Mortgage broker - ask me anything

lantanna

I’ve read through this whole thread over the last couple of weeks and have gained some valuable knowledge and some confidence. 

I’m going to be applying for a mortgage around June time 2022. 

Do you foresee any problems ? 

-First time buyer 
-Age 42
-Deposit (£35,000) Saved £20,000 myself from income, £15,000 gift from Father
-One default on credit file for Satsuma dated June 2016 for £1500, paid off in early 2020. Marked as satisfied. 

-Regular payday loan user in 2015,2016 & 2018. These are starting to fall off now. Last payday loan used was Jan 2020. Paid in full.

-Missed payments  on payday loans scattered through 2015-2018. One in 2019 which was the last one for Very. One missed payment marker for credit card on 2017.

-Very paid off last year and closed under an Arrangement. 

- Only debt is Credit Card, which will be £0 at time of application. I use another credit card for general spending which is paid off in full every month. £200 max
-Single no dependants 
-I’ve worked hard to turn my situation round, do you think I would be looking at adverse? 
-I’m in Northern Ireland and the properties I’m looking at are 170k Max ( takes into account) wiggle room on offer made, with deposit I’d be looking for a mortgage of £135 Max. 

Anything I can do between now and June to put myself in the best possible position?

I have an overdraft on my main account which I don’t use for £680, should I reduce it, close it or just leave it their? Thank you

SuzieP2475

Hello, our two sons are wanting to purchase property both first time buyers. Property £150K we will gift them deposit up to 15%. Both earn around £28K, £56K combined. One son clear credit score no issues, one as recently found out that he as had a CCJ registered against him for an alleged EE phone contract that he is adament is not his, he's always been with 02 and still is to this day, he's tried to fight it even got the police and action fraud involved but it's still on his file. Will they be able to get a joint mortgage and if so will it be with an adverse lender, the CCJ is for £1000 and was registered around 20months ago.
Would it be better for our son with the clear credit report to get a mortgage on his own? What are the differences between an 85LTV normal rate v adverse rate?
Any advice would be appreciated?

fuzz

Just a quick simple question from me - am I allowed to have only 1 repayment mortgage?
I have a flat which is on a buy to let interest only mortgage (currently let out) and the house I live in is a capital repayment mortgage. 

Thanks
Fuzz 

Fkhan95

Hi,
I’ve had a mortgage in principle rejected by nationwide due to “undisclosed commitments”. Broker seems to think it’s because of the credit commitments I’ve cleared off in March which aren’t reflected in my credit reports(equifax and transunion) which were updated most recently in feb.  I’m a bit confused since I gave him all the figures and things I’ve cleared prior to application which I assumed he would’ve factored in. From the little research I’ve done it seems to be that nationwide use Experian for AIP, and my Experian still had my old address and therefore an outdated credit report (no credit/electoral roll/etc) which I’ve updated after the rejected dip. Is the broker correct in thinking It’s due to the fact the prior commitments are showing up(equifax and transunion) or is it because Experian wasn’t updated at all since 2019 and they’ve used that? 

Thanks

K_S

fuzz said:

Just a quick simple question from me - am I allowed to have only 1 repayment mortgage?
I have a flat which is on a buy to let interest only mortgage (currently let out) and the house I live in is a capital repayment mortgage. 
Thanks
Fuzz 

@fuzz In principle, you can have as many capital repayment mortgages as your income can support.

K_S

Fkhan95 said:

Hi,
I’ve had a mortgage in principle rejected by nationwide due to “undisclosed commitments”. Broker seems to think it’s because of the credit commitments I’ve cleared off in March which aren’t reflected in my credit reports(equifax and transunion) which were updated most recently in feb.  I’m a bit confused since I gave him all the figures and things I’ve cleared prior to application which I assumed he would’ve factored in. From the little research I’ve done it seems to be that nationwide use Experian for AIP, and my Experian still had my old address and therefore an outdated credit report (no credit/electoral roll/etc) which I’ve updated after the rejected dip. Is the broker correct in thinking It’s due to the fact the prior commitments are showing up(equifax and transunion) or is it because Experian wasn’t updated at all since 2019 and they’ve used that? 
Thanks

@fkhan95 I don't want to second guess what your broker has done, but to me it looks like he may have keyed in the DIP not taking into account how the system looks at it. If the reason for decline is 'undisclosed commitments', that's the most likely explanation. What Nationwide is saying is that the applicant has not declared all the financial commitments that they have.

K_S

SuzieP2475 said:

Hello, our two sons are wanting to purchase property both first time buyers. Property £150K we will gift them deposit up to 15%. Both earn around £28K, £56K combined. One son clear credit score no issues, one as recently found out that he as had a CCJ registered against him for an alleged EE phone contract that he is adament is not his, he's always been with 02 and still is to this day, he's tried to fight it even got the police and action fraud involved but it's still on his file. Will they be able to get a joint mortgage and if so will it be with an adverse lender, the CCJ is for £1000 and was registered around 20months ago.
Would it be better for our son with the clear credit report to get a mortgage on his own? What are the differences between an 85LTV normal rate v adverse rate?
Any advice would be appreciated?

