Gutted... is this game over for us?

Sheep

I am hoping someone may be able to offer some support.

My wife and I had alot of short term debts such as credit cards etc. Nothing major. It was costing about £1400 per month as we wanted them gone as soon as possible. Our circumstances changed so we decided to apply for a loan each, consolidate everything and take it over 7 years to reduce the payments and then just make massive overpayments.

Because loan companies have to do credit checks to give aprs we had lots of credit checks done in such a short period of time. I probably had about 5 and my wife 3.

We now have found a perfect house. Our mortgage is with Leeds however when i shopped around Nationwide were cheaper and I bank with them so I have just applied. I was shocked to find we have been declined. It says due to credit score. Me and my wife have never missed a payment for anything so it must be all the credit checks.

That is now one more. Is it game over? Do we just give up? We put our details in Yorkshire Banks website as their DIP doesnt leave a footprint and that has been accepted. Hope this means we should be ok. Leeds are calling me on Thursday to look at taking a new mortgage with them.

What would you do? Apply with Yorkshire.Bank? Wait for Leeds? Speak to a broker? If we go with Leeds we will be porting. Can a broker do that?

Urgh so dissapointed

Thanks for reading

ACG

A number of credit checks in short space should not be a deal breaker, but it is important to choose the right lender before having too many more checks carried out.

There will be options, as for whether one of those is Leeds or Yorkshire, there is not enough information. But I would not be too worried, it might just cost a little more than either of those lenders.

Thrugelmir

A lender is going to be concerned that having consolidated your debts. You now wish to borrow even more ( including the fact that you've no actual savings to put towards the move). A period of overpayments would at least demonstrate your intent to get to grips with the way in which you manage your personal finances.

Suggest you speak to a broker. Rather than fire wildly. As there may well be options. Though perhaps not as good as you may want them to be.

Sheep

One other problem may be the LTV or incentives. I know most only do 85% LTV. In terms of incentives the builder offered us a 5% deposit and £1000 legal fees. We do have 10% deposit so builder offered an extra 5% to help open us up to most lenders. The builder is a large national builder

Sheep

Also does passing an AIP with Yorkshire not mean that we should be ok?

ACG

An AIP is not really worth the paper it is printed on. It is an indication but you still need to get passed the full credit check at application stage and the underwriter.

Sheep

Thank you ACG. Do you think the builder incentives will be an issue? Also the higher rates you talk about, are they still high street?

ViolaLass

If you want to reduce the payments and then overpay, just pay.

ACG

Probably more like a smaller building society. Normal rates, just not market leading.

Thats not to say you wont get accepted with Yorkshire or Leeds b/s, I am just looking at worst case scenario.

kinger101

Sheep wrote: »

One other problem may be the LTV or incentives. I know most only do 85% LTV. In terms of incentives the builder offered us a 5% deposit and £1000 legal fees. We do have 10% deposit so builder offered an extra 5% to help open us up to most lenders. The builder is a large national builder

Lenders generally take a dim view of these. Even those that accept have a cap. You need to speak to a broker.