Mortgage refusal - No credit history

el_bowtheadventurer

After having our initial decision in principle agreed, we have been refused our mortgage by HSBC for the purchase of our first home.

The grounds for the refusal are; 'Lack of Credit History' (Neither my partner or i have had credit cards or any loans / borrowing).

Deposit amount: £23,000
Mortgage amount: £120,000
Property (OFFER ACCEPTED): £145,000

We have had our offer accepted for the above amount by the vendor.

We are currently in a position where the Vendor for the property is getting cold feet and the Estate agent is searching for information.

Our next logical step would be to apply for a mortgage with an alternate lender whose criteria may differ in respect to a lack of credit history. We are not sure if this option exists or if applying again with a differing provider in such a short time scale will have a negative effect on our credit scores. My parents have offered to be guarantors (we are aware HSBC does not use them).

What options do we have?

Many Thanks.

mrginge

Engage a broker rather than scattergun applications that will make the situation worse.

Malmo

Independent whole of market mortgage broker all the way.

Aswell as asking friends and family for broker recommendations and using Google, another method is to use the unbiased.co.uk directory. Suggested steps are posted here. Speak to 2 or 3 and get a feel for whether or not you could work with one of them.

DandelionPatrol

Are you both on the electoral roll and have you been on it for the last 6 years?

charliewocka

Are you both resident in the UK for at least 2 years? I ran into issue last week with my Woolwich mortgage application. I've only been resident in UK for 22 months and criteria is minimum 24 months. Underwriter was happy to accept the 22 months but I had to prove my residence overseas previously. We used a broker for applications who were able to liaise accordingly.

Dird

I got accepted by YBS with no credit history & not being on the electoral roll but a 65% LTV, they may not be so lenient with a higher LTV

amnblog

mrginge wrote: »

Engage a broker rather than scattergun applications that will make the situation worse.

Correct - nothing to add