First Time Buyers - Declined Mortgage

QA5IS

Me and my GF are both first time buyers. We found a house we like for £90,000 and went to a mortgage broker for advice. As we have no deposit and lenders are pulling 100%s he suggested a 95% vendor gifted deposit. Sounded great and the sellers agreed so the offer was accepted and everything started going ahead, he found us a good deal with Halifax and said everything was agreed in principle, he took everything he needed (I.D, wage slips, statements etc) this was March 18th. in the following days we recieved letters and forms from solicitors and life and home insurance forms. We completed these and sent them back, keeping in touch with the broker who kept on reasurring us Halifax had everything they needed and we were just awaiting an application for the valuation, sounded promising. 3 weeks later however on 9th April I recieved a text to say Halifax had declined our application down to adverse credit, he said not to worry he had got 2 more lenders in mind that he was sure would be fine, Bank of Scotland and then Birmingham Midshires as a last chance option, obviosley not such good deals but we really want the house. But both declined us, un-acceptable adverse credit as the reason.
So I decided to check experian for both of us and mine is fine, a couple of late payments but months ago and my GF has got a mobile contract that she ran into arrears with, up to 6 payments late, this has since been settled (early December 07') and didn't default.
Is there anything we can do? we've started packing and making arrangments for the move including giving our landlord notice as we thought we had the mortgage but now it looks like we are gonna lose the house and have to find somewhere else to rent.
Thanks in advance
Chris

vwjo

I can't help Chris, but I just wanted to say I hope someone can.... We're ftb'rs who've just started on this process, and your scenario is the one in my nightmares at the mo.... I hope you get it sorted - best of best wishes....

LillyJ

Wow that is scary. We are in a similar position with Halifax, waiting for the survey to come back. We didn't even have to show pay slips or anything as Halifax said we were low risk. They said they had run us through a credit check already so I am shocked that this can happen!
A bit worried now. Sorry I can't help but someone will be along soon who can I am sure. Good luck!

dimbo61

contact you landlord on monday and ask if you can stay then wait and see
if he or she wants you out or wants to up the rent, how is the rental market in your area ? have you been good tenants ?
start saving to build up a 5/10% deposit
contact the phone company to ask if they will write to the credit reference
agencies to clear the black mark on your gf credit report.
most important is to save as much as you can afford into ISA,s which pay
up to 6.5% barclays at the moment GOOD LUCK

dimbo61

never give notice untill you have exchanged contracts and mortgage is in place.
better to pay one months extra rent than fall into this problem again.

QA5IS

Thanks to everyone so far for your replys, it's looking like we are going to have to rent for a little while longer. It's difficult to take when you thought you had the house and then it's just taken away like that, plans and ideas go straight out the window. I'm going to contact the broker tomorrow to see if he's got any more ideas but can't see it happening now.

Thanks again!

neas

Aye for the cost of a months rent you risk alot.

Cancel getting a mortgage your adverse credit will need to be recovered.... Hard lesson learned. Not much you can do about it, lenders have deemed you a bad risk... at a high LTV.

Use credit cards for everything PAY them off in full every month... Dont apply for a mortgage for another year... i doubt any mortgage company will offer you a mortgage... I think it negatively impacts your credit score every time you are turned down also.

Not the good news you want to hear but as a consolation... buying now would be stupid... house prices are dropping, in a year when you've recovered your credit prices would have dropped to save you the amount you'd pay on rent... And you'd be able to try and get the best deal.

neas

You have to ask yourself though put yourself in the lenders shoes

Your OH 'forgot' to pay 6 MONTHs of credit.... this is really bad and really negligent. They need evidence of you being good people to lend to, Can you really afford a mortgage if you are struggling with a mobile phone bill?

Only playing devils advocate (no disrepct meant)

poppy10_2

QA5IS wrote: »

As we have no deposit and lenders are pulling 100%s he suggested a 95% vendor gifted deposit.

Yet another mortgage broker advocating fraud. So sad.

mpsavuk

A couple couple of late payments showing on your Experian file is anything but "fine" in this climate. Lenders `are looking for any reason not to lend money and it looks like they found a few reasons between you and your GF's credit history.

Lavendyr

Sounds like you don't have a deposit either, I would seriously recommend renting for a while and saving up a decent deposit before going in again.