Urgent help needed mortgage refused by underwriters

skew123

I would urgently like some advice. The underwriters have turned down my husband's mortage application at the very last stage. We are borrowing a fraction of the amount the house costs as we are using a large amount of savings and money we have made on our current property. I have a low credit score so the mortgage is going to be in my husbands name only. They have said that the mortgage needs to be in joint names. But when we first applied they said a mortgage with me on it would be denied because of my poor credit history. We have paid for a valuation and searches and many people are waiting for us. is there anything at all we can do?

dotdash79

Did you use a broker or go direct?

Either way you have two options:

1) Appeal based on the fact you wasn't advised that you needed to be joint on the mortgage.
2) Apply somewhere else.

Out of interest were you going to be both named on the deeds? If so thats whats causing the issue, you might need to take your name of the deed. If you want to be covered in case of a split do a declaration of trust.

Other question how bad is your credit history.

Fraud? Bankruptcy? IVA? DMP? Defaults? Arrangement to Pay? Payday lenders in last 2 years? Late payments?

ACG

Are you financially associated?

I would arrange an appointment with a broker, that will be the quickest and easiest way to get this through.

Thrugelmir

If the deposit is coming from both of you. Then, yes you'll need to be named on the mortgage. Otherwise the lender potentially could have issues due to your financial association.

What's behind your poor credit rating?

skew123

Thank you for replies.

we currently have a mortgage together but we are not financially tied, the deposit we have has come from his parents, not in my name. i am not named on the deeds.

my bad credit history is a default on an overdraft of under £1,000, due to expire in three years and some late payments on store cards but nothing over a thousand and in total less than three. we have had our mortgage with them for years and never missed or been late with a payment. how will a broker be able to help?

Batchy

You are financially tied, you have a mortgage together.

ACG

How much is the purchase price, how much is the mortgage?
1 default 3 years old should not be a deal breaker. It may be at 90-95% but even then i would say there is some potential to get this through with the right lender.

skew123

purchase price is £580,000 and mortgage applied for is £280,000

that's why this is so frustrating.

ACG

Speak to a broker, getting a joint mortgage should be achievable.

Thrugelmir

skew123 wrote: »

my bad credit history is a default on an overdraft of under £1,000, due to expire in three years and some late payments on store cards but nothing over a thousand and in total less than three. we have had our mortgage with them for years and never missed or been late with a payment.

While the amounts involved may be small. The lender is being asked to advance thousands of pounds to you. Hence their reluctance. You earn no brownie points for making contractual payments on time. As that's the a foregone conclusion that you will.

Shoppadolley

Speak to Dave Ham on here. View my previous posts for more
Info. Can't go wrong