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  • FIRST POST
    • axel132132
    • By axel132132 7th Jan 18, 1:43 PM
    • 98Posts
    • 11Thanks
    axel132132
    Mortgage Declined - Broker
    • #1
    • 7th Jan 18, 1:43 PM
    Mortgage Declined - Broker 7th Jan 18 at 1:43 PM
    So, i have been looking at a home a new build from harron homes. They have told us we have to use there broker to start with to get a decision in principle but can use our own bank etc if needs be.

    So the broker rang and told us that our mortgage has been declined and Halifax have said they wouldn't even lend us 10k.

    Our broker has said that he used Halifax and Skipton, and that he is going to try an 85% mortgage now not 90%ltv. We sent him our noddle credit score and this is the information he said was bad about them.


    David!!!8217;s report !!!8211;
    You are over 75% of your credit card limit.
    Over your credit card limit in the last 12 months
    Undisclosed credit commitment with Secure Trust Bank for £27 per month.
    Undisclosed credit commitment with Rate Setter for £24 per month.
    In your over draft for the last 3 months.
    Default with O2 for £6 is July!!!8217;12 and Satisfied in August!!!8217;14.

    -------------------------

    Since this on Friday, i have totally paid and closed Secure Trust Bank and totally paid and closed Rate Setter. Nothing i can do about over draft. I also on Monday will be lowering my credit card to below 50%. The default to 02 is an error and i have emailed noddle saying this is a error and will be rining o2 to get this removed.

    Ashleigh!!!8217;s report -
    Still has everything registered at previous address. Various other linked address not disclosed.
    Undisclosed credit card with Capital one. Over the limit on credit card in August.
    Default with Vanquis issued in Sept satisfied this month for £474.
    Default with Lowell for Telecomms for £692. Issued December!!!8217;15 satisfied in July 2017
    Default with Lowell for Mail order for £139. Issued April!!!8217;13 satisfied in Jan 2017
    4 payday loans

    -----------------------------------

    Since this we have set everything of ashleighs into current address
    Nothing we can do about over limit on credit
    Default was her mum taking loan out in her name - nothing we can do unless we want her mum to goto prison
    Lowell - Apparently Ashleigh says vodaphone made an error but she paid it anyway
    Lowell - Avon... This is legit, some reason she didn't pay them and has paid them recently
    payday loans - no idea why she got these but she never mentioned to me otherwise i would have told her to stop being so stupid paying 1000000000000000000% APR but anyway whats done is done.


    He has said its not the affordability that's the issue he said we can easily afford, its the credit files.

    Anyway since then (Friday) i have heard nothing as he obviously not at work on the weekend so I've been doing a lot of research online. Most of which is from this website and this forum.. Infact all of which is from here.

    So i see some credit companies banks etc use certain credit references only.

    Mine and My partners score are as followed on each:

    CallCredit (Noddle) - 1/5 and 1/5 (around 550 score both in red)

    Experian (Experian) - 964/999 (excellent) for me and 555/999 (Very poor (Borderline poor) for my partner.

    Equifax (Clearscore) - 459/700 for me and 402/700 for partner


    I read on here a few things 1) if you get a no STOP!! shouldn't my broker know this he said he is doing DIP and only doing soft searches so wont affect me.

    My other things i have read is that some lenders only use certain credit agencies to view your score. Now as he said Halifax said no they use Experian. Also my GF banks with Halifax and that may be the reason they said no.

    Would you suggest i try look at a lender who uses only Equifax as we are both bang average with Equifax OR should we try one with Experian being I'm Excellent and she is Very Poor or will the Very Poor put lenders of us even tho i am excellent.

    Or is it worth seeing if i can get the mortgage soley in my name and use an Experian lender as i am Excellent with them.

    The loan we are looking for is 295995, the deposit will be 35000. so roughly a 12% deposit so 88% LTV.

    I earn 32k standard with around 30k overtime and 2k bonus
    she earns 20k standard with around 8k overtime no bonus

    Outgoings I'm looking at 399 a month for my car and 40 a month for my phone

    she is looking at 210 for her car and 13 for phone


    Thanks for your help and support and time reading this post :-)
    Last edited by axel132132; 07-01-2018 at 1:49 PM.
Page 1
    • CommitedToChange
    • By CommitedToChange 7th Jan 18, 1:49 PM
    • 1,289 Posts
    • 4,022 Thanks
    CommitedToChange
    • #2
    • 7th Jan 18, 1:49 PM
    • #2
    • 7th Jan 18, 1:49 PM
    Ignore your credit numbers - they mean nothing.

    This issue I see is with the defaults and payday loans and use of overdraft on your files.

    Is your broker used to dealing with adverse credit as that is what you need.
    Attempting to buy a house
    • CommitedToChange
    • By CommitedToChange 7th Jan 18, 1:51 PM
    • 1,289 Posts
    • 4,022 Thanks
    CommitedToChange
    • #3
    • 7th Jan 18, 1:51 PM
    • #3
    • 7th Jan 18, 1:51 PM
    Are the defaults/overdrafts/payday loans on all your credit reports?

