Mortgage broker - ask me anything

Penguin_

K_S said:

Penguin_ said:

I know it's early to be thinking about this & I know I have asked for advice previously but I'm being proactive & thinking ahead. I have 6 defaults, all 3 years old or so that I am repaying through a DMP. From June my mortgage will be £120 a month cheaper as I have moved onto a better rate (Woo Hoo!) so I will be trying to chuck the extra money at the DMP. I know the defaults will drop off in 2024 & the DMP is, at present, due to finish 2026 but obviously this will reduce with the extra amount each month.
But if me & my OH (not linked financially yet) were to look to buy a house together with a decent deposit before the defaults drop off, say in late 2022/early 2023 is it realistic to think we could get a mortgage? Would it be easier if the DMP was paid off?

@penguin_ No two people on a DMP are the same and it always rides on the specifics in the background and your credit history. But generally speaking, an applicant with an active DMP would rule out a lot more lenders than one with a DMP that had been paid off. I hope that makes sense. To state the obvious, the longer the DMP has been behind you, the better it is.

I completely understand what you're saying & appreciate the feedback. My DMP started in 2018 so will be a good way through, I'm just trying to get myself into the best possible situation & think it may be better or easier (to be able to get a mortgage) if I wait for the defaults to drop off.

GeorgianaCavendish

K_S said:

GeorgianaCavendish said:

Is it possible to get a rough idea of additional costs for FTBs (aside from deposit!) - would be looking to purchase early-mid next year so unfortunately will miss the stamp duty holiday. I've looked at the MSE guide and worked out about £15,850 in total costs, inc stamp duty (on 450K property ), legal fees, valuation fees, survey fees, mortgage fees and Land Registry. Does that sound about right or am I way off the mark? (I went with the upper end if there was a range)

@GeorgianaCavendish

- stamp duty £7,500

- valuation fee assumption £500 (free val products aren't uncommon so this could well be zero. Some lenders often offer cashback incentives for FTB products as well)

- legal fees £1,500 approx

- survey fees £800 (assuming full buildings survey)

- mortgage product fee (can be added to loan so not necessarily needed upfront)

- misc mortgage fees £100

A total of about £10k-11k for the above costs would be my mid-point assumption.

Thank you very much - this is really helpful!

Jen271626

Hi,
Aldermore declined us yesterday as they said my husbands last three months payslips don't indicate he is earning as much as last year. Im gutted as we were only borrowing 1.8 times our salary and 75%ltv. 
This months bank statements going to be really healthy. The other issue is it is a concessionary purchase and my dh has a default for bt thats 4+years for 100 and had 3 late paymebts to very last june to August and I have two as their website wouldn't let us make payments and there was no online advisors or anyone answering calls. 
We also have a time constraint of June the mortgage my dad has needs to be paid off. Are you aware of anywhere else we could try or is there too much working against us just now? There is the final option of my dad buying it cash outright and we try again next year or in six months. 
Thanks for any advice. 

K_S

Jen271626 said:

Hi,
Aldermore declined us yesterday as they said my husbands last three months payslips don't indicate he is earning as much as last year. Im gutted as we were only borrowing 1.8 times our salary and 75%ltv. 
This months bank statements going to be really healthy. The other issue is it is a concessionary purchase and my dh has a default for bt thats 4+years for 100 and had 3 late paymebts to very last june to August and I have two as their website wouldn't let us make payments and there was no online advisors or anyone answering calls. 
We also have a time constraint of June the mortgage my dad has needs to be paid off. Are you aware of anywhere else we could try or is there too much working against us just now? There is the final option of my dad buying it cash outright and we try again next year or in six months. 
Thanks for any advice.

@jen271626 Is there any particular reason your broker placed this with Aldermore? Based on the limited info in your post, I don't see anything evident that would stop you from getting a mortgage for this purchase. Of course there might be something significant in the background. What is your broker suggesting as next steps?

Jen271626

He said he done some agreement in principles with Halifax barclays and someone else and they were declined so went to Aldermore.
He has said that he now needs to spend time trying to find someone who will accept an inter family purchase and the self employment. He reached out to Kensington today and they said they dont do inter family sales at all.
We have alot of flexibility with the purchase price as my dads willing to go down to 65k if necessary. My brother who is also very well off and has a good job offered  to go as guarantor due to husbands self employment but he said they are complicated due to the legal aspect with the deeds and they are a thing of the past now. 
 

Jen271626

House vaued at 110k on home report as well, if that helps so it is a low amount of borrowing as we were asking for 82500 with 5% from us. 

K_S

@jen271626 I don't want to second guess your broker as he has all the information needed to place the case. If the post-covid dip in self employed income is very steep, there might well be very few lenders willing to consider. The Barclays broker DIP is a hard check, I'm not sure why he would try that for this case.

But based on the limited information in your posts, it doesn't look like an unproceedable case to me. Hopefully you aren't using one of the mass volume brokers who may be great for straightforward apps but aren't really set up to place cases with a few complications.

Jen271626

Thanks for your advice, no he is an independent and has been great so far. Will just need to see what comes up.  

Jen271626

K_S said:

@jen271626 I don't want to second guess your broker as he has all the information needed to place the case. If the post-covid dip in self employed income is very steep, there might well be very few lenders willing to consider. The Barclays broker DIP is a hard check, I'm not sure why he would try that for this case.

But based on the limited information in your posts, it doesn't look like an unproceedable case to me. Hopefully you aren't using one of the mass volume brokers who may be great for straightforward apps but aren't really set up to place cases with a few complications.

Hi, 
I have been having a look and we seem to fit precise and vidas criteria but they seem to be quite slow just now? And also Pepper money which I like the look of and they seem to be fairly quick. Do you have any experience/opinions of these? Thanks. 

K_S

Jen271626 said:

K_S said:

@jen271626 I don't want to second guess your broker as he has all the information needed to place the case. If the post-covid dip in self employed income is very steep, there might well be very few lenders willing to consider. The Barclays broker DIP is a hard check, I'm not sure why he would try that for this case.

But based on the limited information in your posts, it doesn't look like an unproceedable case to me. Hopefully you aren't using one of the mass volume brokers who may be great for straightforward apps but aren't really set up to place cases with a few complications.

Hi, 
I have been having a look and we seem to fit precise and vidas criteria but they seem to be quite slow just now? And also Pepper money which I like the look of and they seem to be fairly quick. Do you have any experience/opinions of these? Thanks. 

@Jen271626 For these lenders, the following criteria *might* create issues - need the applicant to provide their own 15% deposit for concessionary purchases, Pepper doesn't lend in Scotland, LTV limits are based on discounted price (so it may or may not fit your case) and Vida is only in the remo business at present, no purchases.

The issue of declining profits (reason for the Aldermore decline) is the big unknown with any lender. How big is the drop from prior year to this year? Do recent figures show a return to normal? Is there any continuing impact from Covid, etc. While some lenders are better than others in a decline in profits scenario, there's no criteria to say exactly how they'll treat it.