Refused Mortgage

Shrimpy1

Hey not sure if you can help?

I have found an apartment to buy that is subject to the section 106 agreement. Due to this then it is only Halifax that will lend me a mortgage. They have done a credit check and said I have a low credit score. Therefore rather than lend me the 95% as originally agreed they want me to find a 10% deposit so a 90% mortgage meaning I need an extra £5000.

I do not have bad financial history as have never missed a repayment on credit card or loans and have always paid my rent and bills on time. My mortgage advisor seems to think it is because I have moved house three times in the last 2years which has affected my credit score. On Experian I have a score of 930.

I recently moved on the 1st November and am not yet registered on the electoral role there. I did this on Thursday and the council are under the impression it may take until 1st January 2015 for me to appear on the register.

I now don't know what to do? Should I wait until I appear on the register then re-apply for the mortgage at 95% or should I beg, borrow and steal from my family to get the £5000 and go for the mortgage now at 90%?

£5000 is a lot of money to borrow from my family, when my credit score may only be affected by the electoral roll. However does it take more than just a couple of months of being at the same property to affect a mortgage application? If I do not decide soon I run the risk of losing the property which I don't want!

Can anyone help?
Thanks

w00519772

Shrimpy1 wrote: »

Hey not sure if you can help?

I have found an apartment to buy that is subject to the section 106 agreement. Due to this then it is only Halifax that will lend me a mortgage. They have done a credit check and said I have a low credit score. Therefore rather than lend me the 95% as originally agreed they want me to find a 10% deposit so a 90% mortgage meaning I need an extra £5000.

I do not have bad financial history as have never missed a repayment on credit card or loans and have always paid my rent and bills on time. My mortgage advisor seems to think it is because I have moved house three times in the last 2years which has affected my credit score. On Experian I have a score of 930.

I recently moved on the 1st November and am not yet registered on the electoral role there. I did this on Thursday and the council are under the impression it may take until 1st January 2015 for me to appear on the register.

I now don't know what to do? Should I wait until I appear on the register then re-apply for the mortgage at 95% or should I beg, borrow and steal from my family to get the £5000 and go for the mortgage now at 90%?

£5000 is a lot of money to borrow from my family, when my credit score may only be affected by the electoral roll. However does it take more than just a couple of months of being at the same property to affect a mortgage application? If I do not decide soon I run the risk of losing the property which I don't want!

Can anyone help?
Thanks

When I was in the process of applying for a mortgage I opened an Experian account (http://www.experian.co.uk/creditexpert2/04_credit_score.html?sc=410006&infinity=gaw~Brand~Experian~54175518670~experian~e). There is a free trial for a month so nothing to lose.

It will give you your credit scores plus positive and negative personal factors that affect your credit rating e.g. if you have opened new bank accounts/credit cards then it will show.

You cannot rely on it fully because I have read on here people with low credit ratings being offered credit and high credit ratings being denied credit. However, it may give you some useful information. Plus there is a telephone number you can call.

Please note that I am not affiliated in any way with Experian. Just providing my view.

hcb42

how much can you save between now and January? That would reduce the amount you borrow from family

Personally I would want to try and raise the £5K and have more chance of getting accepted..

Thrugelmir

Shrimpy1 wrote: »

as have never missed a repayment on credit card or loans

How much do you currently owe?

stator

Can't the seller sort out the Section 106 agreement?

amnblog

you do not have a 'low credit score' - you have a score, which like many applicants is not strong enough for 95% loan to value.


Buy with a 90% mortgage.

OneEngland

Shrimpy1 wrote: »

I now don't know what to do? Should I wait until I appear on the register then re-apply for the mortgage at 95% or should I beg, borrow and steal from my family to get the £5000 and go for the mortgage now at 90%?

£5000 is a lot of money to borrow from my family, when my credit score may only be affected by the electoral roll. However does it take more than just a couple of months of being at the same property to affect a mortgage application? If I do not decide soon I run the risk of losing the property which I don't want!

Can anyone help?
Thanks

It is worth pointing out that borrowing your deposit money will affect affordability, as it will be treated as a financial commitment. If your family could gift you the money or try again once you are on the electoral roll. As Amnblog says, better to try the 90% option, not many applicants succeed at the highly scrutinised 95% LTV

kingstreet

If you aren't on the voters' roll by the end of October, it isn't updated again until mid-February when the latest version is purchased by the CRAs.