Mortgage offer withdrawn - exceeding overdraft!

Mamohau

Help! We've paid for surveys (extra engineering survey as requested by lender), had electricity, central heating and damp surveys, and generally considered our purchase well down the line to exchange. L & C organised the mortgage with Godiva who, as I understand it, take on high risk (like my husband, not being in the country 3 years). L & C were very helpful and kept on top of the mortgage application, chasing us and them for various extra information as time went by. Now they asked for 2 months bank statements again and subsequently have withdrawn the offer because my husband went over his overdraft a couple of times. Both were instances where money in and money out had crossed within 24 hours of each other - one where a cheque was presented a month after being handed over. My own bank has offered a 97% mortgage but it's not enough and we need a loan to top it up (which Godiva offered); because, again, we're high risk as not in the country 3 years we can't get it.

We pay in rent what we'd pay on a mortgage which was why we thought we'd try owning a house instead (we've had before but sold when returned to UK last year).

Do we just write the money off to experience and give up, looking again in a year? Is there any way out of this, so that we end up with the house we found?

herbiesjp

How long have you been in the UK?

When does your visa expire? What country are you from?

What is the purchase price you are looking at? Is it a 100% mortgage you are looking for?
What are your two incomes?

maninthestreet

Can you borrow that 3% needed from friends/family to make your bank's 97% mortgage offer up to 100%?

Mamohau

I'm British but been away (held UK bank account all this time), my husband's German but we've been living in South Africa. I returned in January and husband in August 2006.

Purchase price is £235,000, looking for 102% as work to be done. Combined income about £65,000 (he gets bonus on top but varies).

We might be able to borrow but from my brother and really don't want to ask as he's intimidating and eminently sensible so won't have too much patience with our situation.

Thanks!

herbiesjp

This should not be a problem with most 100% lenders then - when you said you had not been in the UK for 3 years I assumed the situationw as more complex, but you both being EU nationals shoudl be straightforward.

The income multiples look fine also, especially as they do not take into account any extra income. NOt sure if there are any other debts to take into account

Have you both got copies of your credit reports? Going into overdraft should not pose too many problems

Mamohau

Don't have copies of credit reports - from Experian? I did register once but could never log in as site seemed to have problems and then just gave up. will look at that now.

Our debts are two loans totalling £7000, plus credit cards totalling around £7000. Otherwise it's just normal expenditure like council tax, teenagers etc.

Godiva had offered total of £248,500 (we'd only requested £240,000) which comprised of the mortgage plus a £23,500 loan (against the house I presume although I don't remember seeing that, but I can't imagine it not being). Perhaps they'll still give the loan!! Dream on.

going to re-register with Experian and see if can get credit report tonight?
I think that is what is so irritating, that we're not that bad. My own bank seems fairly confident and they know us both although my husband's account isn't with them.

Mamohau

Also, we tried getting a loan for the extra from Halifax, or a broker they put us in touch with and both said they wouldn't consider us because of my husband's short time in the country (even though he has a permanent job and I'm on contract!).

herbiesjp

The fact you have other credit commitments is good, as it means you should in theory be building up your credit score.

I remember doing a similar scenario with Godiva - they declined the case as they said teh client did not have enough credit history (they were from Brazil) - got a copy of the credit report and there was loads on there. Even after faxing through, and providing proof of bank accounts etc they still would not budge

No problem, just looked at a different lender and the problem was solved

The loans and credit cards you have will impact on your mortgage amount, but you should still be ok with the amount you are looking for.

Only thing you would need to do is make sure the repaymenst on any new deal would still be affordable to you

Mamohau

We did look at other lenders at the start, such as Northern Rock and Alliance & L. wanting over 100% limits our options considerably it seems. Neither of these could do it. I don't know how else to find another lender, or broker, who doesn't want £100 up front! We need some superduper search engine where I can plug in all the information and it searches out suggested lenders to contact! Now there's a thought...

Have registered with Experian - login hasn't come through yet so will look again in the morning.

Thank you! Goodnight!

herbiesjp

Indeed looking at 100%+ mortgages does limit your options - did you apply to NR or A&L? Or do you not think they will do it for you?

Plenty of fee free whole of markets out there

The super duper search engines do exist - and only brokers have them. There are comparison web sites, but they do not tell you if you are eligible or not for the schemes which is what you really want to know before you start applying to lenders

Mamohau

What's the difference between a broker and mortgage adviser?

We did actually apply to NR (I think they said no) and A&L and I think they said 97%. It's that remaining 4% that is the problem. We could wait a year and save that up I suppose - just that we looked for 6 months before we found this house which meets our needs almost exactly. We approached my bank with me as first named and consolidating my current loan with a new one; on the basis of my salary (around £23k+) it was refused.

Another option could be a secured loan which is taken out at the same time as exchange. Or perhaps we could get the seller to drop £10,000 - in fairytale land!

We went into this on the advice of brokers who said that we should be able to get a mortgage of upwards of £275k! So I thought this would be assured at £245k, innocent that I am.