Mortgage broker - ask me anything

Emlo98

I have had my decision in principle passed with skipton does this mean it should go smoothly through to mortgage offer? I am a first time buyer and don’t have the best credit, it is classed as fair. I’m just worrying so any advice would be appreciated!

K_S

Emlo98 said:

I have had my decision in principle passed with skipton does this mean it should go smoothly through to mortgage offer? I am a first time buyer and don’t have the best credit, it is classed as fair. I’m just worrying so any advice would be appreciated!

@emlo98 There's no guarantee, but a DIP pass is most definitely a good sign in that regard.

jennifer12

Hi,

I'm changing my mortgage to buy-to-let mortgage, Any advice where I can find the cheapest quotes for this type of mortgage? Thanks, Jenny.

K_S

jennifer12 said:

Hi,

I'm changing my mortgage to buy-to-let mortgage, Any advice where I can find the cheapest quotes for this type of mortgage? Thanks, Jenny.

@jennifer12 You could either use a broker or look up rates on a website like moneyfacts and then approach lenders to check if your scenario meets their criteria and affordability calculations or not.

jennifer12

Thank you for your help

Iwishiwish

Emlo98 said:

I have had my decision in principle passed with skipton does this mean it should go smoothly through to mortgage offer? I am a first time buyer and don’t have the best credit, it is classed as fair. I’m just worrying so any advice would be appreciated!

Sorry this is not a positive post.... however what I will say is try and be positive and not worry about it, I’ve stressed and had many a tears over my remortgage and onward purchase, have faith and what will be will be x but  here’s my sad little story .... 
I have been with Skipton for quite a few years, not had issue previously however this time they have offered me 29k less than on the DIP.   I had applied to port my existing rate with them and applied for extra to fund my onward purchase. I used a broker. They claimed my pension contributions caused the lower offer than original dip 😭.

RHF2020

K_S said:

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.

Hi K_S,
An update on this. I've had an AIP from Halifax to borrow up to £410k with a 15% deposit. I can see from my credit files this involved a soft check of all the agencies, so they know about the default issue.
We're about to do a full application for a house where we have agreed to pay £228,500, with a 15% deposit (so £194k borrowing). Surely, given this is so far below what they quoted, and the fact they have already checked my credit file, means the mortgage won't be rejected on these grounds? I'd add that my wife's credit score is perfect, with no issues, while I can evidence that the default is in the process of being removed.

Thanks

Emlo98

Iwishiwish said:

Emlo98 said:

I have had my decision in principle passed with skipton does this mean it should go smoothly through to mortgage offer? I am a first time buyer and don’t have the best credit, it is classed as fair. I’m just worrying so any advice would be appreciated!

Sorry this is not a positive post.... however what I will say is try and be positive and not worry about it, I’ve stressed and had many a tears over my remortgage and onward purchase, have faith and what will be will be x but  here’s my sad little story .... 
I have been with Skipton for quite a few years, not had issue previously however this time they have offered me 29k less than on the DIP.   I had applied to port my existing rate with them and applied for extra to fund my onward purchase. I used a broker. They claimed my pension contributions caused the lower offer than original dip 😭.

Oh no that is awful! Is there no way you can contest this? Such a stressful time isn’t it. How long from your dip did it take them to decide this? 

K_S

RHF2020 said:

K_S said:

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.

Hi K_S,
An update on this. I've had an AIP from Halifax to borrow up to £410k with a 15% deposit. I can see from my credit files this involved a soft check of all the agencies, so they know about the default issue.
We're about to do a full application for a house where we have agreed to pay £228,500, with a 15% deposit (so £194k borrowing). Surely, given this is so far below what they quoted, and the fact they have already checked my credit file, means the mortgage won't be rejected on these grounds? I'd add that my wife's credit score is perfect, with no issues, while I can evidence that the default is in the process of being removed.
Thanks

@RHF2020 Glad to hear that you were able to up your deposit to 15%. Given what you've described, I wouldn't expect the application to now fall through due to that £65 comms default. Good luck!

Iwishiwish

Emlo98 said:

Oh no that is awful! Is there no way you can contest this? Such a stressful time isn’t it. How long from your dip did it take them to decide this? 

My broker approached them and tried to reason with them, but he said they were having none of it ... 😞, I was waiting 7/8 weeks from dip  ( I was told it takes a while for the porting process).
It is so stressful! The day before Skipton dropped this bomb on me the whole chain fell apart on my purchase and sale etc,.. 
I am hoping we are back on track now with a lender that doesn’t view pension as a negative. So again I’m awaiting the powers that be of underwriting to decide my fate x
I wish you all the best and Try not to worry about it so much, if this one doesn’t happen there are other options, so don’t worry x