Bad credit mortgages

aimee2010

Hi

On Friday I phoned Halifax to find out my mortgage application has been declined by the underwriters :-( So gutted but now am looking to plan B.

The main reasons they declined the mortgage application was because of our credit rating and the 3 main reasons were:

1) Overdraft
2) Late mortgage payments from our previous mortgage
3) A couple of defaults

Unfortunately, I'd concentrated on clearing my credit card debt and left my overdraft as my last action. I have now cleared the £500 overdraft so I can now start to show I no longer need to use my overdraft at all. I don't feel I can do anything further to help with the other 2 issues though. My husband has the settled defaults on his credit reports. 1 for £1,000 from 3 years ago and the other for £75 from 6 years ago. What I don't understand is that Equifax have removed the default but Experian won't remove it until December this year. I've spoken to both Experian and the company the default was with but they keep telling me it's up to the other one to remove the default? The late mortgage payments were due to my husband working for a cretin who didn't pay him on time no matter how much my husband argued with him and wouldn't even compensate us for the charges we accrued because of this :-(

Anyway, now I'm really worried our hopes of buying our family home are a bit bleak now. My mortgage adviser put the application into Halifax before going on holiday and said she'd contact me if she heard anything. I've not heard from her, have tried emailing her but had no reply so had to phone Halifax direct for an update. She's not back from holiday until 10th August now and the panic is setting in as to what to do next.

Now people are giving me advice left, right and centre like 'Why did your mortgage adviser go to a high street lender?', 'I know someone who could get you a mortgage', 'You should go to Nationwide'. I'm taking this as my last chance for this house we want so I've read about Bad Credit Mortgages and mortgage advisers that deal mainly with these as they will have a better idea of which lender accepts what criteria. I'm just worried if I look for another mortgage adviser my current one will charge me £395 even know she has not been able to get me a mortgage.

So my question is - bad credit mortgages, should that be my plan B? The debts we have are a student loan each of £3,829.48 and £2,238.82 (comes out of salary before pay), an 02 loan of £220 (£10 deducted each month in phone bill) and Very account of £282.21.

Thanks in advance for any advice!

Senior_Paper_Monitor

When were the late mortgage payments - they are 'the killer' ?


How many, how late ?

aimee2010

They're only showing up on Experian and CallCredit but not Equifax for some reason and it's from 2009 to 2011 with 1 (AA) in 2011, 5 (AA's) in 2010 and 4 (AA's) in 2009 :-(

amnblog

i can see why Halifax would not do this case. Whomever is suggesting Nationwide also has no idea.

The big barrier here will be the mortgage arrears and you need to engage a whole of market broker with experience on bad credit cases.

Anything else will led to wasted time, wasted money, and frustration such as you have already experienced.

aimee2010

Sorry, no idea what AA stands for on CallCredit. Can see it shows as '1' late payment on Experian.

aimee2010

Thanks for your advice amnblog. Was thinking this is how plan B needs to go but just needed advice as my mortgage adviser is MIA. Thanks again :-)

amnblog

AA means the account is in one or two months arrears.

Don't use a broker who has no cover when they are out of the office. You will see on this forum the delays and confusion caused when these brokers are on holiday.

aimee2010

I'm beginning to understand amnblog. Nightmare. But on the plus side, I've just found a local specialist mortgage brokers who deal with bad credit mortgages so I'm going to see if they can help us. Thanks again for your advice :-)