Skipton vs Hanley Economy BS vs Aldermore or?

sunny_ken

Hello there,
I am looking for a mortgage and have a debt on my file for around 30k. Never missed a payment no default or anything like this but my credit score is low due to usage of available credit. I have used 2 different brokers for two different banks. Both gave me a AIP and declined later for low/poor credit. Affordability is fine but not sure how these banks operate these days. the banks were santander and halifax.
Now I am searching the market for my next or possible last option as there are already searches on my file.
After doing some search i have been advised 3 building societies by three different brokers. Its very difficuilt to decide what should be next choice between Skipton, Hanley Economy BS and Aldermore or Hinkley And Rugby?
Anyone have any experience with these societies. or recommendation. Offer is been accepted and I would really like to complete on this house.
Any help and advice is appreciated in advance.

Nasqueron

If you can easily afford a mortgage payment monthly on top of the debt, why haven't you been massively hitting the debt and reducing it?

The debt will always count against you - even paying off the debt for a year will take a huge chunk off the total and make you look more attractive to lenders

upoiupou

sunny_ken wrote: »

my credit score is low due to usage of available credit.

This sounds a bit glossy. Usage of available credit is just debt. Really, the situation is that your credit history doesn't inspire confidence because you have £30k of debt you still haven't paid off. Also, I don't know if there are other things in your credit history (not "score") that are offputting to a lender.

Personally, I wouldn't want to take out a mortgage with £30k of debt. Either you have a decent deposit, enough to cover buying and moving expenses and a decent emergency fund in case you have to shell out for unexpected repairs in the first year or so (could be £1k or £10k, you never know) - in which case that could be substantially reducing your debt instead. Or you have a minimum deposit and not much else, which means you'll be vulnerable to more debt to cover anything that comes up.

But if you're determined to go ahead and can find a lender, I wish you luck.

sunny_ken

The majority of the debt is actually from a recently unsecured loan i took took for a purpose of side investment. the loan was taken few months ago but i wasn't looking for house back then. i will be paying the loan back in next few months. the reason i wanted this particular house is that i have managed to get this house 30k cheaper than the market value as the sellers wants a quick sale.
so i dont want to loose this opportunity and hopefully remortgage in 2 years time and hopefully all the debts will be gone and will have a better equity by then as well.

ACG

Im not sure any of those would be my first choice.

Aldermore will do it - based on what you have said (bare in mind I have very limited info). However it seems overkill for what you need.
Skipton I like and I imagine there is a good chance they will do it, but the underwriters need to be comfortable with it.
I have never used Hanley so no idea.

Bare in mind Aldermore do not credit score, so you could try another lender or 2 in theory before using Aldermore and its unlikely to have any impact.

Thrugelmir

sunny_ken wrote: »

Affordability is fine but not sure how these banks operate these days.

Lenders will be subjective and assume the worst. You currently have £30k of debt. With an immediate fall in income for any reason. How long could you survive?

Only asking this rhetorically.

sunny_ken

Thanks ACG,
Actually the broker already got the AIP from skipton but i went with halifax instead. The little issue is the broker who got me the AIP want 2k im fees once he get me the offer. But according to my search hanley economic is also a manual
underwriters company and very lineant as well.
On the other hand time is also an issue here as vendor is not aware of my mortgage being declined.
I was thinking to keep alermore my last resort but i am not sure if vendors will have enough patience.
I earn 65 k. So affordable for me. I have also other assets as well which i can use to pay the dents but aboviously that will take some time. So thats why i neede to know the best option to with next.
Thanks guys for your input