would I need a broker for mortgage or go direct?

NatalieAGC

hello. im looking to get a mortgage (residential) but unsure if I meet high street lenders criteria.   if not will I need a broker? 

• 1 default (£800) 5 years old. only negative on my files 
• 1 late payment store card 11 months ago

I currently have a property which I have owned since 2007, I would be looking to keep and rent it out ( currently with TMW/ nationwide)
interest only payment £189. Rental £550
 
Since the default 5 years ago I have had 3 HP car finance agreements, 2 now settled / closed accounts (24k closed and 38k closed)
Credit utilisation less than 25% currently and will be cleared before mortgage application

Employed 47k salary (basic) 
15% deposit 
 
outgoing commitments i have are utility bills and the credit cards which I plan to clear in may. so should be updated on reports June / July. 
and my car HP agreement £515pm. Im halfway thru my 60 months agreement.. I know I can VT from this point but ideally I dont want too,

house im looking at is £210,000 I have 15% deposit. 

will any of the above affect my chances of getting a high street lender?  

appreciate any help/ advice etc 

ACG

Has the default been satisfied?
In any event, I would like to think you can get this through on the high street - although Corona might affect that. If it has been satisfied you will have more options. It wont be for every lender though as £800 is not a big default but it isnt small either, many lenders have a cap of £250/500 so you would fall outside criteria on that front. The late payment wont be a problem. 

NatalieAGC

Thank you. No it isn't satisfied. Maybe misinformed but  2 years ago I was told it wouldn’t affect credit report if paid or not.  I have reached out the the company Lowell to pay the balance and waiting a response from them  but will that count paying it so close to mortgage application? 

Would many lenders accept me keeping old property to let out? 

I have read a few criteria’s for lending on some lenders sites and when / if they mention default it says for example “less than £500 within 24 months “ This is an example but it isn’t mentioning a default past 4 years etc 

Wkmg

I’m not a professional but I would have thought owing £800 and deliberately not paying it despite presumably being able to would not look great from a lender’s point of view,

NatalieAGC

Wkmg said:

I’m not a professional but I would have thought owing £800 and deliberately not paying it despite presumably being able to would not look great from a lender’s point of view,

The default was registered 3 years after I actually defaulted. Going back nearly 9 years ago I was much younger and reckless with finances and earning much less due to changing careers and going back to university. 

Wkmg

It’s no moral judgement. We all do silly things when we’re young. What I mean is that as a person deciding if I should lend you money or not, your refusal to pay back a debt you know you owe when you clearly have a big enough deposit to buy a house would not fill me with confidence regarding lending to you and your commitment to paying me back when it isn’t easy for you to do so.  

NatalieAGC

It isn’t refusal. It hasn’t been an issue in my day to day life. It was only last week I thought about the possibility of getting a mortgage and now I’m asking the question will it affect me getting me a mortgage? 

Wkmg

NatalieAGC said:

It isn’t refusal. It hasn’t been an issue in my day to day life. It was only last week I thought about the possibility of getting a mortgage and now I’m asking the question will it affect me getting me a mortgage? 

And I’m saying I would have thought haveing a defaulted debt would not look great to a lender for obvious reasons. 

NatalieAGC

Many lenders clearly accept many debts from recent to historic I have seen on here people get mortgages with CCJs and bankruptcy. 

My recent post default (5 years credit history) show very responsible lending and paying back.  As humans we all make errors no one is perfect.

my question was aimed  more for the professional brokers who offer opinions on this forum who would know if high street lenders would accept me as they know each criteria’s. 

Thank you 

ACG

The BTL should not an issue providing it is self funding, some lenders will want to see evidence of a self assessment to ensure you are declaring the income and not tax dodging, other lenders are more relaxed on that front. 

The Default being satisfied so soon or not, difficult to answer if I am being honest. It will give you more potential options but it does not guarantee you will be getting normal rates. There is an argument that you satisfy it to give you a better chance but there is also an argument that you just throw the £800 towards having a bigger deposit. I cant really say what is for the best, I dont think anyone can. I think if it were me I would get a settlement figure from lowell (maybe closer to £500-600), for that, I would probably just throw it at the default and get it satisfied and see what happens - but that is me personally, not necessarily professionally. 

NatalieAGC

I agree I have reached out and will await hearing from them 

thank you