Hi all.
I'm now in a frustrating time obtaining refinancing.
I believe its all to a $270 electricty default I had in May 2010. I became aware of it and it has been paid in full. Default occurred becasue my direct debit in my bank account for repayment plan stopped and the bill wasn't paid and I didn't realise it had stopped.
I have income of $75,000, PPOR value from bank $260,000, mortage= $193,000. Inv property (joint) valued $305,000 and mortgage $203,000.
thats basically it. I want to refinance my PPOR (Melton Vic) at approx 90% to repay credit card debt of $26,000, then lower the credit card to $2,000.This will leave me with more disposable income at completion of transaction than what I have now.
The banks are saying they will lend money no probs (only 80%) but its QBE mortgage insurer that wont. Tried with CBA and Bank West and both adv QBE is their mortgage insurer.
Now I don't want to just keep applying for loans and have these all appear on my credit report.
I'm not desperate so i wont go for high interest sharks however I would like to do something now that will work rather than wait until PPOR reaches $300000 value thenreapply for 80%.
So can anyone help or direct me to a lender who will be confident through recent MLI's loan approvals they will lend me around 88-90%.
cheers
Hi Coach Garvin
Welcome to the forum.
It's a frustrating situation. If you're comfortable with shooting me an email with some more details I can make some calls for you tomorrow.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I was told by CBA that they would refinance my loan with a line of credit taking the toal LVR to 90% and there would be no problems with LMI.
Maybe the person at the bank had it wrong, but they told me that it would be very easy to do this. It might also be your credit file that has the LMI provider scared.
Luke.
A 90% top-up is not uncommon – it’s the default from May 2010 that’s proving to be a pain in the backside for Garvin when dealing with those particular lenders. Could possibly get it done with a lender that doesn’t credit score and accepts paid defaults up to a certain amount.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Garvin
As Jamie mentioned going to be a lot easier to look at a lender who accepts paid defaults and does not Credit score.
The use of the funds will put certain lenders off but can think of a couple who would certainly look at such a proposal as long as there is some end benefit for you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
CBA use Genworth not QBE (unless they are now the same).
Defaults under $500 can be approved without going to the mortgage insurer. Unless the loan is over 1M, default is over $500 or another breach ( there are a few others), the mortgage insurer does not see the deal. Bankers often hide behind the insurer rather than telling you they have declined themselves.If your are refinancing the credit card a lot of lenders will want up to 6 months statements. Make sure you pay the bill on time so your statements don’t have any late fees or reference to being over the limit.
6 months statements are not always required. Just keep them clean to keep your options open.
congrats go out to Jamie (Pass Go home loans) who assisted me in obtaining refinancing through AMP Bank ltd. Settlement occured in the last week.
Personally I'm back on my financial track although 7 months late. This allows me to now work on subdividing my rental property, sell existing house, cash up, then really make tracks with my investment portfolio.
Yes, I learned lessons where I though I had all the boxes ticked over the last three years how my financial plan and timeline were on track and covered. I learned that credit card limits significantly reduce your borrowing capacity calculation. Although I intentionally applied for credit cards for specific reasons in December 2009 with the view to refinance two years later I was naive to how their limits reduce borrowing capacity. If I was aware back then I would have made better choices to balance what I required then to its implications when I was refinancing. This wont occur again.
secondly, although I have a dedicated direct debit account for all my bills with regular fortnightly payments where I have this created as a set and forget approach because my deposit from pay exceeds the bills going out, some payments can stop depending on how you set them up and if your keycard expires (ANZ at least). Not being aware this happens and my thoughts that I was really on top of my finances one direct debit stopped and this caused after a few months my credit report default. A side note, make sure wen you move address, bills from the old address have your current address / contact details.
I really made sure I had perfect preparation, but hey, some things we just forget, don't know, don't progressively check etc. I've increased my due diligence so when I move into incfreasing my investment portfolio I'm more prepared. And no doubt, I'll learn more things then that I don't know today.
cheers everyone.
Hi CG
Thanks for the wrap
I’m glad I could help.Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Excellent stiff Jamie.
Always good to hear of forum clients being helped out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
With one default under $500- it wont be a problem with the LMI providers…i say they are more scared of the number of inquires you have on your CR.
There are a lot of lender these days who dont credit score + look beyond “large numbers of credit inquires “- as long as you can explain each one.
Which lender you ask? most likely one you may not have heard of before…as they dont “market” compared to the BIG 4.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Michael
This ones done and dusted. We sorted this out for CG last month.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Top stuff Jamie!
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I’m glad I could help.
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