45% LTV, Bad Credit & furloughed... Chances of mortgage acceptance?

RPF1992

Hi All, 
My partner and I currently have a mortgage application in the hands of Halifax underwriters. Property is £550k and looking at HTB scheme and our deposit combined, the mortgage is only 45% LTV.

I have a blip on my credit score from last year and currently on furlough. We submitted a letter from my HR Director at work, with a return to work date, which Halifax were happy with... 

Any ideas on how long the underwriting process takes and chances of acceptance, if you balance the low LTV against the furlough and credit score. 

Appreciate this may be a “how long is a piece of string” kind of question! We just have first time buyers nerves...

jamielutz1987

RPF1992 said:

I have a blip on my credit score from last year

@RPF1992

What exactly do you mean this this - a late payment, multiple late payments, default, etc etc

Halifax speed of underwriting - from very recent experience and broker recommendation (we specifically needed a lender with a quick turnaround time) they are among the quicker ones but from the forum also tough to get touch with if there are follow up queries.

Chance of acceptance - hopefully you have used a broker, done a DIP and he/she thinks you have a reasonable chance of success with Halifax (the broker doesn't get paid unless you complete)

One sticking point could be that it's a new build, I don't know how valuations work in that case which will be a significant determinant of the application to offer delay.

RPF1992

Several months of late payments on my file, against a credit card. 

Yes, we are with a broker who specialises in bad credit and received a DIP from Halifax for our maximum amount. 

jamielutz1987

RPF1992 said:

Several months of late payments on my file, against a credit card. 

Yes, we are with a broker who specialises in bad credit and received a DIP from Halifax for our maximum amount. 

@RPF1992 I would say trust your broker in that case.

Out of interest, at what point are you liable for the broker fee (if any) - application, offer or completion?

RPF1992

Thanks @jamielutz1987

we have paid £100 in advance and have agreed not to pay the remaining amount until completion - so it is in his interest to get it across the line. He’s been really good thus far! 

jamielutz1987

RPF1992 said:

Thanks @jamielutz1987
we have paid £100 in advance and have agreed not to pay the remaining amount until completion - so it is in his interest to get it across the line. He’s been really good thus far! 

Well that's great. Good luck!

MovingForwards

jamielutz1987 said:

RPF1992 said:

Several months of late payments on my file, against a credit card. 

Yes, we are with a broker who specialises in bad credit and received a DIP from Halifax for our maximum amount. 

@RPF1992 I would say trust your broker in that case.

Out of interest, at what point are you liable for the broker fee (if any) - application, offer or completion?

It varies broker to broker, but my adverse lender was on receipt of offer.

[Deleted User]

Underwriters seem to be slow at the moment, but with that LTV you will get through, you might pay a slight premium in interest, but it should still go through.

ChickenAttack

Your chances are low. But everything is possible, I guess.

RPF1992

ChickenAttack said:

Your chances are low. But everything is possible, I guess.

Very contradictory to @MadMattUK thoughts above- would be good to get your reasoning behind why you think we have a low chance? 

Thrugelmir

While low LTV is beneficial. Does not result in lighter touch underwriting.