Reference Q’s mortgage companies ask? Help pls!

petal_2

I have a mortgage in principal for a 107% mortgage. (Needed as properties in Scotland have this out of control offers over asking price system!!) .

My question and worry is the reference question the mortgage company will ask my current landlord………I have been a tenant with them for almost 14 years.

I am not in rent arrears currently, however, I have for a long time paid my rent 2 weeks behind, due to my salary being paid mid month and a few years ago I was a mature student and my rent was sometimes a bit behind, but not for very long and never had any action raised by the landlords This has not appeared to be a problem for my landlords (housing association) but will this be a problem when it comes to my reference? I know now I should have changed my payment date this but hindsight is a wonderful thing and I really didn’t think this would be an issue.

What do the mortgage company ask the landlord?

Will they contact my landlord at all?

Do they ask…is the tenant in arrears? (answer would be no)

Has the tenant been in arrears? (answer would be yes)

So I imagine it depends how the question is worded from mortgage provider?

Is it worth speaking with my landlord about this?

I asked my mortgage broker these questions and he did not know this answer so I thought that someone on the forum would be able to help me? I’m sick with worry I do hope someone can help. Thank you.

JoeK_3

petal wrote: »

I have a mortgage in principal for a 107% mortgage. (Needed as properties in Scotland have this out of control offers over asking price system!!) .

My question and worry is the reference question the mortgage company will ask my current landlord………I have been a tenant with them for almost 14 years.

I am not in rent arrears currently, however, I have for a long time paid my rent 2 weeks behind, due to my salary being paid mid month and a few years ago I was a mature student and my rent was sometimes a bit behind, but not for very long and never had any action raised by the landlords This has not appeared to be a problem for my landlords (housing association) but will this be a problem when it comes to my reference? I know now I should have changed my payment date this but hindsight is a wonderful thing and I really didn’t think this would be an issue.

What do the mortgage company ask the landlord?

Are your rent payments up to date

petal wrote: »

Will they contact my landlord at all?

Yes, they certainly will

petal wrote: »

Do they ask…is the tenant in arrears? (answer would be no)

They wiil probably ask to see your rent book

petal wrote: »

Has the tenant been in arrears? (answer would be yes)

It would show that but you could write to them to explain how you get paid.

petal wrote: »

So I imagine it depends how the question is worded from mortgage provider?

They will ask to see the rent book

petal wrote: »

Is it worth speaking with my landlord about this?

They would only write to the landlord if the rent book was not available

petal wrote: »

I asked my mortgage broker these questions and he did not know this answer so I thought that someone on the forum would be able to help me? I’m sick with worry I do hope someone can help. Thank you.

Your mortgage broker must be inexperienced as these questions are dead basic ones.

It's not all dead, as the mortgage lender's underwriter is a human being but you will need a letter to send in when they ask to see your rent book.

It may be an idea to have a word with your landlord to put a nice supporting letter together when you send yours in to the lender.

Regards

JoeK

jamesd

Phone your landlord and discuss with them. Make sure that they and you are in agreement that you were paying acceptably as far as they were concerned and that that is what they will tell the mortgage company. The rent book is nice but it's the mutual agreement between you and the landlord that decides whether you were paying as desired or not.

petal_2

Thank you for the replies most appreciated.

We don't have rentbooks as it is all kept on computer in the housing assocations office and they haven't sent me a copy for ages! I just pay over the phone on their automated payment service and have refernece numbers but no receipts.

Thank you for the advice I am going throught to see my landlords first thing in the morning to have a chat to them about it.

I will ask them for a print out of my recent payments...how far should I go back? 3 months, 1 Year etc?

Should I include this to the mortgage company now with my letter, and if the HA is agreeable one from them or should I wait till they ask me for it?

Many thanks

JoeK_3

Ask your landlord for a print out for the last 12 months and submit it with your application if requested.

JoeK

petal_2

Thank very much JoeK, your advice is most appreciated.