Applying for mortgage with missed payments. Advice desperately needed!

GrumpyTeacher

Hi all,

I'm looking to buy with my partner.

We contacted a broker as I have 3 missed payments between 2 and 3 years ago. We've received a mortgage promise from the Halifax but I know that's not worth much.

We have a £40k deposit for a house worth £185k (waiting to hear if offer is accepted) and can go up to £190k. LTV would be 78% and 79% respectively. We're FTB.

Basically I feel my broker is lying to me. He's said that to get the promise we've been given a soft check but that they've looked at the last 6 years credit history. However I've read everywhere that they only go back 3 years (which would be fine but my missed payments are from my last 2 previous addresses) and I've heard they only check current address.

So my questions are:

1) Is my broker lying about the 6 years? If so why would he?

2) With a LTV of 78% and no defaults, only missed payments (days late not weeks) be a problem with Halifax?

Both my partner and I are in full time permanent employment but have had multiple addresses in last 3 years due to renting.

My broker is saying unless details we have given him (income, debt, outgoings) differ then we'll go through and it's rare for AIP acceptance to end in decline upon full application?

Any help would be great, I've lost sleep and weight over the worry, we don't want to rent for the next three years!

holly_hobby

May fail on full credit scoring re payment profile info that will be revealled on a full CRA check.

Why were payments late, how many times and on how many accounts ? Were they as a result of bank error, rejected DDMs due to lack of funds, or just mis-management ? (ie lender is looking to ascertain that you're not having financial issues which underpinned the late payments).

Hope this helps

Holly

GrumpyTeacher

2 were with credit card, 1 or 2 days late because my boss failed to pay me on time.

Other was a utility bill (I think) with HSBC 3 years ago on a joint account linked with my ex partner.

ACG

At full credit check it may fail as its unlikely the late payments have been picked up if at a previous address. However, at 78-79% a couple of late payments from a few years back is unlikely to be a deal breaker, even if halifax do decline at full app stage (which i dont think is likely) there will be other lenders.

i wouldnt lose sleep over this as there will definitely be a solution without paying high rates and looking at adverse lenders etc.

GrumpyTeacher

So has my broker lied to me? Should I trust him?

ACG

I have no idea if your broker has lied to you, i dont really use halifax that much. But why would they? If the application does get declined, its a waste of their time and yours.

GMS

emmajanekitchen wrote: »

So has my broker lied to me? Should I trust him?

Your broker has full details of your circumstances.

As a stand alone the missed payments shouldn't stop the mortgage. As part of bigger issues it would.

Have you got copies of your credit files? If you have concerns get the credit files to another broker

GrumpyTeacher

Just equifax- I locked myself out of experian so phoning them tomorrow!

I don't know why he would buy he said they've done a full 6 year check which I know they haven't.

So it doesn't sound all doom and gloom... I thought missed payments would lead to a decline from most lenders.

GrumpyTeacher

Also since the late payments I've been accepted for two consecutive car hire purchase agreements. First for £15k fully paid off with no late payments and a more recent one for £20k on which I have no missed payments.

Will the fact that I've been approved for hire purchase help my payment profile?

By the way thank you for your replies... I'm a natural worrier and I really want this house!

ACG

Theyre quite old and you have a decent enough deposit.

If you dont trust your broker at such an early stage its worrying but i wouldnt worry about the mortgage. This can be placed all day long, so as i say - dont lose any sleep over it.

GrumpyTeacher

I think it's him saying there's been a 6 year check rather than 3- he assured me if been fully scored.

I trust his expertise and I'm a natural second guesser but its the 6yr/3yr thing that worries me :-(