Mortgage application worried will decline

Newy04

Hello,

New to this site I’m just hoping for some advice. I have an agreement in principle, I have signed the mortgage agreement and it has now been sent to the underwriters to run the full application. I am asking for £115000 on a property I have a agreed a price of £148k with the seller and it is off the market. I have 33k deposit from myself and family. I’m just worried my application will decline. I have a good credit score, 849 Experian, 625 noddle which are both good above average scores. I’m just worried that on my actually credit file there are numerous pay day loans from my past. I’ve looked at it and I had 30+ pay day loans in 2018 alone. All are paid off and settled. The last loan I had was October 2018. I did make my mortgage advisor aware. I have no CCJs or bankruptcies and they were always paid on time. My question is if it were to fail for this reason, would a guarantor help the application. My parents have paid off there mortgage on a home values £450k approx. My dad is 60. Would naming him as a guarantor help? Or a joint mortgage application? Does anyone have any experience in this? Like I said it hasn’t actually failed as yet and it might be ok I’m just looking for help because I’m worried. My mortgage advisor said the process can take weeks before a decision.

Any help would be appreciated.

BoGoF

First of all ignore the scores, they mean nothing to a lender.

Not going to pretend that number of pay dal loans won't be an issue but as you have used a broker hopefully you have applied to an appropriate lender. Who is the lender?

There is no point worrying about next steps until you know the result of your application and hopefully it works out for you.

Newy04

Barclays. I didn’t use a broker I just applied to the bank directly. I was talking to a broker who could have got me the same deal with Barclays too I just went for advisor I have now as she was minus the fee. If it fails do you know if a guarantor would be an option or do you have any other advice?

ACG

A guarantor is there to help overcome an affordability issue not any bad credit issues (which pay day loans can be classed as). It does not sound like adding your dad would be much use in this situation. IF anything because of his age, it would probably hinder your application.

Newy04

It would just be frustrating to be declined at this stage. Surely they do credit checks already to get this far. I will have to see. Do you know a good mortgage advisor who specialises in this should the worst happen? Just really don’t want to lose the house

Newy04

I have actually been accepted and the underwriters have agreed to lend subject to a property valuation. Which will be all good.

MortgageMamma

Thats good news, but hold off getting the champagne out until you get your mortgage offer. That was just an initial underwriting check and there is still scope for a rejection. I personally have never run a payday loan case through barclays, in fact I try not to put anything through Barclays at all if I can help it.