Bad news - now what?

jadebee

So a bit of background,

Around 3 years ago I was nursing student - I lost my bursary and things snowballed and I ended up with 3 defaults as well as 3 for my partner (borrowing money in hope my bursary would come back in time to pay it) - They're for small amounts the most expensive one was my phone bill at around £300.

As soon as I got my Bursary back and was able to I paid everything off and have not had a single missed or late payment in the last 3 years - we both have good jobs and we have saved over £20000 now to buy our first home.

we instructed L&C who I made FULLY aware of my defaults and they said they would not be issue - This now seems to be pretty far from the truth as I am being told today HSBC declined us at underwriting. Fantastic.

My question now is what do I do - We have the house and everything ready to go including a 10% deposit.

Whats my next move? I am so deflated I feel like crying and the brokers are offering very little in ways of next options.

xyz123

jadebee wrote: »

So a bit of background,

Around 3 years ago I was nursing student - I lost my bursary and things snowballed and I ended up with 3 defaults as well as 3 for my partner (borrowing money in hope my bursary would come back in time to pay it) - They're for small amounts the most expensive one was my phone bill at around £300.

As soon as I got my Bursary back and was able to I paid everything off and have not had a single missed or late payment in the last 3 years - we both have good jobs and we have saved over £20000 now to buy our first home.

we instructed L&C who I made FULLY aware of my defaults and they said they would not be issue - This now seems to be pretty far from the truth as I am being told today HSBC declined us at underwriting. Fantastic.

My question now is what do I do - We have the house and everything ready to go including a 10% deposit.

Whats my next move? I am so deflated I feel like crying and the brokers are offering very little in ways of next options.

Was the decline on affordability? If so its a but more difficult as even other landers may find the same issue. If its something else, you have a chance. Either way I would suggest you find an independent broker who can help you. Whereabouts in UK are you? Maybe someone can recommend brokers or alternatively look on unbiased.Co.UK website

Good luck.

jadebee

xyz123 wrote: »

Was the decline on affordability? If so its a but more difficult as even other landers may find the same issue. If its something else, you have a chance. Either way I would suggest you find an independent broker who can help you. Good luck.

Declined at credit check I am lead to believe.

ACG

you were declined with one of the fussiest lenders...hardly surprising that one! The broker has messed up.

There should be lenders for you, possibly high street. But I think you need a new experienced broker, not someone who will jsut apply for the cheapest.

jadebee

I just feel a panic coming on now.

I know my situation three years ago was awful, I managed to pull everything back together and I feel on the brink of losing my dream home for something I tried my hardest to correct the last 3 years.

I did my own DIP with Halifax who say yes with 15% which I don't have

What are my options?

ACG

Find a new broker.
L&C get a mixed response on here, some swear by them others say they are useless.

It is just a generalisation, but you get what you pay for in this world and they are fee free... I know it is easy for me to spend other peoples money, but getting someone with experience can be the difference.

dajewo

We're FTB too and initially went with L&C. I have a perfect credit score, my partner had a default on his account 5 years ago (due to be taken off in April next year). We made the broker fully away of all our circumstances and she suggested Scottish Widows as a lender, who declined us at credit check as well. Later she admitted she wasn't too sure what SW's lending criteria/tendencies were. - So why suggest them, right!?

The next day we went to Natwest (branch), did the full application there, passed the credit check. The application has gone to underwriters and now has apparently been approved subject to valuation (which is arranged for tomorrow), so fingers crossed we will get the offer.

Funnily enough, as we were sat in branch and going through the application, we got a call from the L&C broker saying that the next best thing she could find for us is a 40 year mortgage and £33k above what we need to borrow. Laughable.

jadebee

GOOD NEWS.

HALIFAX can lend at 10%. Went through everything today and we have paid the valuation fee.

I am so happy right now. All drama avoided

worried_jim

jadebee wrote: »

GOOD NEWS.

HALIFAX can lend at 10%. Went through everything today and we have paid the valuation fee.

I am so happy right now. All drama avoided

Good ending. Best of luck with the purchase - when you get your keys it will all seem worthwhile.

ACG

Well done.

MrMortgages

Great news, amateur stuff placing you with HSBC given the situation.