Mortgage Rejection

Baggers75

Hi All


I was rejected for a mortgage last week by the Post office. My question is how long should I wait to apply for a mortgage again as I have heard it affects my credit score if I apply again to soon. I was rejected on the basis that my deposit came from a equity release from my dads house and I am paying off the interest on the amount on a monthly basis on simple interest as it would revert to compound interest if I didn't and would affectively wipe out my sisters inheritance when the house is sold. They claim this makes it a loan and not a gift and therefore a comminitment (which I can see is a valid point) but it is well within my affordability. I'm also annoyed that the person I dealt with should have advised me on this before submitting my application as she admitted I was the first person she had dealt with who had got their deposit this way.
Any thoughts or help would be greatly appreciated.

Dave_Ham

This is unusual, but not impossible.

Only a handful of lenders are going to like this though, would suggest you speak with an experienced lender.

One credit search from Post Office will not stop you getting a mortgage now, 7 searches to poorly advised/chosen lenders is more likely to.

Good luck

Baggers75

Dave_Ham wrote: »

This is unusual, but not impossible.

Only a handful of lenders are going to like this though, would suggest you speak with an experienced lender.

One credit search from Post Office will not stop you getting a mortgage now, 7 searches to poorly advised/chosen lenders is more likely to.

Good luck

Ok Dave thanks for that. Which lenders would you recommend? my friend has mortgage broker who he swears by but he charges and I was trying to save money in the short term but as they say you get what you pay for in the life.

Dave_Ham

Speak to your friend and get his broker details.

I would almost certainly expect to pay a fee for any broker that can place this.

Not as easy as anyone name dropping lenders here (and not allowed in any case)

Good luck

suziqqq

You definitely need to see a broker trying to save money by doing it yourself is false economy. Yes they charge but its their job , the same as if you took your car to be serviced and expected it for free

Thrugelmir

How much is your Dad releasing as a gift?

Are you providing any of the deposit yourselves?