Extenuating circumstances

Posted on 7 May 2010 by Martin Buckle

After taking 6 months off to spend with a terminally ill relative, my wife & I  generated arrears for a 3/4 month period 06/09.  The arrears were subsequently paid up to date and we took the decision to sell up in Dec 09, after 24 years in the house, settling the mortgage, overdraft, credit cards etc etc and moving into rented accommodation.  I am now back in full time employment and we have sought to purchase a house worth £672k, with a cash deposit of £350k. However, we have been advised by Halifax & Barclays that despite the low LTV and sufficient income to cover a mortgage they have both declined our application. We have no CCJs or other credit issues, BUT it appears despite having no issues for 25 years we can no longer secure a suitable mortgage.  Are there any other lenders who might take a more pragmatic approach?


Halifax and Barclays, like the majority of Lenders, rely on an automated credit score and where you fail to achieve a sufficiently high score they will decline your application. This may be for a single reason, such as mortgage arrears or a combination of factors which experience has shown them can lead to a higher chance of mortgage arrears in the future.

There are still a handful of lenders who manually underwrite each application they receive and who are willing to look at the whole case presented to them. Where there are extenuating circumstances, such as yours, these Lenders will look at the loan in relation to your incomes, the property's value, your payment record as a whole and reach a decision based on the likelihood of your falling into arrears again.

I recommend that you speak to an independent mortgage broker. They will know which Lenders to approach in your situation and how to present your application in the best light to improve the chances of a mortgage being offered to you.


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We recommend you seek professional advice with regard to any of these topics where appropriate.

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