Single Skin wall property failed credit score with HSBC

mrsmortgage

We've been trying to buy a house since September. TSB was our original lender but wouldn't approve a mortgage as there's a single Skin wall in the kitchen. We failed the affordability with the Halifax due to our baby and failed the credit score with HSBC.

Have we exhausted all possibilities?

kingstreet

There are around thirty "normal" lenders so you've exhausted 10% of your potential options.

Presumably, these lenders were selected by you and not by a professional?

You will need to closely study lender criteria and carefully complete online affordability calculators and establish any credit issues which may be affecting you.

Alternatively, professional advice from a broker might make more sense.

mrsmortgage

I used a broker (the type you pay a fee).

Retired_Mortgage_Adviser

IF (and that's a big if) the broker is good and has reached a dead end, that might well be the case.

If I understand correctly -
- TSB did not go to offer because the survey uncovered a single skin extension (I assume the rest of the case stacked up fine).
- You don't meet affordability with Halifax because of dependents/childcare costs (hopefully your broker didn't have to make an application to figure this out!)
- HSBC DIP fail due to credit scoring (could just be down to multiple hard credit checks)

On the face of it, there should be more options available but only someone looking at the entirety of your circumstances can say for sure.

I would definitely get a second opinion before giving up. Make sure you arm yourself with all the details of the progress until now. Good luck!

mrsmortgage wrote: »

I used a broker (the type you pay a fee).

kingstreet

mrsmortgage wrote: »

I used a broker (the type you pay a fee).

No further suggestions from the broker?

TBH if you failed affordability with Halifax or any other lender, I wouldn't have bothered mentioning those lenders to you. Seems odd.

[Deleted User]

kingstreet wrote: »

No further suggestions from the broker?

TBH if you failed affordability with Halifax or any other lender, I wouldn't have bothered mentioning those lenders to you. Seems odd.

It can be a good way to make it seem like you have done loads of legwork when you dont have a clue where to go next (not that im speaking from experience of course!). Clients wont realise the affordability checks take 2 minutes. Fair play the HSBC AIP system is really long but at least it is a soft search still.


OP - whats your deposit level? Why are you failing credit scores? And do you really want to buy a house that someone else will find difficult to mortgage when you sell it?

mrsmortgage

No, no More suggestions from this broker but I'm asking for second opinions. We would pass the affordability if we pay off one loan with ikea (which we can, sincs it's taking forever).

We have 10% LTV.

No idea why I'd fail them, I always pays everything on time.

We're also starting to think that this is a bad purchase.

Retired_Mortgage_Adviser

10% LTV or deposit?

mrsmortgage

Deposit sorry! So 90% LTV

Retired_Mortgage_Adviser

Do you know how short you are on max borrowing? If it's not something ridiculous, have you asked the vendor for a discount to make up the difference?

If it is indeed a difficult-to-mortgage because of the way it's constructed, he/she might well be open to negotiation. All this is of course assuming you are able to find a new lender willing to lend on this property.

Just to be clear, the mortgageability of the property and your affordability are two separate issues, one of which will disappear with a new property, but the affordability issue won't, unless you're willing to lower your budget.

mrsmortgage

We really dont know how short we are of it, but it looks within reach. We just need to pay a debt that equals a monthly payment of £80 (and we could save to pay it off).

My husband also just got a payrise of £1250, which I'm sure would help too.

So I'm sure we could make it work for the property it would only delay by maybe another 6 weeks, but we're wondering about how it easy it will to resell in the future