    You need to get the full report from equifax and expedian to see what they say and ignore the numbers
    Attempting to buy a house
    • amnblog
    • By amnblog 7th Jan 18, 2:47 PM
    • 10,551 Posts
    • 4,172 Thanks
    amnblog
    • #4
    • 7th Jan 18, 2:47 PM
    • #4
    • 7th Jan 18, 2:47 PM
    Two issues jump out here David.

    1. Your Broker does not know what he/she is doing with a case such as yours. An experienced Broker will check all 3 credit files before taking any action. Using Halifax to see what happens is a hit and hope approach.

    2. Your deposit is likely to be too modest given your credit history.

    An alternative, a suitably experienced broker is in order.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 7th Jan 18, 3:08 PM
    • 33,552 Posts
    • 18,192 Thanks
    kingstreet
    • #5
    • 7th Jan 18, 3:08 PM
    • #5
    • 7th Jan 18, 3:08 PM
    As many lenders won't exceed 85% on a newbuild house, or 75% on a newbuild flat, for them, your deposit is too small. That's why Halifax and Skipton have been selected so far.

    You have limited lender options for this reason. When they are added to the reported credit issues, your options are going to be severely restricted.

    You will need the help of an experienced broker here.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • axel132132
    • By axel132132 7th Jan 18, 3:20 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    • #6
    • 7th Jan 18, 3:20 PM
    • #6
    • 7th Jan 18, 3:20 PM
    Ahh i see, He mentioned that harron may be able to give an additional 5% deposit contribution making it a 85% LTV,

    He said he will check a lender called Precise at a 85% LTV.

    The slight issue i am having is, harron homes are doing a part exchange for my old home. They are saying they cant book a part exchange in without a DIP. I cant then guarantee they will give a 5% deposit contribution in order to get me into the home. But without the DIP I'm at a standstill as they wont do anything.

    Ive just looked at HSBC online, they can do a DIP and use Experian. Experian is the file i have the 964/999 on - Is it worth me downloading my file from Experian. I did a check on HSBC and they say i can get the mortgage on my own. Well they did some chart thing i didn't understand but as below it it said apply for DIP, I'm assuming that meant i can afford it. I didn't want to do a DIP without first asking as i don't want to ruin my chances by applying or searching for too much credit.

    So basically i might be able to get 85% LTV. If harron were to gift 5% which they must be able to do if he is suggesting this method as Evolve work directly with harron homes. Then it would be 295995 with a 44399 deposit to make it 85% LTV (If my maths is correct) I have 35k deposit and therefore harron only need to give 10K which is about a 3.5% deposit contribution and i think worst case i may be able to borrow some of my mum as a GIFTED deposit.

    So is it worth just trying a HSBC DIP using a 85% LTV (I read aswell that martin says if 85% deposit is 15k put down 15100 to increase chances)

    Atm I'm living with my mum, in reality i can save with my GF about £1500 a month. So if i get a DIP for 85% the home has only just had the footings put down and therefore i recon at least 3-6 months wait for the home to be built that's 4500-9000 extra i could have for the deposit myself without borrowing / gifted deposit so i think it could be a reality. I could also make some extreme changes in my spending and do some mega saving and save more.

    Sorry for all the essays I'm desperate! :-D
    • axel132132
    • By axel132132 7th Jan 18, 3:43 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    • #7
    • 7th Jan 18, 3:43 PM
    • #7
    • 7th Jan 18, 3:43 PM
    Just did a calculator online HSBC website, says i can get £299000 on my own. Maybe this is the route, get the mortgage DIP from HSBC on my own as i can afford clearly, my mrs would be happy either way. Put a 85% LTV. I could fix this for 5 years. Then work hard to sort out our credit scores and apply in both our names in 5 years time.
    • getmore4less
    • By getmore4less 7th Jan 18, 3:56 PM
    • 32,180 Posts
    • 19,336 Thanks
    getmore4less
    • #8
    • 7th Jan 18, 3:56 PM
    • #8
    • 7th Jan 18, 3:56 PM
    £296k
    Base £52k 5.7x
    Max £92k 3.2x

    before you take off the commitments..

    You are over 75% of your credit card limit.


    How much is the 50% you can get to and the OD.


    How will a 85% application be any use if you don't have the deposit?
    • Thrugelmir
    • By Thrugelmir 7th Jan 18, 4:32 PM
    • 58,914 Posts
    • 52,233 Thanks
    Thrugelmir
    • #9
    • 7th Jan 18, 4:32 PM
    • #9
    • 7th Jan 18, 4:32 PM
    So is it worth just trying a HSBC DIP using a 85% LTV (I read aswell that martin says if 85% deposit is 15k put down 15100 to increase chances)
    Originally posted by axel132132
    HSBC are amongst some of the most consersative risk adverse lenders in the market.

