FTB Mortgage Declined

DSimmo1980

I am at a loss as what to do.

After waiting a week for HSBC to make a decision, they have finally decided to decline my application. The mortgage adviser has said it is due to my work employment. I am employed on a yearly contract basis. Does anyone know any mortgage providers who would be willing to accept this. I earn approx £40,000 a year and looking to purchase a property for £143,000 with a 10% deposit. I do have a couple of defaults registered in Jan 2010 and these have been settled in full - apart from this my credit file is clear.

Can any one advise if there is a broker that don't cost the earth or high street bank who will look likely to lend to me.

Thanks

Doofs69

There are other lenders that will be able to help, with proof of your yearly contract along with previous years. Your defaults registered in 2010 should have been cleared off your record if these were settled at the time, however its worth you obtaining a credit report on yourself through Experian...you can make use of the free trial on their website to obtain this, and see what score you have obtained. Did you get the Agreement In Principle approved from them ? Or was this declined . HSBC can be tricky on placing cases, as they will scrutinise affordability along with previous credit history

WillyWonga

HSBC is an extremely fussy lender - going there with a yearly contract and settled defaults will almost be a decline straight away.

Don't approach lenders direct. Search for a whole of the market broker. Brokers don't cost the earth but will look at your circumstances and advise of the best suited lender.

DSimmo1980

Thanks for your reply. Yes I had an agreement in principle approved from them. I have my credit report from Experian and it only shows the defaults. My score is 936 (i know this means nothing in eyes of the bank) All other accounts up to date. I have no other debts with only a next account with £100. I can show that i have been at my workplace for 3 years but they will only issue year contracts.

Doofs69

Credit report score is good, so it might be something else that could be the issue ? Talking case through an independent mortgage advisor would be the next step, as have access to other lenders criteria and eligibility which do differ from lender to lender. Your employment doesn't sound a problem as well as your income. Nationwide would be a good option as an alternative...whatever you decide, don't be obtaining multiple Mortgage In Principles from various lenders over a short period, as this can have an adverse effect on your credit rating...seek a mortgage advisers help