Mortgage declined by Underwriters - GUTTED!

sharonfrancis

I am new to this mortgage stuff and am learning on my way...
moved back to my parents to try and save some money to buy a house.
Property prices in my area are quite high and being a single parent just seemed out of my reach until I get a good deposit. There is a possibility I am going to be gifted some money from parents 10-15K but I thought I would try and save myself as well.

I went to HSBC a few months ago and got a DIP for 130K. But given the fact I did not have a decent enough deposit I thought I would put on back burner

I took a car loan out a month ago for 5K - given my current living arrangements I thought I could pay back in 18mths for approx £280 a month.

Low and behold 2 weeks later a 50% Shared Ownership property comes up which would be perfect for me and my kids. I put an offer in and it was accepted. £88750.

went back to HSBC - said I could raise a 10% deposit. They were really encouraging and assured me that it would go though, showing figures that were within my budget. They told me to restructure my loan over 5 years as they felt it would go against me which I did... again they really confident it would go through (we did do several scenarios which the advisor would lead a "footprint" on my credit file. Had my full application meeting - advisor said she could only offer me 66K and it would go to underwriter. Spoke to my parents who thought they may be able to gift me the rest if the UW agreed application. They called me this morning to tell me NO!!

The mortgage advisor said if it has been her choice she would have put through. she was confident another provider would agree it which is why I tried again this afternoon with Nationwide. Affordability wise it went through but then I got a plain NO... did not pass credit rating.

I am confused (I have a good credit rating! or thought I did)
can anyone offer some advice....

I have withdrawn my offer with Estate Agents - they have come back saying maybe their advisor could help. "He has 300 lenders he can try and has helped many people that have been turned down"

I really dont know what to do.... I am gutted. Want this house so bad.... Its perfect.... it meets all my requirements and could see myself being there for the rest of my days... I am 37 btw. My kids would have a room each.
Things are getting strained at parents. it is a small terraced house - my smalls are being kept in an archive box. :rotfl: its tough!! 4 adults, 2 children and another child half the week...

I really dont know what to do.... should I see if Estate Agency advisor can help? leave it - it wasnt meant to be... how soon could I apply for a mortgage again? Clear 5K Car Loan...?

Why do you think I got declined by Nationwide? All the credit checks? 5K loan..

sorry for waffling - hope someone can advise......

amnblog

Did the original adviser check your credit file before submitting these applications? Have you checked your credit file?


You should be obtaining a copy from Experian Equifax and Call Credit to see what is going on.


As for the Estate Agent - his adviser seems to have access to 260 lenders that do not exist.

ExpertAdvice

When did you restructure your loan over 5 years?

Is that change showing on the credit reports? It can take weeks for the credit reports to reflect changes. It definitely sounds like the recent loan is affecting the mortgage application.

As suggested, obtain Equifax, experian and call credit reports before applying anywhere else as the scoring will go down further the more you apply.

300 mortgage lenders don't exist in the UK unless the broker has access to all the lenders in the world!!! All the whole of market brokers will have access to pretty much same number of lenders. Its the experience in selecting the right lender for your situation that will count.

Landofwood

It's not "perfect" because it's shared ownership. Shared ownership is a joke.

Keep saving and buy a whole house, or rent and benefit from reduced responsibility for maintenance of the property. Shared ownership is the worst of both worlds.

libf

For some people shared ownership is a great stepping stone to full ownership. Just make sure that you do your research on the restrictions involved and make sure that they're acceptable to you before you commit.

somethingcorporate

The two recent loan applications will not have helped.

Suggest you try a proper broker experienced in SO.

Landofwood

libf wrote: »

For some people shared ownership is a great stepping stone to full ownership. Just make sure that you do your research on the restrictions involved and make sure that they're acceptable to you before you commit.

They may perceive it as such, but it's a mistake.

libf

Landofwood wrote: »

They may perceive it as such, but it's a mistake.

Unless you know everyone's exact circumstances then you can't possibly back that up.

OP, please PM if you're put off by all the nay-saying and would like a more positive take on SO. I don't want to de-rail your thread from it's original purpose.

csgohan4

Do not use any Estate agent's services if you value your money and sanity.

leveller2911

libf wrote: »

For some people shared ownership is a great stepping stone to full ownership. Just make sure that you do your research on the restrictions involved and make sure that they're acceptable to you before you commit.

I agree with you but would just add that only around 5% of people who buy SO ever staircase to own 100% of the property so I think people should go into SO with the view that long term they will still be renting a percentage. Go in to it with their eyes open otherwise their is a large risk they will be disappointed.

sharonfrancis

thanks for comments

so I printed my report... got a score of 603 (I thought I had a higher score tbh)

the restructured loan has not been added to report

But I have noticed I have a staggering "43" car insurance searches in my history since 2013. I am not saying I didnt do these.. but I really didnt think they would come up on my credit report... (see how naive I am to this...)

so in June (when I was looking for my car) I had 7 come up for my current address... and 5 came up for my previous address... can this be right? Or could I get searches removed from previous address?

do you think this is what is what's hindering my chances...

Also, 10th July I had my Full application meeting with HSBC - I know the underwriters must have done check on 18th (sat) because thats when my mortgage advisor first called (missed call so didnt get decision until Monday am) - this search is showing up on report... nothing else from HSBC (i.e - the DIP seach in May, my initial starter meeting with HSBC at beg of July)

everything else all looks in order..

Advice on next steps please...

I am meeting with Estate Agents Advisor tonight. would be good to be armed with questions and thoughts....

PS - I never wanted to entertain SO before... but this is the only way I can get on ladder and have a "nice property in a nice area". My borther is talking about buying me out of our parents house in next year so that would be money towards another chunk of house, and my former partner has an interest in a property in our home town and one in Turkey. I am assured he will contribute as this is for "our" kids....