How important is landlord reference for mortgage grant?

mortgagevirgin_2

Dear members and experts,

I am a first time buyer and going to apply for mortgage with Woolwich shortly.

As part of my mortgage application I have been asked to produce contact details of my current landlord for reference.I pay my rent in cash to my current landlord and don't really keep a rent book / rent payments in written.

Can the experts and underwriters here on this forum help me understand how likely, considering my situation, my landlord will be contacted by my application's underwriter for reference?

And just to know, pragmatically, how much impact can landlord's reference have on my application's success? Can a bad or missing reference be a blocker for my application's advancement?

Many Thanks
Worried Newbie!

ACG

Your rent payments do not show on your credit report, so they request a reference to confirm payments have been made on time and are up to date.

If they have, your laughing. If they have not then it will depend on the rest of the case.

mortgagevirgin_2

Thanks ACG!

And in your experience, will the fact that my bank statements for last 3 months have entries for fortnightly withdrawal of 2 week's rent suffice? Or will the underwriter still want to write to my landlord for reference?

ACG

They will want a reference.
The payments do not confirm they are for the full amount and/or on time. You may have an AST but things could have changed.

If it really will be an issue then I think I would be looking for a new lender.

mortgagevirgin_2

Ok, thanks for your response.

Could you enlist the lenders that do not focus much / don't ask for landlord's references?

I think I now know the answer for Woolwich. How about Halifax? And any other lender who does 80% LTV at 5 times of base salary?

ACG

Im not able to do that as it could be seen as leading. I would suggest you speak to a broker if you have concerns over any part of your application.

Alternatively call up the lenders and ask what documents they would usually request for someone in your situation.

Wh05apk

I can't remember the last time a lender asked for a landlords reference, likely to only be the tiny provincial building societies.

jimjames

If you're paying cash and no rent book it sounds like it's the landlord that might have more to fear from.anything being in writing.

mortgagevirgin_2

I was under the same impression having gone through all prerequisites - getting my credit report in order, electoral roll confirmation and tight spending records.

As soon as I reached the point of making formal application, got to know about section with landlord contact details in application form; I do hope landlord's reference is not what will make or break my application.

mortgagevirgin_2

and exactly my worry Jim, that my landlord might just as well refuse to cooperate and not provide the reference.

plumfin

My lender asked for a landlord's reference earlier this year. They just filled in a form rather than any real comment required. Hope you get it sorted.