Declined for a mortgage - HELP

herbiesjp

homer_j wrote: »

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

Indeed, and there are plenty other 100% lenders, apart from those mentioned

OP-Just remember that the majority of 100% mortgages tend to need a high credit score

UK007BullDog

Higher lending charge or high fees, the end is the same. If you want a 100% or more mortgage then you just have to pay for it. Some lenders do not have a HLC but all they do is dress it up in higher rates or higher fees to cover the potential loss. And they have draconian exit fees etc. So is course for horses really.

Those who saved up and scrounged on their lifestyle to get the elusive deposit will not have to worry about it.

herbiesjp

Exactly - you have to work out which is most cost effective for you

You look at both options and work out which is the best value for you over the given period of time.

Even lenders with HLC have can have draconian exit fees though - they are not the sole domain of non-HLC charging lenders

faeriesue123

We've worked out that we'll be able to afford £1200 a month on a mortgage, most of the 6/7% mortgages are about £900 per month so I'm not too worried about having to pay a higer %, I just really want this house!!!

Hopefully we'll hear from Coventry today and it'll be good news, if not then I'm not too sure who the best company to approach is, I don't want to aply with numerous lenders and get lots of footprints on my credit record.

homer_j_3

well as I said - coventry use equifax and a&l use experian as far as I know so you will only have 1 search on each. Coventry will usually ignore defaults upto £250 if they are satisfied so it sounds as though there shouldnt be any reason why - that said, equifax can throw up different info to experian and reading an earlier post. I dont think that was conveyed very clearly in my distraction of the TV.

So if they decline, you wont have 2 searches done as such you will have 1 on each. A&L underwriters have no flexibility to overide a decision on the 100% mortgage where as coventry ones do so if it has been referred on credit history, it does stand an equal chance of being approved as declined - unlike a&l.

There are a few more options that you can go at if coventry decline but your broker should be able to explain these to you.

faeriesue123

Thanks for the info.

On Friday when A&L declined and Coventry's was passed to the UWs I asked the broker what the next step was if Coventry decline and he said the only other option was to try Northern Rock as A&L, Coventry, and NR are the only 3 mortgage companies that give 100% + mortgages. (We applied for a 105% mortgage)

Conrad

Coventry are very very fussy, and Ive never known them accept any adverse credit cases on thier 100% or 100%+ schemes.

I suspect you might find no lender will lend you above 95% at best.

You say 'we have a combined salary of £44000 so finances are not a problem'.
In that case why not do what others do, save a deposit, clear all your credit and stop moving address (the latter reduces your credit score especially where you want a low deposit mortgage).

Many people will simply save like mad, no buy X,as pressies, not go abroad, not have take aways. Quite tough but well within the reach of determined people.

Good luck.

faeriesue123

The reason we haven't been able to save is because our rent was £1200 per month! Over 3 years we've spent £43200 on rent alone! Not including estate agent fees. There's nothing you can do about moving so often and you rent privately. If your landlord decides he wants to sell his house then there is nothing you can do but move!

The longer we rent, the more money we waste, the less we can save. We are already paying £800 per month on out £4000 debt to clear that as quick as possible.

margaretclare

faeriesue123 wrote: »

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.

I think you need your heads looked at. Am I really reading this correctly, you want to borrow 100% or 105% of a million and a half pounds? Please tell me I've got the figures wrong. Please!

Alternatively, read this: http://www.fool.co.uk/news/property-home/mortgages/2007/09/21/more-mortgage-rates-increase.aspx?site=UKFool

And on that combined salary which you say is £44,000 a year, you've still found it necessary to rack up debts to the tune of £4K. Which you are paying off, admittedly, but you've debts and no savings. Not a good scenario.

Time was, no lender would consider someone for a mortgage unless they had some savings, and no debts. From what I've read in recent days, we could be heading back in that direction. What the Chancellor recently called 'more traditional banking'. In other words, don't lend to someone who shows signs of not being able to repay.

Margaret

mr_tickle_2

margaretclare wrote: »

Am I really reading this correctly, you want to borrow 100% or 105% of a million and a half pounds? Please tell me I've got the figures wrong. Please!

You've got the figures wrong. It's just over one hundred and fifty thousand pounds.