Lifetime tracker Mortgage - 70% LTV required with 2 missed credit card payments

becks23

Hi,

We require a mortgage for a £360k house (£120k deposit).

I spoke to a large fee free independent mortgage advisor and he advised a fixed mortgage for this rather than a lifetime tracker as I have 2 late payments on a credit card (January and March) and fixed rates offered more choices and were more lenient on late card payments.

The lifetime tracker looked appealing as after a basic search it looks like I could get one at a similar rate of a 2 year fixed meaning we are not tied into a tracker/fixed rate for x years. It also means we are flexible when we want to move without reverting to a high SVR whether that's in 3 years or 13 years. My current mortgage is on a high SVR after my mortgage deal ended and as I knew I was moving have had to stick with this.

What I would like to know is would I be able to get a lifetime tracker (c.+2%) with 2 missed credit card payments? The advisor said it would be very unlikely - e.g. Santander(their best lifetime tracker) would say no. Hinkley would say no. He said their best rate they could offer would be about +3-3.5% so therefore fixing would be better.

Would an indpendent whole of the market advisor be able to help me here get a low lifetime tracker rate or is the two missed payments cutting me off from these options? Would a 2 year fixed be best? Any cons regarding lifetime trackers that I might not be aware of?

Cheers in advance for any advice.

ACG

fixed rates offered more choices and were more lenient on late card payments.

Is this what your broker said?
News to me. My understanding is that a lender has criteria, and may also credit score. That process is the same whether its a fixed rate/tracker/offset etc etc.

I would be inclined to say what a crock of .......! I think hes trying to flog you a 2 year fixed rate so he has another appointment to make in 2 years - but that could be me being cynical.

When were the 2 late payments?

becks23

I think his words were along the lines of 'the best fixed rates at the moment are from companies who treat late payments with less severity than companies currently offering the best lifetime trackers'. Meaning I would have more luck going down the fixed rate route not that fixed rates are more lenient.

I didn't mention it initally but being a cynic like you I did think it sounded like he was pushing for a 2 year fixed for a cyclic repeat custom. Even before I mentioned the 2 late payments he was guiding me away from lifetime trackers. I also wondered whether he couldn't get hold of the best lifetime trackers as they don't cover the whole of the market and was angling towards their best deals rather than the deals you see on the internet.

The late payments were January 2014 and March 2014.

kingstreet

First job is to find someone willing to lend to you.

Then you worry about the product/rate options.

I suspect that is what the message was supposed to suggest.

ACG

Those are quite recent.
Who were the late payments to?

Are they showing on all 3 versions of your credit report?

I think now you have explained it a little more, your broker would is not necessarily incorrect as there are more fixed rates available on the market than there are lifetime trackers so it may limit your options but if you answer the above question there may be lifetime trackers available.

becks23

These were to Halifax Credit Card.

No too 'au fait' with credit reports. When you mean 3 reports do you mean Callcredit, Equifax, Experian? For Callcredit I have a '1' in Jan. For Equifax I have a '1' in March. I can't see the Experian report. I can see the scores for all 3.

kingstreet

The "scores" are irrelevant and not seen by lenders.

As a lender may take information from only one of the three, it's vital you know what is visible on each file and which lenders use which CRA(s) which most brokers know.

ACG

At that sort of LTV, I think this might get through with the majority of lenders.

Your broker could be right, he has a lot more to look at than we do but I think you should be able to get a lifetime tracker if thats what you want.

amnblog

Sounds like you got your money's worth!