Concerned I may not get a mortgage

gestion

In reality, it's an additional £200 per month above our current rent of £600 per month.

My wife has recently returned back to work after retraining and maternity leave, so with that we are now up £500 per month than where we were this time last year.

I have recently started a new job that is paying approximately £500 per month more.

So we're £1,000 per month better off (more or less) than we were, and we only need to find an additional £200 per month.

And, actually, if you dig deeper, we're several hundred pounds more even better off because we have recently finished paying off our last debt commitments.

So, as you can probably imagine, to be told it's not looking good is heart breaking

Any human with a bit of common sense can see all of this on paper and know that we can obviously afford what we're asking for. Besides, we're still below the age of 30, so we could easily look at a 30-35 year mortgage to reduce the monthly repayments even further. I believe a 35 year mortgage was roughly around £650 per month.

However, my broker said the days of having a human with a bit of common sense are gone, and generally the final decision is often in the hands of a computer. Hence why he said it's not looking good and potentially not something we'd even be able to appeal against if we got a no.

Very sad.

shimano

Surely try another broker? If he is not keen then go to another

Thisman321

Sadly and frustratingly I would not even recommend trying another broker, like you have been told the decisions now come down to online calculators. Also you should try and avoid proceeding with any lenders as this will leave credit prints and and not work in your favour in the long run if your being declined. Try and save save save and then when all the hiccups have dropped from your file proceed then with a bigger deposit.

gestion

I don't currently see any reason to change the Broker. He's being honest. He thinks we will struggle to find a lender, but he's still trying.

He feels Halifax might be our best chance, and they don't do a search so we should get an answer without a footprint.

chanz4

they do a soft search, been honest are you sure you will pass the Htb application with all those defaults?

hieveryone

I had ONE default that was fully settled (under £500), registered in 2009, and up until last year I was knocked back at AIP stage for mortgage!!

From what I know of HTB, you have to be SQUEAKY clean.

Good luck.

gestion

I've been told the HTB equity loan is only subject to securing a mortgage, not any other form of credit scrutiny.

Interestingly, though, I tend to use Noddle on a monthly basis to follow my credit report. Why not? It's free! So that lists 7 defaults (several expired or expiring soon).

However, I've just checked my Equifax report and that actually only lists 2. One of which is 6 years old this week £77 (and has already disappeared from my Noddle report interestingly) and one which is 5 years old for £40.

None of my others are on there. So, that could be interesting. I get the impression that not many lenders use Call Credit, and I believe somewhere on this site I saw that Halifax use Equifax and Experian.

Need to check my Experian report. Which, unlike all of the others, isn't instant access for your statutory report.

chanz4

Halifax 100 % use Experian

gestion

Phew

Of course I'm aware we have still somewhat of a long journey, and nothing is guaranteed at this point, but thankfully we have a Decision In Principle from Halifax

That was done without a footprint on the credit file, broker now wants to try Nationwide as they likely have a better deal. If we get a DIP with Nationwide, we'll go with them. If not, we'll proceed with Halifax.

kingstreet

Halifax does a soft search at DIP and a full search at application.

It may refer to a Business Assessor and all three CRAs can then be checked manually.

I had a case yesterday with a CCJ from a few years back and the answer in the DIP was accept, but "This application will be referred for a review of the Credit Bureau information, upon submission of a full application" also came up.

On HTB - Equity Loan, if a lender chooses to accept historic/light adverse, it can do so. On Mortgage Guarantee, there can be nothing in the last three years, as that is in the scheme rules.