FTB - Mortgage application just been declined!

jo6526_2

Dave_Ham wrote: »

Unless you have increased your deposit to 15% (85%LTV) then this is definitely the wrong lender.

The one offering 5.99% should be ok on the face of it, although they will scrutinise the application (more than the credit file) like Woolwich did.

The default you have was always outside of Woolwich policy, as you would additionally needed to have satisfied it in full.

I still fancy there could be a better solution than the goto lender you have been quoted here, although much will be in the detail. The default is a high value default, even if in the 3- 6 year category

Thank you for replying.

There's no way just now we could go to 15% deposit without taking on debt.

I do anticipate the 5.99% lender scrutinising the application but wish we could know if we stand a chance before submitting full application and wasting more of the sellers time

jo6526_2

ACG wrote: »

Dont worry, thats why we brokers have jobs

Sadly I cant name lenders but your broker sounds like they have the knowledge to get you a mortgage. Whether its the cheapest available is another matter, it seems me and Dave have similar views on this.

I'm hoping the mortgage broker does but 10% and the length of time since default was satisfied then potentially we may be ruled out.

Thank you again for replying.

ACG

The 5.99% lender, if I was a betting person I would say it would go through.

Obviously its based on limited info but I would not have any concerns.

audigex

At risk of being the negative busybody: For the sake of an extra £130 a month, do you REALLY need this house? You're on a decent income between you, but I can't imagine you want to waste £1600 a year on interest, above what you'd have to pay at a more sensible rate, simply for the sake of waiting a year?

Edit: Only just read your other post properly - if it was only partially settled in 2013 perhaps this doesn't apply, as waiting another 4 years isn't quite the same thing.

jo6526_2

audigex wrote: »

At risk of being the negative busybody: For the sake of an extra £130 a month, do you REALLY need this house? You're on a decent income between you, but I can't imagine you want to waste £1600 a year on interest, above what you'd have to pay at a more sensible rate, simply for the sake of waiting a year?

Edit: Only just read your other post properly - if it was only partially settled in 2013 perhaps this doesn't apply, as waiting another 4 years isn't quite the same thing.

I agree with what you're saying and it's a thought that's been going through my head.

Until a few months ago we hadn't expected we could get a mortgage but naively getting AIP, looking for a house, pulling together a deposit quickly and offer being accepted we got our hopes up. To find out today I'm just shocked and feel bit over whelmed with it all.

The default happened in 2010, satisfied in 2013 so expecting it drops off next year. The default happened due to redundancy, it was the lender who suggested part settlement and on taking advice were told to wouldn't have anymore adverse impact on the credit rating than the default has. This turns out to be wrong information and literally was few hundred pounds off being settled in full.

Dave_Ham

Right, with the information declared on here you are within criteria for the lender in question.


Therefore subject to the unknown variables it will come down to the detail of your position.


If you fit income affordability and there is nothing sinister in your bank accounts such as big deposit/withdrawals without a decent reason, regular amounts going to people to repay personal debts/car finance in someone else's name etc. then you should be ok


Lender in question will be all over deposit source, property type and the absolute detail of your income/s


I like this lender and we use them extensively, but they do have some nuances are you need to ensure your broker uses them enough to know these.


Best of luck

Thrugelmir

jo6526 wrote: »

The default happened in 2010, satisfied in 2013 so expecting it drops off next year. The default happened due to redundancy, it was the lender who suggested part settlement and on taking advice were told to wouldn't have anymore adverse impact on the credit rating than the default has. This turns out to be wrong information and literally was few hundred pounds off being settled in full.

Finance houses simply wish to recover the debt with the minimum of fuss. Likewise people think they are getting a free lunch. Which of course there's no such thing.

jo6526_2

Dave_Ham wrote: »

Right, with the information declared on here you are within criteria for the lender in question.


Therefore subject to the unknown variables it will come down to the detail of your position.


If you fit income affordability and there is nothing sinister in your bank accounts such as big deposit/withdrawals without a decent reason, regular amounts going to people to repay personal debts/car finance in someone else's name etc. then you should be ok


Lender in question will be all over deposit source, property type and the absolute detail of your income/s


I like this lender and we use them extensively, but they do have some nuances are you need to ensure your broker uses them enough to know these.


Best of luck

Thank you.

Really useful information. We'll go ahead with the application and see what happens.

With regards to the lender in question are they quick at getting back with decision (I know this is all dependant on unsocial claims( just wanted to get an idea as if it's a no I would want to let the vendor know ASAP.

Also with regards to nuances, what do you mean?

Thank you again to everyone who's replied feel little calmer this evening!

TheTrash

Would someone be able to PM me the 5.99 provider please? Am in an almost identical situation to the OP.

jo6526_2

Full application submitted.

Supporting documents submitted.

They’ve come back and asked for P60 and proof of deposit.

My issue is I started in my current job 1st April 2014, my P60 wont be issues until middle of May.

My previous employer who I was with for 6 years, they sent me a P60 but cant for life of me find it, I am very organised and normally keep everything filed correctly but I cant find it. I made contact with my previous employer is in process of moving and said it would be mid may before they could try and located a copy of my P60 for 2013/14! So frustrating.

I have tried phoning mortgage broker for advice, yesterday he said that it’s a tick box exercise and they need the actual p60. My payslip last month has a breakdown of the years salary I was hoping that will do.

Any suggestions of an alternative or are mortgage companies strict in what they ask for? Dont want to delay things.