Mortgage broker - ask me anything

RHF2020

Hi,
I asked a question a couple of months ago about a 90% LTV mortgage application which may be affected by a £68 default with Vodafone caused by a big mix up and incompetence on their side. I've now reached the point where they have agreed to remove it, but for whatever reason it's going to take 60 - 90 days to clear it up and my credit file to be clean.

With unfortunate timing, an opportunity to buy a lovely home has emerged. Will this default impact my chances? I've saved enough to get a 12.5% deposit, but not 15% which is where I understand the big savings are made. How do you rate my chances? I should say, my wife's credit score is excellent, and in terms of affordability we'd be applying for a mortgage where we could comfortably keep up with payments.

K_S

RHF2020 said:

Hi,
I asked a question a couple of months ago about a 90% LTV mortgage application which may be affected by a £68 default with Vodafone caused by a big mix up and incompetence on their side. I've now reached the point where they have agreed to remove it, but for whatever reason it's going to take 60 - 90 days to clear it up and my credit file to be clean.

With unfortunate timing, an opportunity to buy a lovely home has emerged. Will this default impact my chances? I've saved enough to get a 12.5% deposit, but not 15% which is where I understand the big savings are made. How do you rate my chances? I should say, my wife's credit score is excellent, and in terms of affordability we'd be applying for a mortgage where we could comfortably keep up with payments.

@rhf2020 Congrats on succeeding in your CISAS complaint. Assuming that you only want to pay mainstream rates, it's hard to say as it depends on the "credit scoring" that most mainstream lenders do as part of the DIP/application. As long as the default shows on your credit report, it could have a negative impact. If you can wait at all, it would be best to apply after you can check and confim that all 3 credit reports are clean.

If you absolutely want to try now, I'd recommend getting in touch with a broker who can look at your case and try a soft-check DIP with a lender that may overlook this. If a DIP does fail, you can also go back to waiting for the default to be removed by Vodafone.

Al2006

I have recently been made redundant. My wife has just gone on maternity. In normal circumstance my wife salary alone would allow us to get a reasonable mortgage. We have a good credit score and large deposit. However we still need to borrow 50% of the house price at least.
How do we go about securing a mortgage from a lender? We have been suggested to get a letter from my wife employer confirming salary after maternity and have a proof that we can afford repayment until she is back to work.
any help would be much appreciated.

K_S

Al2006 said:

I have recently been made redundant. My wife has just gone on maternity. In normal circumstance my wife salary alone would allow us to get a reasonable mortgage. We have a good credit score and large deposit. However we still need to borrow 50% of the house price at least.
How do we go about securing a mortgage from a lender? We have been suggested to get a letter from my wife employer confirming salary after maternity and have a proof that we can afford repayment until she is back to work.
any help would be much appreciated.

@ai2006 Based on the limited info in your post, at 50-60% LTV you shouldn't have too many issues. The kind of documentation requested can be - self declaration of return to work date and terms, employer letter, most recent pre-maternity payslips, etc etc.

Some lenders may require you to evidence a lump-sum to cover payments until she returns to work. At such a low LTV, worst case scenario you just keep some aside for this purpose. 

I would recommend getting in touch with a broker who can look at the whole scenario and place it with an appropriate lender that is good with mat leave.

Good luck!

simone82

Would be grateful if anyone can advise.
I have multiple defaults on my credit file which are all paid off now. The newest one is from 2018 so wont drop off for a while, another 2 will drop off at the end of 2022.
I have a HP on my car with a balance of £16k and my partner has zero debt with a really good credit score etc.  We are hoping to buy later this year (both FTB). Do you think it would help on my side if I clear my HP (I can settle early for £10k) as we have a £40k deposit.  I am wondering if it will give us a better chance of securing a mortgage if my debt is zero along with my remaining defaults?

laurent22

Hello,
I'm a FTB and currently have a mortgage offer from the Principality.  I am in the process of buying and waiting for the searches to be completed.  Before offer, only my Experian credit file was checked ( a search only appears on Experian), is it likely that whey will perform another hard search before completion?  I'm concerned as my score on Equifax is much lower and shows a missed payment that does not appear on Experian.  Thanks in advance

K_S

simone82 said:

Would be grateful if anyone can advise.
I have multiple defaults on my credit file which are all paid off now. The newest one is from 2018 so wont drop off for a while, another 2 will drop off at the end of 2022.
I have a HP on my car with a balance of £16k and my partner has zero debt with a really good credit score etc.  We are hoping to buy later this year (both FTB). Do you think it would help on my side if I clear my HP (I can settle early for £10k) as we have a £40k deposit.  I am wondering if it will give us a better chance of securing a mortgage if my debt is zero along with my remaining defaults?

@simone82

- with a 40k deposit, what house price are you looking at? The lower the LTV, the better your chances of getting a decent rate and increasing your options

- whether or not clearing the debt will make a difference depends on your affordability picture. Very generally speaking, if you are on the edge of affordability or looking to absolutely maximise your borrowing it maye help to reduce/pay-off debt. But if (for example) you're only looking to borrow 3 times your income, it is unlikely to have much impact. I hope that makes sense.

