Mortgage broker - ask me anything

Carmen12

Because of the loan ( I didn’t know o don’t have to do any loan before completion ) 

Carmen12

If i will pay it off do you think can I  apply to another lender ? 

K_S

Carmen12 said:

If i will pay it off do you think can I  apply to another lender ? 

@carmen12 I know nothing about your case so unfortunately can't really comment. Given you're only looking to borrow less than 4x income, it's unlikely that the decline is down to the 2k cc debt (which translates to £60/month outgoing for most lenders). 

If you are using a broker, what are they suggesting as next steps? If not, I would recommend getting in touch with a broker who can give you a realistic idea of your chances. 

Carmen12

K_S said:

Carmen12 said:

If i will pay it off do you think can I  apply to another lender ? 

@carmen12 I know nothing about your case so unfortunately can't really comment. Given you're only looking to borrow less than 4x income, it's unlikely that the decline is down to the 2k cc debt (which translates to £60/month outgoing for most lenders). 

If you are using a broker, what are they suggesting as next steps? If not, I would recommend getting in touch with a broker who can give you a realistic idea of your chances. 

It was credit card  2000 and a loan of 3000  ... they said I didn’t had that before ...  I can pay it off .. I don’t have any more issues in my credit report so do you think if im paying it off could I apply to another lender ? I have asked my broker she will answer me .but is just to know before what my options are 

K_S

Carmen12 said:

K_S said:

Carmen12 said:

If i will pay it off do you think can I  apply to another lender ? 

@carmen12 I know nothing about your case so unfortunately can't really comment. Given you're only looking to borrow less than 4x income, it's unlikely that the decline is down to the 2k cc debt (which translates to £60/month outgoing for most lenders). 

If you are using a broker, what are they suggesting as next steps? If not, I would recommend getting in touch with a broker who can give you a realistic idea of your chances. 

It was credit card  2000 and a loan of 3000  ... they said I didn’t had that before ...  I can pay it off .. I don’t have any more issues in my credit report so do you think if im paying it off could I apply to another lender ? I have asked my broker she will answer me .but is just to know before what my options are 

@carmen12 I'm sure your broker will come up with a way forward, good luck!

Carmen12

Thank you very much . You are very helpful 

ts21

Great thread! Thanks in advance for your input.

I'm a FTB earning £80k. I have a 5% deposit, looking at purchasing a property of about £325k. I also have £20k on credit cards and £370 in monthly payments against 0% finance.

Obviously I'm awaiting the new 95% mortgages with baited breath. In the meantime though, I've looked at other options too. I came across Proportunity, which hasn't been discussed much on here. It's a startup that offers second charge loans in a similar way to how HTB works, except that you pay the interest on the loan. I guess depending on the rates that they can offer on the loan and against which mortgages, it could still work out better than a 95% mortgage, depending on the rate of that too.

However, I spoke to a mortgage advisor that deals with Proportunity this week, and he actually suggested it might be better to take a personal loan to top up my deposit to 10%. I always thought this was a big no-no. He said the only lender that would lend in that circumstance would be Santander. This seems like a big risk to me, as I'd have to apply for the loan and be accepted, then apply for the mortgage and be accepted, and there's a risk of applying and getting rejected from one or the other and having 2 credit searches on file and being back at square one. Is this as bad an idea as it seems to me? The advisor said that he does this quite a lot (doesn't advise on the actual loan, but arranges mortgage in this situation) as they specialise in FTB in London who have fairly high salaries but low deposits.

It might be a non-question, another broker I spoke to suggested that she's expecting the 95% mortgage rates to come down to 2-3% after the initial rush - does this seem realistic?

One thing I'm not sure about in terms of my credit cards, and I got opposing responses from the 2 advisors I spoke to: I have £68k in credit limits across all my credit cards, with under 30% utilisation. I understand that credit utilisation is a factor in mortgage lending decisions, but also available credit. Am I better to keep the cards as they are, and thus my credit utilisation low, or to close some to take down my credit limit (say to £50k) but with higher utilisation (40%)? I could also drop down the credit limit on one, but I presume that looks bad as it could suggest the lender dropped it down having considered me a risk?

K_S

@ts21

- In principle, what the adviser said is doable. Santander is one of the very few lenders that will consider a borrowed deposit. I myself would be hung out to dry by my compliance if I regularly told clients to do what has been suggested

- 95% rates, imho they may come down to around 3.25-3.5% in the short term, but I would be surprised if they got to 3% and below. This is just an educated guess, the big unknown is how much of an impact the mortgage guarantee will have.

- credit utilisation, available credit etc may play a small part in a lender's opaque "credit scoring" along with a million other things. But generally speaking, from experience, those aspects rarely make a material difference to the strength of an application for mainstream lenders and almost never play a part in the advice I give.

ts21

K_S said:

@ts21

- In principle, what the adviser said is doable. Santander is one of the very few lenders that will consider a borrowed deposit. I myself would be hung out to dry by my compliance if I regularly told clients to do what has been suggested

- 95% rates, imho they may come down to around 3.25-3.5% in the short term, but I would be surprised if they got to 3% and below. This is just an educated guess, the big unknown is how much of an impact the mortgage guarantee will have.

- credit utilisation, available credit etc may play a small part in a lender's opaque "credit scoring" along with a million other things. But generally speaking, from experience, those aspects rarely make a material difference to the strength of an application for mainstream lenders and almost never play a part in the advice I give.

Thank you.

Yes, tbh I was surprised he suggested the loan route! Although I guess when comparing to Proportunity I see why, as rate/interest wise it would work out better. It just seems a dangerous game to play..

Thanks for your thoughts on the rates. I guess we'll just have to wait and see... I'm not expecting a miracle really, just an opportunity to start the next chapter of my life

Interesting re credit utilisation. The MSE guides, and other posts on here, tend to give the whole thing a bit more weight. I think I'll just look at making the most sensible decision for me - so closing the ones I really won't use etc.

stokegal

Hi
Looking for a bit of advice about buying home.

I’m an ex BR (March 2011) so no longer on credit file and looking to purchase home from parents with a concessionairy discount. (I’ve lived here for 9 years)

The house is worth approx 160k and parents have agreed to sell it at 125k offering approx 22% discount.

I’m a single applicant with 1 child dependant earning £53k a year (20/21 was £57k) made up of £30k basic and rest in commission

I have unsecured debts of just over £24k
Motor finance £15.5k (£180 / month)
Credit Card £5.5k (£400 / month)
Overdraft £1.5k (£100 / month)
Retail finance £1.5k (£100 / month)

I ran through a mortgage application with the Halifax which passed the affordability but failed on the credit check (my credit file still shows higher balances as I’ve paid a chunk of them off over the past couple of months) there’s no missed payments or defaults though. 

Is it worth applying through a broker again in a couple of months or trying to hammer down my debts more and applying again once they have mainly been paid off (all but motor finance)

Thanks