Mortgage broker - ask me anything

Purplestars89

Hi 
What are the effects on Ap markers on mortgage application ? The account was settled in June 2019 but I'm aware this will how on my credit file for another 5 years. We are looking to apply for a mortgage at the end of next year by which point the account will have been settled for 2.5 years. 

K_S

@Purplestars89 The impact will depend on the specifics - what was the default for, when was it registered, amount, credit history since then, etc. What % deposit do you expect to have - the bigger the deposit, the wider your options may be.

Purplestars89

@K_S thanks for your response the account never actually defaulted , I was on a DMP and all other creditors entered a default back in 2014 when I entered into the DMP but this creditor decided to place the account on an arrangement to pay instead. We will have atleast 75% ltv account conduct is fine other than this all defaults have now dropped off credit file. 

K_S

@Purplestars89 A DMP having been discharged less than 3 years ago may mean that a lot of mainstream lenders are ruled out, but assuming that your credit history has been clean since June 2019 and a >25% deposit, based just on that I would expect that you should have options available to you when you're looking to buy in end-2021. Of course, it always depends on the whole circumstances. Imho it's definitely one for a broker when you are ready to start viewing.

ScottL45

K_S said:

@scottl45 You have to do what you are comfortable with. Having said that, among my clients almost all the same day exchange & completion cases have been no-chain transactions.

Thanks for your response.  Are you or any other brokers experiencing any last minute checking/underwriting post offer/prior to completion?  I'd suggest this wouldn't usually be the case but in this current climate, who knows?

K_S

@scottl45 A last minute credit history "refresh" when it's been a long while between offer and completion is not unheard of (though I only know of it if the client tells me). This can sometimes be accompanied by requests for latest payslip, etc but that's much more uncommon or in cases where the offer was issued when the client was on furlough with a future return date.

1099simon

Hi, I could really do with some advice regarding my DMP and mortgage.
My wife and I have a DMP with £30k outstanding.  We have had this for 2 years, and pay £260 per month, so another 10 years to go.  The last default (of 14 in total) is showing as May 2019. 
We need to move house within the next 2 - 3 years as we have outgrown our current one.  We would like to know what to do for the best, to give us the greatest chance of getting a mortgage to move.  Our current mortgage has £145k outstanding, and the house has been valued at £270k.  
In short, would we be best to sell our current house, move into rented for 2 years (same cost as our current mortgage plus DMP payment) and pay off our DMP.  This would show the DMP as settled, which I guess will be a small positive, and will help with the affordability check.  Thus in 2 years time we will be DMP free the last default will be 4 years ago, and we will still have £90k for a deposit to go towards a £300k house.
Or, should we stay in our current house, continue as we are, and still have the DMP which will be 2 years older with the defaults showing 4 years old.
Or (sorry, lots going on in our heads), would there be any possibility of getting a new mortgage as we are now, with a specialist broker (as an interim), keeping the DMP and having a £120k deposit for a £300k house, or paying off the DMP and reducing this deposit to £90k.
Our current mortgage is with Heliodor, which took it from Northern Rock, so the interest rate is terrible anyway.

Thank you in advance for any advice, and for any similar stories or experiences with mortgages on a DMP.

annetheman

Hi there and thank you for all you have done answering questions in this thread, it's a lifeline!

Are you aware of a list of mortgages in the UK that is refreshed regularly? Just a list of e.g. all residential mortgage products active in the UK right now?

ChocolateTea

Hi, 
I hope someone more knowledgeable that me can assist. 

Ware currently looking to apply for a mortgage having had an offer accepted. Back in Sept we had a DIP approved using a high street main lender, however that was using a soft search on credit file. Are we likely to be rejected as my husband has missed payments on credit cards x3 last one being last year even though we did mention it. He has paid off the accounts now and closed them. Anyone shed any light? Many thanks (rather worried we have wasted everyone’s time and I would rather pull out now to save any more hassle). 

K_S

annetheman said:

Hi there and thank you for all you have done answering questions in this thread, it's a lifeline!

Are you aware of a list of mortgages in the UK that is refreshed regularly? Just a list of e.g. all residential mortgage products active in the UK right now?

@annetheman There's no one list covering all lenders AFAIK.

Us brokers use a sourcing tool (by companies like 27tec, mortgage brain etc) which has this information and throws out results based on the requirements we input.

One equivalent accessible to you would be the MSE mortgage finder which uses MortgageBrain to give results.