Wanting to get a mortgage

SS7781

Hi Guys,

This is my first post so please bear with me.

I was previously in a joint mortgage with my brother. I have had my name removed from the deeds and mortgage via my solicitor. I am now looking to apply for my own mortgage. I ran my credit check over the weekend and it fell in the 'excellent' field on equifax.

I had an IVA a few years ago and that ended in 2010. There is no reference to having had an IVA on my credit report. I don't have to declare I had an IVA when applying for a mortgage if it it no longer exists or shows on my credit rating do I? It was fully settled and I no longer owe a penny to anybody.

I am in a permanent job and have a regular income including annual salary increases and bonus payments.

I am thinking to go through a whole of market broker than won't charge me anything. The question I have is, where do I start?

Another question I have is, if I go to my bank to obtain an agreement in principle, will they have to run a credit check before giving the AIP to me? I am cautious of the number of credit checks being done when I am trying to get a mortgage. I don't want do anything that will affect my chances of getting a mortgage. So far I have only had 1 credit check in the last 6 months when I took out a new Cable TV/broadband package. :-)

Also, will I get a mortgage on an affordability basis or ? x my annual salary? Will a mortgage broker be able to give me a realistic amount a lender is willing to give me, providing he has all the information he needs to do that?

Last question, will the mortgage application be processed quicker directly with the bank or via a broker?

Sorry to waffle on!

Thanks,

SS

kingstreet

If the question asks "Do you have, or have you ever had...?" then you need to answer it truthfully.

An agreement in principle normally leaves a footprint on your credit file, although some lenders do a less invasive soft search which doesn't, but the result is less reliable.

In many cases, the 0.3% of the mortgage paid by the lender isn't enough to cover a broker's costs. A fee may therefore be payable. A fee-free broker will deal with you at arms-length, via a call-centre, or do what the banks and building societies do and loss lead on the mortgage to sell you more profitable insurance products.

Some lenders use income multiples, others use disposable income and affordability models to calculate what you can borrow.

Speed? Who knows...

Thrugelmir

SS7781 wrote: »

There is no reference to having had an IVA on my credit report.

There are various sources of information that lenders use, not just one.

JimmyTheWig

I agree with the above.
If they ask you have to tell them.
Even if they don't ask they may find out anyway.

I presume that you are wanting a mortgage to buy a property. If so, the mortgage company is allowed to do a credit check just before releasing the funds.
This is, generally, between exchange and completion. At the point of exchange you are committing to buying the property. If the mortgage company find out about the IVA at this point they may well refuse to lend you the money.
That means that you have committed to buying the property but would be unable to without the mortgage funds.
Which would put you in a difficult position.

I suggest you tell them up front.

droiderm

Maybe a better question for the OP is, which lenders would consider someone who has had an IVA?

What's your bank? Find out if they would just throw it out anyway.

Goldiegirl

Definately be up front with them about the IVA.

If it turns up in the searches and you haven't told them about it, it could be a reason for declining the application.