- what impact the defaults will have will depend on the details, what kind of account, amount of default, etc.

Rosemary1982

K_S said:

Rosemary1982 said:

Hello!  To cut a long story short we have been declined a mortgage in joint names from santander (offer receiving a formal offer (see other thread)).  We believe this has something to do with my husbands Limited business (although we were only using his second income on PAYE for mortgage).  I am now trying t port my exisiting mortgage with natwest to new property which is in just my name but now I am worried that natwest will decline the port due to being financially linked with my husband (only just as the recent santander application was the only time we have applied for credit together).  I am a PAYE employee in a good job, could natwest decline my sole mortgage due to my husband's limited business (further info, he has taken out a bounce back loan to get the business through the pandemic.) Thanks in advance....

@rosemary1982 Sorry to hear about the post-offer decline from Santander. My thoughts -

- there's nothing in your post to suggest that Natwest would look unfavourably upon your porting application. But of course, that view is based on the limited info I have.

- are you intending to add any cash at all while porting? If yes, will any of it come from your husband or his business?

- I would recommend getting in touch with a broker even if the plan is to port the mortgage. They can look at the whole picture to see if there is anything that might cause an issue with Natwest and then handle the porting process for you.

@K_S, thank you so much for your reply.  I have gone through a broker to port my existing mortgage to Natwest, yes I am borrowing more (£45K additional).  I have savings to put towards new purchase (in my account which were generated from a previous house sale, although since the previous house sale, funds have been moved between my husband and my bank accounts but can't see this being a problem as we're married).  I heard back from my broker yesterday who thinks it's all approved with Natwest subject to valuation.  I checked their mortgage tracker and everything is ticked off apart from the valuation part, would you read that as a good sign if they have ticked off everything other than the valuation?  I am just so scared of having a post offer decline again and if I do get an offer with Natwest, I think it will be wise to insist on an exchange and completion on the same day as I don't want to risk exchanging and potentially losing my mortgage deposit if I get another decline.

K_S

laurent22 said:

Hello,
I'm a FTB and currently have a mortgage offer from the Principality.  I am in the process of buying and waiting for the searches to be completed.  Before offer, only my Experian credit file was checked ( a search only appears on Experian), is it likely that whey will perform another hard search before completion?  I'm concerned as my score on Equifax is much lower and shows a missed payment that does not appear on Experian.  Thanks in advance

@laurent22 Some lenders check one agency at DIP stage and another at full application. Unless there is a very long gap between offer and completion, an additional hard-check pre-completion doesn't happen a lot.

If you've used a broker, I'm assuming he/she knows about the missed payment marker?

K_S

Rosemary1982 said:

K_S said:

Rosemary1982 said:

Hello!  To cut a long story short we have been declined a mortgage in joint names from santander (offer receiving a formal offer (see other thread)).  We believe this has something to do with my husbands Limited business (although we were only using his second income on PAYE for mortgage).  I am now trying t port my exisiting mortgage with natwest to new property which is in just my name but now I am worried that natwest will decline the port due to being financially linked with my husband (only just as the recent santander application was the only time we have applied for credit together).  I am a PAYE employee in a good job, could natwest decline my sole mortgage due to my husband's limited business (further info, he has taken out a bounce back loan to get the business through the pandemic.) Thanks in advance....

@rosemary1982 Sorry to hear about the post-offer decline from Santander. My thoughts -

- there's nothing in your post to suggest that Natwest would look unfavourably upon your porting application. But of course, that view is based on the limited info I have.

- are you intending to add any cash at all while porting? If yes, will any of it come from your husband or his business?

- I would recommend getting in touch with a broker even if the plan is to port the mortgage. They can look at the whole picture to see if there is anything that might cause an issue with Natwest and then handle the porting process for you.

@K_S, thank you so much for your reply.  I have gone through a broker to port my existing mortgage to Natwest, yes I am borrowing more (£45K additional).  I have savings to put towards new purchase (in my account which were generated from a previous house sale, although since the previous house sale, funds have been moved between my husband and my bank accounts but can't see this being a problem as we're married).  I heard back from my broker yesterday who thinks it's all approved with Natwest subject to valuation.  I checked their mortgage tracker and everything is ticked off apart from the valuation part, would you read that as a good sign if they have ticked off everything other than the valuation?  I am just so scared of having a post offer decline again and if I do get an offer with Natwest, I think it will be wise to insist on an exchange and completion on the same day as I don't want to risk exchanging and potentially losing my mortgage deposit if I get another decline.

@rosemary1982 Based on what I can see, it looks positive. If you can do so, same day exchange and completion would definitely help reduce your stress levels. However, in practice if there's any kind of chain involved, it's usually quite difficult to get the others in the chain to agree.