First time mortgage problem

GMS

'only' £40 is still a default. This means many lenders out of the equation. Also if it is looked at by an underwriter they may look at it as you are prepared to default for 'only' £40 so would quite happily default on a higher amount.

Gentoo365

This thread has made me wonder two things.

1) Are quite a few First Direct declines due to the current account rather than the mortgage?

2) Do first direct require a current account so that defaults on mortgages turn into defaults on current accounts? i.e. the mortgage is always paid, but the current account goes overdrawn.

Number 2 is interesting as it implies that they would have the ability to fudge their figures regarding quality of loans.

Not that I am accusing them of anything of course. I am sure that they are compliant.

Thrugelmir

Gentoo365 wrote: »

2) Do first direct require a current account so that defaults on mortgages turn into defaults on current accounts?

First Direct require current accounts so that customers deposit funds within the HSBC not another banking group. Mortgages require funding not just directly, but with regards to capital solvency regulations.

Firsttime54

Just to keep you all updated on what has happened.

I have got in contact with a mortgage broker who looked at my situation. That was on Tuesday. By Thursday I had a decision in Principal from Tipton & Coseley Building Society and today i paid for the valuation fee. My advice from the mortgage broker was that banks (especially First Direct/HSBC) are very strict on anything with a default. He informed that that some building societies (such as the one i have gone with) simply do not take mobile phone late payments/defaults into account due to the frequency they occur on peoples accounts. As long as you can show you can manage credit (for instance I have paid off a £15,000 car loan and have a credit card that is completly paid off).

Having got in touch with O2 last week, still no reply from them and i don't expect it any time soon, but will keep on theirs backs about it and report back.

Thanks to everyone for their advice on this one :-)

Simon_gloster

It does make me wonder how come you have such a small deposit on good amnual salariea with little or no outgoings.

12500 could easily be saved up in 6 months meaning a 20% deposit and better rates.

Dont ever go headlining rates again as you have found out

Firsttime54

We are also saving for a wedding and honeymoon as well as two stag do's and my fiancee has 3 hen do's next year all abroad so they are needed for saving too.

ilprincipe_23

Hello, I'm new to the forum and wondered if someone could perhaps offer me some similar insight.

I too, am in the process of moving home and moving my mortgage over to First Direct - i bank with HSBC, mortgage with Halifax.
I have read (many) articles around their lending criteria, and am starting to think i may be an unfortunate example of being declined my mortgage.

To summarise where we are at - i ( and my partner) have applied over the phone, filled out the application form + sent back 3 months statements, p60s, wage slips etc and today received a text saying my 'mortgage has been approved subject to valuation and account opening checks'.

Where i am concerned, and is that in February, we have a missed payment showing on Experian against our existing mortgage. To contextualise, Halifax actually took the payment, but then put it back in the same day as it would have put us overdrawn (even though previously they released funds which did put us overdrawn?).
I did phone Halifax the same day, and make the payment, but this has tracked as being 'missed' on Experian. As it was resolved so quickly i thought, perhaps stupidly, nothing of it and only noticed it when i updated my experian file.

Its probably worth noting our rating are still in excess of 890 individual so good, but obviously this payment is on there (additionally we have a combined income of £51k - looking to borrow £128k).
Am i right to assume that, when they do the 'account opening checks' this is where they will potentially come across this?
The statements we sent over for 3 months did (coincidently) show that we had paid all of our direct debits on time, but i am concerned that we could fall flat on the account opening stage of the process.

Does anyone have any insight into what checks will be carried out on account opening? I assumed that they would check all this stuff on the first application stage (there is a Current Account search from FD on my Experian file and was told i had passed credit check), and indeed when they received my documents but reading around these forums has made me concerned :mad:
I have a fixed payment HP on my car of £270 p/m, £27p/m for sofa payments but no other loans and both are free of any credit card debt.

Any insight would be greatly appreciated. Thank you!