FTB Poor Credit Mortgage Declined advice

Dzambhala

Hello,

So Myself and my wife have found a house!

Its £100,000 and we have £5,000 for the deposit, so obvioiusly we need a 95% LTV

Now the issue lies with me...I Have an experian credit rating of 713 and am 28K in debt, with Car and credit. I earn 34K a year.
My wife earns 17K a year and has no debt and an experian rating of 888.

I had gone through L&C mortgages who gave me a decision in principle and then said we should apply for a Post Office 5 Year fixed at 3.88%, which we did and it was refused.

The broker then looked at my experian file and said I had missed payments and he would need to refer me to a specialist.

I contacted another broker (Just Mortgage Brokers) who read my report and confirmed what I had thought, I hadn't missed any payments at all and they say they have found a few mortgages that should suit me. The downside being it will be a grand overall for the application and then if I am accepted.

I went back to L&C and they have said they will talk to me on monday as they may have a few that would consider my circumstances now.

I guess I am just a little nervous, having had my first mortgage declined, I don't really want to risk having another declined too as that would lower my score even more.

Can anyone offer any advice, has anyone dealt with these companies before or do you suggest finding a mortgage provider by myself? - If so any reccomendation for a mortgage provider who would consider someone with poor credit?

Thanks in advance, any help would be greatly appreactiated!

Noobie2011

We are going through a Mortgage Application at the moment and just had our valuation accepted and an offer should be coming Monday fingers crossed.

We were not far off your situation really with high amount of debt and only a small deposit so we went with Help To Buy.

Initially I will say ignore your credit scores as they mean literally nothing. Each Lender has their own scoring system which has nothing to do with the way the credit agencies score you.

Go through each report if you can so Experian, Equifax and Callcredit and make a note of everything adverse like a missed payment, in overdrafts etc then you will have a good idea yourself of your situation.

Also do not pay any money to a broker in my opinion as you can get whole of the market free ones that get a commission once you have completed on the new house so will ot mess you about just to get an application fee.

Be honest and divulge every little thing even if it is not on your credit report as will come back to bite you in the end.

May not help but for us hat massively helped was paying off a large chunk of our debt which in the end meant we got accepted with Halifax on a pretty good rate

amnblog

Debt of three quarters of your income will not help matters here.

If JmB are going to arrange the Mortgage before they charge you what have you got to lose?

L and C do not seem to know what they are doing.

Lauralou79

Before you apply any further, You personally check all your credit files at the 3 agencies. Did both sets of brokers check all 3? Seems strange that you have missed payments then oh no you didn't.

Missed payments could be an issue along with a high debt to salary which can affect affordability.

Im guessing you can't increase your deposit or pay off some of the debt which would both help your chances.

There are more qualified people in mortgages that will come on and advise tho!

feekerry

I used JMB and they were fab. We only paid a small application fee then the rest when the mortgage completed