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L&C feeling very dejected
Wack85
Posts: 13 Forumite
Hi all
I really need advice and I'm hoping some of you can help me.
My partner has had an offer on a house accepted for £38,000 with a £2000 deposit. Initially he had an AIP from Natwest for £44,000 but it expired before he was ready to proceed with the sale.
He contacted L&C hoping they could help with the mortgage process and they haven't been that great.
Some background/ current info:
He has a default on his credit file from 3 years ago for £400 with Northumbrian water which is being disputed. The water company agree that the default was not justified but as the account is closed there's nothing they can do to remove the default from his file.
He has a £1700 overdraft
£5000 loan which paid for the car and this year's insurance
£1800 credit card.
Salary £25,500.
L&C were initially keen to help but when they were told about the default said there was nothing they could do for him as no high street lender would touch him with a barge pole. He replied asking them to at least try as the default was not correct and was hoping to get it removed from his credit report.
4 days pass with no communication from L&C
On the 5th day he contacted Star Mortgages who deal with people in the civil service union he's a member of. Unfortunately as the house is worth less than £50,000 they can't help as even though they're not for profit they can't work for a loss, completely understandable.
6th day he contacted Nationwide, who he's banked with all his life, directly for a mortgage appointment to make an application. The appointment is for next monday.
Today day 7, L&C ring and inform him that no high street bank will work with him, and other lenders won't either. Their logic was that it wasn't worth the banks time. They suggested he buy a property for £60,000 with a 95% LTV as more lenders would find him appealing!!
So now here we are, we love the house he's put an offer in for, but have completely lost all hope that he'll be able to get a mortgage. It doesn't make sense to buy a more expensive house just for the sake of it. Is the Nationwide appointment next week a waste of time if what L&C tell him is true??
Any advice would be great, even if it's not what I want to hear I'd really appreciate the help
Thanks
I really need advice and I'm hoping some of you can help me.
My partner has had an offer on a house accepted for £38,000 with a £2000 deposit. Initially he had an AIP from Natwest for £44,000 but it expired before he was ready to proceed with the sale.
He contacted L&C hoping they could help with the mortgage process and they haven't been that great.
Some background/ current info:
He has a default on his credit file from 3 years ago for £400 with Northumbrian water which is being disputed. The water company agree that the default was not justified but as the account is closed there's nothing they can do to remove the default from his file.
He has a £1700 overdraft
£5000 loan which paid for the car and this year's insurance
£1800 credit card.
Salary £25,500.
L&C were initially keen to help but when they were told about the default said there was nothing they could do for him as no high street lender would touch him with a barge pole. He replied asking them to at least try as the default was not correct and was hoping to get it removed from his credit report.
4 days pass with no communication from L&C
On the 5th day he contacted Star Mortgages who deal with people in the civil service union he's a member of. Unfortunately as the house is worth less than £50,000 they can't help as even though they're not for profit they can't work for a loss, completely understandable.
6th day he contacted Nationwide, who he's banked with all his life, directly for a mortgage appointment to make an application. The appointment is for next monday.
Today day 7, L&C ring and inform him that no high street bank will work with him, and other lenders won't either. Their logic was that it wasn't worth the banks time. They suggested he buy a property for £60,000 with a 95% LTV as more lenders would find him appealing!!
So now here we are, we love the house he's put an offer in for, but have completely lost all hope that he'll be able to get a mortgage. It doesn't make sense to buy a more expensive house just for the sake of it. Is the Nationwide appointment next week a waste of time if what L&C tell him is true??
Any advice would be great, even if it's not what I want to hear I'd really appreciate the help
Thanks
0
Comments
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Can he go back to Natwest and get another AIP?
L&C are useless anyway from my experience.0 -
He can but Star Mortgages told him that as he banks with Nationwide it'd be 'easier and quicker' as they'll already have his ID, payslips etc so he took their advice and made the appointment0
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I would imagine with all those loans and debts that the default was the last straw for the lendlers.
You need to read through all the threads on here about credit card debts and mortgages.0 -
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However much you love this house, there will be others. With the financial situation as it is, it might be best to wait, reduce the debt load, and relook at how you budget. This could actually set you both up for a more secure future.
Applying for a mortgage with an overdraft (which means he is spending more than he has coming in), an unresolved debt issue and getting a loan for the car AND insurance is not a good idea. Surely you can see this?0 -
Where do you fit in?
Can you raise funds instead of him or are you both not 'ideal' candidates for a mortgage?
House is unusually low in value - is it actually mortgageable? Can understand why lenders are not interested, just not much in it for them or the brokers presumably to go 'the extra mile'.
Whilst the debts are not huge, the overdraft in particular shows a stretched position as does funding 12m car insurance over longer term so a default on top? Uphill struggle I'm afraid.0 -
I really need advice and I'm hoping some of you can help me.
My partner has had an offer on a house accepted for £38,000 with a £2000 deposit. Initially he had an AIP from Natwest for £44,000 but it expired before he was ready to proceed with the sale.
He has a £1700 overdraft
£5000 loan which paid for the car and this year's insurance
£1800 credit card.
Salary £25,500.
Any advice would be great, even if it's not what I want to hear I'd really appreciate the help
Thanks
Welcome to MSE.
That reads as 'robbing Peter to pay Paul' rather than genuine savings for a deposit. Does your partner have money set aside for the costs of buying (survey/ conveyancing) plus a decent 'rainy day fund'?
Rainy day fund is for when your boiler breaks down out-of-hours, tiles fall off the roof and fence blows down in a storm, fridge-freezer dies when you are away for the weekend, unexpectedly lose your job, unable to work due to illness or injury ......
State benefits do not help with mortgage payments for many months now, even then only a loan to cover the interest. With other debts to service your partner could quickly get into trouble without a healthy savings 'cushion'.
HTH.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
You need to clear all your debts, otherwise you wont get a mortgage.0
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If he is into his current account overdraft by 1700 with a deposit of 2k, what he has actually done is save £300. Why was he trying to get 44k if the house is 38k? Or did he apply against another house/before he saw a particular house and knew how much he needed?
Unless there are further savings you haven't mentioned it doesnt sound like he is in a financial position to purchase right now anyway. Very minimal savings- and 5k for a car and insurance seems like poor financial judgment for someone on a low-moderate income with debt already. How long will it take him to pay it off? You can buy a decent 2nd hand car suitable for a few years of a motorway commute for half that.
What area is he in? 40k is a cheap house, is it something that is going to need work-how much has he or can he put aside for that?0 -
Can he go back to Natwest and get another AIP?
L&C are useless anyway from my experience.Thrugelmir wrote: »Where's the £2k deposit coming from along with the money to fund the purchase ?
We have saved the £2000 and have a further £2300 from a work bonus for solicitors etc0
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