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  • FIRST POST
    • debbiedebt
    • By debbiedebt 12th Oct 16, 9:24 PM
    • 224Posts
    • 891Thanks
    debbiedebt
    Can't get a mortgage
    • #1
    • 12th Oct 16, 9:24 PM
    Can't get a mortgage 12th Oct 16 at 9:24 PM
    Please can someone help? Our daughter has inherited £150k which she hoped to put towards a house. She has found the perfect place and needs to take out a mortgage of £60k - there's no cheap housing in our area.

    The problems are that her partner is self employed with only one years trading she is a stay at home Mum and they get working/child tax credits. The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

    They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!

    Does anyone know a broker who could help? Or offer any advice?

    Sorry for the long post but we're getting desperate.

    Thanks in advance.
    Debt Free Date December June 2019

    GC January £0/£180
Page 1
    • ACG
    • By ACG 12th Oct 16, 9:34 PM
    • 13,471 Posts
    • 6,625 Thanks
    ACG
    • #2
    • 12th Oct 16, 9:34 PM
    • #2
    • 12th Oct 16, 9:34 PM
    Most brokers should be able to get this placed but the rates may not be high street rates, it depends on when the default was registered.

    Find a local broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • debbiedebt
    • By debbiedebt 12th Oct 16, 9:37 PM
    • 224 Posts
    • 891 Thanks
    debbiedebt
    • #3
    • 12th Oct 16, 9:37 PM
    • #3
    • 12th Oct 16, 9:37 PM
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?

    Thank you for answering so quickly ��
    Debt Free Date December June 2019

    GC January £0/£180
    • ACG
    • By ACG 12th Oct 16, 9:38 PM
    • 13,471 Posts
    • 6,625 Thanks
    ACG
    • #4
    • 12th Oct 16, 9:38 PM
    • #4
    • 12th Oct 16, 9:38 PM
    Forget estate agent brokers. They want easy vanilla cases. A whole of market/independent broker not associated with an estate agents will probably be a better option.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Voyager2002
    • By Voyager2002 12th Oct 16, 9:41 PM
    • 11,015 Posts
    • 7,368 Thanks
    Voyager2002
    • #5
    • 12th Oct 16, 9:41 PM
    • #5
    • 12th Oct 16, 9:41 PM
    The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.
    Originally posted by debbiedebt
    She needs to find out what it is recorded as a default and if possible get the lender to correct the record.
    • neo2020
    • By neo2020 12th Oct 16, 9:46 PM
    • 46 Posts
    • 19 Thanks
    neo2020
    • #6
    • 12th Oct 16, 9:46 PM
    • #6
    • 12th Oct 16, 9:46 PM
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?

    Thank you for answering so quickly ��
    Originally posted by debbiedebt
    There are companies that you can find online that offer mortgages for self-employed people, including on one year's accounts.

    They will usually charge a fee but they specialise in this kind of mortgage so will definitely be able to help or say with certainty if they can't.
    • debbiedebt
    • By debbiedebt 12th Oct 16, 9:55 PM
    • 224 Posts
    • 891 Thanks
    debbiedebt
    • #7
    • 12th Oct 16, 9:55 PM
    • #7
    • 12th Oct 16, 9:55 PM
    Any broker recommendations? Thanks xx
    Debt Free Date December June 2019

    GC January £0/£180
    • Thrugelmir
    • By Thrugelmir 12th Oct 16, 10:24 PM
    • 51,207 Posts
    • 42,983 Thanks
    Thrugelmir
    • #8
    • 12th Oct 16, 10:24 PM
    • #8
    • 12th Oct 16, 10:24 PM
    The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.
    Originally posted by debbiedebt
    Settle and clear the debt asap. An inheritance doesn't change historic credit profiles. Only time does.

    They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!
    Interest rates are abnormally low and won't remain so. Affordability is assessed at 7% rates. Also house ownership comes with the burden of maintenance , repair and renewal. When renting that's all in.

    Speak to a broker as obviously they are going to need guidance through the process and look to purchase a property at a suitable price level.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • muhandis
    • By muhandis 13th Oct 16, 8:02 AM
    • 204 Posts
    • 81 Thanks
    muhandis
    • #9
    • 13th Oct 16, 8:02 AM
    • #9
    • 13th Oct 16, 8:02 AM
    This rule might be restricted to only mortgage advisors, but I don't think posters are allowed to give any broker recommendations on here.

    Any broker recommendations? Thanks xx
    Originally posted by debbiedebt
    • AnotherJoe
    • By AnotherJoe 13th Oct 16, 8:16 AM
    • 4,096 Posts
    • 4,129 Thanks
    AnotherJoe
    What am I missing? If she has £160,000 cash, why is she paying off a £500 overdraft at ten pounds a month??? Why hasnt she just cleared it ?
    • Malmo
    • By Malmo 13th Oct 16, 9:28 AM
    • 695 Posts
    • 513 Thanks
    Malmo
    What am I missing? If she has £160,000 cash, why is she paying off a £500 overdraft at ten pounds a month??? Why hasnt she just cleared it ?
    Originally posted by AnotherJoe
    ^This.

    Also, are you sure that a default is recorded and not an Arrangement to Pay (AP). Neither are good, but there is a slight distinction.

