Application dramas - Advice appreciated.

welshjpc

Hi, thanks for looking. Apologies if this is in the wrong place.
Right, that's the formalities - lets get on with my dilemma.

I am a homeowner looking at moving up the property ladder (I currently own a 2 bedroom maisonette and am keen to get another floor basically). I have a mortgage on my property and have had for nearly four years. I have been quoted a settlement cost of £96000. I have put my home on the market for the advised price of £120000, giving me a potential profit of £24000 for a deposit for my next property, although I imagine a good £2000 of that would be swallowed up with removal costs and solicitors fees attributed to the move.

I have found a house that would suit my family advertised at £210000 and have had an offer of £209000 accepted, subject to my selling my house and getting a suitable mortgage offer or course. I would need a 90% mortgage in this case.

The problem lies with my credit history, I was in the RAF for fifteen years on approx. £32000pa and when my contract expired the next job I found was on £22000pa, which was a significant drop. I had a few debts (overdraft / credit card / store card) that needed to go so I consolidated them with a Bains and Ernst consolidation plan. I hoped that at least this way things would get paid rather than cycling minimum payments and never really paying them off - just keeping afloat - also hoping that this would have a lesser impact should I need credit in the future. As it happens the full balance of the consolidation plan was paid off early due to a family bereavement leaving me with enough to clear my plan much sooner than originally agreed.

Turns out that Barclays and Capital One have marked my credit rating as "satisfied" rather than "settled" and now this is having a detrimental impact on my credit score, despite these accounts being paid off in full late 2016 / early 2017 through Bains and Ernst.

I am pretty unhappy about this - can I contact Barclays and Capital one to appeal the status of these accounts? Should I contact Bains and Ernst to query these accounts? Or am I just piddling in the wind?

Just as further information - I am now fortunate to be in a full time permanent contracted job on a basic £54000pa so mortgage payments would not be a problem, however my bank (Santander) have turned down my mortgage application. Are there lenders out there that would be more understanding with my circumstances, especially as I am now in a far more stable financial footing? Or should I look for a cheaper house? Any opinion would be greatly appreciated. If you need any further detail please ask.

Thanks for your time.

MovingForwards

Santander are quite strict with who they lend to.

You need to see a whole of market broker due to previously being in a debt management plan and the defaults.

welshjpc

Thanks for the reply MF, I've started an application process with Habito, see how that pans out. Still pretty peeved that an overdraft and credit card can have an impact three years after they were cleared, even though my salary has jumped significantly. I'm sure there are 90% LTV mortgage providers out there who would have some common sense?
On a side note now, I notice that many banks are refunding overdraft charges etc from years ago - maybe I should be contacting Barclays about that considering how their credit mark is harming my application? Hmm......