Barclays re-mortgage turned down

ray1971

Got advised today by Barclays underwriters that they have refused my re mortgage with them.I have agreed a sale on my current property and looking at moving home.
They said the reasons were that my wife took out a couple of payday loans a couple of years ago, there is one default 5 years ago that was repaid 4 years ago and due to the level of our current credit card debts ( which are going to be paid off out if the equity from my sale). Currently Im on a lifetime tracker deal 0.95% above base rate and also think this might have something to do with the rejection as I intended to port over this rate.
We are looking at a 90% ltv mortgage of approx £217000 and have a £22000 deposit.
My wife and I earn £60000 between us and are aged 42 and 43.
We have now booked an appointment with an independent advisor who can offer a whole market mortgage advice service.
Is there such thing as a more lenient high st lender who will consider us more favourably?
Is anyone able to give us any advice?
Thanks.

Thrugelmir

ray1971 wrote: »

Currently Im on a lifetime tracker deal 0.95% above base rate and also think this might have something to do with the rejection as I intended to port over this rate.

More likely to be related to the fact that you would like a 90% LTV mortgage. You can't have your cake and eat it so to speak.

The concern for the lender is the manner in which you manage your money. Yes your debts are being repaid from the equity. How long before they mount up again?

amnblog

Your broker should resolve this for you.

Barclays will sometimes live with minor issues outside of the last 3 years.

Did you ask if you might get a pass with a lower lending figure?

Thrugelmir

amnblog wrote: »

Your broker should resolve this for you.

What's an average interest rate for a 90% LTV mortgage at the moment?

getmore4less

ray1971 wrote: »

Got advised today by Barclays underwriters that they have refused my re mortgage with them.I have agreed a sale on my current property and looking at moving home.
They said the reasons were that my wife took out a couple of payday loans a couple of years ago, there is one default 5 years ago that was repaid 4 years ago and due to the level of our current credit card debts ( which are going to be paid off out if the equity from my sale). Currently Im on a lifetime tracker deal 0.95% above base rate and also think this might have something to do with the rejection as I intended to port over this rate.
We are looking at a 90% ltv mortgage of approx £217000 and have a £22000 deposit.
My wife and I earn £60000 between us and are aged 42 and 43.
We have now booked an appointment with an independent advisor who can offer a whole market mortgage advice service.
Is there such thing as a more lenient high st lender who will consider us more favourably?
Is anyone able to give us any advice?
Thanks.

Which means you have to borrow more.

Can't hide that consolidation of debt to mortgage.

How big are the debts?

ray1971

18k credit cards and 24k secured loan

Jhoney_2

Not wishing to be rude, but it doesn't look good on paper.
If you are carrying 42K of extra debt on a 60K joint income, your affordability argument doesn't stack up (to the lender?) unless you are earning 140000K - especially on record low rates like yours.

I appreciate that things may have improved etc and no judgements from me, but Lenders are an icy cold proposition these days.

Any chance you could pay the worst ones off and wait a bit longer until they fall off your wife's records?

I think that debt and your deposit tells the lenders something other than you are a responsible borrower - whether true or not.

ray1971

So are you saying that the lenders wont believe Im going to pay off this debt, which I am out of the equity from my sale?

Jhoney_2

Not at all - I am not an expert.

I am just pointing out how it looks and that your previous behaviour may look like your existing debt is not a priority - as rather than pay it off, you have saved/retained it in preference of your own pursuits e.g a transaction which will accrue more debt.

I would want to demonstrate that those circumstances have changed and that you have a better pattern of behaviour. How can you, if it is right there in front of them?

Just worth considering.

FWIW, I am no ideal customer myself as my income has declined due to choosing to raise a family and various things that are beyond my control but important to me.

However I have no debts, defaults, loans or ccjs to give them the jitters and I am seeking a significant mortgage reduction. I still may not get it so will be using a broker!

getmore4less

We are looking at a 90% ltv mortgage of approx £217000 and have a £22000 deposit.

18k credit cards and 24k secured loan

How big is your current mortgage and house value

How much have your debts changes in the last 12 and 24 months?

When did you buy, what did it cost, what were your debts and income at that time.


The issue is it potentialy does not look good,

If the mortgage is small and the debts have not been going down then there is a real affordability issue.

Your next step should be a SOA to see what the picture looks like
http://www.stoozing.com/calculator/soa.php

getmore4less

ray1971 wrote: »

So are you saying that the lenders wont believe Im going to pay off this debt, which I am out of the equity from my sale?

Don't think that is the problem,

They are probably concerned that you cannot manage your finances and will run up more debt.

It is what happens to a lot of people that consolidate debt into their mortgages which is what you propose to do.