Mortgage broker - ask me anything

ftb_allhopelost

Hi All

i have been an addictive reader since Dec 2020 and finally summoned the courage to seek advice. 

This is my story: got a call about a new build property on the 5th of December last year, had a virtual viewing and loved it.. my m/a confirmed affordability and was allocated the property on the 11th of December and got memorandum of sale.

now my mortgage adviser was very aware that my partner unfortunately lost his job due to covid and is on universal credit. She came back to say she was only able to find 1 lender to match our criteria (bare in mind i earn abt £37k with £290 loan payment p/m and £6k cc debt) i also had a closed/settled default i had no idea i had) 

To cut the long story short, she submitted an application with kent reliance and by 14th of dec i paid d m/a fee and valuation and application fee for KR. By this time a hard search had been done too..... valuation was booked for 19th of Jan and in d meantime they came back to ask for 2 further documents.

unfortunately for me, they came back on the 20th of Jan to say they are not willing to lend me the full amount that was initially applied for and I would need a further £21k to get a mortgage offer... this clearly crushed me as if i had that kind of money lying around shared ownership would not be an option.

i hVe now lost £500 reservation fee for the property as the HA refusing to refund or reduce the property share from 30% to 25% which would have made it still possible to proceed.

£420 I paid kent reliance as they are refusing to refund 

also M/A and conveyance deposit of £500.

can any m/a in the house please advise if there is any lender out there that will lend me money or there is no hope.

K_S

@ftb_allhopelost First off, if your broker has charged you a broker fee, and they can't place you anywhere, they should refund that fee. I've worked at firms which charge a fee and all of them would refund the fee if the above was the case. Have they said that you have nowhere else to go?

Secondly, the broker should have advised you (or at least explained) to add the product fee to the loan instead of paying it upfront. You wouldn't have lost it then. Are you sure KR has refused to refund it?

What is the reason that the broker has given you for the reduced offer?

ftb_allhopelost

K_S said:

@ftb_allhopelost First off, if your broker has charged you a broker fee, and they can't place you anywhere, they should refund that fee. I've worked at firms which charge a fee and all of them would refund the fee if the above was the case. Have they said that you have nowhere else to go?

Secondly, the broker should have advised you (or at least explained) to add the product fee to the loan instead of paying it upfront. You wouldn't have lost it then. Are you sure KR has refused to refund it?

What is the reason that the broker has given you for the reduced offer?

Thank you so much for the prompt response... i did speak to my M/A about the refund as it is ridiculous for KR to wait 6 weeks to let me know they are only lending a fraction of the original amount( I forgot to add earlier the reason they reduced the figure is because they will only use the child element of partners universal credit, which reduces my affordability) 

but ye MA said kr as advised they will not refund and if i did find another property that is cheaper, I would need to reapply and pay again

MA also said i have 6 months to find a property with them

ftb_allhopelost

@K_S also the product fee was added to the loan. The £420 is application and valuation fee as far as i understand as stated in the mortgage illustration document 

K_S

ftb_allhopelost said:

K_S said:

@ftb_allhopelost First off, if your broker has charged you a broker fee, and they can't place you anywhere, they should refund that fee. I've worked at firms which charge a fee and all of them would refund the fee if the above was the case. Have they said that you have nowhere else to go?
Secondly, the broker should have advised you (or at least explained) to add the product fee to the loan instead of paying it upfront. You wouldn't have lost it then. Are you sure KR has refused to refund it?
What is the reason that the broker has given you for the reduced offer?

they are only lending a fraction of the original amount( I forgot to add earlier the reason they reduced the figure is because they will only use the child element of partners universal credit, which reduces my affordability)

@ftb_allhopelost If your application was dependent on your partner's UC being considered, then I'm not sure why it was placed with KR as they do not accept UC as an income type.

It's not possible to say if you have any other options or not without getting all the facts and talking to a couple of lenders. I would recommend getting in touch with another broker to get a second/final opinion before giving up, preferably one that only charges a fee on mortgage offer. Good luck!

[Deleted User]

Hello,
I'm struggling to find a mortgage broker who specialises in adverse credit with good reviews.  Would prefer someone local to me - Scotland - but that seems impossible!

K_S

Sarah_New said:

Hello,
I'm struggling to find a mortgage broker who specialises in adverse credit with good reviews.  Would prefer someone local to me - Scotland - but that seems impossible!

@sarah_new I can understand the preference for local but in all honesty that should be low down your list of priorities imho. Most brokers are perfectly well set up to deliver advice remotely, even prior to Covid.

MFWannabe

Sarah_New said:

Hello,
I'm struggling to find a mortgage broker who specialises in adverse credit with good reviews.  Would prefer someone local to me - Scotland - but that seems impossible!

Hi 
I answered your other post 🙂

Channy8

Pls i just want to find out, is it possible to get a mortgage while on 100% benefit with no work?

K_S

Channy8 said:

Pls i just want to find out, is it possible to get a mortgage while on 100% benefit with no work?

@channy8 Potentially yes. It will depend on which specific benefits and how the lender assesses sustainability, etc.