Need a mortgage ,been refused twice

needamortgage_2

Hi can anyone help ?

I need a mortgage i do have bad credit ,and have been refused twice recently .

I have been told that its due to the present credit crunch, but i really do need to move,

I believe that a lot of lenders are not even considering buyers on Debt management plans at the moment, is there any hope out there ?

would really appreciate honest straightforward replies

Many thanks

_Andy_

There are plenty of adverse lenders / products on the market.

You haven't given any detail so the only constructive thing I can offer at the moment would be to get hold of your Experian or Equifax file and get some advice from a fee-free whole of market mortgage broker.

needamortgage_2

hi thanks for your reply,

Yes i know and i have contacted quite a lot ,who say sorry :-( cant help you at the moment. I really do appreciate their honesty,but it doesnt much help me

Have tried to find a broker that covers the whole market ,but am constantly finding that a lot are tied in with the same lenders and they usually are the ones that i have been refused with.

The lenders that refused me said it was due to affordibility but the broker said that although with my debts that i was more than able to afford the payments ? so that was very confusing to say the least .

I do really need to move.

Maybe im just right at the bottom of the queue in the eyes of lenders ,and i know thats purely down to the markets ,but i thought i would post on here and thought that a miracle could happen !:T

Conrad

How much do you owe under the DMP?

What is the monthly payment?

Any defaults / ccjs / arrears, if so how much and when?

How much are you borrowing - 95% - 75%?

needamortgage_2

hi ,

Its approx £51,000, £100 a month

yes there are defaults ,dont know how many but most of them occured 5 years ago

Hoping to borrow about 85% i think

I think this is whats hampering me really :-(

HelpWhereIcan

What income do you have?

How much are you looking to borrow?

luckyfool

Your Defaults - if most of these are 5 years ago, then you might not have too bad a credit score and this may mean that one or two options are open.

There are a couple of lenders that might be able to assist if you pass their Credit Score for 85% - Igroup and First National (effectively the same lender as both are owned by GE Money).

Your main issue is that most sub prime lenders that will still offer 85% are now credit scoring to weed out the highest risk applicants, especially for the higher loan to value applications.
FN and IGroup will use your Debt Management Plan payments in their affordability calculations, whereas increasing numbers of sub prime lenders will now use your contractual payments even if you have negotiated a reduced amount. These lenders operate a Debt to Income Ratio, which is currently the most generous in the market so if they cannot lend enough then nobody will.

e.g. First National would use a monthly outgoing of £100, some other lenders would use the payments you "should" be making to those lenders, let's say £1,500 a month (3% of the balance).

I really cannot see any other lender going to 85% for you, and if you have already had a broker try these routes (FN/IGroup) then you are going to struggle to get that loan size. If you haven't had a specialised broker look at these options for you then you should get in touch with one and see what is available to you,

Best of luck,

Luckyfool/Joe

luckyfool

needamortgage wrote: »

hi ,

Its approx £51,000, £100 a month

yes there are defaults ,dont know how many but most of them occured 5 years ago

Hoping to borrow about 85% i think

I think this is whats hampering me really :-(

Do you have a mortgage currently or recently?

If so, is it and was it well conducted?

Have you had any missed or late payments in the last 6/12/24 months? If so how many?

Dan_Collins_2

To be honest they are doing the right thing. I am not judging you and I know this is not what you want to hear.

However if you break the arrangements in place for any reason the lenders you owe money to will stop the arrangement and you may have to start paying the original payments.

Lenders have been burnt in the US, they thought that people would pay the mortgage and not the unsecured if things went wrong.

If affordability is tight and your on a DMP then what happens if that goes wrong. I think you would have got this a year ago but I dont think you will now.

needamortgage_2

hi thanks for all the replies,

help where i can, approx £23,000 joint income,looking to borrow £73,000

luckyfool:: they were the two ,and do have a mortgage,it is well conducted ,no late payments or missed payments ever.

dan:: i know youre not judging, well the thing is the savings we would make on petrol were going towards the mortgage payment ,so we wouldnt have been having to look for that extra each month,

Thats one of the reasons for moving, there are other reasons,we did try a year ago but there was nothing on the market in my area that we could have afforded until now,

I will keep trying ,but i think theres no hope left really :-( Will keep trying though

Thanks everyone

Gorgeous_George

You say that you need a mortgage. I think that you need to rent.

It should take away so much stress and with your financial status, may make a lot more sense. Sort your finances and buy when things improve.

GG