Mortgage Declined

Thrugelmir

Sounds as if you are receiving a clear message. Up to you if you wish to address it head on. Choice is yours to make as what the priorities are in your life.

Noobie2011

Thrugelmir wrote: »

Sounds as if you are receiving a clear message. Up to you if you wish to address it head on. Choice is yours to make as what the priorities are in your life.

I totally agree and as clear as I now see clearing nearly 50% of our debts at the sacrifice of a holiday and options which can all be done again in a few months I am praying Aldermore have the same view of accepting us if 50% of those debts were gone in a month or so

Candyapple

Can you give some figures please as it would be easier to help.

Also, both of you need to obtain copies of all 3 of your credit files.

Experian
https://www.moneysavingexpert.com/creditclub

Equifax
https://www.clearscore.com

CallCredit
https://www.noddle.co.uk

1. How much is your house purchase?
2. How much mortgage amount do you need?
3. Your and your partners salary?
4. List all your credit cards including total credit limit, amount outstanding and APR
5. Same as 4 but your partners
6. Any other car finance / overdrafts / loans? List all the amounts please
7. How many hard credit searches have each of you made in the last 12 months?
8. Are you both on the electoral roll? Does it show on all 3 files?

sheepy21

I'm surprised that you wouldn't clear as much debt as possible and that'd you'd be prioritising not just one, but presumably multiple holidays this year over buying the house you want :think:We're ftb and we're having a £200 caravan holiday and prioritised clearing all debt above all else. I think I saw on another thread that you've got other credit issues besides a substantial amount of debt? It doesn't sound like you're truthfully in a position now to buy anything. I'd get your money sorted and revisit next year

Noobie2011

sheepy21 wrote: »

I'm surprised that you wouldn't clear as much debt as possible and that'd you'd be prioritising not just one, but presumably multiple holidays this year over buying the house you want :think:We're ftb and we're having a £200 caravan holiday and prioritised clearing all debt above all else. I think I saw on another thread that you've got other credit issues besides a substantial amount of debt? It doesn't sound like you're truthfully in a position now to buy anything. I'd get your money sorted and revisit next year

I understand where you are coming from but our affordability is fine hence not pushing to just clear some of the debt. Plus I know house buying usually is planned but it was something that happened quite quick due to certain changes so no real time to plan.

The positive that has come out of this is it makes you look at what you can do with your income but in all honesty everyone operates differently and until this decision every other lender has never mentioned an issue with our credit commitments as our affordability was well above what was needed.

I get your view but we are all different and as said above if cancelling a holiday and other stuff we do not need gets us the house then we will happily do that but up until now none of this has been called into question.

Appreciate the feedback though !!!128521;

Noobie2011

Candyapple wrote: »

Can you give some figures please as it would be easier to help.

Also, both of you need to obtain copies of all 3 of your credit files.

Experian
https://www.moneysavingexpert.com/creditclub

Equifax
https://www.clearscore.com

CallCredit
https://www.noddle.co.uk

Thanks and have all 3 and match whatwe have thank god

1. How much is your house purchase?
2. How much mortgage amount do you need?
3. Your and your partners salary?
4. List all your credit cards including total credit limit, amount outstanding and APR
5. Same as 4 but your partners
6. Any other car finance / overdrafts / loans? List all the amounts please
7. How many hard credit searches have each of you made in the last 12 months?
8. Are you both on the electoral roll? Does it show on all 3 files?

I am hoping they come back with a figure to clear but at least it has made us think to now clear the debt if we get refused Aldermore and then sit back and think of the next steps !!!128578;

Candyapple

Noobie2011 wrote: »

So the reason we are not meeting the main lenders criteria is likely due to some credit issues in the past as between us we have about 3 late payments although looking at lending criteria the impression is this is not an issue. On speaking with our broker he is unsure why Halifax are refusing us but thinks it may be down to our credit utilisation as between us we have about 20k of Creit Cards and Overdrafts and only up until about 6 months ago were paying tge mininum so as it stands most are over 90% utilised. But the exact reason we will never know and our broker seems to think we are very close to acceptance.

