Mortgage broker - ask me anything

secretlysuffocating

K_S said:

secretlysuffocating said:

Hi there

I'm wondering if any brokers could advise me on the following.
My husband and I would like to move house this year and will be applying for a mortgage at some point in the next few months, but I have (like many others here) a bit of a chequered credit history. We did try last summer but were declined so had to pull out of the sale of our property and the purchase of another. I don't want to go through that again as I am still living with the guilt!

I have 3 defaults registered between July 2018 and January 2019.
Default 1 - £400 which was registered in November 2018 paid in full in March 2019
Default 2 - £8000 which was registered in July 2018 paid in full in January 2019
Default 3 - £5000 which was registered in January 2019 paid in full in January 2020

I now have no loans or credit cards at all. 

I regularly used an overdraft on my current account up until March of this year. This was paid back in full every month, and actually I removed it three weeks ago as I didn't really need it and was only using it in the hope that it might improve my credit. My score has improved significantly over the last 12 months, from very poor 300 to 866 which is a hairs breadth away from good - but I know that lenders do not see this.

We would like to buy a house up to £385,000. Our current house has been valued at around £215,00 and based on that we would have £100,000 to put down as a deposit.
What do you think our chances are of actually getting a mortgage? Any advice would be greatly appreciated 

@secretlysuffocating At 75% LTV, you should have options even though your defaults are less than 3 years since they were registered. The amounts for the most recent 2 defaults will be looked at in detail and may put off a few lenders. Once you are ready to start viewing, I would definitely recommend using an experienced broker to give you a realistic idea of your options (after looking at the entire picture, not just the 3 defaults) so you don't go through the same as last year.

Thank you so much for taking the time to reply. We'll definitely do that. Is there anything else I can do, or is it a case of time healing?

K_S

secretlysuffocating said:

K_S said:

secretlysuffocating said:

Hi there

I'm wondering if any brokers could advise me on the following.
My husband and I would like to move house this year and will be applying for a mortgage at some point in the next few months, but I have (like many others here) a bit of a chequered credit history. We did try last summer but were declined so had to pull out of the sale of our property and the purchase of another. I don't want to go through that again as I am still living with the guilt!

I have 3 defaults registered between July 2018 and January 2019.
Default 1 - £400 which was registered in November 2018 paid in full in March 2019
Default 2 - £8000 which was registered in July 2018 paid in full in January 2019
Default 3 - £5000 which was registered in January 2019 paid in full in January 2020

I now have no loans or credit cards at all. 

I regularly used an overdraft on my current account up until March of this year. This was paid back in full every month, and actually I removed it three weeks ago as I didn't really need it and was only using it in the hope that it might improve my credit. My score has improved significantly over the last 12 months, from very poor 300 to 866 which is a hairs breadth away from good - but I know that lenders do not see this.

We would like to buy a house up to £385,000. Our current house has been valued at around £215,00 and based on that we would have £100,000 to put down as a deposit.
What do you think our chances are of actually getting a mortgage? Any advice would be greatly appreciated 

@secretlysuffocating At 75% LTV, you should have options even though your defaults are less than 3 years since they were registered. The amounts for the most recent 2 defaults will be looked at in detail and may put off a few lenders. Once you are ready to start viewing, I would definitely recommend using an experienced broker to give you a realistic idea of your options (after looking at the entire picture, not just the 3 defaults) so you don't go through the same as last year.

Thank you so much for taking the time to reply. We'll definitely do that. Is there anything else I can do, or is it a case of time healing?

@secretlysuffocating The best things you can do are to keep your credit history squeaky clean, avoid any payday loans, returned direct debits, etc. 

Nile_E_Coyote

Any experience on lenders taking the biscuit with removing an old charge? 

Waiting 5 weeks to complete but need an old mortgage charge to be removed from the title. Really starting to lose patience.

sillymonkey03

Good Morning H_S,

as you have been so helpful so far I hope you can help with another question. 