    He has said its not the affordability that's the issue he said we can easily afford, its the credit files.
    Your credit history is extremely important. As enables lenders to profile you as a potential borrower. Mortgages are a long term borrowing commitment. A history of overlimit credit limit usage, payday loans, overdraft usage and unsettled defaults doesn't paint a good picture. Despite a joint household income of circa £84k a year. Concern for an underwriter is that you now wish to borrow an extremely large amount of money. With no indication that you can manage your personal finances well.

    Never forget that time does heal. Onus is on you to address the underlying issues that are causing the problems.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • TheBanker
    • By TheBanker 7th Jan 18, 4:37 PM
    • 618 Posts
    • 1,562 Thanks
    TheBanker
    Have you checked your actual credit files with Experian and Equifax? Not the scores but the details of the accounts being reported. Different lenders do report to different agencies, but given the number of undisclosed accounts, accounts registered at incorrect addresses and defaults I would be surprised if these reports are any better.

    I believe HSBC are one of the stricter lenders. Not sure how they will view your credit history.
    Make £10 a day challenge: Jan-18: £330 / £400
    • getmore4less
    • By getmore4less 7th Jan 18, 5:02 PM
    • 32,180 Posts
    • 19,336 Thanks
    getmore4less
    harron homes are doing a part exchange for my old home
    what the status of that if you are living at home now.

    Any missed/late payments on that.

    What's your net asset/debt position

    Do you have any cash, or it all coming from the existing property
    • axel132132
    • By axel132132 7th Jan 18, 6:10 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    My house is paid every month, no missed payments etc. (Ex is it in atm leaving hopefully February)

    The house is worth 130k and mortgage is 90k so 40k profit but I'm giving her 7k to leave so 33k profit. Right now we have about 3k cash. BUT by the time the house is built it will be hopefully around 10-15k as we are in major saving mode!

    This is where the deposit will be coming from, so if i pay everything off so all that's on my credit is my car. Surely this will help, is it worth trying to get a DIP with them at the end of the month? If they say no, then we can work on waiting 3 months and work on our credit.

    The slight issue we have is availability of the homes for sale, we want a certain house which is in the position that its in if that makes sense. I feel after January people will begin to look again. ATM there very quite as they emailed me saying they are quite and hoping they don't sell the home.

    This is why I'm trying to get a DIP asap so i can crack on, as if we have a DIP they can put the house on hold for us.

    So basically, if i pay my cards of (Well my mum) then on my file i just have my car, but ill still have them in overdraft, then hopefully when we ask for a DIP soley in my name we will get this. Then the house is to take about 4-6months to build, in that 4-6 month i can make sure i do not enter my overdraft so when they do the actual mortgage then it will look a lot better?

    Cheers
    • axel132132
    • By axel132132 8th Jan 18, 2:40 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    My mortgage broker says its a v good idea to do experian only on my own mortgage but said he cant help me further as hsbc wont allow him to do it it will have to be direct now just a few questions

    1) is there any other experian only who are less strict

    2) is it worth me waiting 3 months and stay out my overdraft before applying or does that not overally matter that much with regards to everything else or shall i just get credit cards wiped of an apply then

    3) for the dip is it worth cos hsbc have 3 options, phone, shop or online i was going to do it just online as pretty busy with work, can they have more leeway instore as in if it comes back no can they say send a message to head office etc or is it exactly same as online.. they put it into system like i would you get a dip automated? I ask cos yorksbank declined me then it went to head office and i got accepted back when i was an apprentice wanting a 109k mortgage !!!55357;!!!56834;!!!55357;!!!56834;


    Thanks again in advance for your help all i appreciate it i really do
    • ytfcmad
    • By ytfcmad 8th Jan 18, 4:01 PM
    • 252 Posts
    • 110 Thanks
    ytfcmad
    You will NOT get a mortgage with HSBC.
    • Mortgage_Adviser
    • By Mortgage_Adviser 8th Jan 18, 4:05 PM
    • 134 Posts
    • 47 Thanks
    Mortgage_Adviser
    I would forget high street here with your credit history. Precise are no keen on payday loans either. Sincerely wish you all the best with your application as this is going to be a tough one.
    • axel132132
    • By axel132132 8th Jan 18, 5:35 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    Im going to be doing it soley in my name

    So theres no payday loans in my name

    The only thing that will be on my credit is went over limit on credit card and been in my overdraft. The rest is all good had about 10 car loans all paid of, 5 credit cards all paid of, 2 personal loans all paid of. My mortgage atm with yorks bank always paid on time never any late payments or anything like that

    We wont be using her data as its too bad for mortgage so surely there a mortgage out there for me with only having them as bad points and most positive
    • getmore4less
    • By getmore4less 8th Jan 18, 7:25 PM
    • 32,180 Posts
    • 19,336 Thanks
    getmore4less
    any decent underwriter is going to be seriously concerned.

    shoddy financials

    sudden reduction in credit commitments

    a mortgage on a house you don't live in.

    part exchange and the need for a developer deposit.

    you need a good broker presenting a case why you are a reformed person.
    • axel132132
    • By axel132132 8th Jan 18, 7:59 PM
    • 98 Posts
    • 11 Thanks
    axel132132
    What are copp bank like they use experian
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