Any options?

cfcboy

Hi all, im after some advice if possible

I’m currently looking to sell my property - a 3 bed apartment situated in Berkshire. Its a leasehold property with 75 years remaining. We are looking to sell due to the leasehold dwindling down and also the need to upgrade to a better family home with a garden and out of the way a little bit (we live on the high street).

I’ve tried to get a mortgage of my own in which my bank (hsbc) gave me a decision in principal for the amount I needed but after doing some more background work they decided to not lend me any at all bummer.

The current mortgage i have was with livingstone mortgages (they were prime) until they went bust and morgan stanley came in. I have been told i cannot get another mortgage with them, its currently sitting on a variable rate 3+ libor rate.

I don’t have any ccj’s, always upto date with payments and already have a mortgage. I think the reason is probably the amount of credit I already have? I went on to Experian and Equifax and both said credit was poor.. again focusing on the amount I owe. Let me give a quick background if I may:

Myself and partner earn a combined annual salary of £64k per annum (upto £66k with bonus and the odd OT). We are both 36, 1 dependant of 17 and don’t plan anymore.
We owe £158k on our current mortgage
The proposed sale price is £215k
This would leave (fees deducted) of approx £52k
We owe £17k on credit cards, loans and store cards. We would pay off all these debts on sale of house
Leaving us (fees deducted) a possible deposit of approx £30k

Seen some properties we would like in around the £270k which is below the 90% ltv most are looking for.
I know we are not a risk, we can afford a montly mortgage of approx £1400 especially if debts are all paid.
We are not a risk, we don’t have late payments etc. Its hard to take that a couple of computer systems are completely blocking our path to a better quality of living.

Is there any way round this, are the banks mainly reliant on looking the credit reports and instantly face palming us down? 
I don’t want to come off the ladder but renting might have to be our next option, I really need to get out of the flat. Do I need to write to the bank (they have always been a bit stingy with me though for some reason!)

Any advice would be greatly appreciated.

Foxy-Stoat_3

Print off your credit reports and see a mortgage broker for best options.

You may need to extend your lease before anyone will buy your flat.

Dave_Ham

I would fancy you certainly would have a solution on the purchase of a new place, although selling a leasehold flat with 75 years left on it could be trickier.

Broker is the next stop, although not necessarily the Estate Agent ones

cfcboy

Funny you should say that, the estate agents have just got their mortgage section to call me. Is it usually wiser to go with an interdependent adviser then?

I had a quote for the lease extension and they quoted £10k, no way i can afford that so might have to cut the sale price a bit. Either way, still got decent amount left over

Dave_Ham

Look through the posts here and search for ones that have words like "help, nightmare, disaster, delay" and typically 95%+ will have had the mortgage attempted by someone based out of/linked to an Estate Agents.

You may well have to cut price, but some lenders will not like the length of the remaining term so be absolutely sure the Estate Agents tell every potential buyer on the lease as otherwise you all waste time, potential buyer wastes money and you emotionally jump onto a rollercoaster.

Highly likely a cost reduction will be sought by any buyer with some formal advice behind them.

Good luck

ethank

I would never go with an Estate Agent. Someone tried to convince me to use them, and they mentioned the great deals they had with one provider - but failed to tell me that they were owned by that lender....... I was wise to the situation.

Why would you want your Estate Agent to know your finances - keep your broker working for you!

cfcboy

how do i search out a good broker? do i have to visit f2f etc?

cfcboy

i went to two brokers and had great success, both giving me DIP for even more than i need so all round success. I had to explain that debts were getting paid which i didnt do on my online application so probably why i got rejected so swiftly. Thanks all

Thrugelmir

cfcboy wrote: »

I had to explain that debts were getting paid which i didnt do on my online application so probably why i got rejected so swiftly. Thanks all

Lenders may be concerned that you won't. From the data that they have access to they can see how the unsecured debt has been accumulated. In addition you are looking to increase your mortgage from £158k to £240k. Even if the debt is repaid you may continue to "overspend" in the future.

All of which raises more questions than answers in the lenders eyes.

Wh05apk

Dave_Ham wrote: »

I would fancy you certainly would have a solution on the purchase of a new place, although selling a leasehold flat with 75 years left on it could be trickier.

Broker is the next stop, although not necessarily the Estate Agent ones

Don't personally see the lease being a major problem 75 years is still goo, most lenders need 30 years at the end of the term, a couple stipulate minimum of 70 years so still a way off of them.


I think you need to try to find out why you were declined, I suspect a good broker should identify the reason in a few minutes from your credit report.