65% ltv

kerri_dfw

My partner and I earn 65K between us with no current debts and have just approached an independant mortgage broker looking to buy up to £250k with a 15% deposit. The broker has come back to us yesterday to say that she can only see offers for 65% LTV and would like to see our credit reports so she can look at lenders that might consider lending and what level of deposit we might need.

My credit rating has a default from 2009 and a few APs back in 2011 but has been improving since then with all debt cleared bar a £100 barclaycard for improving my rating that's paid on time every month and in full.


Neither of us have had any CCJs although my partner has had a default but he believes this was over 6 years ago. he's going to check his credit report tonight to see what's on it.


Is a 35% deposit what lenders are wanting these days or do I just need to leave it longer for the default and APs to clear?


Noddle has my credit score as 572 (between poor and ok) and equifax is 445 (good).


We're still waiting for the electoral roll to be updated with us living where we do from sending off the form in October.

ACG

Give your broker some time to research it after seeing your credit reports.

With a 15% deposit there will be a couple of lenders who will accept this, it does reduce the pool of lenders right down though.

kingstreet

CRA credit scores are meaningless. If you are paying for them stop.

Get all three versions of your credit files and put them in front of the broker so they can see the full picture.

I presume the broker has tried an agreement in principle with Halifax and been given a max of 65% and that's what's being reported to you. Was any of the adverse credit with Lloyds Banking Group? If it was, that may well be the reason for 65% with Halifax.

kerri_dfw

Thanks Kingstreet, yes my OH has just paid off his default with Lloyds and I previously had arrears with them. She did mention Halifax, I didn't realise they were part of the group or I would have mentioned them to her.

fightingback4mykids

Sorry, feel like I am becoming some sort of stalker of kingsreet/ Dave Ham etc on this forum..... But from what you have said above will Halifax still consider you if you have historic adverse with them? I am currently with Halifax, wanting about 65% LTV on a house move, but have very historic (registered 8 years ago, no longer on file) adverse with BOS and TSB.

kingstreet

As you can see, they appear to be prepared to lend the OP 65%.

The severity of the adverse you have with them may make them decline, we don't know what your outcome might be...

fightingback4mykids

Ah OK, interesting. Perhaps we need to ask them at least anyway and see if they are willing to do it. Have a 2.29 fixed rate with an early redemption on it so would be perfect if we could stay with them. I am guessing though their AIP/ DIP (whatever they call it) would not pick up info not on the credit report any more so we would have to do a full app before we knew.

kingstreet

If the debt was to them, they don't need a credit search, they will see your internal history.

That's why routine advice is to avoid group lenders if you had adverse which is no longer visible on your credit file, as they will see it from their internal records.

kerri_dfw

We have accounts with HSBC and nationwide but no adverse with them. I'd rather not have a mortgage through lloyds group (paying them even more money) after having dealt with them previously. I'll wait and see what the broker comes back with now I've sent over our reports. Would it be worth approaching hsbc for a "chat" to see what they say based on our credit reports without them doing a search?

kingstreet

Probably not much point.

All they'll say is "it's impossible to say, without doing a credit search."

Brokers can talk to lenders, particularly non-scoring ones who actually look at the case on its merits, rather than allowing the box in the corner to decide.

kerri_dfw

Thank you very much for your insight, I feel slightly relieved that the high LTV is likely due to our previous history with Lloyds Group. I'll wait to see what my broker comes back with, just a shame we can't go with the stamp duty deal...but then I'm sure there'll be other things coming on the market. I shall update when I hear something more back.