Mortgage declined :-(.

[steth]

So bloody upset and pissed off. We have found our dream home and were hoping to put an offer in this afternoon as soon as we heard about our Mortgage approval.

We have a 25% deposit, have a small amount in a credit card. Husband was accidentally late with one payment a few months ago.

What can we do now? Save more? Can we just apply to smother mortgage lender? Or would we probably get the same outcome? And does getting z mortgage in principal screw up your credit score or is it just when you proceed with the mortgage company?

So so upset, I know I shouldn't have but I decorated each room in my head

[catchingzzzeds]

We had this problem and in the end went to an independent financial advisor. He sorted the mortgage easily and even made his fee through the lender so it didn't cost us a penny.
We tried another independent first who told us we had no chance so don't give up.

[sallysimpson]

go through a mortgage broker- none of those things should prevent you from getting a mortgage! (speaking from recent experience with similar circumstances + a discharged bankruptcy in the past and 10% deposit). I agree with catching , the first mortgage broker we approached said we would only get a high interest mortgage with a specialist company for a large fee the second got us a low interest rate with a high street lender.
The whole process of applying for a mortgage is so stressful when you're past is not squeaky clean but don't give up at the first hurdle- it will be worth it!

[HaveToWearHeels]

As others have said use a independant broker. A good one will know who will lend to you are your circumstances. It will save a lot of time and heartache. I have the name of a good one if you need the details let me know. We have a few quirky things in our credit and have a few BTL's so have used her dozens of times, she never fails to get us a mortgage at a competitive rate. Best of luck, don't roll over just yet !

[Solaia]

If you think it was your/your husband's credit score it is worth signing up to experian so that you can examine your score in much more detail. There may be things on there that are inaccurate and can be rectified and there are steps you can take to improve your credit score too. Be careful not to get too many credit searches as this is detrimental.

I'm surprised that you were declined for a 75% LTV mortgage. Did they give you more detail about why it was?

[Theorientcalf]

Definitely see an independent mortgage advisor, they will find you the best deal. Don't just go with your bank.

[WantToGoingTo]

Having a credit check for said mortgage in principal and then being rejected will come up on any other credit check done for mortgage purposes, so may put you in slightly worse position than before applying for that mortgage. But is is surprising that you were rejected when you have a 25% deposit. Like others said, an independent mortgage broker/advisor should be able to help in this situation.

[steth]

Thanks for all the great replies, I hadn't thought of a mortgage broker, feel like we have now put a dent in our credit history for no reason.

Does anyone know how long the process is with a mortgage broker? I am so worried that the house we like will be snapped up by someone else.

I think part of the mortgage issue was that we are hoping to borrow a larger than normal amount so we would have a high sum to pay each month and there's not too much wiggle room in our accounts after bills and mortgage.

Thanks again :-)

[happyoverhere]

Ah if you can't actually afford the repayments then that is more of an issue than missing a payment in the past. Please think carefully about what you are doing, negative equity is not a thing of the past. Interest rates can go up again in the future.

[Theorientcalf]

The first thing you have to think about is how much you want to repay every month. Interest rates can go up. Based on how much you can afford to repay you can then look at how much you can borrow, not the other way round.

A lot of estate agents have independent advisors using their offices, just ring round. But double check they are independent and not working for the agency. You can sort a mortgage agreement in a day with a broker. They can look through 100s of deals for you. It's the best way to do it.

[sleepyhead]

It may have been down to income multiples rather than credit score.

We were approved for our mortgage in principle but at a lower amount than ideally I would have borrowed - luckily we'd found out how much we could borrow before we really started looking so we just cut our cloth accordingly.

Definitely go to a broker though. It'll be much easier for them to see if you're likely to be able to get the amount you need or whether you have to rethink (do reconsider stretching yourselves though unless you're likely to have an increase in income in the near future).

[Shesparkles]

We're remortgaging just now after the end of a fixed rate deal and I'd definitely agree with those recommending a broker. Ours found us a cracking deal and she does all the paperwork, posting me the occasional piece of paperwork for signing. Mine is quite specialist via my employment, but I'm sure friends or family will be able to recommend. A broker doesn't need to be local either as we've dealt with everything by phone, email and post

[steth]

Ive just received a call from dh saying that the mortgage company are going to overturn our application to 'granted' as long as we reapply jointly as the deposit is held in my name, the late payment on dh's credit card was his company card so they are accepting the late payment was not his fault.

We have paid off a forgotten interest free loan which will mean we will have a decent amount left if rates go up, we should pass the stress test they do. Dh is expecting a promotion in 6 months so that will help us too. I will back at work also soon so I can contribute. Who knew getting a mortgage could be so stressful!

Soo fingers toes and everything else crossed. Next hurdle is having our offer accepted.
havetowearheels we will use your recommended broker if our lender still says no.

Thanks for all the lovely advice

[TywysogesGymraeg]

This we are hoping to borrow a larger than normal amount so we would have a high sum to pay each month and there's not too much wiggle room in our accounts after bills and mortgage. will do it. Financial institutions are under strict regulations not to lend more than you can afford to pay back.

[HaveToWearHeels]

Brilliant news steth

[steth]

Thanks heels, sigh of relief!

[Larcombe3]

We applied for a morgage this morning and it got declined the reason was we had a outstanding phone bill it said, on the report.When we got home i rang around to see which company this was but no record of this bill . What can we do now ?

[RosiePosies]

@Larcombe3 it sounds like you need to do an Experian check - this will tell you all about your credit score

[Larcombe3]

We have done a credit score . When we came home there is no company name showing . Thank you for your help .