Declined for a mortgage - HELP

Conrad

Fairy - BM Solutions do a product called Mortgage Plus which is a 95% mortgage plus up to £30000 unsecured loan.
I think this is the obne Leon is highlighting but he doesnt say which lender - perhaps this is so you contact him.

Leon_W

Conrad

I subscribe to the Mortgage Brokers Code on this site. I suggest you read it.

I do not mention names of companies. If it was Buy to Let I probably would. Ask yourself why.

faeriesue123

Thanks Conrad, will check with them.

If not I will have to set about trying to save 5-10% deposit.
That was out original plan, to rent for a year, save £10,000 for a deposit and then buy. Before we moved out of London we used to come up to Lincolnshire (where we live now) to visit my parents and at Easter we came up and saw a gorgeous house near my parents. We used to drive past it every day and it's the only house that my husband and I agree on.

Anyway, we moved uo here 2 months ago and it's still on the market, so one day when we acidentally on purpose drove past, I took down the estate agents number and requested a viewing. I think I was trying to prove to myself that there must be something wrong with the house and that's why it hasn't sold. Anyway, we viewed the house and fell in love with it! It's perfect in every way. I once heard something along the lines off "if a house meets 8/10 on your criteria list then to go for it as people rarely get 10/10" well this house gets our 10/10 and that's why I'm desperate to get a mortgage! I'll be devestated if I don't get this house. I know that sounds very spoilt bratish, and that's probably true, but I really am in love with this house. Part of me wishes I'd never viewed it now.

homer_j_3

You need to get your credit file sorted. If there are errors on there then it needs to be rectified before you start applying elsewhere really. The house has not been snapped up and looks like its not likely to happen within the next few weeks.

I would go to https://www.exprian.co.uk and https://www.equifax.co.uk and order copies of your credit files. If you order them online they should come back within 7 days. Send copies to smile for them to rectify their errors.

You then need to get your broker to call coventry and ask if you can prodiuce a letter from smile saying that there is no arrangment if that will allow them to review. It is important you get smile to be clear in their letter that there has never been an arrangement or if there has, when exactly it was finished.

You will have to accept that you are not going to get an accept within the next 24hrs for example but my experience is that lenders do understand that credit files can be incorrect but have to rely on these. Clearly if you can get the file corrected and the lender has evidence that this is a mistake, I know that some lenders will look at again.

That said, you have to accept that the lenders that you have approached may still decline and you have to seek alternate options. You may have to think outside the box a little its proving difficult to get a deal without deposit. Do not overstretch yourself - whats meant to be will be so if this house is meant for you, you will get it.

faeriesue123

I had a mortgage advisor from Park Row come around last night to discuss my options. He has said it looks like we may need to approach sub prime lenders.
I explained that I do not have a problem with that as long as the rate of interest is not more than 2% over the current base rate. I also said that I didn't want a tie in period as I have read some horror stories regarding people getting mortgages and having a 3 year fixed and not realising that it was actually a 6 year contract and the remaining 3 years is at a variable rate which gets increased every month!

Anyway, he is going to go off and see what he can do for us. So fingers crossed. Also, my other mortgage advisor has called and said that Coventry are willing to look at my application again once the letter from Smile comes through.

The advisor from Park Row also told me last night that my parents can act as guarantor as there house has over £100,000 equity in it. But I am not sure if I want to go down that route, my parents have said they are willing to do that if necessary.