Mortgage Application.

jkmoreton

Hi just wondering if i could get a bit of advice, i have applied for a mortgage with the Loughborough building society as my mortgage broker advised they are good with bad credit applications and made contact with them for me ( i have 2 satisfied defaults from 2010 £290 and june 2011 £1190 both satisfied over 12 months ago.) I have 13K deposit for a 95k mortgage. My question is over my 3 month bank statements im about to send as in January i was in my overdraft by £600 as soon as i was paid it cleared and ive not touched the OD again to this day, i always had my savings along side this with the same bank so was never in monetary trouble i just paid for alot of things over christmas etc and i wasnt planning on getting a mortgage as my house wasnt on the market but it went on (ex wife) and sold really fast hence looking to purchase now. Does anybody have any inclination on how the lenders will view that ? ?

many thanks in advance :)

nick.evans

As long as it was an agreed overdraft and cleared at the end of the month it is not a negative. You have an agreed credit facility, you are only marked negatively if you do not use it correctly.

The satisfied defaults however are looked at very negatively

jkmoreton

Many Thanks Nick, i know defaults are bad but i think thats why my broker pointed me towards the Loughborough. I have been told by the halifax they will lend but there terms are alot dearer than the Loughbourough so if i get turned down by the Loughborough would that affect me then applying to the Halifax ?

Dave_Ham

You need to focus on who will accept you, rather than worrying about terms.


On paper, you are outside Halifax lending criteria and therefore I would be surprised they will lend and would question who has told you they will?


Loughborough is going to be slower processing and not entirely sure how they will treat the adverse and the case generally, but your broker sounds like they are confident..


All the best

jkmoreton

Many thanks for reply Dave, my broker advised halifax or the loughborough after looking at my credit report, im worried he is wrong now as he does seem a little distant at times, do you know what the lending criteria for halifax is ? I had a phone interview with the loughborough and made them fully aware of my past credit issues with exact dates and amounts etc and she advised thats ok and she still sent out the application pack and has taken my money for valuation report ? thanks again

amnblog

What do you mean 'a little distant'? Different people have different styles, that does not indicate there should be a problem.

As it is, you have some credit issues and no-one on here can second guess the result you will get. Lenders can blow hot and cold.

jkmoreton

Many thanks amnblog, my broker is a little distant as in he never returns calls etc but hopefully his advice will be correct