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    • Jaywood89
    • By Jaywood89 6th Jan 18, 11:12 PM
    • 160Posts
    • 72Thanks
    Jaywood89
    Nightmare mortgage search!!
    • #1
    • 6th Jan 18, 11:12 PM
    Nightmare mortgage search!! 6th Jan 18 at 11:12 PM
    Iíll try to make this as easy to understand but it is quiet a complicated story

    So my partner and I are FTB. My partner had an Iva settled in October due to court fees from a custody battle for his kids 6 years ago. We used a broker because of this and a few odd late payments on my file.

    We only needed 30% LTV but the broker put us with a company called bluestones who had a 7% interest rate so payments would be £795 per month on £130000 but thatís still less than what my partner is paying in rent and heís never been late in the 11 years renting. Anyway we were declined by the underwriter on affordability, even with the broker offering for us to cut our outgoings by £500 by paying off a car loan and selling the cars it was still a no. We were devastated as we are about to exchange contracts and just couldnít believe they turned us down when thereís no real risk involved!! And after they delayed it 3 weeks by asking for more and more info

    ....so fast forward a week and the broker has decided to to apply in my name only as I have a Experian score of 973 (or did until the mortgage searches lowered it to 940) problem was they would only lend £11900 which is Do able but not ideal. I also work reduced hours while my daughter is under school age (sheís 1) but apparently they are happy to use my child benefit etc as Income so have agreed AIP. My worry is that when it goes to the underwriter the same will happen again even though the mortgage would be 25% of my monthly income. I have a car loan £10955!which I have agreed to pay off and 2 credit cards one at £0 and one at £1500 though this will be paid off this week.
    Iím worried as it has been Christmas thereís been a lot of spending on my accounts but I havenít gone over Drawn, just shopped a lot!. My account conduct has been good for the last 9 months but I had 2 late payments April last year as I forgot to pay on time due to stresses at home caring for my terminally ill mother. Never had defaults ccjs or the like.

    It did however occur to me that 8 years ago I had an account with Natwest that went to the FSA as they had applied £900 of charges and never contacted me once in the 2 years to tell me and if was obvious I didnít use the account. It was all wiped out in the end but Iím worried that will now show aswell on a deeper search and even tho it wasnít my fault in the end they wonít see it that way

    Overall Iím just panicking and need some honest and helpful advice on what to expect. So any feedback would be much appreciated
Page 2
    • Arklight
    • By Arklight 8th Jan 18, 10:34 AM
    • 1,252 Posts
    • 2,070 Thanks
    Arklight
    And yes all deposit is mine . Plus all other savings
    Originally posted by Jaywood89

    You've gone from needing a £130k mortgage to needing to borrow only £11900 in your post.


    If you can't get a mortgage for that amount I would probably apply for a few credit cards and put it on that.
    • Jaywood89
    • By Jaywood89 8th Jan 18, 11:41 AM
    • 160 Posts
    • 72 Thanks
    Jaywood89
    Thatís a typo sorry it was 119k
    • Arklight
    • By Arklight 8th Jan 18, 2:21 PM
    • 1,252 Posts
    • 2,070 Thanks
    Arklight
    Thatís a typo sorry it was 119k
    Originally posted by Jaywood89

    Okay, well going back to your initial question. Your default with Natwest from 9 years ago is outside the 6 years that these are held on your credit file, so even if Natwest didn't rectify it you should, probably, be okay.


    The two late payments from April will hurt your credit score. As you say in your OP that Bluestone have already done a credit search, obviously they do look at these, rather than just affordability as you believe, or your partner wouldn't have failed his.


    So what you can expect is at best to squeak through a mortgage application with Bluestone to borrow £119,000, which is you maxing out including benefit payments as income, at a whopping 7% interest rate.


    To put that into context, good credit mortgages for your LTV are around 1.3% from a high street lender for FTBs. I'm assuming that your mortgage is fixed for a 2 year term - over this time you'll be paying over £10,000 in excess interest to Bluestone than if you and your partner just waited until you could get better credit.


    Probably not what you want to hear but the most obvious solution to this is to not borrow £120k at a usurious rate of interest and use your, considerable, lump sum to purchase a smaller property, or flat, and live mortgage free for a few years.
    • Jaywood89
    • By Jaywood89 8th Jan 18, 3:47 PM
    • 160 Posts
    • 72 Thanks
    Jaywood89
    Thanks for the advice. A smaller property isnít possible due to having small children. Iím not prepared to have them all squeezed in one room when they have always had their own. Living quality is more important to me than owning a home.

    I did say in my previous posts that we are no longer working with bluestone but rather with just myself using Natwest who have given an AIP at a much better interest rate. We will just have to wait and see now
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