Mortgage broker - ask me anything

babyg912

Hi @Anne_X1 hope you are well. There are lenders who will be able to help with less than 3 years worth of accounts. How long have you been self employed for?

K_S

Anne_X1 said:

Hi, I reference this forum a lot but never signed up or posted before, so please be gentle
I have been trying to get a self employed mortgage for a few months now. I used a broker who strung me along and finally said he can't help. I run a succesful business and only want to borrow four times my profit but he said I need 3 years of accounts to stand a chance. Can anyone help?

@anne_x1 With 2 years of accounts, you should have a good range of options, barring any other nasties in the background. Did the broker give you more details as to why you need 3 years of accounts? The usual reasons for 2 years being insufficient is the first set of accounts not showing a full year of trading, or a huge jump in profits/activity from year 1 to 2, etc. Does any of that apply to your case?

teleport3

Hi my situation is a Little complicated. I earn 41k, only have a car on finance and recently took out an £8 data contract with a mobile company.

I also have a linked credit account with a ex partner (joint account) which in closing soon.

When I went to get a mortage in principle my broker ran my details and said I'd only be able to get 15% at 114,000 maximum loan. She was really confused and said I should be able to get a loan of around 170k with my wage. She said I should spend the next 6 months trying to get my credit score up. My credit report says I had a hard recent credit search, opened new credit account (phone data) and therefore my  average age of credit accounts is low. These are the neagatives that put me on the fair credit band. There's nothing really I can do, according to my credit builder apart from waiting 2 years and by then I'll be in the good credit rating.


Is there really nothing I can do aside from wait 2 years just because I opened a data plan recently? Could it be that the joint credit link is affecting it and I need to close the joint account with my partner? I'm just so disheartened by how much the bank are offering me, I have no bad marks against my credit no missed payments etc. This is really affecting my mental health and id love some advice - my broker doesn't know what to do. 

K_S

@teleport3 The limited information in your post doesn't necessarily add up to a poor credit history. How is the conduct of the joint current account that you have with your ex, any overdraft, arrears etc on that?

Did you talk to a whole of market broker or a bank mortgage advisor? The way you describe it sounds more like a bank mortgage advisor.

teleport3

K_S said:

@teleport3 The limited information in your post doesn't necessarily add up to a poor credit history. How is the conduct of the joint current account that you have with your ex, any overdraft, arrears etc on that?

Did you talk to a whole of market broker or a bank mortgage advisor? The way you describe it sounds more like a bank mortgage advisor.

Hi the joint account is fine nothing bad on that. I think my ex's personally has debt but not for the joint account.

It was a first mortage advisor (whole market broker?) 

I have just recently sold a house, that I had a mortage on. Could that affect it?

K_S

teleport3 said:

K_S said:

@teleport3 The limited information in your post doesn't necessarily add up to a poor credit history. How is the conduct of the joint current account that you have with your ex, any overdraft, arrears etc on that?

Did you talk to a whole of market broker or a bank mortgage advisor? The way you describe it sounds more like a bank mortgage advisor.

Hi the joint account is fine nothing bad on that. I think my ex's personally has debt but not for the joint account.
It was a first mortage advisor (whole market broker?) 
I have just recently sold a house, that I had a mortage on. Could that affect it?

@teleport3 On your credit file, you probably still have financial associations with your ex and if she has poor credit, that could factor into the "credit scoring" that lenders do to generate AIPs. But that by itself shouldn't stop you from borrowing.
But tbh, the broker has all the information and should be giving you something more than being confused. Do you which lender the AIP was with? Was the recently closed mortgage conducted well - any missed payments, arrears, etc (only asking because I've seen that happen due to disputes during a break up)

teleport3

K_S said:

teleport3 said:

K_S said:

@teleport3 The limited information in your post doesn't necessarily add up to a poor credit history. How is the conduct of the joint current account that you have with your ex, any overdraft, arrears etc on that?

Did you talk to a whole of market broker or a bank mortgage advisor? The way you describe it sounds more like a bank mortgage advisor.

Hi the joint account is fine nothing bad on that. I think my ex's personally has debt but not for the joint account.
It was a first mortage advisor (whole market broker?) 
I have just recently sold a house, that I had a mortage on. Could that affect it?

@teleport3 On your credit file, you probably still have financial associations with your ex and if she has poor credit, that could factor into the "credit scoring" that lenders do to generate AIPs. But that by itself shouldn't stop you from borrowing.
But tbh, the broker has all the information and should be giving you something more than being confused. Do you which lender the AIP was with? Was the recently closed mortgage conducted well - any missed payments, arrears, etc (only asking because I've seen that happen due to disputes during a break up)

The mortage had no missed payments etc. It was sold and concluded last month. All went well.

They tried TSB and NatWest - both only generating a mortage in principle for £114,000. But that's less than 3x my current salary. 

Should I try a different advisor? Their only advice was "just improve your credit score"

kingstreet

Given the short time since the mortgage was repaid, did the advisor enter is as "to be repaid" or simply assume the credit system was up to date the lender wouldn't see it as a current/ongoing commitment?
The credit system doesn't work in "real-time" and often agreements settled months earlier still appear to be open and costing you.

K_S

@teleport3 Based on the very limited information in your posts, one aspect is whether your ex has a poor credit history. I don't want to second guess your broker as they have all the information but I would recommend trying with another broker as well. Please do mention any AIPs that have already been done.

teleport3

kingstreet said:

Given the short time since the mortgage was repaid, did the advisor enter is as "to be repaid" or simply assume the credit system was up to date the lender wouldn't see it as a current/ongoing commitment?
The credit system doesn't work in "real-time" and often agreements settled months earlier still appear to be open and costing you.

Hi, she didn't say what she entered. I don't think she entered to be rapid she just assumed it was all up to date.