Mortgage advice please!

VCL34

Someone has suggested to me to make an appointment with a mortgage advisor at a barclays branch & discuss it directly with them. The broker has advised me to wait 6 months & try again but nothing is going to change in 6 months except the house prices will rise!!

Thrugelmir

VCL34 wrote: »

So it's 80% Mortgage, 15% government equity loan and 5% deposit.

In essence you are asking for a 95% LTV. Child benefit and maintenance only has an infinite life. After which you would be struggling. Even more so as interest rates rise.

MovingForwards

You made an error using someone recommended by the builders.

Stop having credit checks and find a whole of market broker.

jaelato1

Thrugelmir wrote: »

In essence you are asking for a 95% LTV. Child benefit and maintenance only has an infinite life. After which you would be struggling. Even more so as interest rates rise.

How do you know OP will struggle after child benefit stops? Is she going to be stuck in 95% LTV forever?
We don't know if her mortgage repayment will less that her current rent which she's probably been paying a long time comfortably.

haras_nosirrah

I am getting a max loan of £162,810 based on a 30 yr term and including the equity loan as a 3% commitment

I have based this on no debt (as you said you were clearing it) and assumed the 33k is basic not a mixture of basic and overtime. I have also included the maintenance and child benefit.

It looks doable. Criteria for defaults says no more than £500 satisfied or unsatisfied within last 3 yrs and no more than 2 missed payments within last 6 months.

monthly payment around £580 based on a 2 yr fix rate on a 30 yr term. They don't do 5 yr on shared equity.

Have put scotland into sourcing - looks doable op

VCL34

Thank u all for replies!

Yes I will in fact be saving myself a small fortune when I get a mortgage instead of renting. Over £200 in fact!!

This is what I've calculated too, even if I went for a house that's £20k cheaper! It's just the fact it was rejected straight away. Everything I've researched seems to say that my default will be ok due to amount, passage of time & the fact that it's settled. And the late payments were over 2 years ago & it was only a couple on the same account. That account was brought up to date & closed more than 2 years ago. I'm just stumped. Even if barclays had come back & said they wouldn't loan the £155,000 and offered a lower amount, I could looked at another house. No idea what to do now. I'm loathed to rent again & spend so much money If there's a simple solution? !!!129300;

haras_nosirrah

I am not looking at barclays. I can't name names on here but there are other options which look as though you would fit criteria. I would suggest speaking to a different whole of market broker (the leeds mistake would not fill me with confidence)

jaelato1

Get a new whole of market broker as advised by haras_nosir. Don't lose hope, I know someone who got offered a mortgage after two lenders declined.

Thrugelmir

jaelato1 wrote: »

How do you know OP will struggle after child benefit stops? Is she going to be stuck in 95% LTV forever?

We don't know if her mortgage repayment will less that her current rent which she's probably been paying a long time comfortably.

The lender doesn't. However the lender does have a regulatory duty to lend responsibly. Given wider issues, a tightening of internal criteria has been noted over the past 2 months.

Mortgage repayments do not equate to rent. With home ownership comes the responsibility for maintenance.

VCL34

****UPDATE****

So I finally got my experian credit report through. Again everything looks ok, however the default which shows as settled on my equifax report, is still showing as an active default on my experian!! No wonder barclays turned me down for a mortgage!! What do i do about this???