Can’t get a mortgage

Crashy_Time

philologo said:

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? 

Best bet is to fix your credit score and wait to see what happens, any particular reason you must buy at one of the most financially fragile moments in living memory?

philologo

AdrianC said:

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 

Re: the first query, I knew I was moving house and changing job within the same month, with a 6 week wait for my next payslip and removal costs to cover at short notice. I called the company and requested a month deferral. They agreed. I have had the SAR and this confirmed the call took place and the arrangement agreed. This is not a default.  

I am 45, so I can afford to wait a couple of years for the records to drop off. I have been advised there is a possibility of a mortgage for less than 20 years. It may be this is our only option as yes, we need both incomes for a joint mortgage - ideally. I earn the greater salary, however that doesn’t help in the immediate. 

While I agree about costs, in the meantime I can leave a lump sum in bank and hope nothing befalls us that chips away at it....recession? Redundancy? 

Lastly - destitution in retirement...what if I reach retirement and I still have a healthy sum in the bank, but I’m still renting? It’s not a great stretch of the imagination to see what could (indeed, would) happen.  

philologo

ElephantBoy57 said:

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.

Thanks...like most things renting has pros and cons. For me, the cons out-weigh the pros. Encouraging to hear you got a mortgage at 54. Can I ask where you got your mortgage please? 

ElephantBoy57

philologo said:

Thanks...like most things renting has pros and cons. For me, the cons out-weigh the pros. Encouraging to hear you got a mortgage at 54. Can I ask where you got your mortgage please? 

I got a mortgage with Nationwide.

[Deleted User]

philologo said:

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? 

You’re not a straightforward vanilla case so unless you’re prepared to do a lot of research into each lenders’ criteria you should engage a broker. There are a few who regularly post on the Mortgages & Endowments board you can approach or you could ask friends and family for a recommendation. 

MovingForwards

I picked up my specialist adverse broker from MSE, after reading his posts, having an open conversation, taking it to messaging then via email / phone.

I've been in my own home for nearly 2 months.

A good broker is the difference between getting a mortgage or being rejected.

philologo

MovingForwards said:

I picked up my specialist adverse broker from MSE, after reading his posts, having an open conversation, taking it to messaging then via email / phone.

I've been in my own home for nearly 2 months.

A good broker is the difference between getting a mortgage or being rejected.

Thanks 

AdrianC

philologo said:

AdrianC said:

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.

Re: the first query, I knew I was moving house and changing job within the same month, with a 6 week wait for my next payslip and removal costs to cover at short notice. I called the company and requested a month deferral. They agreed. I have had the SAR and this confirmed the call took place and the arrangement agreed. This is not a default.

Does the comment say it is? Or merely that it is what it is - an agreed deferral?

Lastly - destitution in retirement...what if I reach retirement and I still have a healthy sum in the bank, but I’m still renting? It’s not a great stretch of the imagination to see what could (indeed, would) happen.

Then you either keep your total expenditure within your pension income, or you gradually spend your lump sum up until you become eligible for means-tested benefits such as pension credit, housing benefit, etc.

That's not the same as "destitution". Somewhere around half of all pensioners are in receipt of pension credit. Are they all "destitute"?

jamielutz1987

philologo said:

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? 

You should talk to a broker - a normal one first and if they can't help, a specialist one next. There is absolutely nothing to be gained by DIYing this. With all due respect, you can safely ignore the "mortgage adviser" at your bank, they are hardly likely to be experts in the whole of market.

Get a mortgage at a rate that you can afford, work hard to overpay/build equity and before you know it it will be 2022 when your 2016 adverse drops off the credit report and you can hopefully remortgage if needed.

I completely understand your desire to buy and wish you the very best! Speak to a broker

MovingForwards

Even specialist brokers do a lot of 'normal' mortgage applications, mine does more 'normal' than 'adverse', so he knows which 'normal' lender will accept what 'adverse', looks at those before even considering 'adverse' lenders and discusses options before getting the clients approval to request a DIP.