Are we dreaming?

Washingmachine_2

Hi we currently have 49% equity in our house that we have sstc. The amount is enough to clear all debt, pay all fees put down 15% deposit on the new home and leave a few k for some home improvements.
The massive problem is I forgot to pay a mail order a/c a few times & once in 15 years typically this year went over our overdraft we paid money as soon as we received the letter. We are often in our overdraft but we have now resolved that.
mortgage is with the underwriters valuation has been done more info requested everything provided initial credit check passed.
So worried that I've potentially ruined everything.
We have limited savings in a share save scheme.

ACG

Did you not check with the lender whether it would be an issue before applying and paying for a valuation?

If it fails find a broker, it could be achievable yes, but I suspect not with every lender.

Washingmachine_2

The Society will no longer consider a mortgage application where one or more applicant is considered to be credit impaired under MMR rules:
• Within the last two years has owed overdue payments, in an amount equivalent to three months’ payments, on a mortgage
or other loan.
• Has been the subject of one or more County Court Judgments, with a total value greater than £500, within the last three
years.
• Has been subject to an individual voluntary arrangement or bankruptcy order which was in force at any time within the last
three years.

Lender said it'd be down to the underwriter. I've found this online on their lending criteria. But does the 1st point mean the arrears can't be more than your mortgage or can't be more than 3 months?

ACG

It means on your credit report where it reads 000100100 etc it can not go 0000123000

Basically you can not have been 3 or more months in arrears on a loan or mortgage.

Washingmachine_2

Thank you ACG I have a 123 😳 missed 1 paid 2 & 3 late. So guess I'm screwed!!
Only thing I'm hoping is the underwriter requested more detail before we had sent in our paperwork or the valuation was done so if it was a flat no I'm guessing we would've heard by now.

ACG

That would be common sense... which is lacking in the world of underwriters.

Who is the lender?

If they decline it, would ask for your money for the valuation back on the basis that it does not fit criteria so should have been declined at outset - no harm in asking.

In future, check the criteria before applying or speak to a broker (I sound like a teacher). You could have just wasted a few hundred which would have probably paid for a broker and they would have done the work for you.

Fingers crossed, if its a small building society sometimes they do make exceptions where the rest of the case is a good one.

Washingmachine_2

Thank you ACG I feel like a total idiot especially as it was just laziness and moving wasn't on the cards - principality is the lender our current mortgage is with them the valuation was free so we wIll only lose solicitors & £99 fee if it falls through.

ACG

Principality are a bit quirky.
Hold your breath and cross your eyes and you might get lucky. I dont know if you get the opportunity to do it but I have often "debated" a case through with them... albeit I expected it to pass anyway but with a bit of persuasion you may get lucky.

Washingmachine_2

Thanks ACG appreciate your time answering my questions & that you didn't make me feel worse. When I say laziness about paying it, it was holidays & illness taking over life & the only bill we don't pay by dd ��. Have no idea how long this is going to take they wouldn't give a timescale when oh asked.

Thrugelmir

Washingmachine wrote: »

The Society will no longer consider a mortgage application where one or more applicant is considered to be credit impaired under MMR rules:
• Within the last two years has owed overdue payments, in an amount equivalent to three months’ payments, on a mortgage
or other loan.
• Has been the subject of one or more County Court Judgments, with a total value greater than £500, within the last three
years.
• Has been subject to an individual voluntary arrangement or bankruptcy order which was in force at any time within the last
three years.

Lender said it'd be down to the underwriter. I've found this online on their lending criteria. But does the 1st point mean the arrears can't be more than your mortgage or can't be more than 3 months?

An underwriter will take a far broader view of your finances. Such as use of credit. For example from CRA's reports they will be able to determine whether the debt you are intending to repay from the equity in your existing property has accumulated over time. Which would suggest that you spend more than you you earn.

Washingmachine_2

Debt is mainly car and home improvement loan