Getting a mortgage

[Youngmystery]

I used a mortgage calculator for my bank today just because I was curious, not actually looking to buy a house. But I had been told by an advisor in the bank its easier than people think to get a mortgage.

Seems to be because they don't seem to care about me having a deposit. I can get a mortgage big enough for a good 2-3 bedroom house in this area with no deposit at all. Just need a credit check and I would get it. Dunno what the repayments would be though.

I'm not going to obviously, but isn't this basically the way the crash happened before? Giving money out to people who can't afford it? I could see someone less careful taking the offer really. Is this the norm now, you don't need deposits?

Hey,

Although the online calculators are a good way to see what you could borrow, it's always good to speak to someone to check, either an independent mortgage advisor or someone at the bank.
It's unknown this day and age for people to still get 100% mortgages (ones without deposits)
Most mortgage companies will require a 10% deposit but few ask for 5% but you often find that the higher deposit, the smaller percentage you pay back immediately which is better for you as a buyer.

That really hasn't been my experience Op, we're currently having a hard time because we have only £7000 deposit and want to borrow £60,000. It's a difficult situation. Oddly enough it's becoming increasingly more difficult to rent too!

Yeah that was my thinking too, but this guy was pretty certain I could get one. This was last year though when I was applying for a loan. They wouldn't now that I have the loan, but if I didn't I do wonder if they would be that stupid. I wouldnt be, just wondering more if they would.

The calculators are a guide to show rough repayments. If you then proceeded i think youd find you do need a deposit.

Have recently had an offer accepted on a house we want to make our first.

However, the mortgage has been declined after been accepted in principle.

What can we do now? Will any other lender accept us after Santander have left a heavy dent in our credit scores. Or is it now a case of waiting 3, 6, 9 months to re apply??

Any experience based help would be greatly appreciated.

Auld Dorris x

Hi @AuldDorris sorry to hear you were declined.
I have no experience in buying a house as yet but the same thing happened to me 2 years ago and I've just carried on renting and saving ever since.

I am a member of Experian - you can get 30 days free which shows you your credit report and credit score - I think this helps. (You have to cancel your membership before the 30day trial ends, otherwise you have to pay) also, if you call Experian, they can tell you how to improve your credit score/report.

Also, maybe speaking with an independent mortgage advisor will help? There are some out there who are free to use for advice as they get paid from the mortgage company that you chose.

Worth taking a look if it's free and it may help.