Mortgage broker - ask me anything

Sophie8916

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

@sophie8916 What's the current outstanding mortgage - the Halifax first charge.

£99,000 for Halifax first charge

@sophie8916 Based on the limited info in front of me, it looks doable in principle. However, debt con, especially where the amounts are significant and with an applicant with high debt levels on their credit report, is always a 50-50 case.

The lender wants a reasonable assurance that you will use the released cash for the intended purpose. Hopefully they'll look upon the app favourably, good luck!

Thanks! Does the fact I’m an existing customer go in my favour? And I will also be happy they do cheques to the lenders directly ? She rang them and they said happy so I’m hoping so! If not she sad aldermore? Any thoughts?

annie12

K_S said:

annie12 said:

I have a question regarding my son if anyone can help.
He is looking to buy his first house.
He is a self employed dental hygiene/therapist. His profits are: 17/18 £22577 (first year self employed) 18/19 £38,678  19/20 £34,612  20/21 should be approx £32,000.

He has never been in debt but also doesn't have a credit card.
He has saved 20k
He has £12k in a help to buy ISA.
Bank of mum & dad can give £50-£70k.

He has been living at home for a year rent free but was in rented accommodation prior to this and paying all his own bills.
Would he realistically have a good chance of getting a mortgage or is there something he can do to give him a better chance?
Thanks.

@annie12 Based on the limited info in your post, I don't see anything evident that would stop him from potentially getting a mortgage of around 140-150k or so. 

Thank you.  Will it be more of a struggle for him as he is self employed?

blueorange117

K_S said:

blueorange117 said:

Hi, apologies if this has already been asked.

We just applied for our joint mortgage and declared that we have £0 debt on loans or credit cards, as we had just that morning cleared the last few thousand pounds on both a credit card and personal loan.

However, both are still showing on my credit file - and I assume would be for the next few weeks whilst it updates? Worried now that this will be flagged when mortgage provider does a hard search and it looks like we're lying on our application! 

Any advice? Should I phone the mortgage provider to explain?

Thanks in advanced. 

@blueorange117 I can't advise you on what you need to do as I know nothing about the case and the significance of these numbers depends on the rest of the scenario.

Generally speaking, when I'm keying in a DIP, informally most lenders will recommend that I put in the debt numbers as reflected in the latest version of the credit file that they use and the actual numbers in the 'at/before completion' boxes. If there's space to put in a note, I do that as well.

Thanks for the swift response.

In terms of more details, we have a joint income of £155k and cleared the loans and credit cards which were £8k.

We've been DIP for a mortgage up to £800k but the place we're hoping to purchase is 700k. 

We have around 85% LTV. 

I’m just really worried it looks like we have lied when we inputted the DIP and the full application and we'll be declined! 

We actually were approved fully by the same provider 6 months ago for another property but that fell through as the sellers pulled out. That was when the debt was still live, so hoping that is a positive sign. But of course doesn't address the fact the credit file numbers won't reflect the £0 balance!

Do you think it's best to call and explain, and offer to provide screenshots etc?

K_S

blueorange117 said:

K_S said:

blueorange117 said:

Hi, apologies if this has already been asked.

We just applied for our joint mortgage and declared that we have £0 debt on loans or credit cards, as we had just that morning cleared the last few thousand pounds on both a credit card and personal loan.

However, both are still showing on my credit file - and I assume would be for the next few weeks whilst it updates? Worried now that this will be flagged when mortgage provider does a hard search and it looks like we're lying on our application! 

Any advice? Should I phone the mortgage provider to explain?

Thanks in advanced. 

@blueorange117 I can't advise you on what you need to do as I know nothing about the case and the significance of these numbers depends on the rest of the scenario.

Generally speaking, when I'm keying in a DIP, informally most lenders will recommend that I put in the debt numbers as reflected in the latest version of the credit file that they use and the actual numbers in the 'at/before completion' boxes. If there's space to put in a note, I do that as well.

Thanks for the swift response.

In terms of more details, we have a joint income of £155k and cleared the loans and credit cards which were £8k.

