Mortgage broker - ask me anything

sillymonkey03

Hi K_C,

sorry to ask, what would be the other reasons? 

K_S

louj22 said:

I feel like I’m hitting a brick wall. I have 3 defaults on my file, 2 are over five years and one is 30 months old but for just over £700. Affordability is good and stable job as a teacher with good income. 

Have 5% deposit so getting nowhere with lenders. How much more scope would I have with 10%? Not bothered about having a high street lender - does anyone know of any lenders that would accept default under 3 years and over £500? Have a house ready to buy! 

Thanks 

@louj22 Until your default is 36+ months old, you'll likely need a 15% deposit realistically speaking. 

curiousalways

K_S said:

@curiousalways For applicants with self-employed income, if the lender asks for recent bank statements at underwriting the usual reason is to confirm that the business is trading normally in line with the accounts figures submitted.

Unfortunately, all the broker can do is pick a lender who doesn't ask for recent business bank statements upfront. There's no guarantee that they don't ask for them at underwriting for self employed applicants.

Thank you for the reply, may be in our case i am that unlucky one where the lenders are asking for bank statements but i am still curious why will they ask for company projection report from the accountant.
Its a shame they would reject the application on basis of last three months statements and not the previous and latest year turnonver.

Thank you very much for your time and reply

Bobthebuildercanyoufixit

Does anyone know a mortgage lender/broker that may be good if i only have a 10% deposit??
I have a high DTI of 38-40 and also have payday loans used- most recent one, 5months ago but fully paid. Help please!
thanks

K_S

Bobthebuildercanyoufixit said:

Does anyone know a mortgage lender/broker that may be good if i only have a 10% deposit??
I have a high DTI of 38-40 and also have payday loans used- most recent one, 5months ago but fully paid. Help please!
thanks

@Bobthebuildercanyoufixit If it's just those two issues and no defaults/CCJs etc you should have a few options.

Bobthebuildercanyoufixit

K_S said:

Bobthebuildercanyoufixit said:

Does anyone know a mortgage lender/broker that may be good if i only have a 10% deposit??
I have a high DTI of 38-40 and also have payday loans used- most recent one, 5months ago but fully paid. Help please!
thanks

@Bobthebuildercanyoufixit If it's just those two issues and no defaults/CCJs etc you should have a few options.

I have been rejected many times Natwest gave me the DIP but declined literally straight away after my most recent broker had put the application in... Accord also stated that due to recent payday loans they wont accept. 

The only other thing i can think of is that i have an overdraft but artanged and interest free.
credit score is good on experian but just fair on Transunion and i am aware Natwest use Transunion.
im extremely devasted as i really wanted this property. I guess its also important to note we just about make affordability but due to the DTI. Normally with our income we are allowed approx 260,000£ mortgage however with debt it brings it down to about 209,000£ and the property where our offer is accepted requires 203,000£ mortgage amount as we are prepared to give 10% which is 22500£.
thanks

Bobthebuildercanyoufixit

@K_S do you think i can get a mortgage? Also do you offer the service? Im assuming you are a mortgage broker and if you do still take clients, could you discuss your fees etc??

K_S

@Bobthebuildercanyoufixit Based on the limited info in your post, it looks like the recency and number of payday loans that may be the issue. For recent payday loans, lenders will want good bank account conduct. Sustained use of overdraft may also play a part.

At 90% LTV, you're unlikely to have much luck with chart-topping NatWest type rates. Any other lenders your broker has tried besides NatWest and Accord (don't like payday loans <12m old)? When does your last payday loan become 6 months since it was settled? 

Bobthebuildercanyoufixit

@K_S the most recent payday was settled in november 2020, so 6months would take us to beginning of May 2021- so a month away. 

Well we initially tried 5% with skipton i believe- i think we have had like 5 credit applications in the last 12months now!  
i heard on the other post someone has payday loans used in 2019 last which makes it 12 months ago but they have missed payments and ther broker has gone through with Aldermore... i know every situation is different but would you say aldermore is a good shout?? I mean i dont know what there criteria is with payday loans though.

many thanks

Wd85

I thought I posted before about my enquire with Halifax over payday loans but not shown up. My Experian credit score is 805 due to be updated tomorrow. Do you think i could be accepted for a mortgage of up to 80,000 as it’s around a 60 ltv