Returned DD mortgage application

xcvx

Hi all
So today we got a DIP which was amazing, however the rate was 6.15% which we thought was shocking, so we have contacted another broker who thinks they can get one for 5.23% (still loads but we just want our house) 

My history - 5 defaults from 2018 and PDL from 2017 (all paid off) credit been fine since other than a few late payments here and there.

So they have asked for 3 month bank statements. This has happened very quickly due to my partner winning a court case to be able to have his son overnight therefore we have only really started to watch what we spend.
I have a returned DD in Jan for £.1.75!! Was just after Xmas/NYs,was with family so was not checking bank. and as soon as I realised I transferred money from savings over.
Is this going to affect everything? They already know out income/outgoings but how much are our transactions going to affect us? 

Thanks in advance for the help
 

[Deleted User]

It won't look great, but £1.75 is minimal - was it something like a ebay purchase? Where you bought it but due to the Holidays you didn't keep track and it then came out unexpectedly?

If you can convince them it's an unexpected bill that you genuinely didn't expect to come out on that date, I think you'll be fine - £1.75 is pittance and it's clear you'd be able to pay it. If your Council Tax of £60+ bounced then you'd be looking at a very different story.

Assume the other 2 months are fine? If there's a pattern of you moving money to/from savings that should go in your favour.

I don't Underwrite bad credit cases though, so I'm not sure if they'd be 'harsher' on bank statement conduct. We generally want to see good conduct - not sure if adverse lenders would want to see a squeaky clean statement. There are brokers on here that should be able to give you a better idea, but if it was a 'normal' case I wouldn't be too worried. With the history it may cause issues - but your broker will be stressing to them the tiny amount, the fact you remedied it quickly and the holidays meaning it really is a one-off 

Edit: Just to add - depending on the number of pages, they might even miss it!! You can't do much until they assess it, but I hope they are forgiving!

xcvx

@Somerset_La_La_La thanks for your reply! It was actually for my car tax..it does usually come out on that date but with the holidays etc. I spent more AND wasn't keeping track. Nothing majorly bad on them or out of the ordinary. Were spending a lot of food atm as living with parents and don't have a huge amount of storage so end up buying as a when. You can see a huge change in spending since then. All payments are paid on time! 

Thanks again! 

JustJane101

I had a returned direct Debit on one of my statements and they didn't even question it (Kensington). I guess there is still time yet lol. But it is clear from my statements that the payment usually goes out around the 3rd of the month and they tried to take it on the 22nd! I have since got an overdraft (interest free) just to stop this from being a problem again but won't use it purposely.  

Mortgagehold

xcvx said:

Hi all
So today we got a DIP which was amazing, however the rate was 6.15% which we thought was shocking, so we have contacted another broker who thinks they can get one for 5.23% (still loads but we just want our house) 

My history - 5 defaults from 2018 and PDL from 2017 (all paid off) credit been fine since other than a few late payments here and there.

So they have asked for 3 month bank statements. This has happened very quickly due to my partner winning a court case to be able to have his son overnight therefore we have only really started to watch what we spend.
I have a returned DD in Jan for £.1.75!! Was just after Xmas/NYs,was with family so was not checking bank. and as soon as I realised I transferred money from savings over.
Is this going to affect everything? They already know out income/outgoings but how much are our transactions going to affect us? 

Thanks in advance for the help
 

Which lender was that? Very high interest rate indeed

xcvx

@Mortgagehold it was bluestones and the broker was simply adverse. Have recently gone to another adverse broker company who have got us a 5.04% with precise. Which is a huge difference in terms of monthly payments! Still high..but better