@suziep2475 For rates, please check the MSE mortgage finder. Quick thoughts on the rest -

- With a £1,000 CCJ registered less than 2 years ago, at 85% LTV their joint options are likely to be limited and adverse.

- On one 28k basic income, they *should* be able to get mainstream rates to borrow at or close to the amount required.

K_S

lantanna said:

I’ve read through this whole thread over the last couple of weeks and have gained some valuable knowledge and some confidence. 

I’m going to be applying for a mortgage around June time 2022. 

Do you foresee any problems ? 

-First time buyer 
-Age 42
-Deposit (£35,000) Saved £20,000 myself from income, £15,000 gift from Father
-One default on credit file for Satsuma dated June 2016 for £1500, paid off in early 2020. Marked as satisfied. 

-Regular payday loan user in 2015,2016 & 2018. These are starting to fall off now. Last payday loan used was Jan 2020. Paid in full.

-Missed payments  on payday loans scattered through 2015-2018. One in 2019 which was the last one for Very. One missed payment marker for credit card on 2017.

-Very paid off last year and closed under an Arrangement. 

- Only debt is Credit Card, which will be £0 at time of application. I use another credit card for general spending which is paid off in full every month. £200 max
-Single no dependants 
-I’ve worked hard to turn my situation round, do you think I would be looking at adverse? 
-I’m in Northern Ireland and the properties I’m looking at are 170k Max ( takes into account) wiggle room on offer made, with deposit I’d be looking for a mortgage of £135 Max. 

Anything I can do between now and June to put myself in the best possible position?

I have an overdraft on my main account which I don’t use for £680, should I reduce it, close it or just leave it their? Thank you

@lantanna Unfortunately, it's far too early to say what the scene will be in summer 2022. 80% LTV is good and what you can do between now and then is to keep your credit history squeaky clean, avoid any high-interest finance and keep saving up.

Fkhan95

K_S said:

Fkhan95 said:

Hi,
I’ve had a mortgage in principle rejected by nationwide due to “undisclosed commitments”. Broker seems to think it’s because of the credit commitments I’ve cleared off in March which aren’t reflected in my credit reports(equifax and transunion) which were updated most recently in feb.  I’m a bit confused since I gave him all the figures and things I’ve cleared prior to application which I assumed he would’ve factored in. From the little research I’ve done it seems to be that nationwide use Experian for AIP, and my Experian still had my old address and therefore an outdated credit report (no credit/electoral roll/etc) which I’ve updated after the rejected dip. Is the broker correct in thinking It’s due to the fact the prior commitments are showing up(equifax and transunion) or is it because Experian wasn’t updated at all since 2019 and they’ve used that? 
Thanks

@fkhan95 I don't want to second guess what your broker has done, but to me it looks like he may have keyed in the DIP not taking into account how the system looks at it. If the reason for decline is 'undisclosed commitments', that's the most likely explanation. What Nationwide is saying is that the applicant has not declared all the financial commitments that they have.

Thank you for this. We have an unsecured loan in a joint account but it was put down as a liability for myself and not for my partner. Should it have been shown as a monthly liability for both of us? 

K_S

Fkhan95 said:

K_S said:

Fkhan95 said:

Hi,
I’ve had a mortgage in principle rejected by nationwide due to “undisclosed commitments”. Broker seems to think it’s because of the credit commitments I’ve cleared off in March which aren’t reflected in my credit reports(equifax and transunion) which were updated most recently in feb.  I’m a bit confused since I gave him all the figures and things I’ve cleared prior to application which I assumed he would’ve factored in. From the little research I’ve done it seems to be that nationwide use Experian for AIP, and my Experian still had my old address and therefore an outdated credit report (no credit/electoral roll/etc) which I’ve updated after the rejected dip. Is the broker correct in thinking It’s due to the fact the prior commitments are showing up(equifax and transunion) or is it because Experian wasn’t updated at all since 2019 and they’ve used that? 
Thanks

@fkhan95 I don't want to second guess what your broker has done, but to me it looks like he may have keyed in the DIP not taking into account how the system looks at it. If the reason for decline is 'undisclosed commitments', that's the most likely explanation. What Nationwide is saying is that the applicant has not declared all the financial commitments that they have.

Thank you for this. We have an unsecured loan in a joint account but it was put down as a liability for myself and not for my partner. Should it have been shown as a monthly liability for both of us? 

@fkhan95 Apologies, as a regulated mortgage adviser I can't really go into the specifics of your case without opening myself up to potentially giving you incorrect/inappropriate advice based on little to no information.