Mortgage brokers tell me different things

Hutch100uk

So, I'm looking to get a mortgage soon and my current financial advisor told me I would have issues because I have 2 late payments on my credit file (from 4 years ago). My score is 'fair' with Experian, mainly due to using most of my available credit. She has suggested I try to improve my score before applying. She doesn't seem keen that i try to apply for a mortgage now. She doesn't charge for her services.

Another mortgage broker indicated that he was sure he could get me a mortgage with a lender who would be sympathetic to the late payments as I meet affordability and have no other negative factors on my credit file. He said my use of credit doesn't really matter - its more about the total amount of credit once I have the mortgage. He charges £699 for his services and was very thorough, asking for my credit file, making me fill in an affordability spreadsheet etc

A third mortgage broker (London and Country) was certain I would have no problems and could probably get an even better rate than the 2nd broker. He wasn't as thorough, only asked for my credit score, salary and debts. They don't charge for their services either.

So I have no idea whether I should wait and try to improve my credit report (by paying off more of my credit cards), or to go ahead sooner!

My current advisor talks about improving my score but I thought the scores were meaningless?

ACG

A couple of late payments is not enough to prevent you getting a Mortgage.

Im not sure I would trust a broker who asks what your credit score is. As its a score generated by the credit agency its worthless. Lenders take the information from your credit report and combine it with the information on your application and then they give you your score. It vairies from lender to lender.

But im sure you will have options.

Hutch100uk

ACG wrote: »

A couple of late payments is not enough to prevent you getting a Mortgage.

Im not sure I would trust a broker who asks what your credit score is. As its a score generated by the credit agency its worthless. Lenders take the information from your credit report and combine it with the information on your application and then they give you your score. It vairies from lender to lender.

But im sure you will have options.

Well the broker who asked for my score are the broker recommended on this site (London and Country). They also said I shouldn't get an AIP as this goes on my credit file. The 2nd broker told me I should!!!!

My first advisor comes recommended and I suspect she just wants to get me the best deal but I don't really want to have to fork out hundreds of pounds just to find a mortgage in the first place.

ACG

I would say not to get an AIP until you are ready to apply.
The reasons for that are:
1) Rates can change, so the lender you do the AIP with may not be the best choice tomorrow.
2) AIPs can show how much you can lend. So if you go to the estate agents and show them that, it could impact price negotiations.

Brokers work differently and as the saying goes, there is more than one way to skin a cat. So long as you get a Mortgage you are happy with, thats all that matters.

amnblog

Late payments from four years ago are unlikely to cause major issues.

A broker who asks you for your 'score' from the credit reference agency has no idea what they are doing. (We have had a client with a 999 score from the CRA who had three X four figure defaults on the file)

Broker two sounds like they have the most idea what they doing.

Hutch100uk

amnblog wrote: »

Late payments from four years ago are unlikely to cause major issues.

A broker who asks you for your 'score' from the credit reference agency has no idea what they are doing. (We have had a client with a 999 score from the CRA who had three X four figure defaults on the file)

Broker two sounds like they have the most idea what they doing.

Yes I felt like he really knew what he was doing. That will be why he charges £699. I guess you get what you pay for....

David_White

Hutch100uk wrote: »

...was very thorough, asking for my credit file, making me fill in an affordability spreadsheet etc

Sounds like we have a winner!

csgohan4

you get what you pay for.


You pay zip for L and C and so their customer service level is left wanting.


You pay a bit more and you could potentially get someone who actually cares about their work. Ideally one that gets paid on mortgage offer only


Your broker fee will depend on how adverse your credit history is and how much you need to borrow potentially as well as how complex your case is.

Thrugelmir

Hutch100uk wrote: »

My score is 'fair' with Experian, mainly due to using most of my available credit.

If you repaid your debts how much cash would you be left towards the deposit? The first broker may simply be being polite and suggest that you look closely at your personal finances.

Hutch100uk

Thrugelmir wrote: »

If you repaid your debts how much cash would you be left towards the deposit? The first broker may simply be being polite and suggest that you look closely at your personal finances.

I'm not really in a position to pay off all my credit cards right now. My balances are £2700. If I paid them off, I wouldn't have enough for the solicitor fees and stamp duty.

Its also a joint mortgage and my partner doesn't have any credit card debt.

Obviously paying off my cards would be a good thing but, this didn't seem to be an issue when talking to the other brokers.