Mortgage refused

[AndIAlwaysComeBack]

Please can anyone offer advice? DH and I have exchanged on our house and offered on another at less than what we're selling for.

We wanted to port our Santander mortgage over and get a 'top up' to use for school fees as we need to send our DC to a special ed school.

Never defaulted on mortgage payments but I have had 3 months late payments on my Barclaycard this year. Resulting in credit rating at Experian of 955. Totally stupid on my part, not intentional but wasn't on direct debit. We are lucky in that we have a large deposit (roughly 40% of house value). Because of my stupidity we have been refused a mortgage with Santander. Is there any hope with any other lender do you think?

I'm shaking at the fact I've jeopardised and damaged my whole family's future.

Our mortgage dealer is obviously not available till Monday but I just need to find out as much as I can before then.

Thank you so much in advance for any advice

Your credit rating means nothing to Santander. They come up with their own rating on you. 3 late payments on your credit card indicates you are unable to manage your credit, which by your own admission you didn't manage it by missing payments and paying them late. You will be able to get a mortgage from someone, but with a higher interest rate to reflect the higher risk you represent to lenders. You will probably need a financial advisor who deals with lenders who lend to those with poor credit histories. Your best bet will be to go to moneysavingexpert.com for some better advice.

I'm not trying to be negative but I'm aghast that you'd exchange on your own property before ensuring you could get your onward mortgage.

I fear this might be a very tough lesson learnt.

The reality is, whatever the reason, you've demonstrated for 3 months, that you can't honour your financial commitments.

That won't go down well with any lender. Why would they lend you thousands when you can't pay your credit card bill on time?

As angel said, I'd look for a specialist broker and be prepared for a higher interest rate if you do find a lender.

Thank you both so much for replying. I didn't mention because I was in such a state when I posted that I'm a sahm so have not ever 'paid ' the mortgage myself. I'm a complete idiot and I can hardly deal with the fact after all our efforts, I may well have buggered my children's chances at a special school. DH has blameless record (as did I until a year ago) Think we will try to apply sole for him.
I really appreciate you replying. And not harsh, I know it's all my fault. Thanks again.

I have no idea about your particular situation, but when we were refused a mortgage for a reason I considered unfair I raised a complaint to someone in the bank after a friend suggested it. I didn't even know one could do so! I had diversity grounds to complain (the bank took a frankly ridiculous approach to maternity leave and earnings, but I had been off work because I had had a baby...). I got a proper reply to my complaint and a re-assessment. I forget now how I did it (sorry - years ago!). I guess - speak to a suitable mortgage adviser?

Mortgage advisor.
Yo should be able to get something.

Speak to London and Country, who are whole market brokers and also have a special 'adverse lending' team (although it doesn't sound like you'd need that

They are incredibly helpful and also have access to great deals

I would speak to a broker that specialises in poor credit - my husband has a default and we have a mortgage with a high street bank at normal mortgage interest rates. Brokers speak directly to actuaries and risk assessors rather than using algorithms so can get the human side across.

Definitely ignore your credit score, each bank has their own criteria for lending. Credit scores are handy for seeing trends in your finances but with a high score it doesn't guarantee they will lend.

Another vote for ignore your "score" it's nothing but a marketing tool, no one sees it apart from you.

But I'll be honest, 3 late payments isn't great. As discussed it shows you can't manage credit responsibly.

Wow I thought a credit score of 955 was quite good is it not??? And are the 3 late payments definitely the reason your mortgage has been refused ? How late were they ?

identity your score doesn't exist.
No one sees it apart from you. It is meaningless.

Another vote for London and Country. Happy to PM the name of the helpful and efficient advisor I have used.

Thank you all so much for taking the time to reply. We do have a broker who is dealing with this, but will absolutely get in touch with London and Country if we need to.
I'll post again tomorrow to let you know what happens.
I'm so grateful to you for taking the time to respond. Thank you.

Just to update, while we are not out of the woods yet, our broker has found another lender prepared to lend to us at similar rate. He said Santander are notoriously careful but others will look at a whole picture.
Thank you again to all of you who supported in replying. As I said before I am very grateful.

Good to hear that you're finding an alternative solution. Just to flag (you are probably already aware), that if you were intending to "port" your mortgage, ensure that there are no early redemption fees due when you repay it and take out the new one with a new provider. Depending on the size and terms of your mortgage these can be pretty hefty. Good luck with the move!

Don't think it's your credit score at all. I think it's affordability. I have perfect credit score and got declined (nationwide). They were querying all sorts of small payments. Also might be mortgage term. We could only get what we wanted over 34 year term (with meaningless reassurances we would work into our 70s!) This meant our monthly payments are less and therefore affordable given our income.

Sounds to me your broker is a bit rubbish. I ended up working all this out on my own!

Good luck!

I would also check why you were refused. I don't think 3 late payments on a credit card would be enough (usually) for a rejection. Is it to do with buying a cheaper house but increasing your LTV because you want to effectively borrow the school fees? Does your income warrant the extra you're looking to borrow?

Hi OP

Sorry that all sounds so stressful. Is your house purchase tied in with your sale? Or have you planned to sell your current house, come what may?

If it's sale & purchase comibined I can't see how've you've exchanged without a mortgage offer?