AIP refered, now require full application......

mrjaywarren

Ok, the application won't be for a few weeks yet as we will be waiting for an offer on ours, hopefully by then our records will be updated?

I don't see how this will be any different, if we pay the 4k and then arrange a mortgage somewhere else, surely the records will still be the same, or will the lending criteria be more relaxed?

Is it too late to change to a different lender, an AIP has only just been run at this point and wasn't fully completed?

amnblog

An alternate lender is likely to accept a credit profile that your current lender looks likely to reject Jay.

mrjaywarren

4k is the ERC won't I have to pay arrangement fees etc with the new lender?

amnblog

I would have thought so Jay - yes.


I cannot see you finding a fees free deal.

mrjaywarren

Ok, how likely are other lenders to view us differently?

The total default debt is 3k with 1100 in a "pot" held by the debt consolidation company which was voluntarily set up in May 2013.

Based on the info above Barclays have advised even if we payed off the debt now it has been less than 3 years since establishing the consolidation repayment scheme and so it would be a decline.

Any thoughts?

Thrugelmir

mrjaywarren wrote: »

The reason given by Barclays was a referal code relating to a "missed payment". On reviewing both our credit files we can only see that I have 1 red mark for having a significant amount of "unsecure debt" and my partner has 2 debts (1500, 2300) which are being managed by a debt consolidation company in that they are defaulted but a settlement plan is in place.

Does the above cause us any problems if it has gone to refer and not decline already?

Sorry to be blunt. But it seems as if you aren't living in the real world.

My partner and I are applying to port our mortgage to a more expensive house.

How can you afford a more expensive house if you are struggling to repay existing debt?

mrjaywarren

Where did you read "struggling to repay debt"?

amnblog

You need to engage a mortgage broker Jay.

mrjaywarren

Cheers, i'll make the call

ACG

He didnt read the word struggling but you have debt there unsatisfied. A lender has agreed to take a payment back presumably less than the original contract just to get theri money back.

If I borrowed £1k off you and agreed to pay £100 back a month but then dropped it £50 but was going on holidays what would you think? - That is effectively what you are doing (albeit a new more expensive house rather than holidays).

So any new lender is going to look at that and think you are a higher risk than someone who pays back their existing commitments on time - which is why Woolwich were never going to accept your application. Your may find a high street lender if everything falls in to place and you get lucky, but your likely going to end up with something that has higher rates.

Not having a go, we all have history - but just trying to give you an explanation without beating around the bush too much.