"You've no chance of getting a mortgage" - Help?

"You've no chance of getting a mortgage" - Help?

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TroubledSoul

Original Poster:

4,589 posts

193 months

Monday 8th September 2014
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Told that by a mortgage advisor today. I can't get my head around it.

Up until around 3 years ago, I would often get behind with things and I made a real mess of my finances, getting a few defaults and a number of missed payments up to that point. Unfortunately it's much the same for my Mrs.

Fast forward to today and we are organised, don't miss payments, haven't for the last 3 years, we earn more and here's the big thing; we have about £75k cash deposit to put down.

So in light of that, is it really that big a risk for a bank? We want a house that costs less than £180k. Ideally somewhere closer to £150k. We'd have a decent amount of equity right off the bat. Unfortunately the past is like a mill stone around our necks it seems. My being a contractor won't help either.

Just honestly stunned that the deposit doesn't trump all that. Anybody had to overcome similar?

Sarnie

8,025 posts

208 months

Monday 8th September 2014
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TroubledSoul said:
Told that by a mortgage advisor today. I can't get my head around it.

Up until around 3 years ago, I would often get behind with things and I made a real mess of my finances, getting a few defaults and a number of missed payments up to that point. Unfortunately it's much the same for my Mrs.

Fast forward to today and we are organised, don't miss payments, haven't for the last 3 years, we earn more and here's the big thing; we have about £75k cash deposit to put down.

So in light of that, is it really that big a risk for a bank? We want a house that costs less than £180k. Ideally somewhere closer to £150k. We'd have a decent amount of equity right off the bat. Unfortunately the past is like a mill stone around our necks it seems. My being a contractor won't help either.

Just honestly stunned that the deposit doesn't trump all that. Anybody had to overcome similar?
In 2014, no criteria trumps any other criteria. You could be buying a £1m property, have a £950k deposit, earn £200k per year, but if you fail the credit score thats it, no overiding that.

I'm a mortgage broker and can help you. I've placed lots of cases like this, if you've not had any advers in the last 2-3 years, the details of your contractor status is going to be a potential sticking point though.

Feel free to drop me a mail. smile

Podie

46,630 posts

274 months

Monday 8th September 2014
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I think you need to speak to a mortgage advisor, rather than a high street bank.

Certainly no harm in speaking to sarnie.

TroubledSoul

Original Poster:

4,589 posts

193 months

Monday 8th September 2014
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We did speak to an advisor, not a bank. I am going to be contacting Sarnie shortly smile

Rude-boy

22,227 posts

232 months

Monday 8th September 2014
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TroubledSoul said:
We did speak to an advisor, not a bank. I am going to be contacting Sarnie shortly smile
I would do that if I were you. Just as in the legal world, there are advisors, and then there are advisors...

Some will be more than happy to kick you into the 'question too difficult' camp very quickly if they have a few better leads on their desk...

TroubledSoul

Original Poster:

4,589 posts

193 months

Monday 8th September 2014
quotequote all
Rude-boy said:
I would do that if I were you. Just as in the legal world, there are advisors, and then there are advisors...

Some will be more than happy to kick you into the 'question too difficult' camp very quickly if they have a few better leads on their desk...
Yeah I definitely got the feeling he looked at our files and thought "Nah too much work".

Sarnie

8,025 posts

208 months

Monday 8th September 2014
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Rude-boy said:
I would do that if I were you. Just as in the legal world, there are advisors, and then there are advisors...

Some will be more than happy to kick you into the 'question too difficult' camp very quickly if they have a few better leads on their desk...
Very true, sometimes advisors just look at an application and think "I can't be bothered with this one" if it's outside of their experience comfort zone or it doesn't fit with their favourite lenders....

There's no guarantee we can help of course as it's fully dependant on the application as a whole, but the initial details makes it sound like a case that a few lenders would certainly consider, especially at the proposed LTV.

jonah35

3,940 posts

156 months

Wednesday 17th September 2014
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Its amazing how people miss bills and think they will be fine! Good luck though.

Soov535

35,829 posts

270 months

Wednesday 17th September 2014
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Beware your sins will find you out.

Speak to Sarnie, if anyone can help it's him. Don't get your hopes up though.


Sarnie

8,025 posts

208 months

Wednesday 17th September 2014
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jonah35 said:
Its amazing how people miss bills and think they will be fine! Good luck though.
Hopefully the OP won't mind me posting but contrary to what he was told by the previous "advisor", who obviously just couldn't be bothered, we had an AIP accepted for the OP yesterday smile

Soov535

35,829 posts

270 months

Wednesday 17th September 2014
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Sarnie said:
jonah35 said:
Its amazing how people miss bills and think they will be fine! Good luck though.
Hopefully the OP won't mind me posting but contrary to what he was told by the previous "advisor", who obviously just couldn't be bothered, we had an AIP accepted for the OP yesterday smile
  • APPLAUSE*

jonah35

3,940 posts

156 months

Wednesday 17th September 2014
quotequote all
Sarnie said:
jonah35 said:
Its amazing how people miss bills and think they will be fine! Good luck though.
Hopefully the OP won't mind me posting but contrary to what he was told by the previous "advisor", who obviously just couldn't be bothered, we had an AIP accepted for the OP yesterday smile
True, many advisers don't want the hassle for the small proc fees - presume you charged a fee too!

