Any hope? Declined after mortgage interview application

Thrugelmir

Lenders obtain datasets from the Credit Reference Agencies. From this they can ascertain how an individual manages their personal financial affairs over a full 6 year - 72 month period. 

If your bills are lower than they would normally be. Why the constant running up of an overdraft?  Spending needs to be reigned in and better budgeting applied. 

theoretica

It seems to me you have relatively little to lose by continuing and seeing what Halifax say.  If they say no you will need to spend a while more saving which will give time for the extra search on your credit file to sink into the past.

Hopeful_FTB

@theoretica
This is also a good point. I guess we can ask the same question to the Halifax advisor on Wednesday and see if they think we should apply or not, as they are already very aware of the debt and we still managed to get the DIP. As you say, we don't have much to lose and if we don't get anywhere again then we just save up more/clear the debts and try again later down the line. 
Thank you for your help.

Hopeful_FTB

@MWT
Ok. I think the better option for us would be to live with family for now and ensure that the debts are cleared/savings increasing. This will be much more doable/quicker than if we were renting. 
I appreciate all your help. 

MovingForwards

Speak with a good whole of market mortgage broker, they will go through everything and look to place you with the right lender.
Trying to DIY when your OHs history and financial management isn't straightforward.

There are a few brokers who post on these boards, I picked mine based on how he replied to queries, other members have used him and the other brokers, in case you don't know of a good one.

It's going to save you both a lot of time and effort.

ACG

It sounds like there was nothing particular, just a combination of little things and with a 5% deposit (technically) they can afford to be fussy because there are no alternatives. 

The living in an overdraft will probably be the biggest of issues. The other things you mention are over 12 months old, so whilst they probably play a part in painting an overall picture, they are not current and you have broken the cycle so to speak of pay day loans. 

You are now applying with a 15% deposit to a more flexible lender. I cant guarantee the outcome, but there has to be a better chance of a positive result. 

Hopeful_FTB

@ACG
Thank you, this has given us a little hope. Our plan is to try with Halifax with 15% (call with broker on Wednesday to discuss obtained DIP). If we don't get anywhere we will spend the next months ensuring my partner isn't in his overdraft, paying off the student overdraft and credit card and save some more! 
Thanks

pearsforlife

Your partner isn’t really earning enough to properly service those sort of debts sadly. Been there before and it’s a bit of a hole. A mortgage is probably doable due to your history though. 

MWT

Hopeful_FTB said:

@ACG
Thank you, this has given us a little hope. Our plan is to try with Halifax with 15% (call with broker on Wednesday to discuss obtained DIP). If we don't get anywhere we will spend the next months ensuring my partner isn't in his overdraft, paying off the student overdraft and credit card and save some more! 
Thanks

I hope it all works out for you, just be really sure you can pay the mortgage and clear up your partners debts at the same time, not just make the minimum payments, or that 0% student loan is going to be coming off the 0% rate before you know it......

Hopeful_FTB

@MWT
Thank you! Let's see what Halifax advise tomorrow and if we can't get the mortgage we will leave it until we have my partners debts cleared up and we are less of a risk to lenders. Thank you for all help with this.