Can’t get a mortgage

philologo

Please can anyone help....
I’ve got 2 derogatory comments from 2016 on my credit file that is affecting me getting a mortgage. One is due to an ARRANGED deferred payment when I moved house and jobs. I have raised a complaint with the FCA regarding this. The other is from the same time period, I was unable to strike up a payment plan I could afford through the transition period and fell behind. I have subsequently paid the balance off after eventually managing to come up with a plan I could afford, and met all payments regularly as required. I have no debt and make all my payments on time, and I have a credit card that I clear monthly. I have taken all steps advised and yet my credit score is either unmoving, or occasionally dropping. Last month it dropped by 4 points so I’m 3 points in ‘poor’, but I don’t know why. Every avenue I pursue to resolve this hits a brick wall. 

I have money in the bank and I’m in a ‘fortunate’ position to be able to put down a substantial deposit on a mortgage and still have money left, but ironically cannot get a mortgage agreed in principle. 

My partner is 50 next year - we rent. If we do not get a mortgage this year, it looks like we never will. 

I am not exaggerating when I say I feel we have no future ahead, am I destined to become destitute in retirement and drag my partner down with me? I feel like the worst thing that could befall me and my loved ones is for me to reach retirement age. 

Any advise would be hugely appreciated, I cannot stress how anxious this situation is making me. 

Thanks 

[Deleted User]

The arrangement sounds correct.  Your alternative would be a default but I would leave it.

The FCA also don't deal with customer complaints, so don't expect to hear anything back.

Your credit score isn't used in lending and is not a reflection of your credit worthiness, so it doesn't matter if it moves or not.

Use a broker if you have a patchy history.

AdrianC

philologo said:

I’ve got 2 derogatory comments from 2016 on my credit file

Ah, the mythical "credit file"...

...that is affecting me getting a mortgage. One is due to an ARRANGED deferred payment when I moved house and jobs. I have raised a complaint with the FCA regarding this.

What does the comment say that is not accurate?

If it merely says that you deferred payments, that is accurate.

The other is from the same time period, I was unable to strike up a payment plan I could afford through the transition period and fell behind. I have subsequently paid the balance off after eventually managing to come up with a plan I could afford, and met all payments regularly as required. I have no debt and make all my payments on time

...since the time when you didn't...

 Again, what does the comment say that is inaccurate?

I have taken all steps advised and yet my credit score is either unmoving, or occasionally dropping. Last month it dropped by 4 points so I’m 3 points in ‘poor’

And which particular semi-random-number generator produced this "score"?

I have money in the bank and I’m in a ‘fortunate’ position to be able to put down a substantial deposit on a mortgage and still have money left, but ironically cannot get a mortgage agreed in principle.

Because lenders are looking at your history, and seeing two previous occasions when you did not make payments according to the original contractual schedule.

My partner is 50 next year - we rent. If we do not get a mortgage this year, it looks like we never will.

And how old are you? Can your partner not get a mortgage on their own account either? Or would both incomes be required for affordability?

I am not exaggerating when I say I feel we have no future ahead, am I destined to become destitute in retirement and drag my partner down with me?

Yes, you are exaggerating.

Sure, you may not be a home-owner in your retirement, but that means a predictable expenditure and no surprise large bills when the roof falls through or the boiler explodes. It means paying rent instead of mortgage interest - with no worrying about interest rate rises. If you do become "destitute", then housing benefit will cover your rent. If you do face even a remote likelihood of retirement "destitution", then home ownership is almost certainly unwise anyway.

Crashy_Time

Liking that last paragraph, very balanced.

wilfred30

philologo said:

I have money in the bank and I’m in a ‘fortunate’ position to be able to put down a substantial deposit on a mortgage and still have money left 

I am not exaggerating when I say I feel we have no future ahead, am I destined to become destitute in retirement and drag my partner down with me?

Those two statements seem to be totally at odds with each other.  Exaggerating much!

ElephantBoy57

philologo said:

My partner is 50 next year - we rent. If we do not get a mortgage this year, it looks like we never will. 

I am not exaggerating when I say I feel we have no future ahead, am I destined to become destitute in retirement and drag my partner down with me? I feel like the worst thing that could befall me and my loved ones is for me to reach retirement age.

I got a mortgage when I was 54, because I had money from a pension. I am now 58 and single. I got a 10-year mortgage.

As you start thinking about retirement, you might start to think about all that money locked away in your house.

If your children do well, they don't want your money when you die, they just need support when you are alive.

Owning your own house allows you to do more things with it, lodgers or a loft extension; but it can be less stress renting.

kingstreet

Which lenders did you approach? Did you try to do this direct, or did you get professional help?

RelievedSheff

Have you approached a broker who deals with adverse credit?

We managed to get a mortgage last year and I had two CCJ's on my file at the time from 2015 and 2016, one satisfied and one unsatisified.

Granted it isn't the best rate in the world but it secured us the home that we wanted and the fixed rate was only for two years after which time we will remortgage to a mainstream lender at a much better rate. We are already a couple of months into our second rate of the fixed rate deal.

philologo

kingstreet said:

Which lenders did you approach? 

Did you try to do this direct, or did you get professional help?

So far we have only gone via our own high street banks. Initially via our online banking however I have called the mortgage advisor at my own bank and been advised that without remedying my credit score I will not get a mortgage through any ‘normal’ channel and may have to take a mortgage for those with a poor credit history. I’ve looked at these and they appear to cater for those in a far worse situation than my own, although to be honest I’m still nervous about getting caught up with some current-day  Northern Rock firm on forced term then end up anathema to any future lender when I want to switch after the fixed term is up. I hadn’t considered a broker. Any suggestions? 

philologo

RelievedSheff said:

Have you approached a broker who deals with adverse credit?

We managed to get a mortgage last year and I had two CCJ's on my file at the time from 2015 and 2016, one satisfied and one unsatisified.

Granted it isn't the best rate in the world but it secured us the home that we wanted and the fixed rate was only for two years after which time we will remortgage to a mainstream lender at a much better rate. We are already a couple of months into our second rate of the fixed rate deal.

Not yet, no. Good to hear from someone that has though. Are you finding that the rate is a lot higher? 

Can I ask how you found the broker you dealt with please? 

Crashy_Time

RelievedSheff said:

Have you approached a broker who deals with adverse credit?

We managed to get a mortgage last year and I had two CCJ's on my file at the time from 2015 and 2016, one satisfied and one unsatisified.

Granted it isn't the best rate in the world but it secured us the home that we wanted and the fixed rate was only for two years after which time we will remortgage to a mainstream lender at a much better rate. We are already a couple of months into our second rate of the fixed rate deal.

How do you know what the mortgage market will be like in the future?