Declined after AIP and no CCJ (20k available credit) - help

splreece

Hi all,

Thank you all as there is a mountain of threads to do with declines which has been extremely informative.

I have no CCJs no missed payments and am 35 yrs old with years of active credit.

My available credit is 20k while Experian list my outstanding credit/available is at 14% (I have always been told to have some but keep under 25%).

I went for a 65k mort, with 15% deposit.

I earn just under 30k a year, perm civil servant and in job for number of years.



... and i have had 3 declines... first from Virgin, then Nationwide (who i bank with), then Halifax.

The first and second were done quickly by ReedRains mort advisor and I think she panicked and did Halifax as she actually said they do a footprint which if yes, it guarantees a mort approval.

Low and behold... after fees and on appliction, Halifax declined. i havent found out why yet but:

- Virgin declined on affordability (go figure)
- Nationwide declined on credit score (am 980 although I know public credit score is almost irrelevant)
- Halifax - i don't know yet, we are appealing.

Does anyone have any advise... is this poor luck or is it the mort advisor getting things very wrong?

I havent spoke to the underwriters but the threads seem to think it is worthwhile... (do appeals likely get overturned as I am not appealing anything they have read wrong... just that I have a squeeky clean, active credit file).

splreece

i have 1 child, no partner, no childcare and i dont drink or smoke or do nights on the town.

no other mortgage and the crazy maths are that

rent = £600 pm

new mortgage if accepted = £240 pm

So surely affordability is a bit of a cop out.

lonestarfan

What are your outgoings?
Kingstreet gave a recent good example on here somewhere of how some credit card debt payments reduced their lendin from £100k to £45k - I'm not precise with the numbers but the point it's illustrating is the same.
You need to find out why each app has been declined.
You need to get a whole of market broker not a Mortgage adviser.

Thrugelmir

How much do you owe on unsecured credit?

How much cash deposit are you putting down on the property?

splreece

ohh.. i owe 4k (typo) on a single 0% barcaycard (33 months deal)... credit card bill is around 150 pmonth.

I have about 6 cards but the rest will nil balance (one actually has a plus balance as I overpaid months ago).

I had that exact conversation with the mort broker (sorry by terminology was wrong, she is a whole market independent broker in reed rains).


I asked if it is better i reduce my deposit and pay off debt rather than higher dep and higher debt... she said is doesn't matter either way, (however i did affordability checks and they seem to say otherwise... (I assume she wanted the 15% deposit as it opens up more of the market).

I have one 1 financial link with my ex partner and she is also squeeky clean as we are both very close still. same job, same pay, same basic circs except she has no credit card outstanding.

splreece

the house is a repo house.... previous sale on street was 2012 for 96k.


house has no damp, no structural issues, no elec or gas/water issues as i have had reports on all.


so the property is almost an easy win even with bad credit....???


my cash deposit is 11k

Thrugelmir

splreece wrote: »

my cash deposit is 11k

Then lenders may well view £6k as being a borrowed deposit. Something your adviser should have considered.

kingstreet

Have you obtained all three versions of your credit file and are you 100% sure there are no errors requiring attention?

Are you 100% sure your former partner's credit is squeaky clean if there is an association?

£6k of card debt is £300 per month off affordability.

As an example, one leading lender's affordability calculator indicates £106k max borrowing, so affordability doesn't appear to be the issue.

Stop this EA advisor running up and down the high street wasting costly speculative credit searches and investigate what's happening with a proper mortgage broker.

lonestarfan

I don't think she is a whole of a market independant broker if shes employed by Reeds Rains as that menas she's an Estate Agent (EA) Mortgage adviser.
You must have posted your figures of outgoings at same time as I was posting cos I didn't see them!
I'm not sure why Thrug and KS are quoting £6k debt in their replies as you say £4k but they know what they're doing so will no doubt explain if needs be.
Basically you need to get a proper broker and get from them advice on whether you should pay the card off. If you do then you have a 7% deposit which isn't much but might mean you can get a mortgage.

miss_sparkle

Doesn't the amount of credit cards / credit available have an impact on obtaining a mortgage?
Surely if you only earn £30k and you could possibly get £20k of unsecured debt tomorrow that would have an impact on how a mortgage lender would look at it, what is to stop someone getting a mortgage and then if they had numerous credit cards available to them going out the day after they get their mortgage and getting 20k's worth of extra debt!

I'm not advising, just asking the question.

A relative of mine applied for a mortgage and was told by the lender to close all her credit cards ( she had 4 ) that didn't have any balances on them for the reason above, she could borrow what she wanted with them closed but not with the accounts open.

Thrugelmir

lonestarfan wrote: »

I'm not sure why Thrug and KS are quoting £6k debt in their replies as you say £4k but they know what they're doing so will no doubt explain if needs be.

Post has been edited by OP. My point still stands.