Help,im in a quandry. Want to buy a house

silvercar

Wait a year and you could end up paying less and get a better mortgage deal.

meanmachine_2

I'd marry this Beth Johnson character.

By the way, it's not a STEAL at 44K - you're only buying half the place.

D-oh!

Still, even at 88K, you wouldn't get a sneeze in a handkerchief down my way...

spinningsheep

Well, developments guys. I decided to nip into my local branch of the Halifax today and ask them whether they could shed any light on why we were declined. I sat down with a really nice woman who dealt with all the mortgages and she found my application on the system and went through it. Turns out, it was all wrong. The "financial advisor" didn't apply for the right mortgage for me anyway, he also used the wrong lender. Birmingham Midshires dont even offer shared ownership mortgages, so ever wonder they declined us! Anyway, she said the decline on credit score that was an issue was kind of down to me and my housemate. Him more so though, as he has only been in his current job for 3 months, and his previous for a year, whereas I have been with my employers for 3 years or more, in both jobs. She said that my previous defaults,although all cleared now had a bit to do with it, as did the fact that I had a high number of credit searches on my file (not all with my consent I might add!), so all together, thats why we were turned down. So, she suggested I try for it alone, there and then, as she said that my credit file was by no means bad, and she had seen far worse get accepted no problem. Halifax then said no, but it was a borderline case.She told me wait 6 months and do no more credit applications and try again and id be in no problem with £65k on my earnings. She then tried Birmingham Midshires again, she said as long as I had no problems in the last 3 months, id be fine, albeit at a higer interest rate, and a 5% deposit rather than 3% with a Halifax one.I should hear tommorrow on that one. So either way, even if I get accepted, im going to wait the 6 months, and then buy a house properly, no shared anything, and then I can breathe a sigh of relief knowing I own my own home!

spinningsheep

OMG another update. I decided to see if I could get that shared ownership mortgage for the house accross the road, and...........I got it! On my own,no problem. Will be £355 a month, 9% rate on fixed rate for 2 years. Im so happy. No deposit needed, all I need to do is find about £1500 for my fees!! I'l keep you posted.

maninthestreet

spinningsheep wrote: »

OMG another update. I decided to see if I could get that shared ownership mortgage for the house accross the road, and...........I got it! On my own,no problem. Will be £355 a month, 9% rate on fixed rate for 2 years. Im so happy. No deposit needed, all I need to do is find about £1500 for my fees!! I'l keep you posted.

9%!!!! :eek: :eek: :eek:

What happens to the interest rate at the end of the 2 year fixed rate period?

meanmachine_2

Yeah, shouldn't it go DOWN if it reverts to the SVR? I suspect not. Although, best case scenario, in 2 years' time you have a bit of equity and your credit score is better and you can remortgage to a mainstream lender

9% is bordering on sub sub prime - not that sub prime exists in this country *ahem*

PasturesNew

In the grand scheme of things though, the OP will be in a house they want, with a 2nd person/lodger(?) income (mysterious housemate person mentioned).

And OK 9%, but on a small amount.

And, borrowing, by all accounts 2/3rds of what the BS were prepared to lend him, so pretty "affordable" if you look at it like that.

If the OP were borrowing £150k at 9% alone for somewhere they didn't really love, that'd be a different matter.

maninthestreet

Exactly who is this mortgage with? Is there any ERC, and over what time interval does it cover? I would read the terms and conditions of this mortgage offer very carefully.

yoshihirouk

If credit searches were carried out against your will then I'd contact those companies in question and ask for the searches to be removed from your credit file. This will obviously help your credit scoring.

If I could access Trigold or Mortgage Brain to help you then I honestly would, but I am convinced that there are better deals available for you than you have found. 9% is sub-prime as as far as the FSA are concerned, you are not a sub-prime case.

If you do end up with this 9% mortgage then I'd strongly encourage you to read the terms and conditions and find out what the ERC's - Early repayment charges are as you may be able to re-mortgage within 6-12 months at a more competitive and fair rate.

You might be prudent to employ the services of a mortgage broker via this site.

spinningsheep

Thanks for the advice guys, I went through The Mortgae Point, they are a broker so I understand. I have contacted the few companies that have searched my credit file without my consent, but they have said that they had to do certain extra checks for some things, and that by consenting to the "original" credit search, I also consent to any others they see fit to do on me. Also, Virgin Media did one on me, when all I did was ask them to send me a brochure from a stand. They took my name,address and DOB, that was it. I did tell them I had never consented to any credit searches, but they said that the guy on the stand should have told me this would take place and there was no way I prove that they hadn't. Trust me, I will never touch them again! The broker said that there would be no ERC provided I didnt try to change the deal/remortgage before the end of the 2 year period. I am going to read the terms of the mortgage before signing anything, and the actual mortgage provider is unknown, they wont tell me until ive signed, which I do think is a bit strange??