First time buyer help with mortgage

sunshine_and_rain

Hi
My daughter is looking to buy her first home and recently enquired at her bank, TSB, about a mortgage.  She was told she would be accepted but would need a 15% deposit, her brother was recently accepted with Nationwide and only needed 10%.  Daughter is on a much higher wage than son and both have no debt.  Daughter is currently renting, son still living at home awaiting completion of his first home.  We are trying to figure why she needs a higher deposit, all we can think of is she recently had Virgin Media installed and purchased car insurance paying monthly.  As both these would have had a credit search, could this be a reason?  Son has a credit card (pays in full every month) but daughter does not have a credit card.  We have been told this could be a reason, that she has no credit history (other than a mobile phone).  Would it harm or help her credit score for a mortgage if she applied for a credit card?  TSB advised to leave her application for a few months and try again, she has only tried the TSB, no other brokers.  Any advice would be appreciated.  Thank you

mi-key

sunshine_and_rain said:

Hi
My daughter is looking to buy her first home and recently enquired at her bank, TSB, about a mortgage.  She was told she would be accepted but would need a 15% deposit, her brother was recently accepted with Nationwide and only needed 10%.  Daughter is on a much higher wage than son and both have no debt.  Daughter is currently renting, son still living at home awaiting completion of his first home.  We are trying to figure why she needs a higher deposit, all we can think of is she recently had Virgin Media installed and purchased car insurance paying monthly.  As both these would have had a credit search, could this be a reason?  Son has a credit card (pays in full every month) but daughter does not have a credit card.  We have been told this could be a reason, that she has no credit history (other than a mobile phone).  Would it harm or help her credit score for a mortgage if she applied for a credit card?  TSB advised to leave her application for a few months and try again, she has only tried the TSB, no other brokers.  Any advice would be appreciated.  Thank you

Go and see an independent mortgage advisor rather than a high street lender. They have access to many more lenders and can probably sort out a better deal for her anyway, and also will know which lenders will take a 10% deposit.

High street lenders are very limited in what they can offer, and also less flexible than smaller building societies etc..

ACG

There will be so many different factors:
Income,
Length of time with employer,
Address history (son has presumably been at home longer than daughter has been in current address),
Where did deposit come from (savings look better than gift),
Are you stretching affordability,
Lenders calculation,
Lenders risk appetite (this changes and potentially could have tightened up since your son applied)....

The list is endless.

All of them will be weighted differently depending on the lenders algorithm. There is no point trying to work it out, it is what it is. 
Your daughter might be able to go to a different lender and get 90%. 

housebuyer143

Each lender has different criteria, different deposit amounts etc. Not all banks do 90% loan to value, nationwide happen to be one that do, TSB probably not. It probably has nothing to do with her personally, it's just the bank you chose to go with. 

Go and see a broker and they will find the best deals.

sunshine_and_rain

Thank you all for your help, will suggest she tries a broker and see what they say