Is this strange?? Mortgage application query.

FingersCrossed2016_2

Hi Newbie here.

OK as would be expected from the regulars and brokers some background.

New build property worth 365000 using HTB 20%
Deposit 18k equity loan 73k
Married joint income of 75k
I have 3 historical defaults 2 drop off in may the other 2017.
OH has 2 from 2010 also drop off this year and PDL from same year 2010.

We got a DIP from nationwide in Dec and so reserved the property, paid for searches even deposited on our kitchen. But our broker then advised it could be declined following discovered adverse so we aborted. We then discovered OH had default registered with utility company erroneously from 2014! Long story short after 3 week battle they agreed to remove. So her file is clear for near the 6 years again.

So we went with w'lich who accept over 3 years adverse we believed for a dip which according to our broker seems to have been declined. Although there is no soft search showing on either of our files.... as there were for N'wide. He has said he's sending our credit files over to get the dip decline overturned as perhaps the utility removal hadn't been processed on their system?

Anyway we are due to exchange first week in February while the property is due for completion April. We are considering going off high street (precise?) although we've been advised adverse is so historical there are a lot of lenders that would consider as literally no issues since.

Should we go off the high street? Can we apply simultaneously and withdraw the less preferable lender? Should we exchange without a mortgage as solicitor has advised we can if we are confident we can get a mortgage? Can we get a mortgage?! Advise on our situation greatly appreciated.

Thanks

David_White

Firstly.. Please don't consider trying to exchange contracts before having a mortgage offered. Imagine the consequences of not getting the mortgage afterwards.

For half a chance of getting your mortgage offered for the first week of Feb you need to be submitting an application tomorrow so it's a case of stick or twist... i.e keep the faith with your current broker or search for a specialist 9am tomorrow.

Either way good luck, I'm sure there's a suitable solution out there.

FingersCrossed2016_2

Thanks for the quick response. Yes I think I will contact a specialist tomorrow. Would this be a specialist in adverse or general specialist? I'm thinking adverse route?

David_White

No problem.

Because of the defaults I'd suggest the adverse route.

Thrugelmir

FingersCrossed2016 wrote: »

Should we exchange without a mortgage as solicitor has advised we can if we are confident we can get a mortgage?

Solicitor purely is covering their backside given the wording used. Risk is entirely yours. If you don't manage to obtain a mortgage then there's only one loser. Yourselves.

amnblog

Did, has your broker looked at the credit files at any stage?

MaebyJade

My partner and I are in a very similar position to you;

Buying a new build for £245k using 20% HTB and 25k deposit
Combined income of £55k
Partner has perfect credit history but I have 2 satisfied default due to drop off Mar 16 and Jan 17

We have had an offer from Halifax. Have you considered them? They were really quick, they agreed the application subject to valuation on the same day as the application was submitted and booked a valuation to take place 48 hours after.

At the time of choosing a lender/product our broker said that places Nationwide, Santander and Barclays (in fact most high street lenders) won't touch us because of my credit history.

I personally think there is no point in appealing your DIP refusal, even if you had it overturned then you will most likely get rejected at full application, which is much harder/next to impossible to overturn.

Mummyto4kids

We have an offer from the Halifax and I have an old settled default which drops off in June this year. The broker we used was great and Halifax seemed flexible and were satisfied with my explanation of the circumstances - we got our offer within days once the house was valued. We are also using the HTB equity scheme and have figures not that far off the MaebyJade above.

SueP19

I can only speak from experience, having adverse blips on our credit score we were accepted by N*ti*nwide, all went swimmingly until the 3 days before sign of contracts......N*ti*nwide knocked £2k off the borrowing without telling us, we had to take a loan to cover it.

When fixed ended 2 years later we moved to sub-prime market and have not looked back

FingersCrossed2016_2

Thanks everyone for your experiences it's good to know people have come out the other side.

Yes good question. They did check our files after it was flagged by nationwide after they ran a second credit check. And he's suggested w'wich as their criteria goes to 3 years... ish. Tbh I'm prepared to go down the precise route although as an update today.... apparently our defaults do not appear as settled on Noddle although they do appear as such on Experian. So he sent them Experian files to prove this but they have said this isn't enough! They want letters from the institutions proving this. Speaking to these lenders they found this request quite unbelievable but were fortunately prepared to send the letters to us. And signing up to Noddle they seem to have no record of my credit history!

Thrugelmir

FingersCrossed2016 wrote: »

And signing up to Noddle they seem to have no record of my credit history!

No finance house supplies data to all the CRA's. Just the ones that they do business with themselves.