First time mortgage application issues

jagger86

Hello - my first time posting on here but often read through the threads for advice...

We got a mortgage in principle through Natwest, for the help to buy scheme and then the opportunity to buy our dream house then was available to us and before offer was accepted the woman advised she needed a quick sale else would lose her new house...(which is why she pulled out on previous buyers as they were taking too long)

So I then called Natwest to process application with me as first name on mortgage and my partner as second. They had a 3 week wait to even complete my application over the phone. Due to their being high demands for the help to buy mortgages. So we spoke to a broker who my partner found. The broker advised me to apply for mortgage on my own as my partner had defaulted on a mortgage in the past (2008?)

So I listened to the broker and applied on my own, increasing our deposit to 10% as the process for help to buy was appearing to be a long process.
I have waited 3 weeks for Halifax to process my application and they have approved it - only it's not enough!! Surely the broker should have known this before advising me to apply.

Anyway the position I am now in is I have a mortgage for £107,000 approved but need £123,000 for the house.

I can't ask my mum or dad to co-sign as they are both bankrupt after their divorce!!!

The mortgage broker has advised us to take the mortgage for £107,000 then apply for a £20,000 loan to make up the difference. What are people's thoughts on this??

I have just finished a £5,500 loan with HSBC earlier this year so my credit rating is good with them but not sure how much they would lend me.

The other option is to apply with my partner on the mortgage but risk getting declined. Then back to square one and lose the house!

It is really frustrating as my partner pays our rent and he will be paying the mortgage and earns more than me but has these issues with his credit.

Any advice please I am desperate as we are also expecting a baby and I will be heartbroken if lose this house!

Thanks

Dave_Ham

Unfortunately Natwest and Help To Buy directly are hard work as they have nowhere near the supply to meet demand in branch.


You did the right thing (although I would say that) in getting a broker, although yours is a clown.


You need to bin him/her and start again with someone competent (and compliant)


Have you had the place valued yet?

jagger86

Yes it has been valued by Halifax for £137,000 and they have approved a mortgage for me but for only £107,000. Need £123,000 though.

The thing is if we start again it will be another application and will take another 3-4 weeks. The woman needs to complete by end of April. I feel so stuck!

Also we will be in the same position - any lender will only give me 5x my salary and my partner will still have the same credit issues.

Am I ok to just get a loan for the difference?

Dave_Ham

Absolutely not on the loan front, it will then be taken out of affordability and not lending you what you have now.


Do you have partners Experian, Equifax and Call Credit reports?

jagger86

The mortgage broker we have says the mortgage has already been approved and is in place so if sign for it can then apply for a loan?

No I don't but the broker has credit checked him and advised me to do it on my own as he may get rejected!

The guy sounds like an absolute tool to be honest but we are already at this stage with him, I don't know whether to just risk it and apply with my partner? Which is what we were planning on doing in the first place until this broker got involved. Natwest said yes in principle so if Halifax have already approved me are they likely to approve it with him added on?

Dave_Ham

Hard to say, as added will be 2nd applicant which gives you a marginally better chance but will depend upon the detail of the Experian, Equifax files.


Halifax run auto update live systems and may well check and spot if you get an unsecured loan


Forget what the tool says, this is never signed, sealed and ready to go until completion

jagger86

Ok thanks

I will run those reports later with my partner and see what exactly they say

I think our only option is to try and add him on - if it gets rejected we will be stuck in renting a while and have worked our !!!!!! off to save £14,000 since October for nothing! :-(

Matt_ftb

Ditch the broker, would you trust someone giving what appears to be poor advice with a £130K investment?

I'd certainly not advise getting a £20,000 loan which you'd have to declare to Nationwide anyway which would likely impact your affordability. What if You got the loan and then they said no to the mortgage?

Even if you apply or even sign this week a completion by the end of April is exceptionally ambitious.

jagger86

well the mortage has already been approved by Halifax.

If we get the loan then they withdraw the offer, we lose the house. If we don't get the loan, we lose the house.

I know everyone is saying ditch the broker but we do not have time to start an application again - also if we get another broker that is not going to change my partners credit history.

If we can't get this house, it's not a case of getting another cheaper one - it will be a case of staying in the house we already rent until we save another £20,000. Which will be another year.

DebtFree14_2

Your broker is obviously a clown!!!! you would be unlikely to get a loan for £20,000 and he obviously has no care about you after his mortgage deal is complete! You will be repaying a loan and a mortgage. Loan APR are not good at the minute. Sometimes its best to walk away. Alternatively see what you would get with him on the mortgage. If he defaulted in 2008 (6 years ago) it may not affect his as much as you think

Matt_ftb

jagger86 wrote: »

well the mortage has already been approved by Halifax.

If we get the loan then they withdraw the offer, we lose the house. If we don't get the loan, we lose the house.

I know everyone is saying ditch the broker but we do not have time to start an application again - also if we get another broker that is not going to change my partners credit history.

If we can't get this house, it's not a case of getting another cheaper one - it will be a case of staying in the house we already rent until we save another £20,000. Which will be another year.

Yes but the mortgage has been approved on your current circumstances. Taking out a £20,000 loan just prior to signing for a mortgage is about as risky as it gets. What if you get the loan then when you declare the loan which you will have to do they don't give you a mortgage? Your left with a pointless loan of £20,000.

Walk away or try and get your partner on the mortgage.