AIP Lloyds - Declined

Nicola1968_2

Hello,


1st post so hopefully you will all be reasonably kind


My partner and I bought our house in 2005 paid £100,000 the mortgage outstanding is now just under £60k.


We currently have debts of £26,000 I went through a very messy and costly divorce prior to us meeting so already had overdraft & credit card debt of approx £12,000.......my partner had a bad RTA 6 months after we bought the house and was off work for 18 months (ssp), 4 years ago i was diagnosed with breast cancer and was also off work for 10 months (ssp), so as you can see this Is how our debt spiralled and instead of trying to shift some of the debt to 0% before things got bad we found ourselves in a hole we couldn't see an end to!


I approached my bank Lloyds to discuss a remortgage, i currently have a £3k overdraft with them which i now desperately need to clear due to the new charges that will come into force in November, my current o/d costs £50 approx a month, the new charges will increase this to £120......the mortgage adviser said as we had a good amount of equity in the house and the LTV would be around 66% she felt even with the outstanding debt she could not foresee the AIP to be refused. I applied online today and received a flat NO and that we didn't meet there credit scoring for acceptance.


Not sure what route we should go down now, we have not defaulted or been late on anything for over 2 years, we have looked at 0% cards but do not meet the criteria, although my partner did manage to shift some of his debt to MBNA at the end of last year which has saved some money.


I earn £24k incl monthly bonus (varies each month) my partner also earns £24k, we just don't have any spare cash to throw at the cards/debt to knock a hole into them, i have closed 3 of the cards so literally just paying the balance now and obviously this stops potential respending.


I have researched the boards and i would like to know is it worth me going down the route of looking at Precise/Metro Bank or Aldermore who seem to be more inclined to look at our situation?


Please don't tell me to look at DMP as my other half won't agree to it, he thinks we are ok just chipping away each month, i am fed up of working day in day out and can't even afford a weekend away or to even have the odd night out with friends. I know once i have cleared the cards our future will be so much better i just don't want to be still in the same amount of debt this time next year.


Sorry for the long ramble, just hoping for some sensible advice.

tom2205

Have you checked your credit scores to see how things stand and to make sure there are no missed payments on anything? Did Lloyds give a reason as to why they declined you? You mentioned missed payments from 2 years ago, what was this for and what actually happened then?

Thrugelmir

Nicola1968 wrote: »

Please don't tell me to look at DMP as my other half won't agree to it, he thinks we are ok just chipping away each month, i am fed up of working day in day out and can't even afford a weekend away or to even have the odd night out with friends.

Life at times is tough and may not seem fair. Destroying your credit rating may seem easy but won't come without consequences.

Fiesto88

You say you applied online but you mention a mortgage adviser. Did you actually apply directly yourself (execution only)? Some lenders won't allow you do execution only applications for debt consolidation - just a thought but possibly the reason for the decline?

Did you talk to the adviser about them submitting the application on your behalf as an advised sale? This way, even if it declined, they may have means of submitting to an underwriter who might review the situation in more detail.

Either way, I would contact Lloyds and ask them if your application is able to be reviewed. I know several lenders will investigate initial system declines further - depending on the circumstances.

If that fails, find a broker.

Nicola1968_2

Thank you to everyone who has posted.

I have an appointment to see the Lloyds mortgage adviser on 16th Sept, it didn't occur to me that by looking to do the AIP online myself would be an issue, so i will contact them as see why it was declined, in hindsight i thought i was saving time by doing the first step myself

I have checked both our credit files, the only down is my high level of debt ratio, the last time anything was late was in fact nearly 4 years ago, this was due to my illness and not checking enough funds were available to pay direct debits but they were brought back up to date but do show as 1 payment late.

Having been desperately ill and now feeling better i just want to be able to enjoy my life, not spend every week paying out every penny and not being able to enjoy my hard earned once in a while, the debt is not through silly spending but from necessity and making sure we kept a roof over our heads.

I doubt Lloyds will reconsider based on the comments on the mortgage board, this is why i am thinking of speaking to Precise or Aldermore as i believe they are more likely to consider us, based comments am i right to think i need to find a broker?

Thank you again in advance

Nicola1968_2

Thrugelmir wrote: »

Life at times is tough and may not seem fair. Destroying your credit rating may seem easy but won't come without consequences.

Thanks for you ur comment, harsh but true.

Having had cancer it has made me open my eyes to sorting my debt, but i also would like to try and enjoy what life i do have.......who knows what tomorrow will bring.

amnblog

You really should consult a broker on this one.

Why?

Lending should available to clear your unsecured debts but such a sizeable debt to income will preclude some lenders.

Taking debt off of credit cards onto your home may not be a smart idea if you struggle to manage it later as it puts your home at risk, this needs discussion.

An adviser working in a bank will not have the range of options you will need.

tori.k

If you haven't yet then have a look at the snowball calculator, and get the cost of rolling your unsecured debt into your secured, it will be frightening. Have you posted up on the debt free wannabe board, if your no longer adding to the debt budgeting and snowballing would see you debt free quicker than consolidating. The risk of turning unsecured debt into secured in never usually worth the cost or the risk.

Nicola1968_2

I've looked at the snowball calculator........................wow i am shocked, i think the fact we just don't ever have any spare cash each month is soul destroying, as i explained we have only used the cards in necessity for everyday living expenses and utility bills and don't ever see an end to our situation.

I keep reading it is not a good idea to consolidate as you will invariably run up the debt again, as i have already closed 3 of the accounts this obviously is not going to happen, and because of my health scare i do want to try and start a fresh which is why the remortgage route seems the best route for us, having worked out we would be at least 350 month better off and this wouldn't increase the mortgage term it would give us the chance to start again.

I think i will try and find a local whole of the market adviser and see what our options are!?

Thank you all for your input