As you know we are FTB and applying NatWest. 

We moved into a rented house temporarily until we could put in an application for a mortgage. We have left all our finances and electoral at our parents. We have a separate bank account we’re we transfer funds to pay for the rent and water etc. 

Question is do u see this being an issue as on bank statements there will be funds transferring to another account. We have high disposable income and save £800 a month into savings. 

Looking back now we should have moved everything to the rented house. If we do it now it will hit our credit record and it’s very close to application. 

Thanks again. 

K_S

sillymonkey03 said:

Good Morning H_S,

as you have been so helpful so far I hope you can help with another question. 

As you know we are FTB and applying NatWest. 

We moved into a rented house temporarily until we could put in an application for a mortgage. We have left all our finances and electoral at our parents. We have a separate bank account we’re we transfer funds to pay for the rent and water etc. 

Question is do u see this being an issue as on bank statements there will be funds transferring to another account. We have high disposable income and save £800 a month into savings. 

Looking back now we should have moved everything to the rented house. If we do it now it will hit our credit record and it’s very close to application. 

Thanks again. 

@sillymonkey03 A broker would pick up a rent-sized monthly outgoing and query it. A bank adviser may or may not, I don't know how they work. Whether or not changing address now may jeopardise your application is hard to say based on the limited info in your post.

Rebecca01

Hello K_S and all

I was wondering if anyone could tell me of their experience of questions from bank statement.

I recieve £1900 pay and 500 maintenance and benefit. My outgoings are only about £250

on the day my wage went in. I transferred 2k to my savings and it just so happened a  house came up. My parents the same day transferred me £200 as they wanted me to engage a broker and said they would gift me 5k and the fees. 

A question from the lender had asked if the 200 is a gift for my deposit  as it was transferred the same day I transferred £2k to savings. 

It isn't as I can afford to save 2k it's literally for fees. The broker ended up being a non fee one so they said keep it towards fees. 

Will this be a problem as I am panicking now? 

K_S

@Rebecca01 I could write a book on the different kinds of lender queries that can arise from a bank statement. 

Querying a one-off £200 credit is unusual, is it a specialist lender?

Rebecca01

K_S said:

@Rebecca01 I could write a book on the different kinds of lender queries that can arise from a bank statement. 

Querying a one-off £200 credit is unusual, is it a specialist lender?

It is digital. They said it's because it went in the same day as I transferred 2k to my savings. It just happened my mortgage appointment was on the same day as pay day. 

Bubbles81

Hi all, a newbie here I'm in a similar, although different situation to the original post. Currently selling a shared ownership property to buy another one, however on my file I have a default of £3.4k that was added in May 2020 and an account that has been marked as a late payment for the last 5.5 years (it literally says 6 months late) which is £506 I'm disputing both at the moment as the 'late payment' seems that it should have been defaulted which would mean it comes off the account this year I can pay it off now but want it to be accurately recorded so that it falls of my file and doesn't last an additional 6 years. The default happened after an immaculate payment history then the  interest rate rose so much that the minimum payment was £300 and I was at that point unable to keep up. I had 1 or 2 mortgage late payments in 2019 but have been all good consistently for the past 12+ months and prior to that. Have gone to the broker who the HA advised for affordability check, which I passed then they did a hard search with Barclays even though I told them the situation and so i've been trying to find someone who specialises in 'adverse' credit and have even looked at lending criteria of building society lenders myself. My flat is going through the selling process so need to secure something and am just not sure where to turn, and adverse credit specialists are charging £2k which is wow. Does this sound like a hopeless case or could this still be worked with. The information also shows up different on both equifax and experian reports. Thanks for any information in advance x

Bobthebuildercanyoufixit

Hi,

is it possible to get a mortgage with a deposit of 5% if i have payday loans shown on credit file? Most recent payday loan was used 10months ago and was paid in full straight away after taking out.

many thanks @K_S