2 years on and still getting knocked back?!

EverythingIWant

Hi all,

Getting really fed up with the whole mortgage thing now. June last year we bought our first home through H2B and man that was a stressful journey for many reasons however we completed with Precise mortgages on a 4.74% deal and have been paying 4 figures a month. We had some adverse which was fair enough. Coming up to the end of the 2 year fix now so obviously looking to remortgage and ARGH is all I can say;

We have both had payrises in the last year meaning we earning about 26k more than we were and no additional adverse, so first things first;

Applied for a DIP with Barclays are OH banks with them, it comes up that we have to go into branch for a decision to be made so we book an appt, the advisor, nice but utterly useless says ‘no markers on here for adverse credit, it is because you put some information regarding outgoings in wrong’ which I thought was weird as I said we did have historic adverse.. anyway 1 week later she gets round to putting the full application in and says ‘it’s come back as adverse and requires you to write a letter to the senior underwriter to try and appeal it’ thick or what.. so I do said letter and she says it may be a while, impatience getting the better of me I apply to YBS for a DIP, surprisingly instantly it says approved with a lend of about 125k more than I need, I call them up and they say yeah subject to full credit check and docs it’s good to go, butttttt! They don’t accept help to buy remortgages with the 2nd charge still in place, but can only lend me 85% LTV and due to precise kaning me with high interest we don’t quite have enough equity to have 85% when the help to buy is redeemed. Although YBS said no issues with the borrowing amount if I wanted to redeem the help to buy loan it is just the LTV and risk of getting the valuations where they would need to be for it to work..

At this point I engage a broker, but it’s been 5 days and radio silence, this is an independent whole of market, had the initial phone conversation, sent our credit files prior etc and she seemed to be very confident, although my own bank Lloyds/Halifax wouldn’t give us a DIP.

We have great jobs, decent income, childcare coming to an end etc but we still seem to be being haunted by this absolute joke of a credit score system. I’m confident that the whole industry needs to totally re assess the credit scoring system as it is flawed. Although last summer I got a PCH deal through a main dealer who said they were the preserve of the most credit worthy, I laughed and didn’t mention I had a precise mortgage.. 

Sorry for venting but we want to hammer down our mortgage balance after spending 26k on repayments and only clearing 5k of capital  in 2 years depressing!

ACG

There are lenders who do not score, we use them more or less every week as we do a lot of adverse. 
You have been taking the wrong approach though, doing DIPs/Applications first and then dealing with the outcomes after. The approach we take is to talk to the lender BEFORE doing anything - why sit there keying on a DIP if they will not lend to you or you do not fit criteria (you could have avoided the YBS DIP for example). 

See what happens with the broker but try to find out if you fit criteria and if you are likely to be accepted based on their experience before applying. Failing that there are lenders at normal rates who do not credit score. 

EverythingIWant

Hi @ACG and thanks for your response, I am a lurker big time on here and always respect your posts. You give me a bit of confidence there but it still feels like mainstream lenders don’t want to touch us! And with the DIPs I checked all the lending criteria prior and it seemed to fit no issues which makes me think the scoring is all messed up! Obviously dropped the ball with YBS, I just saw they did H2B remortgage products and thought it was a given... its all soft searches apart from Barclays who have now entered a hard search. Ugh!!!!

ACG

Did not know you could do the whole @ thing on this new forum, thats pretty handy.
Difficult for you I suppose but we (mortgage brokers) get to know our account managers at the various lenders. We can run the case by them as a whole and see what they think the likely chances of acceptance is before doing anything. 

They may not want to take you on yet, but it doesnt necessarily mean you can not get normal rates. We did a case last year where both applicants had had IVAs and gone bankrupt in the last 6 yeas so all on the credit file, and we got them a 90% Mortgage at 1.9% with a lender nobody has heard of (even most brokers laugh when I name them).

EverythingIWant

Yeah I just happened to try it @ACG because it I use it on another forum quite a bit and it worked! 

That’s crazy I would of expected to not even get a mortgage with those on file let alone 90% @ 1.9! All that we have left on our files is a CCJ from 2014 for 3k, fully satisfied early 2017, default for 350 from 2014, partially satisfied 2016 and another default on OH file from 2016 for 211, again partially satisfied. Green ticks across the board since then across numerous credit accounts. 

My broker seems very slow or I’m just impatient but in my mind I keep thinking they are finding it difficult to find a different mortgage for us. Iv looked at product transfers and the rates are still a joke. I mean precise are great in the fact they got us into our dream home when no one else would but now I feel they have made their money and we should be able to move onto a financially better deal!

ACG

5 days is a little slow but surprisingly the market is quite busy at the minute (Jan/Feb is normally relatively quiet), give them a chase on monday and see what they say. 

EverythingIWant

Thanks @ACG, annoyed by Barclays incompetence but browsing this forum it does not seem to be a new thing.

It is interesting what you say about your relationships with lenders, Does this make a case anymore likely to pass than if you went direct as a customer? 

ACG

I am convinced a good experienced broker can make a difference, but it is only really where your case is borderline. If you have 20 defaults last month, the best broker in the world is not going to get you normal rates. 
There are also times where we can talk a case through with an underwriter at smaller lenders. An underwriter has an application form and credit report to look at, that may only be part of the story.

I remember doing an application a year or so back where Mr was terrible with credit and his wife was the complete opposite, she went mad at him when she found out as she thought he was going to cause them to lose their dream home. As his income was only partially needed, we explained to the underwriter that yes he is a bit of a nightmare but the reality is she is in control of the joint finances, she has more or less just tore him a new one after finding out about his credit issues and will ensure the mortgage and other bills will be paid going forward - they accepted it.  

Similar story for the bankruptcy one. I told the customers to expect rates of 6% but after I got to know them and understand why there were IVAs and bankruptcies, we talked it over with an underwriter and they got 1.9% (I got a bottle of brandy from the customers so everyone was a winner there). 

Suzuka96

We remortgage our htb out at 2 years after being with precise for a 90% mortgage with nationwide.  When is your ccj over 6 years old as may be worth paying svr for a couple of months to get a lower rate once that drops off

EverythingIWant

Suzuka96 said:

We remortgage our htb out at 2 years after being with precise for a 90% mortgage with nationwide.  When is your ccj over 6 years old as may be worth paying svr for a couple of months to get a lower rate once that drops off

Drops of August this year! Mortgage deal ends in June, just worried about being stuck on SVR for a long period of time if we did that? We have not tried nationwide, were you adverse? 

amnblog

@EverythingIWant are you saying, your Precise rate does not end until June?
If so, why are you having making applications now. Could your situation not benefit by your previous adverse being a couple of months more historical?
as @ACG says, the broker is the better route.