been refused a mortgage-need advice!!!

sugartree

Me and my partner has found a house and they have excepted our offer of 125,000.


I spoke to my mortgage adviser and they said we were declined by A&L, Northern Rock and others. We are First-time buyers.wanting 100%. our only other option was to go with the RBS but would leave us paying 850 a month. because of the HLC

We were declined due to our credit scoring.

£9000 loan
Argos 299.97
Next 178.37
Additions 131.50
Halifax CC 80.00

I have never missed payments, although i have been a couple of days late a couple of times lately but that was because i didn't check the "recived by date".

Our Earnings: me 15985 partner 16500.
Tax credits 83 and child benefit 76

The really annoying thing is that we had empty balances on Additions and argos up to about 2 weeks ago, but decided to treat ourselves.

They mentioned a 2nd C-Card i forget to mention to them, which i realised then explained that would be my Egg Card which has a balance of +3p!! I haven't used it in 18 months or more and had completely forgotten about it. I have now closed that account.

They said they had tried to see of we could get the mortgage by adding my existing loan onto the mortgage making my outgoings less and apparently that was no good!

Any Advice????

herbiesjp

Do you know exactly which lender you have had a credit search against?

YOu say you have been declined by A&L, Northern Rock, RBS and others. Who are the others?

How much do you pay each month on the loan?

Conrad

RBS are very fussy so I cant see how they will lend where N Rock et al decline.

dunstonh

It's not really a surprise it's been declined.

Your liabilities (excluding loan) currently cost you £690pm (£8278 a year). You deduct that annual cost from your income and that gives you £24207 joint income.

You are asking for 5.16x borrowing multiple on joint income on a 100% mortgage. Thats pushing it by any standards and its without the £9k loan being taken into account.

sugartree

The figures shown are the full outstanding balances and not the monthly payments.
We could probably pay them off reasonably quickly. But not really sure if it would actually make any difference.

margaretclare

My partner and I have found a house and they have accepted our offer of 125,000.

If you read any of the financial pages in newspapers over the weekend the word now seems to be that lending is going to get more difficult. The recent instability in the stock market has been caused by the 'sub-prime' market in the USA - for 'sub-prime' read 'poor credit risk'. Draw your own conclusions from that.

I was sent this today: http://www.fool.co.uk/news/property-home/mortgages/2007/09/21/more-mortgage-rates-increase.aspx?site=UKFool

The Chancellor recently mentioned a 'return to traditional banking'. That would mean, you can't get a mortgage at all unless you have some savings to put down as a deposit, no debts, and an absolutely squeaky-clean credit record.

HTH

Margaret