WARNING - to anyone waiting on a specialist lender!

walletmoths

So... sold my house to a first time buyer on Monday, just about to offer on a no-chain house by Thursday, and it's all over by Friday

Our lender was Kensington - but other specialist lenders are doing the same. PLEASE CHECK IF YOU'RE USING A SPECIALIST LENDER - a lot of their funding comes from foreign investors, who have backed out. Not sure if it's due to the Huawei 'thing' or not, but they're all now doubling their interest rates which in turn has pushed us out of "affordability criteria". And, with no other choice for another lender (because we have a DMP), that's it. It's all over before it's begun. I guess, at least we only owe our estate agent and didn't get any further into the buying and selling process.

One of the five mortgage brokers I tried (begged!) this week told me straight... "Specialist lenders have changed their criteria this week, and many people who currently have a mortgage-in-principle, or who may even be waiting for their mortgage to be agreed - are about to be severely let down."

Please check that you're not in this position, folks.

x

motherofcats

Stop scaremongering please.

Kiwistrawb1990

Might be worth speaking to this poster. Seems to be going through similar. 
https://forums.moneysavingexpert.com/discussion/6169329/mortgage-in-principle-interest-rate-has-doubled#latest

motherofcats

Kiwistrawb1990 said:

Might be worth speaking to this poster. Seems to be going through similar. 
https://forums.moneysavingexpert.com/discussion/6169329/mortgage-in-principle-interest-rate-has-doubled#latest

Same poster. Their AIP was from December when the market was completely different

Kiwistrawb1990

motherofcats said:

Kiwistrawb1990 said:

Might be worth speaking to this poster. Seems to be going through similar. 
https://forums.moneysavingexpert.com/discussion/6169329/mortgage-in-principle-interest-rate-has-doubled#latest

Same poster. Their AIP was from December when the market was completely different

Haha thanks for pointing that out! I'm clearly still half asleep haha x

ACG

90% of what we do is bad credit.
I do not know of any lenders who have changed their criteria this week to any major extent nor do I know of any who have increased their rates. 

I am not going to say the other broker is wrong or lying, but I would be surprised if we had not heard anything about this. One of my friends is head of sales at a specialist lender and he has not said anything. Another lender only came back to lending in the last month, another lender I am pretty sure are going to be improving their products in the next week or 2 and there is some potential another lender is coming back to market in the next 2-3 months. 

Maybe the broker has heard about one lender pulling back a little, but that is not indicative of the market (in my opinion). 

Your post (and the one you made the other day) suggests that the issue is rates. A lot has changed since March with rates because the world has gone to pot. Lenders have already pulled back some way in terms of criteria, so I cant see that getting too much worse in the coming weeks and it has not really got any worse in the last 2-3 weeks. 

It sounds like you started the process a while back, you now cant get what you expected and are making it sound like it is about to get a lot worse. Lets see what this week holds, hopefully I am not proven wrong. 

MovingForwards

Specialist lenders charge higher interest due to the risk of taking us on. Somewhere along the line our credit history has got messed up, either through relationship breakdowns, loss of job, taking on too much credit and a million other things.

WE are a higher risk, why should we have normal interest rates when we have a history of not managing money? 

Specialist lenders have been putting their interest rates up for a few months now, I've seen how much my lender is now charging, but also know the deposit is higher than when mine went through earlier this year. It's about 3% they have increased it by, this isn't doubling.

Specialist lenders go through everything before making a mortgage offer, the statements are manually read as are credit files, to see if they fit affordability and criteria. There is no click of the button and instantly a DIP is generated or declined.

By being in a DMP your pool of specialist lenders is vastly reduced.

Do you need to pay the DMP off on completion? Not necessarily, some specialist lenders are happy for them to continue and are included within affordability checks.

You've had a specialist adverse broker comment on your posts. Did you think about approaching him? I found him to be so helpful, knows the specialist market, has a lot of contacts within them to discuss cases without trying pot luck and hope it gets through.

So instead of coming on here, putting the fear of g0d into people who are currently going through applications with specialist lenders, with your scaremongering and frustration at your situation, you should be assessing what to do now and whether it would be worth maybe, just maybe, speaking with the broker who took the time to reply to you previously.

Then blame yourself, blame Covid, blame the government, blame the weather or blame the world for the circumstances you find yourself in and work out what you are going to do eg stop your sale and wait, find another lender, find a property in budget.

csgohan4

walletmoths said:

So... sold my house to a first time buyer on Monday, just about to offer on a no-chain house by Thursday, and it's all over by Friday

Our lender was Kensington - but other specialist lenders are doing the same. PLEASE CHECK IF YOU'RE USING A SPECIALIST LENDER - a lot of their funding comes from foreign investors, who have backed out. Not sure if it's due to the Huawei 'thing' or not, but they're all now doubling their interest rates which in turn has pushed us out of "affordability criteria". And, with no other choice for another lender (because we have a DMP), that's it. It's all over before it's begun. I guess, at least we only owe our estate agent and didn't get any further into the buying and selling process.

One of the five mortgage brokers I tried (begged!) this week told me straight... "Specialist lenders have changed their criteria this week, and many people who currently have a mortgage-in-principle, or who may even be waiting for their mortgage to be agreed - are about to be severely let down."

Please check that you're not in this position, folks.

x

Sadly getting a DIP is no guarantee of funds, only on full application will you know what you will get. 

You had limited choices due to the position YOU put yourself in. Due to the current climate and risk appetite, quite rightly they have to change their criteria to reflect increased risks. The more riskier you are, the more interest you will pay. 

Having a DMP and applying for a mortgage during this current climate doesn't really bode well, however did you try a specialist lender? they don't come free either though.