Win win all round. Who says commission is bad!

TheAllSeeingPie

865 posts

134 months

Wednesday 17th September 2014
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Soov535 said:
  • APPLAUSE*
+1

Well done on getting an AIP, I had similar troubles last year due to being self-employed and we found a great advisor who was local to us in Leeds. I hope the house buying process is less stressful than the mortgage part too!

TroubledSoul

Original Poster:

4,589 posts

193 months

Thursday 18th September 2014
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Don't mind at all Sarnie, you're a top bloke and have really helped us and worked your socks off for us smile

It really is much appreciated. I'm actually even more appalled at the first bloke's lack of desire to help us now.

As for missing bills and thinking it will be fine, that's a rather sweeping statement! I'm not a great organiser and I allowed things to get on top of me a few years ago. I knew I had to sort myself out and I did/have. I've never ever just said "Nah, don't feel like paying that this month!".

I used to know somebody that would do that. Nice girl, but deciding which bill you'll skip this month for a night out has never been and will never be my way!

Anyhow, we have started arranging viewings and had a little drive around last night to see some of the places we like in the evening. It was a really worthwhile exercise actually. Ruled a few places out that looked great in the photos and promoted one up the list that we really weren't sure about.

TheAllSeeingPie

865 posts

134 months

Thursday 18th September 2014
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Where are you thinking of moving? Maybe some of the locals here can help?

TroubledSoul

Original Poster:

4,589 posts

193 months

Thursday 18th September 2014
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Looking at the areas around us. Couple we like in South Milford, one in Cawood, one in Cross Gates/Whitkirk which I'm not as keen on from a location perspective, though I did used to live a couple of streets away and the house is huge, one in Brotherton which again, I wasn't keen on as an area but the house is exceptional, and there's a couple in Sherburn In Elmet too.

I live in Micklefield currently so very close to Sherburn and South Milford.

BigGingerBob

1,700 posts

189 months

Thursday 18th September 2014
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How long do these things stay on your record? I've missed 1 or 2 payments early on this year as I had no job for about 4 months. Sadly, I won't be in a position to buy for a few years, I'm thinking around 3 years minimum, will these still be on there?
Never missed anything before and my credit rating according to Experian is mid way through good (there are a couple of ways to increase this that I know of and that I will be doing when I'm on a bit more money a month) so does this basically mean I'm screwed when it comes to getting a mortgage? Or does it mean that i will have to wait 5 years or something like that?

Sarnie

8,025 posts

208 months

Thursday 18th September 2014
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BigGingerBob said:
How long do these things stay on your record? I've missed 1 or 2 payments early on this year as I had no job for about 4 months. Sadly, I won't be in a position to buy for a few years, I'm thinking around 3 years minimum, will these still be on there?
Never missed anything before and my credit rating according to Experian is mid way through good (there are a couple of ways to increase this that I know of and that I will be doing when I'm on a bit more money a month) so does this basically mean I'm screwed when it comes to getting a mortgage? Or does it mean that i will have to wait 5 years or something like that?
You're credit file dates back to the last six years.

Missed payments are not the end of the world but obviously won't help.

Deposit is key though, the lower you can get the LTV the less of an impact the missed payments will have to your chances of being accepted.

BigGingerBob

1,700 posts

189 months

Thursday 18th September 2014
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Thank you, that's somewhat reassuring.
So the key is so save a huge deposit and try and get your credit rating as good as possible? Just as I thought. I won't miss any more payments!

THX

2,348 posts

121 months

Thursday 18th September 2014
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O/P, back in my younger days i had a terrible time keeping track of bills, or even my finances full stop. My credit history would have looked awful (despite earning good money for absolutely years). More recently, I've sorted myself out, but had a little bad fortune involving some debt collection goons just prior to applying for a mortgage.

The first lender refused outright. The second, my bank, accpeted straight away! The main plus points being A; years of earning without a break, and B; 6 months clean record (the debt goons were within the 6 monhts, but overlooked)

So, I had a terrible record because my personal admin was dire. But i'd always been earning, and clearly able to afford. And was accpeted. All this was around 17 month ago, so lending criteria may have changed, but, hopefully, you'll be fine : )

and there's really no feeling quite like getting into debt for the rest of your working days ; )