Shared ownership with old default

Yan101

Hi. Looking for some re assurance more than anything. Long and short is that we put a £500 reserve on a new build shared ownership. We need to mortgage for £73575 we have a 10% deposit. Houses full price is 163,500. I recently took a loan with tesco (before this house was an option) for 4000. My partner has a loan with 8k outstanding and 2 years left. We went with an advisor reccomended by heylo the shared ownership scheme. My partners credit is good. Nothing adverse. I have one default showing from jan 2015 which was settled in jan 2018 ( equifax shows settled 2015??) Our advisor has made 2 applications for an aip both failed. One with barclays and one with leeds bs. Both because of bad credit. Hes now asked for our equifax reports so he can match us to a mortgage that will be more willing to accept. My issue is that its been a week now and 2 refusals. 3 weeks ago we ran an aip application on yorkshire building society for a regular mortgage and got an acceptance in principle for £127k. Were on 40k a year combined and have around 1900 free income after bills. Is there anyone who will accept us? I fear we will lose the house. We have to sign to instruct the solicitors tomorrow with a £200 upfront fee that we may also lose.

muhandis

A mortgage advisor who’s asking for your credit reports AFTER having 2 AIPs fail to go through is clearly incompetent, to put it mildly.

In your place I would go to a good quality independent whole of market broker with copies of my credit reports and all details of what the previous person has done and see what options they suggest.

Yan101

They are meant to be reputable. He asked about any adverse credit on the first call which i disclosed. Only for him to say i hadnt when it declined. The company is "reccomended" by the sales team but im not sure if im even allowed to go elsewhere. Hes going to try snd match me with a suitable lender. Hopefully ill get a result tomorrow. We have to exchange within 28 days and im on holiday for 2 weeks from next wednesday. The whole thing is so stressful but weve got our heart set on this house. Its perfect and we can afford the mortgage and rent side even if the apr goes up in future. My wage rises in july and the mrs will have plenty of overtime. It seems awful that a defualt from 2015 when i was unexpectadly made redundant is having so much affect. When i know people with ccj's less than 4 years old have got mortgages for alot more than we need to borrow. Its my first time doing any of this so its very scary that it might all go belly up

muhandis

I hear you. In theory they can’t force you to take your mortgage through their “recommended” broker but I know that’s hard to enforce when you need their cooperation for everything else.

Good luck, hope he does a more thorough job this time and hopefully the hard checks (if any) from the 2 AIPs don’t have too much of an impact.

Yan101

I think they are soft searches after getting my report this afternoon thankfully. Barclays dosent show at all and leeds bs just an address link to my mrs. If he cant get me something then ill have to speak to the housing firm and see what my options are for going to a local reputable. You see posts on here where people have had recent pay day loans they have late payments on and still got sub 5% mortgages. I really didnt think my past indiscretions would hit me this hard. Or maybe the broker shouldnt have gone to 2 that wouldnt have accepted in the first place. You put your trust in when you think they are doing the best for you. I should say they work for free and take a comission from the lenders i beleive.

MortgageMamma

This sounds like an inexperienced broker to me. A good broker will ask for a clients credit report at the beginning of the process and Barclays and Leeds criteria is very clear and unambiguous when it comes to credit issues. They are both well know and often used lenders and your broker should have known they would be unlikely to do it.

He claims you never told him about the credit issues yet you disclosed in detail. He's either lying or doesn't have listening skills.

I don't think its legal for a estate agent or sales company to insist you see their recommended financial advisers in order to get a viewing or secure a sale. They all try to do it and some are more aggressive about it than others. Before taking your deposit they should have insisted you took financial advice. You've already seen their adviser and they failed, twice. Walk away and use a broker YOU choose.

Shared ownership isn't that complex, adverse credit isn't difficult for an adviser to do if they work through the obstacles methodically and have the right software and listening skills. Don't let anyone tell you its a bigger job than it is as plenty of advisers would overcharge for this work.

Yan101

So i researched and found skipton who looked like they would accept. My broker said he had also considered them as our next move so went ahead and put in for a decision in principle and it was declined. He bow reccomends halifax as they are " the most lenient high street lender and only leave a soft footprint" now my concern is this company are just throwing out a big bet to the high street and seeing what bites. Ive read good things about halifax, and seen a few posts about people in possibly a worse situation than me, wanting to borrow more and getting accepted. But ive learned this means nothing in the real world. I feel like my broker should be tailoring my options rather than hoping i get in with one on a list with a good apr. I have a meeting with the housing firm were buying from tomorrow. They reccomended the brokers so i may raise my concerns. I have emailed him and called all day for a call back. A promise he will call everytime and nothing.

MovingForwards

Three declines with that broker, look for your own as there is clearly something he is missing or doing wrong!

Yan101

Im already on it. And ill speak with the developers admin team tomorrow about switching advisors.

Yan101

Just an update. I dropped the broker that was "reccomended" and went with a local independant who is whole of market. The original brokers said they were whole of market yet they couldnt approach the lender i ended up getting accepted by only 2 days in to my new broker being on the case. She approached kent reliance who accepted in principle and are underwriting it as we speak. They ask for a lot of info/paperwork which is a minor inconvenience if we get an offer. Theres alot to be said about a broker who knows the game and some 20 odd year old who was a bar tender 2 years ago (looked him up on linked in) fingers crossed it all goes smooth from here.

[Deleted User]

KR certainly aren't the cheapest, but if it gets you the mortgage and ultimately the house then that's job done in many respects.

If you're going on their 2 year products, I assume you'll meet criteria to jump ship in 2 years time, having demonstrated good repayment history etc on this proposed purchase.

I can understand why the broker thought he'd 'have a stab' at Halifax so to speak. The prices must be pretty different. BUT I can also understand the customer's reservations about that kind of thing (having had 2 failed AIPs). It's a tough one - especially as Halifax could accept the AIP then decline further down the road.

I hope it all goes to offer OK with Kent!