Mortgage / Limited time offer

Ultimatechezz

Hi all,

basically, I was able to negotiate a good deal to buy the house we are currently renting (valued between 230k and 240k) The landlord wanted 240k I was only able to offer 230k anyhow.

Basically he has given me a month (16th Oct to 16th Nov) to get my solicitor to wite to him to confirm for the price to stay at 230k then he will keep the 230k for the duration of completion.

Basically I was told if I changed some credit cards to loans (30K) I should be ok with a 23k deposit. I have access to 23k deposit (and possibly 30k if desperate)- info from Cumberland building society.

Went though a broker and they went with nationwide who have declined us due to low LTV, and history of using credit cards..said no point in appealing..

We have paid half the debt off (15K) and have 23k+ deposit, my broker says no point in trying again for 12 months...

Basically is there anyway I can keep the offer of 230k for longer do to this? and is it worth me going back to the cumberland with proof of deposit and 1/2 debts paid off? if I got turned down twice that would cause me issues in future?

I thought we would be ok but worried now!

Thanks in advance!

ACG

So you have made 1 or more credit checks to change credit cards to loans prior to application?
Nationwide were never going to be a good choice where there is a lot of debt, especially if it is new debt or you are using a lot of your available credit.

If you have a 10% deposit and pass affordability checks there will be better options out there. I would find a decent broker because the one you have spoken to based on what you have said sounds pretty poor (and its not often I would say that). I am not sure the broker could have chosen a worse high street lender.

Ultimatechezz

Both myself and my wife have taken out a loan to cover debt, however my wife has been gifted 15k to cover hers now. So two credit checks. Both have excellent credit records.

So we now have 15k debt total.

Does it make sense to go to the cumberland with proof of this or will the decline mean it is too risky for us to try again?

Thanks

Ultimatechezz

We both earn 30k, nationwide said our use of credit and low LTV is risky...is it worth appealing?

ACG

It is a high LTV (low deposit = high LTV).

But no I dont think it is worth appealing. You are not really the type of customer Nationwide would want - dont take that the wrong way. There are lenders who gear their offerings to different parts of the market.

No idea on Cumberland, they are not a lender I regularly come across. I am sure there are lenders who would be happy to lend based on what you have said. You can try with Cumberland or try another lender/broker.

Ultimatechezz

Thanks, so one application after the other shouldn't be a problem?

Thanks

ACG

It happens. The key thing is to leanr from the mistake and do what you can to avoid them for the next application.

I think this year we have had 2 declined applications where we had to go to a different lender. Both went through on the second attempt.

Ultimatechezz

Think my key question is....is it possible to get a mortgage approved so quickly after getting turned down if I have proof of deposit and paid off 1/2 debts? Which may not show up on credit report this month but can be proved with statements etc.