Declined for a mortgage - HELP

faeriesue123

Hopefully someone can give me some advice.

Myself and my husband have found a house we have fallen in love with. We have put an offer in on the property and it has been accepted.

We went to see a mortgage broker on Friday and he applied for a Mortgage in Principle with Alliance and Leciester and it was declined. The broker called A&L to find out why, the lady said that it was declined due to our credit rating (727 if that makes any difference) and the fact that we have an arrangement with the co-op bank (smile) to pay off a balance. We do not have an arrangement and the account was cleared and closed last month. The info on experian says we have a £2 balance outstanding and we have an arrangement to pay it off??? Also, there is a section for La Redoute catalogue that was closed in 2002, it says that in the last 11 months I have has 2 missed payments.........impossible!!!!!!!!!

Also, she said that because we have moved 5 times in 3 years. We have had 6 month contracts on all the propertys and when the contract ended we decided to rent a larger house.

We have no CCJs, Defaults, IVA's etc. We have a few late payments, but no missed payments. I am worried about us getting accepted for a mortgage now. Can anyone give me any advise regarding who to approach for a mortgage? We need a 100% mortgage of £151500 (possible even 105% mortgage). We earn a combined salary of £44000 so the finances are not a problem, I am just very frustrated that we can afford the house but seem to not be able to get the mortgage. The monthly payments that we can afford are £1200.

Any advice would be greatly appreciated.

Susan

homer_j_3

alliance and leicester has probably the hardest stance with underwriting on their 100% mortgage. Do not be downbeat about it, there are other options out there.

I would speak to the companies that have incorrect infor recorded on you and get them to amend your credit file.

faeriesue123

I have contacted Smile and they say to contact Experian to find out why their systems haven't been updated. Smile have said they will write me a letter if necessary to explain that the info is wrong.

Do you think I shouldn't bother going to the highstreet lenders as their underwriting team may be stricter?

I have a broker from Park Row Associates LTD coming to see me tomorrow, has anyone heard anything about them?

Susan

Debs12

Get full copies of your credit file and get any amendments done.
This is when people find the are full of inaccuracies.

Then go to a mortgage broker and tell them and they will they know who best to go to etc.

I have only had one experience of A&L I rememeber I once tried to change my current account to them very early 1990s. They would only give me A £50 cheque gurantee card (times before debit card) I had £100 with my current bank and pointed out to them that my shopping in the supermarket came to more than that! They said once I had an account for 6 months they would increase....I went elsewhere..remember even with those two things your credit file does not sound too bad...plenty of other should accepect you but by going to A&L you have left that search on your file so go to a broker to avoid too many searcher on your file.

Good luck

homer_j_3

http://www.parkrow.co.uk/MORTGAGEPLANNING.html

If this is them they are whole of market which is good but they are likely to charge you a fee. Their initial disclosure document (key facts about our services document) has 3 options - no fee, £400 plu commission from lender or £1000 and you get a rebate of commission received.

You should be able to get a high st lender to lend you the money from the credit history, its just the lack of other information that stops me for saying for definite (income for example might be short on the amount you need to borrow).

how much do you need to borrow? What income do you have? What debts do you have?

faeriesue123

Yes that's the broker. The broker that applied to the A&L for us has also applied to Coventry. But I thought I would try to track down a "poor credit broker" just in case. That's when I found Park Row.

We owe:
£1200 on a M&S cc
£1800 on a Barclaycard
£1000 on a Freemans catalogue

So 4 grand in total. We are paying off £800 a month on those so they should be gone soon.

We need to borrow a minimum of £151500 (100%), and we earn a combined salary of £44000.

homer_j_3

coventry use equifax and its not uncommon for things showing on experian to be shown on equifax and vice versa.

if a broker is whole of market, they should have access to the exact same deals that these "poor credit brokers" have. The thing you need to do is check exactly how many lenders the broker has because unfortunately you can be classed as whole of market and only have access to a small amount of lenders.

You should not need to pay a fee for the advice so do not panic - see what coventry comeback with. Your income should be sufficient which is good.

innocentlady

When we bought our flat in 2005 we borrowed 100% (£162,000 in total), we earned £63,000 between us. No CCJ's, IVA's, defaults, just a lot of debt on credit cards. But we'd never missed a payment, and we were gradually reducing the debts.

The only companies who would even give us a second glance were Northern Rock and Accord. The mortgage broker advised us not to touch Northern Rock - I really can't remember his reasons now, but we took his advice and went with Accord.

They are part of the Yorkshire Building Society. They have always been efficient and fairly swift with responses to letters or phone calls.

Might be worth a try.

Hope you get your dream home!

IL xxx

UK007BullDog

You could also try NatWest and the Royal Bank of Scotland as they do 100% mortgages and no future exit fees. Also if the adviser writes up your case and explains about the wrong credit file You might be able to get the mortgage.

homer_j_3

Watch out for the potential higher lending charge wih some of the companies mentioned in this thread.

innocentlady

Accord paid the HLC, it wasn't passed on to us. The interest rate wasn't bad either - fixed at 5.89% for 3 years.