About to apply for mortgage, advisor warns about references

mr_flibble

Does anyone have experience of the Leeds or newcastle building societies?

I ask because my advisor said that as it is less than 12 months since I sold up after my divorce they tend to ask the last mortage provider for a reference. Santander.

Before my divorce my ex walked out and went to the states, leaving me with negative equity and a huge gap in income. I lived in the house for over a year then moved out when it sold. The house sold at a loss which I had to plug with help from my new partner. For a few months before i could sell there was an underpayment but the total in arrears never was more than a monthly installment. This was settled when the house sold. It does not show on any of the credit reference agencies as a late payment but if you look at the totals closely you will be able to see that the payment was light for a couple of months. I was subjected to the delightful multiple calls a day of Santander collections for months until the house sold.

Santander were a nightmare to deal with, they refused to be helpful unless I defaulted. I preferred to struggle on and preserve my credit score as best I could. I have two late credit card payments from that time but that's all. My ex would only sign the paperwork to sell and nothing else so I couldnt reduce payments by extending the term. It was a struggle but I paid as much as I could and never gave up.

My credit files are perfect apart from this and I have about 3k on credit cards which is reducing month on month (22% of available) I have no overdraft facility and can show I live within my means.

I'm now applying for a mortgage in my name only.

My questions are:

How are Santander likely to report this in a reference? Especially worried since I had more than a few cross words with them when I applied for a mortgage to buy out the ex, they said I couldn't afford the mortgage. Despite the fact I was already paying it and I applied for a longer term that reduced the payment by almost £200. No I couldn't work it out either.

Will the two lates on credit cards cause me a problem? These were on two cards in the same month,one late each. I paid the mortgage instead. The following month everything was back on track.

Should I just forget it, buy a tent and go live in a forest away from the madness that it today's mortgage market?

Sorry for the length of post.

Kel.

The_J

If it does show as a missed mortgage payment then you are screwed so you did the right thing in making the payments.

Card payments not necessarily a problem. Would have to know specifics, depends on LTV and other factors.

Mortgage companies won't write for a reference. They may ask to see the redemption statement for the mortgage.

mr_flibble

The_J wrote: »

If it does show as a missed mortgage payment then you are screwed so you did the right thing in making the payments.

Card payments not necessarily a problem. Would have to know specifics, depends on LTV and other factors.

Mortgage companies won't write for a reference. They may ask to see the redemption statement for the mortgage.

Thanks. I have checked all three cra's and no missed payment is shown.

Kel.

Dave_Ham

You did the right thing Kel, do not worry....

mr_flibble

AIP Leeds. :-)