which high street bank?

redapple1

Hi.

So we've found a house and had an offer accepted.
When looking at our credit report I have 3
4 late payments (number 1) over last 6 years (all over 3 years ago) and my partner has 3 late payments (number 1) again over 3 years ago. no defaults or ccjs.
No problems with credit file since then.
both have a car loan and a combined credit card debt of £7500.
We have recently cleared overdrafts and have cleared 5k of credit card debt.
house price is 180k with 10% deposit.
because of the above we got some 'advice' off an ea advisor who told us to apply to halifax as they were the most reasonable.
we did and got a mortgage in principal. we are going on holiday so vendor has agreed to hold off until we get back and we can progress things.
Im now worried that we've gone with the wrong lender as their rates are shocking!! and perhaps we've been niave....we just wanted a mortgage tbh and we are aware our credit files are less than perfect and many lenders still class this as adverse.
also, if i go elsewhere now another credit search might impact????
what do you think? is there another high street lender with better rates that would look at us? or should be continue to progress with halifax? rate would be fixed for 2 years.
thanks.
we earn 70k between us.

Dave_Ham

Halifax are amongst the most flexible, although at 90% they have bad rates.

I think it unlikely you would achieve a HSBC or First Direct or Accord/YBS.

That said, you never can 100% tell in advance and I certainly cannot tell without the reports and fuller information on monthly credit commitments.

Your income is strong, but if you are both driving round in top of the range Lexus cars at £500 a month upwards then this would put a different slant on things.

Biased view I admit, but see a broker and then get some regulated advice and the optimum product for your individual circumstances...

redapple1

I wish it were top of the range cars Dave!
My car loan is £160 and husbands is £192.
We bank with RBS - but I was nervous about them as havent they been taken over by Santander?
If we stay with halifax for the 2 yr fix rate theyve quoted then would we be more likely of a better rate elsewhere?
Obviously halfiax have done a credit search now so I dont want too many of those going on.
Could anyone give me a heads up on other high street lenders we may be suitable too?
How much do brokers cost?
Thanks.

Dave_Ham

Haha...

No RBS are part of the Natwest group, at 90% Loan To Value definitely give them a wide berth..

Credit searches are not as big an issue as people go on about. Whilst I would not advocate multiple searches and whilst Experian/Equifax not your "score" for multiple searches they are irrelevent.

Lenders use their data and not their "score"

For you loan to value, a broker would charge anywhere between £0 and £695 ish - there will be some that would try and charge sub prime rates of £1k + but not necessary for you (or for most to that matter)

Depending upon the term of the mortgage, if a decent broker saved you £100 a month vs the Halifax rate you have almost accepted may be worth spending a few hundred to save a few thousand

After any 2 year fixed deal, you are free to move elsewhere and if the property price has appreciated or if you have significantly overpaid you may move into 85% LTV banding..

Remember on a residential mortgage, hardly any capital is paid back as the interest is front loaded...

All the best

Wh05apk

I had a similar case (slightly worse if anything) a few weeks back, tried Halifax, thinking they would be he only option and passed surprisingly, as at 90% criteria is tight, then tried Nationwide for a better rate, and was amazed when it just flew through.

Sometimes we "think" we know who will and won't accept a case, but until the aip is put through we don't know for certain.

Halifax are certainly way off the mark, so are only really a "fall back" a Dave has said try a broker, take your credit files, and see if they can place elsewhere, a couple of further searches will have minimal impact so you have nothing to lose.

redapple1

Many thanks for all the advice.

We've actually been saving for our deposit in our Nationwide savings account. Perhaps they are worth considering if their rates are lower - that £100 month difference would pay for insurances etc.

So, perhaps I should get myself a broker sharpish - Im in South Manchester, can anybody recommend somebody independent?

Dave_Ham

Nationwide would be a much better proposition, although would want to check credit files and details first as predictably they are a bit stricter than good old Halifax..

Conrad

The media keep saying people hate the Banks. Are we sure about this?????

OP - why not consider a non Bank - a nice freindly Building Society, the supposed good face of capitalism.

Thrugelmir

Your combined credit card debt will impact your ability to obtain a 90% mortgage. Suggest you try and reduce this asap.

CLAPTON

Dave_Ham wrote: »

Remember on a residential mortgage, hardly any capital is paid back as the interest is front loaded...

All the best

seems a little bizarre to describe the act of charging interest on the actual (decreasing) balance outstanding as being 'front loaded'.

what else would one expect to happen?

Wh05apk

Thrugelmir wrote: »

Your combined credit card debt will impact your ability to obtain a 90% mortgage. Suggest you try and reduce this asap.

Not significantly based on their incomes.