We've been DIP for a mortgage up to £800k but the place we're hoping to purchase is 700k. 

We have around 85% LTV. 

I’m just really worried it looks like we have lied when we inputted the DIP and the full application and we'll be declined! 

We actually were approved fully by the same provider 6 months ago for another property but that fell through as the sellers pulled out. That was when the debt was still live, so hoping that is a positive sign. But of course doesn't address the fact the credit file numbers won't reflect the £0 balance!

Do you think it's best to call and explain, and offer to provide screenshots etc?

@blueorange117 Generally speaking, given the numbers stated, I wouldn't expect 8k of debt to have a huge impact either way.

Can't advise on what to do, apologies. I don't know much about how direct applications are processed.

K_S

annie12 said:

K_S said:

annie12 said:

I have a question regarding my son if anyone can help.
He is looking to buy his first house.
He is a self employed dental hygiene/therapist. His profits are: 17/18 £22577 (first year self employed) 18/19 £38,678  19/20 £34,612  20/21 should be approx £32,000.

He has never been in debt but also doesn't have a credit card.
He has saved 20k
He has £12k in a help to buy ISA.
Bank of mum & dad can give £50-£70k.

He has been living at home for a year rent free but was in rented accommodation prior to this and paying all his own bills.
Would he realistically have a good chance of getting a mortgage or is there something he can do to give him a better chance?
Thanks.

@annie12 Based on the limited info in your post, I don't see anything evident that would stop him from potentially getting a mortgage of around 140-150k or so. 

Thank you.  Will it be more of a struggle for him as he is self employed?

@annie12 Depends on the specifics, but there's no reason it should be a slog with the appropriate lender for the case 

K_S

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

@sophie8916 What's the current outstanding mortgage - the Halifax first charge.

£99,000 for Halifax first charge

@sophie8916 Based on the limited info in front of me, it looks doable in principle. However, debt con, especially where the amounts are significant and with an applicant with high debt levels on their credit report, is always a 50-50 case.

The lender wants a reasonable assurance that you will use the released cash for the intended purpose. Hopefully they'll look upon the app favourably, good luck!

Thanks! Does the fact I’m an existing customer go in my favour? And I will also be happy they do cheques to the lenders directly ? She rang them and they said happy so I’m hoping so! If not she sad aldermore? Any thoughts?

@sophie8916 Straight from Halifax to Aldermore? Do you have any adverse on your credit history?

blueorange117

K_S said:

blueorange117 said:

K_S said:

blueorange117 said:

Hi, apologies if this has already been asked.

We just applied for our joint mortgage and declared that we have £0 debt on loans or credit cards, as we had just that morning cleared the last few thousand pounds on both a credit card and personal loan.

However, both are still showing on my credit file - and I assume would be for the next few weeks whilst it updates? Worried now that this will be flagged when mortgage provider does a hard search and it looks like we're lying on our application! 

Any advice? Should I phone the mortgage provider to explain?

Thanks in advanced. 

@blueorange117 I can't advise you on what you need to do as I know nothing about the case and the significance of these numbers depends on the rest of the scenario.

Generally speaking, when I'm keying in a DIP, informally most lenders will recommend that I put in the debt numbers as reflected in the latest version of the credit file that they use and the actual numbers in the 'at/before completion' boxes. If there's space to put in a note, I do that as well.

Thanks for the swift response.

In terms of more details, we have a joint income of £155k and cleared the loans and credit cards which were £8k.

We've been DIP for a mortgage up to £800k but the place we're hoping to purchase is 700k. 

We have around 85% LTV. 

I’m just really worried it looks like we have lied when we inputted the DIP and the full application and we'll be declined! 

We actually were approved fully by the same provider 6 months ago for another property but that fell through as the sellers pulled out. That was when the debt was still live, so hoping that is a positive sign. But of course doesn't address the fact the credit file numbers won't reflect the £0 balance!

Do you think it's best to call and explain, and offer to provide screenshots etc?

@blueorange117 Generally speaking, given the numbers stated, I wouldn't expect 8k of debt to have a huge impact either way.