Thought that would be the case with the married thing and it seems the likes of Halifax may not be bothered but our potential lender Kensington probably will so remove the job hurdle but face another.

I just had a quick look at your previous posts and saw you mention that you owed £20k on cards. My broker told me that any cc debt we had the bank would take 5% total as minimum monthly repayment and deduct this from your salary multiples so your mortgage offer amount will be decreased accordingly (regardless of if your min repayment is 1% or it’s on 0% deal). So in my case my partner had £10k on a 0% purchases card (money was sat in savings account alongside) and when we ran the figures of making an application with the debt vs clearing it entirely, it reduced our mortgage offer amount by roughly £30k.

So in your case with the £20k debt:
Your wifes salary is £43k and yours is £31k = £75k. Just as an average based on a multiple of 4.5 a bank might lend you £333k. With the £20k debt, 5% = £1k x 12 months = £12k. So now your combined salaries are only £62k and multiple of 4.5 would mean that offer is now reduced to £279k, a massive £54k difference.

That coupled with late payments within the last year, high utilisation of debt, you being in job for a month or so, I can see why they declined you as you are too high risk even for the subprime lenders.

I don’t think you are going to get the news you want to hear but good luck with it all anyway and keep the thread updated, it is always nice to know how a story ended.

Noobie2011

Candyapple wrote: »

I just had a quick look at your previous posts and saw you mention that you owed £20k on cards. My broker told me that any cc debt we had the bank would take 5% total as minimum monthly repayment and deduct this from your salary multiples so your mortgage offer amount will be decreased accordingly (regardless of if your min repayment is 1% or it’s on 0% deal). So in my case my partner had £10k on a 0% purchases card (money was sat in savings account alongside) and when we ran the figures of making an application with the debt vs clearing it entirely, it reduced our mortgage offer amount by roughly £30k.

So in your case with the £20k debt:
Your wifes salary is £43k and yours is £31k = £75k. Just as an average based on a multiple of 4.5 a bank might lend you £333k. With the £20k debt, 5% = £1k x 12 months = £12k. So now your combined salaries are only £62k and multiple of 4.5 would mean that offer is now reduced to £279k, a massive £54k difference.

That coupled with late payments within the last year, high utilisation of debt, you being in job for a month or so, I can see why they declined you as you are too high risk even for the subprime lenders.

I don’t think you are going to get the news you want to hear but good luck with it all anyway and keep the thread updated, it is always nice to know how a story ended.

Thanks for the info and we are now firmly in the zone of we are not getting the new house to avoid the final disappointment probably coming today. I do think that us offering to clear nearly 50% of the debt will still get declined but if I am sitting here with a final decline but know I have tried everything then I will be happy.

The other lenders we went to were all declines on the fact we had the odd mis payment in the past 12 months so the afford ability and high credit were not the sole issues with them.

This is the 1st time we have specifically been declined based on the high credit amount but again they are happy with our afford ability. To me this likely means their confidence that we will not end up defaulting or missing payments on our credit cards etc is not high regardless if we have the money there which I can understand whether I agree with it or not.

We will wait to see what happens today and then likely use all the disposable we have to clear the debts regardless of the decision. The reason we have not until now is on several conversations with our broker on whether we need to clear the debts or even add it to the deposit they advised it was not necessary as our afford ability was fine however I can already see the advantage outweigh the sacrifices if we did clear the debt and even better if it secures us a mortgage.

Will keep it updated but at least happy to see others have worked the system correctly and won

Noobie2011

So Aldermore have come back with the response of they need to see our credit file improve and to come back in 6 months so were not just looking at reducing our credit commitments.

Back to the drawing board now as our next hope is Kensington but have to wait until I get my 2nd Payslip

Jaywood89

Personally I’d call it quits and take the advice about improving my score and coming back in 6 months.

Each of these lenders are subprime which is really a last resort for people with no other choice. Frankly if there is a slight chance of a better deal and the price is waiting six months I’d go with that.

Pay down your debt, save some more and show them real commitment to being responsible could see you with a high steet lender at a low interest rate and who knows maybe in a better house.

But that’s just my opinion