Mortgage broker - ask me anything

Tina_Russell

Hi, I desperately need your help please. 
My daughter recently had her 'mortgage in principle' agreed for her first new home she is looking to buy.  She has chosen all additional things to add to the property which is in the construction stage, but was advised by the mortgage advisor yesterday that the company had pulled the help to buy scheme and she is devastated.
Can you please advise what companies there are out there who would accomodate a first time buyer, who had a bad credit rating but has now turned things around significantly
We can suggest the advisor approaches now?.

haras_n0sirrah

Tina_Russell said:

Hi, I desperately need your help please. 
My daughter recently had her 'mortgage in principle' agreed for her first new home she is looking to buy.  She has chosen all additional things to add to the property which is in the construction stage, but was advised by the mortgage advisor yesterday that the company had pulled the help to buy scheme and she is devastated.
Can you please advise what companies there are out there who would accomodate a first time buyer, who had a bad credit rating but has now turned things around significantly
We can suggest the advisor approaches now?.

The company isnt doing help to buy? Do you mean the mortgage company or the builder? The issue she will probably have is deposit as most people do help to buy due to having a small deposit. How old is the adverse and how much deposit does she have? I assume it is newbuild which will also change the lenders. House or flat? You shouldn't be suggesting lenders to the broker - that is their job.

hayley2411

haras_n0sirrah said:

hayley2411 said:

haras_n0sirrah said:

I have my own question. Purely for research (being nosey) purposes.

Those of you who are getting mortgages now did you go
1) direct to lender
2) via a fee charging broker
3) via a fee free broker 
4) via an estate agency broker
And what made you choose the route you chose? Would you do anything differently next time?

 For those that chose a broker what made you choose that broker (were they the cheapest, most responsive, friendliest etc)

As a first time buyer....I opted for a mortgage broker did all my research, checked reviews spoke to the broker. Decided that was it broker was the best choice 😊
Now I totally regret that decision, I've learnt more from this forum researched everything myself. And my broker has been useless in all fairness, made 3 errors in the application process, never gave me any update unless I contacted the broker myself n it was oh yea heard from them the other day. I know it's crazy times, personally I think the broker took on too much seeing the pound signs. Reading on here the questions they should have asked what they should have checked, I had none of that. 
Whether it's a bad experience I've had with the broker I chose I dont know but it has put me off using one again xx

I'm really sorry to hear that, a broker should be an asset and not a hindrance and the right one should take the stress away by knowing which lender to use and sorting everything out . While the lenders are delayed (and there is not a lot we can do about that) the broker should be setting your expectations and answer your emails and phone calls. I am telling my clients- we wont hear until x date (so I have three cases to write today, two with a lender we wont hear anything from until the 3rd dec and one will be 26th/27th nov)
There are tens of thousands of brokers across the uk - don't write us all off

I know I'm kicking myself to be honest about the whole process, I thought I'd done all my research and I was confident I'd picked the correct one. It's my fault so I have to live with it now 😂🙈  xx

Filo25

Currently attempting a remortgage through a local fee-free broker, the fee-free element was nice but more importantly they were recommended by some people I knew, I wouldn't say fee v fee-free was a deal breaker.

They have been responsive and helpful through the early part of the process, but I suppose the proof of their worth will be whether the remortgage is successful or not, our financial position is more complicated now than it was when we took out our mortgage as FTBs 4 1/2 years ago, but they seem confident there won't be an issue, I will share that optimism when I have a mortgage approved!

honourableprince

Do lenders see Help to Buy applicants as higher or lower risk?

endangered_newt

honourableprince said:

Do lenders see Help to Buy applicants as higher or lower risk?

In isolation, I presume lower because of the financial contribution from the government and the assurances that offers. Of course, there are many factors involved e.g. credit history, age, employment etc. 

I'm not an expert though.

haras_n0sirrah

honourableprince said:

Do lenders see Help to Buy applicants as higher or lower risk?

You fall into the lower ltv bracket so generally lower (although there will be less lenders)

Bazillion4

Good Morning,
Apologies I haven't had much of an opportunity to look through all the comments so hope its not a repeat question.
I have 2 settled defaults on my credit file, £190 for Vodafone mobile (Registered April 2017) and Littlewoods for £519 (June 2017), and a previous Debt payment plan starting December 2014.
I do not wish to apply for a mortgage until this DPP clears from the credit file (I believe this is looked at in a similar vain to an IVA)
My question is, with 2 defaults on my credit file, is it more than likely ill be heading down the sub-prime mortgage route or not?
To add more context. My partner has a fair credit score, she hasn't had much credit in the past 
Combined earnings are just over £60,000, and we have a deposit of around £40,000 (£25k savings, 12k help to buy and 3k help to buy), both of us are first time buyers.
I believe the houses we will be looking at will be between £200,000 - £240,000
Any help, guidance would be great.
Thanks

DaisyT1990

Hi, I'm after some advice if possible. Me & my partner are going through the process of buying our first home using the help to buy scheme so we have 5% and gov providing 20%. We have been given the authority to proceed from help to buy, we had our AIP from Halifax and have now submitted a full application via our MB. I paid the £200 val fee and the case has now been referred to the underwriters. I'm going out of my mind with worry, firstly because my MB didn't really ask me anything about my credit etc, he's had all our payslips, bank statements etc but did not ask about past credit. I had 1 missed payment 5 years ago, which was subsequently paid the next month and I recently asked for a financial connection to be removed from my credit which has now appeared as a "notice of dispute". I dont really understand why its been referred to the underwriting team. I'm in full time employment, same job for the past year, my partner is a CIS contractor but has been given a note from employer confirming will remain in same role for the next 12 months as requested by Halifax. Between us, we earn around £60k py and are borrowing £210k from Halifax. I'm just looking for some reassurance and info as to why my MB didn't really ask me any information! Send help! 

endangered_newt

DaisyT1990 said:

Hi, I'm after some advice if possible. Me & my partner are going through the process of buying our first home using the help to buy scheme so we have 5% and gov providing 20%. We have been given the authority to proceed from help to buy, we had our AIP from Halifax and have now submitted a full application via our MB. I paid the £200 val fee and the case has now been referred to the underwriters. I'm going out of my mind with worry, firstly because my MB didn't really ask me anything about my credit etc, he's had all our payslips, bank statements etc but did not ask about past credit. I had 1 missed payment 5 years ago, which was subsequently paid the next month and I recently asked for a financial connection to be removed from my credit which has now appeared as a "notice of dispute". I dont really understand why its been referred to the underwriting team. I'm in full time employment, same job for the past year, my partner is a CIS contractor but has been given a note from employer confirming will remain in same role for the next 12 months as requested by Halifax. Between us, we earn around £60k py and are borrowing £210k from Halifax. I'm just looking for some reassurance and info as to why my MB didn't really ask me any information! Send help! 

An application referred to an underwriter is completely normal. The missed payment is unlikely to cause any issues and it is likely the underwriting is around confirming the affordability and risk (your partner's situation as it adds a little complexity to the case). Without knowing more about the financial connection, I can't comment further on that.