Mortgage broker - ask me anything

K_S

CLJ2986 said:

K_S said:

CLJ2986 said:

I'm curious, if you have an application in progress and the interest rate for the product you applied for changes, would you benefit from the change if you're accepted or would your mortgage be at the rate quoted at the start? Thanks in advance!!

@clj2986 When you submit an application, it is for a specific product and any changes to interest rates do not apply automatically.

That's what I thought lol no idea how interest rates actually work. Was just checking Aldermores current times and happened to notice the reduction and wondered if it would apply to us if we get approved.

@clj2986 I don't remember Aldermore's process off of the top of my head, but generally speaking lenders will allow you to update the product, either while the application is in progress or after it has gone to offer.

K_S

RG_87 said:

Hi,
wondering if someone could give me some feedback/advice on the following;

Took out first mortgage with ex partner around 14 years ago, after 2 years she declared bankruptcy & left me liable for other half of debt. In the end house was repossessed by bank, they sent me correspondence to begin with which I never acknowledged. They then passed this on to a solicitor who then in turn have sent me correspondence which I have never acknowledged(last correspondence was in 2019). They have never said anything regarding CCJ etc, repossession does not show on my credit report and I have a fairly good credit report.

Am I right in thinking that after 12 years they can no longer “chase” me for the debt?
 If I was to apply for a mortgage would I have to declare this & how likely is it to affect my application?

thanks.

@rg_87
- A 12 year old repo should not on its own stop you getting a mainstream mortgage

- some lenders will not lend to applicants with any history of repos, and you may be asked to declare if any

- some lenders will put an LTV limit on applicants with a repo history

Firsttimebuyer2021

Hi thank your for previous advice and guidance can i ask another few questions?

I have got a student loan (Scotland Plan 1) i haven't paid any back as i haven't earned enough to start paying, is this classed as a debt on the mortgage application and if so is it heavily impacted on affordability?

I am also looking at the new Scottish First Home Fund if our mortgage lender says we can borrow £180k for instance does the £25k fund get added to this meaning a £205k budget?

Thank you!

Terrace

I am not sure if it is right place to ask.

I have had a good look at my karma credit file and one loan which is paid in 2019. Shows 1 missed payment in Feb 2017. 

I have never missed any payments and always pay by DD. Same bank account since 2010.

I have gone through my bank statements and I have not missed a payment. 

I was paying this loan back  by DD on 29th of each month I get paid on 28th so was plenty of money to take DD out on 28th of  Feb. As Feb only has 28 days in a month my DD came out on the 1st of March. 

Could this be a reason? Do I contact lender or Karma to remove missed payment from my file? 

K_S

Terrace said:

I am not sure if it is right place to ask.
I have had a good look at my karma credit file and one loan which is paid in 2019. Shows 1 missed payment in Feb 2017. 

I have never missed any payments and always pay by DD. Same bank account since 2010.
I have gone through my bank statements and I have not missed a payment. 

I was paying this loan back  by DD on 29th of each month I get paid on 28th so was plenty of money to take DD out on 28th of  Feb. As Feb only has 28 days in a month my DD came out on the 1st of March. 

Could this be a reason? Do I contact lender or Karma to remove missed payment from my file?

@terrace Does it show on Equifax and Experian as well? You could dispute it with Transunion but tbh one 4+ year old late/missed payment marker is unlikely to have any material impact on your mortgage chances.

Terrace

K_S said:

Terrace said:

I am not sure if it is right place to ask.
I have had a good look at my karma credit file and one loan which is paid in 2019. Shows 1 missed payment in Feb 2017. 

I have never missed any payments and always pay by DD. Same bank account since 2010.
I have gone through my bank statements and I have not missed a payment. 

I was paying this loan back  by DD on 29th of each month I get paid on 28th so was plenty of money to take DD out on 28th of  Feb. As Feb only has 28 days in a month my DD came out on the 1st of March. 

Could this be a reason? Do I contact lender or Karma to remove missed payment from my file?

@terrace Does it show on Equifax and Experian as well? You could dispute it with Transunion but tbh one 4+ year old late/missed payment marker is unlikely to have any material impact on your mortgage chances.

Thank you K_S

Just checked equifax and it shows as late payment too.

Not sure if I should dispute it or just leave it. Just feels unfair as I have not missed it or paid it late. 

Capri84

Firsttimebuyer2021 said:

Hi thank your for previous advice and guidance can i ask another few questions?

I have got a student loan (Scotland Plan 1) i haven't paid any back as i haven't earned enough to start paying, is this classed as a debt on the mortgage application and if so is it heavily impacted on affordability?

I am also looking at the new Scottish First Home Fund if our mortgage lender says we can borrow £180k for instance does the £25k fund get added to this meaning a £205k budget?

Thank you!

I’m sure with the FHF you can only apply for it after you’ve already been approved for a mortgage - which seems awfully strange as you’ll not know about affordability until you know if the £25k is going to bring your payments down. 

Bizzare. Unless I’ve misunderstood 

Barry627

Hi

Barclays track it has my application at current status. Valuation approved. Got a green tick against it. The review said more information required. Which we submitted, it has a green tick against it. I’m I right in thinking the underwriting stage is complete? 

ShireInquire

How do mortgage lenders calculate borrowing amount based on self employment? My wife and I are both employed on PAYE and had also started a side business some time back. In the next few months we would be looking to get a mortgage and know based on our salaries, our borrowing amount will probably around x4 to x5 our combined income (through employment only). Though can lenders increase this based on our own business? More so would they look at turnover, drawn salary or net profit from out own business?

K_S

ShireInquire said:

How do mortgage lenders calculate borrowing amount based on self employment? My wife and I are both employed on PAYE and had also started a side business some time back. In the next few months we would be looking to get a mortgage and know based on our salaries, our borrowing amount will probably around x4 to x5 our combined income (through employment only). Though can lenders increase this based on our own business? More so would they look at turnover, drawn salary or net profit from out own business?

@shireinquire How long has the business been trading? Yes, some lenders may consider self-employed income as a second income subject to plausibility and criteria. Assuming it's a limited company, the most common way would be to take into account salary+dividends. Some lenders will take net-profit plus salary as well. With 1 full year accounts, you will have access to a limited number of lenders, with 2 it'll be significantly wider.