Declined - why - HELP

patchwork_cat

In my experience and I am not a mortgage broker like the other posters in the affordability calcualtor if debt is on credit cards they take a very high monthly payment figure. In our situation with 8K on credit card we could borrow about 30k less on the mortgage! I would be very wary at borrowing over 100% of house value in todays market.

Dan_Collins_2

They use either 3% or 5% of the balance as a monthly payment. NR ignore credit cards but they have poor rates now.

Well the mortgage is 95% and the unsecured is the rest, but I get your point patchwork Iwould not buy at 100% currently, although sometimes its hobsons!

dp2807

Hi, I am in the same position where I got declined by BM - 100% Mortgage with unsecured loan to incorporate 5% deposit and pay of outstanding loans - I got hold of my credit file from Experian online but mine shows as poor! - after checking the details I have a phone company saying I was in arreas or £52 although the contract finished last June and I haven't had any requests for outstanding monies - the other is my bleeding catalogue - I was in dispute with them about a product and we finally agreed to make reduced payments however this shows as arrears (because I am not paying full amount?) Help - If I paid these off, would this help me?

MortgageMamma

what is your residency status? are you a UK national or do you have indefinate leave to remain? what type of a property are you buying? how old are you and how long did you want the mortgage for? these are all common things that can throw a mortgage decision out.

Give me some more info, I might be able to help

MM

sassybooboos

we have also just been turned down by bm who we have our current mortgage of £142000 and we now wnat £78000. but they still turned us down.

get a broker they will be able to search the whole market and advice you.
try a mortgage now they have been really good for us.

Commonsensesearcher

Looking at this as an outsider I'd say BM have done the OP a huge favour. Not one person has asked why the OP had racked up the huge CC bill and what change in circumstances mean that they won't have to once again rely on CC spending whilst paying a mortgage? The 'windfall' (i.e. one off event) may clear part and the rest is being rolled into another debt - doesn't exactly shout increasing financial stability.

To the OP - you can generally (dependent on area) rent for cheaper than IO on the mortgage and this will give you breathing space to pay off as much as possible of your CC debt. The market is NOT looking good at all and could well be (i.e worth looking into) that the drop in prices will be more than you pay in rent over the next 6 months. You need to analyse properly the reasons for racking the CC bill up in the first place and make changes such that you can manage without the CC in the future. You'll also be in a far better position in front of potential lenders in future if you can prove how you've turned your financial situation around.

And finally, could it be that the lenders will not take into account the windfall you say you will use to pay off some of the CC bill until yo've actually done it???

ixwood

I agree, you'd be mad to go through with that plan IMO. Get your spending/finances in iorder 1st maybe and then look again in a year when the markets probably going to be cheaper (and very likley not to be higher at least).

NinaSwiss

mkfruitcake wrote: »

i have just come back from my mortgage broker and have been declined for a mortgage i can not belive it, apprantly declined due to credit score and something else?!

i have no ccj or defults good salary etc
i do have a big amount of debt - but this is being paid off by the end of the month, i do not no what to do!
i have put in an offer for a house and everything


why would they decline me????? they even took on people with ccj and defaults, i have credit my credit file and it all seems ok?

HELP

OP
I know you say you earn a good salary...but what is the income multiple on the amount you want to borrow?

Im not sure if i missed it somewhere else on this thread but Im also assuming this is to be taken into account with all the advice thats been given.

Conrad

Why is some ftbs can quite happily save a 5% deposit and others find it impossible!

All you gotta do is stop buying lunches and magazines, spent max £20pm on mobile (as I do despite running my own business), dont buy cds, dont buy gadgets, dont buy any clothes (fashion setters are by definition unfashionable for a time until others catch on), dont have takeaways, dont buy expensive hair products etc etc.

It aint rocket science

Martin_Moore

Most 100% plus mortgage deals have been withdrawn. Or have to be fully packaged in the next few days.

Northern Rock, Coventry, Birmingham Midshires, Alliance + Leicester have all withdrawn.

Only a few 100% 5 year products are left Mortgage Express and The Mortgage Works.

Only a matter of time perhaps until all 100% deals will disappear.