Apparently we are "untouchable" to lenders

muppetscotland

We have had a mortgage for 12 years and wanted to free up some equity for debt consolidation, bringing mortgage up to 80% LTV. We are self employed through own Ltd Co but have good contracts, 2 years+ audited accounts and have joint income of £100k PA.

Went through a broker due to self employed/contractor status and have been stunned to be turned down by a number of lenders, including "semi adverse" and have been told that with our credit histories we won't get a remortgage for 2-3 years.

I know I've been out of the mortgage market for a long time but when did it get this severe? We have no history of bankruptcy or CCJs, no abandoned accounts, no fraud, no problem with electoral roll etc. All we have is a handful of late payments, of no more than 1 month, on some accounts like Next Directory and one credit card which I was disputing but eventually paid rather than argue about.

Now I'm scared to even think about moving house incase we never get another mortgage. I have looked at our credit files online and there are no "bogeys" lurking there so it's not a case of anything erroneous.

Are we screwed? What can I do to fix it? With thanks

Let_Us_See

muppetscotland wrote: »

All we have is a handful of late payments, of no more than 1 month, on some accounts like Next Directory and one credit card which I was disputing but eventually paid rather than argue about. Are we screwed? What can I do to fix it?

Yes, basically screwed. Ensure you pay your accounts on time for a couple of years to repair credit file.

kingstreet

How recent are these late payments?

How many is a handful?

Typically, you need to have three years of unblemished payment history to be acceptable to the bulk of the lending market and a lower loan to value can move you closer to now on the timeline.

Did you obtain all three versions of your credit file and put them in front of a broker experienced in adverse credit issues?

muppetscotland

kingstreet wrote: »

How recent are these late payments?
Thanks for your reply -
How many is a handful?

5 late payments in the last 2 years

Typically, you need to have three years of unblemished payment history to be acceptable to the bulk of the lending market and a lower loan to value can move you closer to now on the timeline.

If we were moving and had 40% deposit would that be likely to move the timeline closer to now?

Did you obtain all three versions of your credit file and put them in front of a broker experienced in adverse credit issues?

Experian and Equifax obtained and vetted by 2 brokers. First one tried a few lenders, second didn't bother trying just said no chance. I can't get Noddle report online as I failed their online registration process (basically I didn't prove I'm me so have posted application for written report.

MJP43

I'm confused by this thread.

I've seen many brokers say that late payments can be circumnavigated if not too severe, now this guy is being told he is being blackballed by the mortgage lending industry for relatively minor adverse.

muppetscotland

Yes I'm confused too which is why I've posted for help. It's anonymous and there's no reason why I wouldn't be 100% honest so you now know what I do....really I am mortified that we seem to be well paid with plenty of equity and a 12 year record with our lender and are basically unable to borrow and/or move house for the next 2-3 years.

It makes me fear for our future as it effectively means we can't even move to follow work etc. Scary!

Foxy-Stoat_3

How much are you trying to borrow?

muppetscotland

80% LTV on house worth £320k.

Foxy-Stoat_3

How much extra are you trying to borrow

ACG

Im confused by this post too!
Nothing you have said has made me think there is no chance.

Depending on how much debt you are consolidating and what the late payments are (ie are they late payments on your mortgage?) and how recent this should be fine, especially with the "adverse" type lenders.

How many credit checks have been done in the last 12 months?

Thrugelmir

wanted to free up some equity for debt consolidation,

have joint income of £100k PA.

Underwriters alarm bells will be ringing immediately.

Perhaps consider downsizing, as may obtain you a more engaging response.