mortgage declined due to credit report, help!

coffeepaul

Hi all, long winded but here goes, I currently have a 25k mortgage, all up to date, also have 1 cc with 600 and 1 cc with 1200, and a loan of 7500 paying 137 a month on a combined wage of approx 33000 and savings of 12k. went today to halifax asking for a 76k mortgage for a house worth 80k, we wanted a 95 percent mortgage paying a 4k deposit from our savings, we wanted to rent our current house as the mortgage was low, the advisor thought it was a good idea, she put all our figures into the calculator only for her to say we have been declined due to our credit report, Ive since looked at our reports and the wife has a late payment for next which she forgot but paid the next day, all the rest was satisfactory, Ive never had any issues getting credit so cant understand it, Ive enough savings to pay off the loan and 1 cc and still have 5 percent deposit, would this be the better route to securing a mortgage or is a bigger deposit the better route? or is it just that the Halifax are strict? im having a word with an independent financial adviser later in the week to see if he can help, any help appreciated, thanks in advance

GMS

You won't get a 95% mortgage with a rented property in the background.

coffeepaul

yes, but applying wouldnt surely make the halifax say no at the first attempt, surely its something on the credit report rather than the financial amounts which make them say no.

stalkah

Probably your mortgage on your credit report as the 95% is for ftb with Halifax AFAIK

GMS

coffeepaul wrote: »

the advisor thought it was a good idea

If she thought it was a good idea then realised it was outside of criteria then the easy way out is to blame your credit report.


Get copies of your reports and check for yourself if there is an issue.


Not going to happen at 95% though however good an idea you and the adviser think it is

amnblog

GMS wrote: »

You won't get a 95% mortgage with a rented property in the background.

Correct GMS, however:

'the advisor thought it was a good idea'

This is the standard of 'advice' that borrowers are getting Direct from Lenders since 26th April.

GMS

amnblog wrote: »

Correct GMS, however:

'the advisor thought it was a good idea'

This is the standard of 'advice' that borrowers are getting Direct from Lenders since 26th April.

Agreed. Several clients I have seen lately have been given woeful 'advice' in branch, after waiting an eternity for the appointment!

Midwife

GMS wrote: »

You won't get a 95% mortgage with a rented property in the background.

Is that with any lender or just the Halifax?

coffeepaul

had a look at the small print on the 95 percent mortgage I applied for, seems like it has to be your only home so maybe that was why I was declined, surely you would have thought the mortgage adviser would have pointed that out, got a meeting with an independent adviser next week so we will see where it leads me.

Thrugelmir

coffeepaul wrote: »

had a look at the small print on the 95 percent mortgage I applied for, seems like it has to be your only home so maybe that was why I was declined, surely you would have thought the mortgage adviser would have pointed that out,

There are several reasons for the decline this was one of them. The other being your debt level.

coffeepaul

Hi all, debt now reduced to 0, cleared off both cards and loan and now have a 5 percent deposit with 0 debt so maybe better when next put in application, thanks for reply. any idea how long it takes for credit file to be updated to show these debts cleared?