Mortgage broker - ask me anything

K_S

blueskies9494 said:

K_S said:

blueskies9494 said:

Hi! 

My partner and I are desperate to buy a house after renting together for nearly a year and hating how much it costs. He’s a first time buyer but I owned a property with my ex and had a mortgage at 24. I’ve obviously since sold that property. 

He has a great credit report and no adverse history and our joint annual income is around £42k. We also have approx 20% deposit to mortgage ratio based on purchasing a property of no more than £240k.

Issue is I now have a few defaults on my credit file which has taken my score down to 592 out of 1000 on CheckMyFile. I have a ‘1’ with Shop Direct Finance (Very account which is now closed) from 2019, just a month late payment. But the worst is a ‘3’ showing for my old Vodafone account which was an accidental direct debit cancellation resulting in a late payment fee of £16.00 which I have now paid but vodafone refuse to take off my file. 

I have a Credit Ladder account to record my rent payments which are all perfect and I’ve never had any defaults with mortgage payments, bills or my car finance. 

Just wondering how long we should leave it before applying for a mortgage? We are hoping to buy early next year, which will be a year without any defaults (I am doing my best to make sure there won’t be any more and have zero debt and no credit cards etc.)

Also, how likely is it we will be rejected? 

Reason I ask is we tried to get a DIP in early February this year and the broker helping us couldn’t find a single lender who would lend to us when all I had was the one default from 2019, and it’s completely knocked my confidence and made me worry that we won’t be accepted by a lender for years. 

Any help will be much appreciated! 

@blueskies9494 How many defaults/CCJs do you have, what dates (MM/YY) were they registered, what amounts were they registered for?

I don’t have any CCJs and nothing has gone to any debt agencies or anything big or serious. The ‘1’ for a month late Very payment was from November 2019 - £22, and for Vodafone, there’s a ‘2’ in December 2020, a ‘3’ in January 2021 and a ‘3’ in February 2021, all just for the amount of £16. I paid all of them as soon as I’d realised my error and the Very account is now closed and I no longer have an account with Vodafone as this was relating to the very last payment of my contract. My credit file has a ‘3’ next to ‘adverse accounts’ on the file overall. 

Other than that, every other payment I have made or credit I have had has been perfectly fine, including a mortgage I had before, bills and my monthly car finance. 

@blueskies9494 Sorry, I took the part about defaults from what you said in your post "I now have a few defaults on my credit file" "I had was the one default from 2019" It looks like you didn't actually mean a default?

I don't see enough in what you have said to stop you getting a mortgage now if you actually wanted one. In early 2022 (assuming your credit file stays clean here on) your options should be even better. Good luck!

K_S

sharp910sh said:

Hi I am looking to buy somewhere soon as a First Time Buyer. I am currently savings for the deposit, though I believe I will be able to save say 15% deposit by the time I complete (assuming I get an offer on a place tomorrow). I currently have 14.5% deposit and will be saving for the extras such as stamp duty, survey, mortgage fee and conveyancing. I will be able to save the full amount in say 3 months time. Is this acceptable? Or will I need to have proof of the full deposit and fees, etc when I start the mortgage process?

@sharp910sh How much is 0.5% and how long will it take you to get it? If you haven't even started viewings, it shouldn't be a problem to assume a 15% deposit.

Wd85

I have applied with Santander.. my loan for 78,000 has been provisionally accepted as I have a 40% deposit is this good? Or does this still mean under writers etc?

ttomo

Hi, we are currently saving a deposit for our first home together I was just wondering if how old you are affects your chances of getting a mortgage, my partner is 36 and I am almost 50 I know income, deposit, credit history etc all affect a mortgage application I just wondered if age did too. Thanks in advance

Lbrty1974

Hi there,
Anxiously awaiting mortgage offer from Halifax.. Gone through broker and he advised on Friday that status is approved pending valuation next Thursday it's a new build very near completion just the kitchen to go in started the ball rolling with solicitors as we are keen to avoid the land transaction tax(wales) which currently ends 30.6.21 just looking for some ease of mind really would you say apart from the valuation all the necessary checks are completed. Thanks for reading. 

K_S

Wd85 said:

I have applied with Santander.. my loan for 78,000 has been provisionally accepted as I have a 40% deposit is this good? Or does this still mean under writers etc?

@wd85 Sorry, what do you mean by "provisionally accepted". And what is it that you're worried about?

K_S

ttomo said:

Hi, we are currently saving a deposit for our first home together I was just wondering if how old you are affects your chances of getting a mortgage, my partner is 36 and I am almost 50 I know income, deposit, credit history etc all affect a mortgage application I just wondered if age did too. Thanks in advance

@ttomo In the main, what the oldest applicant's age impacts is the term (most lenders will give you no more than a 19 year term based on employed income, some may go up too 24).

Depending on the numbers, in some cases, if the term is restricted due to age, it may impact affordability.

Wd85

K_S said:

Wd85 said:

I have applied with Santander.. my loan for 78,000 has been provisionally accepted as I have a 40% deposit is this good? Or does this still mean under writers etc?

@wd85 Sorry, what do you mean by "provisionally accepted". And what is it that you're worried about?

I applied for 78k mortgage and after I did my full application it said provisionally approved. I’m just wondering if this means it will by pass the underwriters and I may get my offer soon after they’ve approved my payslip I had to send them.

Wd85

Sorry provisionally accepted.. same thing I guess?

Wenders1984

Hi my fiancé and I are wanting to get on the ladder. We've noticed the 5% deposits coming back in but he's unsure about them and thinks we should wait to save more deposit. I'm concerned if we don't hop on the ladder now we'll never get the chance. We rent and rent in our area keeps increasing. Would you suggest we hold tight?