Will I actually get a mortgage?

[Deleted User]

I am 35 years old , have 16500 deposit and am looking to buy a house costing £110000. I earn £28000 a year.
I have 2 defaults from 2016 both satisfied and had no defaults, late payments ect since. 
Trouble is with COVID some lenders have reduced their LTV or withdrawn their products all together. I have tried for AIP from halifax but they said no. I am now going through a broker but not found anything so far. Feeling so deflated. Am I a lost cause mortgage wise? 

TBagpuss

Your broker is best placed to advise you. However, it's unlikely that you are a lost cause, but you may not be able to get a mortgage right now - so focus on building up more in savings . You've got a 15% deposit which is a very good start, and fortunately you are looking at relatively cheap properties so the amount needed to get up to 20% is a relatively small amount of money. How long did it take you to save the £16K?
Lenders know that we are in recession and they have to minimise the risk for themselves and their shareholders, which means larger deposits to reduce the risk of negative equity. 
In your position, I would look at overhauling my budget and savings as much as I could to boost that deposit, and talk to your broker about how much of a deposit you would need in order to be able to get a mortgage. They ought to be able to look at whether you would be able to find one if you had (say) £20K as a deposit.

It may also be worth speaking direct to the banks - HSBC has products available on 85 & 90 % LTV but it looks as though you need to contact them directly if your deposit is under 20%, Nationwide I think has some products available with lower deposits but only if you apply direct, not if you do so via a broker.(they still offer 85% mortgages, which is what youare looking for, but of course they will still look at your credit record and overall position, not just the size of the deposit. 

[Deleted User]

It took a fair while! I have been squirrelling away for 5 years now, and after all that hard work it was a bit maddening as halifax said no online

ftb95

I was in a slightly worse situation than yourself (117,000 property, 12,000 deposit, 27,500 salary but no adverse credit) and managed to get a mortgage with yorkshire building society within 10 days from application to offer. They've pulled their 90% LTV products now but still offer 85% products - might be worth applying direct with them? I got an AIP May 28th then had a 1 hour phone call with a mortgage adviser 2 hours later who was super helpful and updated me daily on progress 

[Deleted User]

ftb95 said:

I was in a slightly worse situation than yourself (117,000 property, 12,000 deposit, 27,500 salary but no adverse credit) and managed to get a mortgage with yorkshire building society within 10 days from application to offer. They've pulled their 90% LTV products now but still offer 85% products - might be worth applying direct with them? I got an AIP May 28th then had a 1 hour phone call with a mortgage adviser 2 hours later who was super helpful and updated me daily on progress 

Thank you, YBS have given me a decision in principle. I will phone them tomorrow to go through a few questions I have. 

ayvamummy

Don’t waste your time or a hard search doing a full application with YBS.  I applied end of may and got a DIP- their lending stated nothing regarding defaults so I submitted full application (85 ltv) and the underwriting sent me email saying it be rejected due to default within 6 years! Wasted hard search on that application too!  Their dip proved pointless as any in my case 

I applied with virgin money 10th June and they rang me 17th June with a verbal offer subject to valuation being ok. Valuation was done this morning and Offer is in the post. 

Worth noting VM do eligibility checker which is soft search. Their DIP is the full hard search but I have had no more searches since and they confirmed to me they wouldn’t be doing anymore 

( my default is nearly 6 years old and fully paid) 

[Deleted User]

I have a AIP from aldermore from a broker I might just go with that to be on the safe side. Still affordable.

LIZAMORTGAGES

Aldermore sounds okay if your broker has checked with other lenders offering better rates. 

Specialist lenders are great to get on the property ladder. Your mortgage adviser will talk you through the process as there is so much involved especially on certain cases I.e Help to Buy, adverse credit (scores that are very low). 

[Deleted User]

Oh well, property I was after has 4 other offers.