New mortgage - Default!

biggysnax

Hello one and all,

My wife and I are looking to get a mortgage and unfortunately were declined today by HSBC. Our situation is as follows...

House value - £237,000
Deposit - £48,000
LTV - 79%

My wife has a fantastic credit history, an overdraft sitting at -£1300 and a credit card with £3000 limit but nothing on it.

I have a shadier credit history, in June 2012, a Lloyds TSB current account was set to default and I spent a year paying it off and it was cleared in June 2013 and is marked as "satisfied" on my credit report but still showing the default, apart from that, my credit history is blemish free for 24 months. I have an overdraft sitting at -£1900 and a credit card with £1200 on it.

I am looking for advice on where to go for a mortgage. I have a woman form the Post Office speaking to her underwriters and ringing me tomorrow.

Thanks in advance.

Thrugelmir

an overdraft sitting at -£1300

Could you clarify what this means?

As for HSBC 2 years is unlikely to be sufficient time to redress the misdemeanor

biggysnax

Thrugelmir wrote: »

Could you clarify what this means?

Yes sorry, did think this when typing it. We are in our overdrafts to the values detailed.

smifffy1989

Try a mortgage broker like London & Country- They are fee free I think

Can you pay off your overdrafts at all? Perhaps by reducing your deposit to 15%?

biggysnax

smifffy1989 wrote: »

Try a mortgage broker like London & Country- They are fee free I think

Can you pay off your overdrafts at all? Perhaps by reducing your deposit to 15%?

We could pay our overdrafts off using some of our deposit, do you think this would be better then?

smifffy1989

It depends on the criteria of the mortgage company, I would suggest so yes.

ethank

I have heard that L&C don't like difficult cases. They are vanilla only. So maybe try a mortgage broker who will know where to place this.

Do you still bank with Lloyds? Can you ask them if they would be willing to remove marker now debt is honoured. They did this with me, but it was part of the settlement agreement for me to repay my debt to them in one F&F settlement.

tvfreek

Get a friend to recommend a broker to you and it will be sorted I'm sure.

Better that than speak to every lady at every lender to find what the underwriter thinks of your default.

Thrugelmir

biggysnax wrote: »

Yes sorry, did think this when typing it. We are in our overdrafts to the values detailed.

Wouldn't aid your application with HSBC.

The overdrafts suggest that you have little to no savings. From a lenders perspective your wife's credit score isn't fantastic either. With both of you in overdraft, and your recent poor credit history. The more likely prognosis is neither of you manage your money very well. As overdrafts aren't the cheapest form of credit available. I would say clear your debts before making a further application.

sazandy25

give london & country a call, it'll only cost a call if they can't help.

Failing that get on their website and request a callback.

Used them everythime we've remortgaged, excellent service FEE FREE!!!

amnblog

HSBC was always going to be a waste of time.

A good broker with experience of adverse credit will deal without this situation with a problem - subject to full underwriting.

Most likely on a good rate of around 4 %

Engage one immediately