're putting £1k into savings each month then why not just wait a year, then you'll have £12k to add to the £8k you already have, giving you a £20k deposit!

You certainly don't want to keep applying and getting refused for mortgages. You've been declined by one lender already and there are only 3 lenders in the scheme, two of those belong to the same banking group!

kingstreet

HSBC starts next week, but the minimum deposit is £10k.

Saying which, the chances of HSBC accepting a default...:eek:

Shoppadolley

Are HSBC good with defaults then or not??

Yorkie1

Shoppadolley wrote: »

Are HSBC good with defaults then or not??

Not at all.

kingstreet

No lender I know of will accept a 95% application with a default.

I did say that in post #13 and my comment about HSBC was never intended to cast doubt on that.

I wanted to extend Gordon's point about limited lenders, to at least indicate there would be another from next week.