Mortgage application declined.. is there any hope

Michelle245

Hello,

We recently found a house and put an offer in, our mortgage broker started all the necessary work to find us a mortgage. Found one and it was declined. He said its because of a £12 missed payment on my file from end of last year. He said hes going to make some calls monday for me. Is all hope lost at this point? We need a 95% mortgage which makes it more tricky. I love this house and I just feel that were going to have to pull out due to this one minor thing (which I might add was a bank error due to fraud on my account but the credit card company still refused to remove it from my file!).

Has anyone managed to get a 95% mortgage under similar circumstances?

middleclassbutpoor

Lenders have different criteria- your broker if whole of market, should be able to tell you if there is any lender willing to accept your circumstances.

Is the house a new build?

AdrianC

95% LtV usually requires squeeky-clean credit record, precisely because there's so little headroom for the lender if anything does go wrong.


If the £12 was definitely, provably fraud then the card firm are wrong in not removing it - one to escalate to the financial ombudsman if they really won't shift.

Hutch100uk

I would attempt to escalate the incorrect late payment. Gather as much evidence as you can.
I had 3 missed payments in error on my credit file I was totally unaware of from British Gas. It was their fault because they billed me the wrong amount so I didn't pay. I waited for a new bill and this meant 'late payments' went on my account. It took me months to finally get it removed but they did agree they were at fault.
Maybe keep trying the credit card company and ask to speak to someone who specialises in fraud. Don't give up with that if its genuinely wrong.

Michelle245

middleclassbutpoor wrote: »

Lenders have different criteria- your broker if whole of market, should be able to tell you if there is any lender willing to accept your circumstances.

Is the house a new build?

He said hes going to make some calls monday and see what he can do. He is whole of market. No its not a new build home. It just feels like torture waiting until monday now and I feel totally deflated.

Michelle245

AdrianC wrote: »

95% LtV usually requires squeeky-clean credit record, precisely because there's so little headroom for the lender if anything does go wrong.


If the £12 was definitely, provably fraud then the card firm are wrong in not removing it - one to escalate to the financial ombudsman if they really won't shift.

Thats what the broker said. I could probably borrow some further fund from family to make up the deposit but I wouldnt be able to get to 10%, unsure if offering slightly more would make any difference!

I tried twice with them and they said they had to show an accurate report. I may try again and look into the financial ombudsman. Thank you.

AdrianC

Borrowing your equity needs declaring anyway, so that won't help.

lookstraightahead

Can anyone gift you a deposit?

letitbe90

I was accepted for 90% but not 95% when joint with my partner.

She had a lot of missed payments, it was only when I made it a sole application that 95% was accepted, so I guess the criteria for 95% is probably a squeaky clean history for at least a couple of years or more?

Hutch100uk

If there is literally only 1 missed payment, and your partner has a clean file then I would have thought your broker could find someone to take you on. You might have to pay a higher rate though.
Good luck.

ACG

It should be possible.
It may mean marginally higher rates, but I am sure there will be a little building society who can make an exception. Hopefully the broker wont come with someone like Aldermore as that would be overkill I think.