    As already advised, estate agents are not the best place to help with sourcing the right mortgage. Have a look on unbiased.co.uk (after entering your postcode, untick the option Only show sponsored results at the bottom of the search filters on the left, so that you see all results).
    • kingstreet
    • By kingstreet 13th Oct 16, 9:31 AM
    • 30,008 Posts
    • 15,954 Thanks
    kingstreet
    Obtain all three versions of credit file (no, they are not all the same) and speak to experienced whole market independent broker.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • amnblog
    • By amnblog 13th Oct 16, 10:26 AM
    • 8,840 Posts
    • 3,361 Thanks
    amnblog
    The mortgage adviser at the estate agents has tried do you think a proper broker would have more luck?
    Originally posted by debbiedebt
    A perfect analysis.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 13th Oct 16, 11:09 AM
    • 30,008 Posts
    • 15,954 Thanks
    kingstreet
    A perfect analysis.
    Originally posted by amnblog
    You lucky, amn?

    I tend towards Gary Player. The harder I work, the luckier I get!
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • ACG
    • By ACG 13th Oct 16, 11:20 AM
    • 13,471 Posts
    • 6,625 Thanks
    ACG
    You lucky, amn?

    I tend towards Gary Player. The harder I work, the luckier I get!
    Originally posted by kingstreet
    I have the complete opposite stance. I consider the less I work the luckier I am...more time for the golf course, gym, pub or as we approach winter staying in and watching Jezza :P
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Weisenwolf
    • By Weisenwolf 13th Oct 16, 11:23 AM
    • 11 Posts
    • 8 Thanks
    Weisenwolf
    Please can someone help? Our daughter has inherited £150k which she hoped to put towards a house. She has found the perfect place and needs to take out a mortgage of £60k - there's no cheap housing in our area.

    The problems are that her partner is self employed with only one years trading she is a stay at home Mum and they get working/child tax credits. The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

    They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!

    Does anyone know a broker who could help? Or offer any advice?

    Sorry for the long post but we're getting desperate.

    Thanks in advance.
    Originally posted by debbiedebt
    That £500 unauthorised loan (which is what it effectively is) will be crucifying your credit score; whether she's been paying it or not it shows she defaulted and can't be trusted (Sorry nothing personal) and only has £10/month spare.

    If it were me I would pay that overdraft off, buy something I can afford with the £150,000 (even if it's elsewhere) and start accumaulating some savings with the rent/mortgage I wont be paying while my credit rating repairs over time. I would be making sure I manage the rest of my finances to perfection in the meantime. I would join the MSE credit club thingy and wait until my credit scores improve before entering the mortgage market. The perfect place may have to wait; anyone lending £60K to someone who couldn't clear a £500 overdraft is going to charge a mint.
    Last edited by Weisenwolf; 13-10-2016 at 11:26 AM. Reason: apelling errors
    • muhandis
    • By muhandis 13th Oct 16, 12:03 PM
    • 204 Posts
    • 81 Thanks
    muhandis
    In your daughter's place, what I would do is -

    1. Pay off the overdraft immediately, if it isn't already.

    2. Get £2 copies of credit reports from the three main rating agencies - Experian, Equifax and Callcredit.

    3. Go to a mortgage broker (you should be able to find a decent whole of market independent broker who will not charge for the initial consultation) and find out if there is a realistic possibility of getting a mortgage. Going by what the brokers on this thread have commented, it looks like a distinct possibility, but only an advisor who has had a look at all the aspects will be able to tell.

    3. Thinking logically, with effectively a 30% LTV loan, there must be lenders in the market willing to lend against a charge on a house even if her credit rating is poor.

    Worst case scenario is that your daughter is told that she can't get a mortgage at the moment, no harm done but at least she knows what her budget is going forward.

    Good luck.

    Please can someone help? Our daughter has inherited £150k which she hoped to put towards a house. She has found the perfect place and needs to take out a mortgage of £60k - there's no cheap housing in our area.

    The problems are that her partner is self employed with only one years trading she is a stay at home Mum and they get working/child tax credits. The other problem is that a small £500 overdraft that she is repaying at £10 a month is showing as a default although her bank statements prove that she had paid it.

    They currently pay £725 a month rent and the mortgage repayments would be about £200 a month so they can definitely afford it!!

    Does anyone know a broker who could help? Or offer any advice?

    Sorry for the long post but we're getting desperate.

    Thanks in advance.
    Originally posted by debbiedebt
    • Thrugelmir
    • By Thrugelmir 13th Oct 16, 1:49 PM
    • 51,207 Posts
    • 42,983 Thanks
    Thrugelmir

    Also, are you sure that a default is recorded and not an Arrangement to Pay (AP). Neither are good, but there is a slight distinction.
    Originally posted by Malmo
    Getting technical here. An AP is a default. Once contractual terms are broken an account will be viewed as having "defaulted". Forget the CRA default disclosure.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • Smodlet
    • By Smodlet 17th Oct 16, 10:52 AM
    • 1,774 Posts
    • 2,926 Thanks
    Smodlet
    Cecil, I am pretty sure you are advertising so have reported your post as spam. There are plenty of mortgage brokers in this country; the OP's daughter has no reason to deal with someone in Canada, where the laws are different to those of England and Wales.
    What is this life, if, sweet wordsmith, we have no time to take the pith?

    Every stew starts with the first onion.

    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
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