Mortgage Declined

Noobie2011

Jaywood89 wrote: »

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

In one sense I do agree and the advantage this has given us in one way is allowing us to sit back and look at alternatives.

However as it is HTB then if we manage to go with say Kensington in a month as opposed to Aldermore in 6 then the rate will be the same as they are set for HTB. Also being realistic I do not believe we will fit the bill of any high street lender even in 6 months as our broker has pointed out things we failed on that will likely take more than 12 months to rectify. Plus yes I agree the so called specialist lenders are a higher percentage but we have worked this in and for the disadvantage of taking a slightly higher rate for a couple of years we are saving massively in other areas and the location as well will really improve our live which you cannot put a financial figure on.

However even pushing forward with Kensington in a month has not meant we are staying as we are and have already taken the Credit Commitments advice and with the extra disposable now in the next month(mainly with the sale of our current house) we are clearing 8k of debt. It may be too late and not help with Kensington but the fact we are now doing this in the next 3 weeks already feels like the debt collar is far lighter already and it will also mean the plan we had to clear all our debt in the next 12 months will now likely be cleared a lot earlier.

Trying to look at this from a point of view of "Every cloud has a silver lining"

John-K_3

I may be reading this wrong, but it sounds like you are working out what you can do to just step over the line to be the worst credit that a sub prime lender will accept.

That!!!8217;s maybe a sensible short term aim, but could you also use this as an opportunity to have a serious look at where you!!!8217;ve been going wrong in general in recent years, and to get properly back on track?

It would be awful if you just manage to get the mortgage then go back to the behaviour that caused the problems in the first place.

Thrugelmir

Noobie2011 wrote: »

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.

What will also be taken into account will be your account conduct over the past 6 years. Trends etc. Easy to spot applicants that live life beyond their means. Roll balances around 0% credit cards. Consolidate balances into new loans. All this data enables lenders to profile fairly accurately into 17 distinct catergories of borrower when combined with the other application detail.

Noobie2011

John-K wrote: »

I may be reading this wrong, but it sounds like you are working out what you can do to just step over the line to be the worst credit that a sub prime lender will accept.

That!!!8217;s maybe a sensible short term aim, but could you also use this as an opportunity to have a serious look at where you!!!8217;ve been going wrong in general in recent years, and to get properly back on track?

It would be awful if you just manage to get the mortgage then go back to the behaviour that caused the problems in the first place.

I can see where you are coming from but this is nowhere near us trying to scrape over the line only to be up against it going forward.

Our past in less than perfect but gone are the days of us missing payment, defaults etc and it has been quite a few years since all that and we learnt our lesson the hard way as we should have. Yes our issue now is getting out quite a bit of credit in the past and rather than being sensible and paying it off and working towards being ideal candidates for the likes of the high street banks, we have instead spent that money elsewhere but aways been responsible recently and paid our debts on time even if that is the minimum payments on credit cards.

Without going into too much detail because of our past credit commitments that have just hung around this new mortgage(even on a higher rate which we expected anyway as planned for) will put us in a much better financial situation along with other massive benefits so we are not going into this blind.

I agree with you and if we were looking at say 6/7% rates as opposed to say 2/3% rates with high street lenders in say 6 months then we would be waiting but the difference in the HTB rates is not that much to be honest especially when we add in the other financial benefits and non financial of moving to where we are planning.

But the setback has made us look at our finances and where we had money allocated for holiday, new house options and cash for extra furniture when we would have moved in, we have now realised what is important and that is the house so by canceling all the above we are now as mentioned putting around 9k into paying stuff off over the next few weeks.

Also as we have a few weeks to think about it before we can apply to Kensington we are looking into the fact we will be 9k less debt and affordability even better so that may have shortened the time we would have to wait to be accepted by a High Street Lender so that option is still on the table. We know the house we want would be gone if took this option but in the long term we may look back and be glad we waited

Noobie2011

Thrugelmir wrote: »

What will also be taken into account will be your account conduct over the past 6 years. Trends etc. Easy to spot applicants that live life beyond their means. Roll balances around 0% credit cards. Consolidate balances into new loans. All this data enables lenders to profile fairly accurately into 17 distinct catergories of borrower when combined with the other application detail.

I agree and even with paying all this debt off we know the likes of Kensington could still refuse us as it may up our score a bit on the credit commitments amount but will not wipe away the negative impact our credit history has on any application.

17 Distinct Categories!!!, I know the Credit scoring process is very complicated and a bit like the Matrix at sometimes but that is a lot of Categories ha