mortgage declined 😭

*feisty*fairy*

Hi all, looking for some advice please. We currently have a Halifax mortgage, have just accepted an offer on our house and had our offer accepted on another. We have just done an application on the phone and its been declined. We have had this mortgage nearly 12 year, never missed a payment etc, no credit cards, loans etc but are in a debt recovery plan that we have been in for a few years and are paying bacK. This was due to credit cards and a loan that we consolidated through the payment plan and have already paid approximately half back and never missed a payment. Im absolutely gutted, this is the house of our dreams, the mortgage we applied for is less than ours at the moment as we have equity in this house to put down as a deposit so we dont understand why they've declined. Is all lost??? Is there another company we can try?? We are distraught, this was going to be a whole new life, new house, area everything. Please can anyone help??? :(:(

*Kat*

Did you get copies of your credit report from all three credit agencies? I'd get it for your *husband* too

*feisty*fairy*

My husband has just checked his credit on experian but mine isn't accessible yet until they email me? Apparently hubbys is 939 x

*Kat*

Feisty, I'd check Equifax and CallCredit (Noddle) too. There was info on my Noddle report that's not on Equifax or Experian. It's such a pain.

Just wait until you hear back about your report and then decide if you want to go for the Equifax/Noddle reports (though Noddle is free anyway)!

cycloneuk

*feisty*fairy* wrote: »

My husband has just checked his credit on experian but mine isn't accessible yet until they email me? Apparently hubbys is 939 x

Score means nothing, lenders don't see it. Do either of you have defaults or late payments showing? also the fact you are in a DMP will cause issues.

*feisty*fairy*

We don't have defaults no, we knew the dmp would be an issue but thought that because we have paid regularly etc, and no other issues we would be ok. Is there anything we can do?! The housing chain is all set up and waiting ������

cycloneuk

Get a £2 statutory credit report from experian and equifax (you can do this online) for both of you and then find a broker. I wouldn't recommend applying direct to any other lender as your likely to get the same result.

*feisty*fairy*

Ok thanks. So all isn't lost then?

Westminster

Get copies of all 3 of your credit files for you and your husband and put them in front of an independent broker (defo not one who sits in an estate agency)

*feisty*fairy*

I'm panicking, am I gonna lose my dream??:sad:

Westminster

Only a broker will know for sure - but I suspect you will have substantial difficulties when you are still in a DMP. Usually the DMPs have a clause where you promise not to take on any further lending - nothing to stop you exiting a managed DMP (assuming that is what you are on) and self-administering though.

The outstanding balances are going to impact on your affordability. Visit a few mortgage lenders and put all your figures (including all the DMP balances) into their affordability calculators and see what results you get.

However, you will need to consider (if you haven't already) where you will get the funds for stamp duty, legal fees and estate agency fees.

I suspect you will need to allow for whatever equity you have being used to clear any outstanding debt before you can use what is left towards a house purchase - so factor that in to your calculations as to what you can afford.

Also - don't do any more mortgage applications without advice!!!