First Time Buyers - Declined Mortgage

neas

To me saving for a deposit is like a test to see if you can afford a mortgage and house... if you are able to scrimp and save at a reaonsble rate then you know you have excess income that can buffet you against potential increases in mortgage rates down the line... I'd also fix for 5 years in this climate just to ensure you can get enough equity in the house before you have to remortgage.. you might end paying a bit more but you will have piece of mind for 5 years.

LillyJ

I still thought this shouldn't happen? Because Halifax said they did the credit check there and then. Luckily we don't have adverse credit at all, and a 10% deposit but now I am worried this could happen to us? I suppose we are lower risk though (in fact they tried to give us double what we asked for - which seems strange at the moment, especially with not asking for proof of income)

Tiddler_2

poppy10 wrote: »

Yet another mortgage broker advocating fraud. So sad.

Poppy, It's not a fraud, as long as it is declared to the mortgage company, some of them will accept this. It is only the same as a builder giving some one their deposit.

The mortgage company's valuer then confirms what he feels the valuation of the property is, as long as the value hasn't been inflated to get this deposit, then there is no problem.

With regards to the OP's situation, it is very rare for the Halifax to change their mind on a decision, from a pass to a fail unless something was not keyed correctly, such as middle names missed out or date of birth incorrect. The only other thing is if they have asked for your last 3 months bank statements and something has appeared on them. They do usually ask for these on a "C pass".

Puma21_2

Your broker could try Kennsignton or GE money...both a little bit expensive but certainly Kennsington may offer 95% if no defaults in last 3 years.

All the best with this.

MortgageMamma

Don't lose heart. There are a lot of other lenders who accept vendor gifted deposits - I have a PDF with them all listed. I'm not sure how many of them are still in the 95% market though. would you like me to send it to you?

MortgageMamma

poppy10 wrote: »

Yet another mortgage broker advocating fraud. So sad.

For Gods sake poppy if you insist on keep having a pop at Mortgage Brokers at least swot up and know your stuff - I've seen you do this a couple of times and be corrected by non-brokers now. Must be a bit embarassing for you, I know kick the broker community is quite a fashionable pusuit for some on these boards, but why on earth do you keep doing it?!!!

ffacoffipawb

QA5IS wrote: »

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

Interesting that all 3 companies are part of Halifax Bank Of Scotland plc!

MortgageMamma

well spotted I missed that !

Dan_Collins_2

poppy10 wrote: »

Yet another mortgage broker advocating fraud. So sad.

Poppy10 its not fraud but is open to fraud, get your facts right! I think it should be banned or be regulated in some way but again it is not fraud and you cannot blame the broker. PLease unless you have a good cash, shut up with your broker bashing!

However to the OP - Kensington have run out of cash, so you may be out of luck for this month! First National are lending still but you pay higher rates, not sure if they are in the 95% with vendors game though.

To be honest if you score is to low you may be out of luck. I would save for a little longer.

QA5IS

Ive just checked experian and noticed that when Halifax did there search they put that we'd been living at this address for 24 YEARS! I'm 23 and my girlfriends 21. We've been here for 2 Years 9 Months. Would this affect their decision?

Also to Tiddler - the statements wouldn't have been an issue I dont think. We were up front about everything we pay out and salary, Whats a 'C pass' also. Thanks