First time buyer and mortgage problems
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Chacha17
Posts: 14 Forumite
We're out of our depth. Can anyone help please? My daughter is a first time buyer and needing a mortgage. She looked online and got a mortgage in principle agreement from Nat West which she obtained online.
When she found the property she wanted she was advised to go with a mortgage provided recommended by her mortgage adviser (Nationwide.) The mortgage was declined by Nationwide and it became apparent something was on her credit file. This was looked into and we believe that a default is wrongly on her file with Virgin and that Virgin have now sold on their business and the default is showing twice. The debt was settled as agreed with Virgin 3 years ago (3k the original deb). This is currently being explored but for the moment she is still trying to pursue a mortgage....
Anyway, it was suggested by the mortgage adviser to go back to Nat West where she had the originally offer in principle but if possible she should up her deposit from 5% to 10%. The Family hub convened and we agreed the 10% deposit. This was submitted but was turned down by Nat West. The mortgage adviser suggested upping the deposit to 15%. At this stage we felt that there were no guarantees to this being agreed and were wondering why the mortgage adviser wasn't guiding us as each credit check was going to work to the detriment of her application being accepted.
So, we moved to a mortgage adviser who deals with bad credit. Now we're finding arrangement fees, broker fees, needing for conveyancing to be done by new lenders solicitors, high fixed interest rate for 6 years. We don't know if this has gone through a credit check. It doesn't seem to be showing on the credit check site even though this broker said it was agreed in principle if we could up the offer to 15%. We've had all the info through and this is going to be hard on her as not only now are the mortgage payments upped by £200 per month, the fees, valuation,etc is high. Can she go elsewhere or is this her only chance of getting a mortgage that is affordable? Any help anyone can give would be really valued. Time is ticking by, the house she wants is a gem and she doesn't want to lose it. Thanks for reading and hopefully some guidance on next steps. Thanks for the suggestion on paragraphs too but we're so stressed by this whole situation and I'm not used to online forums!
When she found the property she wanted she was advised to go with a mortgage provided recommended by her mortgage adviser (Nationwide.) The mortgage was declined by Nationwide and it became apparent something was on her credit file. This was looked into and we believe that a default is wrongly on her file with Virgin and that Virgin have now sold on their business and the default is showing twice. The debt was settled as agreed with Virgin 3 years ago (3k the original deb). This is currently being explored but for the moment she is still trying to pursue a mortgage....
Anyway, it was suggested by the mortgage adviser to go back to Nat West where she had the originally offer in principle but if possible she should up her deposit from 5% to 10%. The Family hub convened and we agreed the 10% deposit. This was submitted but was turned down by Nat West. The mortgage adviser suggested upping the deposit to 15%. At this stage we felt that there were no guarantees to this being agreed and were wondering why the mortgage adviser wasn't guiding us as each credit check was going to work to the detriment of her application being accepted.
So, we moved to a mortgage adviser who deals with bad credit. Now we're finding arrangement fees, broker fees, needing for conveyancing to be done by new lenders solicitors, high fixed interest rate for 6 years. We don't know if this has gone through a credit check. It doesn't seem to be showing on the credit check site even though this broker said it was agreed in principle if we could up the offer to 15%. We've had all the info through and this is going to be hard on her as not only now are the mortgage payments upped by £200 per month, the fees, valuation,etc is high. Can she go elsewhere or is this her only chance of getting a mortgage that is affordable? Any help anyone can give would be really valued. Time is ticking by, the house she wants is a gem and she doesn't want to lose it. Thanks for reading and hopefully some guidance on next steps. Thanks for the suggestion on paragraphs too but we're so stressed by this whole situation and I'm not used to online forums!
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Comments
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Step one.
Use paragraphs.0 -
Sort out the credit issues before trying any more applications.0
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We've got this in hand with Virgin but no guarantees on how long this will take to be taken off her credit scoring. Is there anything we can do to hurry this up?
Thanks for you help.0 -
A house is just a house.
You or she would have to pay for valuations, solicitors, mortgage arrangment fees, surveys etc anyway, so these are not extra expenses, they were always there.
If she cant pay another £200 on top of what she was expceting to pay, then forget buying a house until the situation with Virgin is resolved on her credit file.Shampoo? No thanks, I'll have real poo...0 -
3k default. Settled in full or partial how long ago?0
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3k settled in full. This was 3 years ago and she was not aware this would be on her credit file as this was discussed with Virgin. She was not aware it would be there and was not advised it would be either. virgin do not have the voice tapes of what had been agreed. Thanks for your interest.0
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The default will remain on file for 6 years. That's standard practice.0
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Yes, I agree but every cost is a lot higher through this adviser. So the extra fees total an extra 2,600. She can use her solicitors but she also has to pay the solicitors fees for the mortgage lender, the basic valuation is £400, the arrangement fee is £1500 and the fee is £700. Plus an extra £200 per month for 6 years seems very high.0
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Options are :
1. You trust your mortgage advisor and this is the best deal you're going to get with the defaults and proceed with the higher fees
2. Wait until the "incorrect" default is removed from her file.
3. Seek an alternative mortgage broker who you trust with an additional broker fee.0 -
Thank you for setting out the options. It helps as we are both stressed out by this. We thought it would be straight forward. We don't know whether the latest broker has got a verbal offer in principle over the phone as it still isn't on the credit report today. If we go to another mortgage broker and something turns up on the credit file we fear were on a slippier slope than we currently are.
We were recommended this broker but from what I can see this mortgage is coming in at a premium and I didn't see this coming. It's my daughter I'm sorry for as she is doing her best as a one parent family. We could walk away but the house she's wanting is a real find for her and the future of her family. It's whether the pill is too bitter....0
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