When can I get a mortgage?
Discussion
Today, not a chance. Me and the missus have been trying to get one for three months now, and despite having very very good credit scores, they don't want to know.
Basically the two financial advisors we've seen, and all relevant websites, reckon that most banks are now only lending to the top 1% of people - cash rich, second mortgages on a buy to let, secured against first house etc. etc.
Only recent success I know of is my sister's boyfriend. Not long out of Uni (18 months or so), income around £20k. Just been given a mortgage on the Government homebuy scheme, so they own 40% of his flat (and put up the money for it) and he has a mortgage on the remaining 60%. He did get his parents to lend him the 20% deposit he required to get it though...
Basically the two financial advisors we've seen, and all relevant websites, reckon that most banks are now only lending to the top 1% of people - cash rich, second mortgages on a buy to let, secured against first house etc. etc.
Only recent success I know of is my sister's boyfriend. Not long out of Uni (18 months or so), income around £20k. Just been given a mortgage on the Government homebuy scheme, so they own 40% of his flat (and put up the money for it) and he has a mortgage on the remaining 60%. He did get his parents to lend him the 20% deposit he required to get it though...
HereBeMonsters said:
Today, not a chance. Me and the missus have been trying to get one for three months now, and despite having very very good credit scores, they don't want to know.
Basically the two financial advisors we've seen, and all relevant websites, reckon that most banks are now only lending to the top 1% of people - cash rich, second mortgages on a buy to let, secured against first house etc. etc.
Only recent success I know of is my sister's boyfriend. Not long out of Uni (18 months or so), income around £20k. Just been given a mortgage on the Government homebuy scheme, so they own 40% of his flat (and put up the money for it) and he has a mortgage on the remaining 60%. He did get his parents to lend him the 20% deposit he required to get it though...
I'm sorry but that is b0llocks. All the banks have commited to the gubberment to loosen up lending. Yes all proposals are being looked at more stingently, and if you're not credit worthy then you won't get a mortgage as you once may have done. Basically the two financial advisors we've seen, and all relevant websites, reckon that most banks are now only lending to the top 1% of people - cash rich, second mortgages on a buy to let, secured against first house etc. etc.
Only recent success I know of is my sister's boyfriend. Not long out of Uni (18 months or so), income around £20k. Just been given a mortgage on the Government homebuy scheme, so they own 40% of his flat (and put up the money for it) and he has a mortgage on the remaining 60%. He did get his parents to lend him the 20% deposit he required to get it though...
High LTVs mean high rates as there is a very small appetite for this type of lending. My understanding is that they are also pulling away from the intermediatary markets slightly. My advise would be go direct and speak with YOUR bank if you have a good relationship with them (ie, aren't having items returned regularly/ exceeding agreed limites), can afford the mortgage and are not looking for massive LTVs then you will probably be fine.
m4tt said:
I'm sorry but that is b0llocks. All the banks have commited to the gubberment to loosen up lending.
...and are any of them doing it yet? No.I don't want to wave my willy around, but for the mortgage we are applying for, we can easily repay it. Both our credit scores are over 900 (best is 999 - Experian), and we have a 15% deposit. One advisor reckons we'd be able to get one if we had 20%, so the Elise/Elan is on hold and I'm working all the overtime I can while we see if that is the case.
Both advisors we've spoken to have said the same thing - they don't want to know, especially first time buyers who aren't "cash rich". The one I spoke to today was saying he's been having problems with people who even 12 months ago would have got agreed at the drop of a hat, us included. He reckons the only lenders who are getting "looser" as you put it are the ones that are now owned by, well, us. Taxpayers. Lend us the f
king money you bds!!!Then stop whining about it and go see one of them! To be honest credit score means dick all, its an indication not an absoulute guarantee. HSBC have a big commitment to lending more, they won't be available through a broker though. And to my knowledge have not taken a penny of the tax coffers.
HereBeMonsters said:
m4tt said:
I'm sorry but that is b0llocks. All the banks have commited to the gubberment to loosen up lending.
...and are any of them doing it yet? No.I don't want to wave my willy around, but for the mortgage we are applying for, we can easily repay it. Both our credit scores are over 900 (best is 999 - Experian), and we have a 15% deposit. One advisor reckons we'd be able to get one if we had 20%, so the Elise/Elan is on hold and I'm working all the overtime I can while we see if that is the case.
Both advisors we've spoken to have said the same thing - they don't want to know, especially first time buyers who aren't "cash rich". The one I spoke to today was saying he's been having problems with people who even 12 months ago would have got agreed at the drop of a hat, us included. He reckons the only lenders who are getting "looser" as you put it are the ones that are now owned by, well, us. Taxpayers. Lend us the f
king money you bds!!!Secondly, the banks use their own credit score cards with different weightings depending on what they are lookng for. Although the experian score is a good indication.
You say you can afford it easily, is this based on interest only and at current rates? Apologies if it's not. Lenders will calculate your ability to afford the payments based on capital and interest and a rate of you choosing. I suspect it is the affordability test your more likely to have failed.
Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
MRSNEAK said:
You say you can afford it easily, is this based on interest only and at current rates? Apologies if it's not. Lenders will calculate your ability to afford the payments based on capital and interest and a rate of you choosing. I suspect it is the affordability test your more likely to have failed.
Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
None of the lenders have offered an explanation, except early on when we discovered that the Council hadn't put us on the electoral roll correctly. That was all cleared up, but still not a sausage. We're not getting a "human" decision out of any of them.Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
Honestly, paying it back is not a problem. As I said before I don't want to wave my willy about what I earn etc. (and it's probably far less than most people on here anyway), but let's just say I am currently able to save more than double what a mortgage repayment (capital & interest) would cost every month just by myself, on top of paying my current rent. It's not a massive mortgage we're asking for, as we don't need a massive house.
I was told the extra 5% might make a difference as people in his firm have had approvals for people who could scrape up the 20% over the 15% we have. TBH it wouldn't take us that long to get the cash together, but we've seen the house we want, and we want it NOW! Our rental contract expires in August, so keen not to stay another 6 months. Been there 4 years already...
HereBeMonsters said:
MRSNEAK said:
You say you can afford it easily, is this based on interest only and at current rates? Apologies if it's not. Lenders will calculate your ability to afford the payments based on capital and interest and a rate of you choosing. I suspect it is the affordability test your more likely to have failed.
Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
None of the lenders have offered an explanation, except early on when we discovered that the Council hadn't put us on the electoral roll correctly. That was all cleared up, but still not a sausage. We're not getting a "human" decision out of any of them.Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
Honestly, paying it back is not a problem. As I said before I don't want to wave my willy about what I earn etc. (and it's probably far less than most people on here anyway), but let's just say I am currently able to save more than double what a mortgage repayment (capital & interest) would cost every month just by myself, on top of paying my current rent. It's not a massive mortgage we're asking for, as we don't need a massive house.
I was told the extra 5% might make a difference as people in his firm have had approvals for people who could scrape up the 20% over the 15% we have. TBH it wouldn't take us that long to get the cash together, but we've seen the house we want, and we want it NOW! Our rental contract expires in August, so keen not to stay another 6 months. Been there 4 years already...
Dave_ST220 said:
HereBeMonsters said:
MRSNEAK said:
You say you can afford it easily, is this based on interest only and at current rates? Apologies if it's not. Lenders will calculate your ability to afford the payments based on capital and interest and a rate of you choosing. I suspect it is the affordability test your more likely to have failed.
Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
None of the lenders have offered an explanation, except early on when we discovered that the Council hadn't put us on the electoral roll correctly. That was all cleared up, but still not a sausage. We're not getting a "human" decision out of any of them.Did you adviser say why an extra 5% would make the difference? Have they told you why you were declined?
Honestly, paying it back is not a problem. As I said before I don't want to wave my willy about what I earn etc. (and it's probably far less than most people on here anyway), but let's just say I am currently able to save more than double what a mortgage repayment (capital & interest) would cost every month just by myself, on top of paying my current rent. It's not a massive mortgage we're asking for, as we don't need a massive house.
I was told the extra 5% might make a difference as people in his firm have had approvals for people who could scrape up the 20% over the 15% we have. TBH it wouldn't take us that long to get the cash together, but we've seen the house we want, and we want it NOW! Our rental contract expires in August, so keen not to stay another 6 months. Been there 4 years already...
I'm not putting this car purchase on hold any longer though. I feel the need. The need for...well, a slower car than mine, but with the all important rear wheel drive!
What we'll probably do now is wait until after the wedding, by then we could even have about 25%, factoring in wedding gift money etc. Market might have picked up slightly by then as well...
Stevenj214 said:
I've just been on the phone to RBS who have said that they would be unwilling to provide a mortgage until i'm over my probationary period at work (6months).
Is this standard across other providers?
AFAIK, nothing new. Look at it from their POV,do you blame them?! 6 months saving will help anyway and the chances are the bottom will well & truly be here.Is this standard across other providers?
Edited by Dave_ST220 on Tuesday 19th May 12:44
Stevenj214 said:
I've just been on the phone to RBS who have said that they would be unwilling to provide a mortgage until i'm over my probationary period at work (6months).
Is this standard across other providers?
Check out your notice period in your probation period. What is it, two weeks? You'll be first out if the company has any issues and be stuck paying a mortage and at risk of losing everything.Is this standard across other providers?
Get yourself established before signing up to a 25-year commitment.
mattley said:
Despite recent media hints that prices are stabilising they aren't. House prices have another 20% to fall. The lenders know this which is why they require a 20% deposit. The problem of course is that vendors don't want to know this so are holding out in vain.
& you know this for sure do you? If the peoperty i have purchased falls 20% in value once the bottom is here i'll give you £100.Gassing Station | Finance | Top of Page | What's New | My Stuff