Can't advise on what to do, apologies. I don't know much about how direct applications are processed.

Really appreciate it, thank you 

Sophie8916

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

@sophie8916 What's the current outstanding mortgage - the Halifax first charge.

£99,000 for Halifax first charge

@sophie8916 Based on the limited info in front of me, it looks doable in principle. However, debt con, especially where the amounts are significant and with an applicant with high debt levels on their credit report, is always a 50-50 case.

The lender wants a reasonable assurance that you will use the released cash for the intended purpose. Hopefully they'll look upon the app favourably, good luck!

Thanks! Does the fact I’m an existing customer go in my favour? And I will also be happy they do cheques to the lenders directly ? She rang them and they said happy so I’m hoping so! If not she sad aldermore? Any thoughts?

@sophie8916 Straight from Halifax to Aldermore? Do you have any adverse on your credit history?

No she’s asking Halifax first for an advance as I’m with them already, aldermore is a back up. 

nope none at all.

look forward to your response thanks so much 

K_S

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

@sophie8916 What's the current outstanding mortgage - the Halifax first charge.

£99,000 for Halifax first charge

@sophie8916 Based on the limited info in front of me, it looks doable in principle. However, debt con, especially where the amounts are significant and with an applicant with high debt levels on their credit report, is always a 50-50 case.

The lender wants a reasonable assurance that you will use the released cash for the intended purpose. Hopefully they'll look upon the app favourably, good luck!

Thanks! Does the fact I’m an existing customer go in my favour? And I will also be happy they do cheques to the lenders directly ? She rang them and they said happy so I’m hoping so! If not she sad aldermore? Any thoughts?

@sophie8916 Straight from Halifax to Aldermore? Do you have any adverse on your credit history?

No she’s asking Halifax first for an advance as I’m with them already, aldermore is a back up. 
nope none at all.
look forward to your response thanks so much 

@sophie8916 Halifax 80% LTV rates are 2-2.6% (depending on fees) while Aldermore's are around 3.7%+ (with a hefty fee). There are plenty of mainstream lenders (with rates at/below Halifax's) between those two who allow debt-con up to 80%.

I just assumed the reason for having Aldermore as a backup would be because of adverse on your credit history. I don't want to second guess your broker, I'm sure they have a good reason for that.

I hope you get a positive outcome from Halifax or Aldermore, good luck!

Sophie8916

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

K_S said:

Sophie8916 said:

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

@sophie8916 What's the current outstanding mortgage - the Halifax first charge.

£99,000 for Halifax first charge

@sophie8916 Based on the limited info in front of me, it looks doable in principle. However, debt con, especially where the amounts are significant and with an applicant with high debt levels on their credit report, is always a 50-50 case.

The lender wants a reasonable assurance that you will use the released cash for the intended purpose. Hopefully they'll look upon the app favourably, good luck!

Thanks! Does the fact I’m an existing customer go in my favour? And I will also be happy they do cheques to the lenders directly ? She rang them and they said happy so I’m hoping so! If not she sad aldermore? Any thoughts?

@sophie8916 Straight from Halifax to Aldermore? Do you have any adverse on your credit history?

No she’s asking Halifax first for an advance as I’m with them already, aldermore is a back up. 
nope none at all.
look forward to your response thanks so much 

@sophie8916 Halifax 80% LTV rates are 2-2.6% (depending on fees) while Aldermore's are around 3.7%+ (with a hefty fee). There are plenty of mainstream lenders (with rates at/below Halifax's) between those two who allow debt-con up to 80%.

I just assumed the reason for having Aldermore as a backup would be because of adverse on your credit history. I don't want to second guess your broker, I'm sure they have a good reason for that.

I hope you get a positive outcome from Halifax or Aldermore, good luck!

Thanks!!!

last question I promise - so in your experience I have got proof I’m having debt counselling so doesn’t happen again and it puts me in a better financial position, does the fact I’m already a customer go in my favour? My broker called them and said they seemed happy so have put assessment through.

sorry for all the qs just causing me a lot of anxiety can’t wait till I find out!