Turned down for 95% mortgage.

[elainegel3]

Got a H1 fail. All finances are in order. One loan. House income of around 50k.
Finances all in order- but failed on the credit check. I was okay a year ago!

What should I do to improve it?

Anyone know of any reasons why it would fail?

We aren't on the electoral roll for past year. Is this all?

We also have lived in rented houses- but as I say - all came back fine last year.

Should we reapply with Yorkshire bank or will we damage our footprint further?

We applied with Skipton- approved for 90k but missing out on the 95% :(

Any advice would be great

Get a copy of your credit report and find out why it failed.

Aren't most lenders looking for 10% deppsits these days?

I think being on the electoral role is a big deal as far as credit scoring goes. And it is a very high loan to value so you probably need to be sqeaky clean.

Yes, def get on electoral roll before trying again.

Do you use credit facilities? I got turned down for a card some years ago due to a low credit score. I didn't have a mortgage at that time (as I'd paid it off some years previous) never used credit cards or credit facilities, regularly moved house - bought cheap(ish) renovated and sold on. I ended up with a low credit score even though I've never had any issues making payments for things.

I went into my bank - Barclays and the women who helped me understand it was really good. She went through my banking history with them and sorted me out a Barclay card. I then had to use it and pay it off (direct debit) for she suggested a year and suddenly my credit score would improve. There was also something that came up about negative credit associated with addresses and I'd lived in two repossession houses in the previous 5 years.

I think the banks are tightening up on lending because they expect house prices to fall quite dramatically - and by asking for a larger deposit they are reducing their own risk.

Apply for your credit record & find out why! Are you using an IFA? Doesn't cost you anything and they will have an idea about the criteria used by each lender so can advise which company are likely to approve an application.

Electoral role is a biggie - get on it if u want credit

I used to be a mortgage underwriter.

The fact that you are not on the electoral roll at your current address, and haven't been for a year would raise concerns. The fact that you only have a deposit of 5% makes you an even further risk.

I would advise you to see an independant adviser/broker. They will be able to help you further I should imagine.

If all you can afford is a 5% deposit, forget it. What are you going to do when interest rates go up?? I remember days of 15%. Whoever turned you down are doing you a favour.

It's important to be on the electoral roll. And do check your credit rating anyway - my friend was turned down for a mortgage because he didn't realise he hadn't paid a fine (never received the letter).

I also had a problem with my credit rating once as I had no credit card or debt. Ironic that working so hard to pay off everything meant I had a worse rating than my husband who had all kinds of debt. My bank also got me a credit card which I used minimally and that improved my rating.

These days, a 95% mortgage is quite rare though. Or at least we had a 10% deposit for mortgage on the flat we bought four years ago. By the time we sold it and bought again last year, our bank wanted minimum 25% with good rates starting at 30%. We couldn't afford 30% but waited a few months and worked extra to make the 25%. So it might also be worth seeing if you can get any more deposit together while sorting out the credit issues. Good luck.