Limited Credit History - Mortgage Declined

will8313

Hey
Thanks in advance for any advice anyone can offer.
I lived abroad till 4yrs ago when I returned to the UK. I have a very light credit footprint (mobile phone contract and student loan only). I've had my bank account for 4 years and have been receiving mail at my parents address, where I'm currently registered since 2001. I'm a first time buyer, in my job for 2y7m.
I bank with Lloyds and had a mortgage in principle approved by them about a month ago. I went to look for a house to buy on a LTV of 90%. I found a broker who went to Nationwide for a 5yr FT mortgage over 25ys and it was denied.
I'm so anxious that I'll loose out on the house that my offer was accepted on.
I don't know why my mortgage in principle with Nationwide was denied, my broker couldn't offer any details.
Following this, I've got my Experian report, which looks healthy, though there are red flags in that I've never had any form of credit (except a student loan that comes out of my salary) and Ive just put myself on the electoral roll (wont show up till September though I have written confirmation of this from the council).


Is there anything I can do to secure a mortgage on this flat?
Is there an alternative lender who would be more available?
Should I refrain from going to other lenders because of the impact of multiple searches against me?


Property value - £130,000
LTV 89%
Deposit - £14,000
Salary - £34,500
single, no outgoings other than phone and gym.


Thanks!!

ACG

There are other lenders to look at. Im not sure Nationwide were the best choice, they were probably just the cheapest?

amnblog

Presumably the broker is still working on the case and hasn't said 'Nationwide say no, so buzz off'?

Thrugelmir

Lack of electoral roll history will be a factor. Do you live at your parents or elsewhere?

cahillg81

I'd be hesitant to recommend a 5 year fix to anyone 1t 89% LTV.

Nationwide will be able to tell the broker why the application has declined ie credit scoring, information picked up on CAIS or bureau etc.

will8313

ACG wrote: »

There are other lenders to look at. Im not sure Nationwide were the best choice, they were probably just the cheapest?

Hey ACG - my broker advised to go with Nationwide based on the efficiency of their turnover timeframes.
HSBC were the cheapest, but she said they have an unnecessarily protracted process.

will8313

amnblog wrote: »

Presumably the broker is still working on the case and hasn't said 'Nationwide say no, so buzz off'?

She has advised me to go back to my bank and she's hesitant to go to other lenders in fear of damaging my credit with multiple searches.
She sounds like she's given up on the job, I've asked her to go back to Nationwide to appeal though.

will8313

Thrugelmir wrote: »

Lack of electoral roll history will be a factor. Do you live at your parents or elsewhere?

Yeah, I'm living at my parents for a while. I had a couple of informal rents since I came back from living abroad, but this has always been where I have mail sent to.
I'm now on the electoral roll here though, do you think having a confirmation letter from my council will help at all?

ACG

Brokers do not deal with HSBC.
I think you should speak to another broker, it sounds like they have not done you any favours and rather than being completely open are being a bit sneaky.

Choosing a lender based on speed whwn there is another more important issue is not exactly a great plan.

will8313

ACG wrote: »

Brokers do not deal with HSBC.
I think you should speak to another broker, it sounds like they have not done you any favours and rather than being completely open are being a bit sneaky.

Choosing a lender based on speed whwn there is another more important issue is not exactly a great plan.

Thanks! I'm going to meet 2 new brokers on Monday to progress this.

cahillg81

ACG wrote: »

Brokers do not deal with HSBC.
.

Not true. There have been brokers dealing with HSBC for a while, from what I heard it wasn't going well though and the process was protracted I was hearing stories of 16 weeks on purchases from FMA to offer.

HSBC announced on Friday they were opening up to other brokers through Sesame, Stonebridge and another Network who's name escapes me.