Mortgage broker - ask me anything

Jennifer34

K_S said:

Jennifer34 said:

Hi. We are FTB going to apply for a AIP next week. I thought my credit score was squeaky clean as it is on all agencies. We were advised to use check my file before applying and I was surprised to see my score was low and it had a default.

It was a missed payment in 2014 on a very account but apparently not reported until the account was closed in 2017. So it stays for 6 years from then!

I asked check my file and they said it was reported when the account was settled in 2017 which is false. It was closed in 2017 due to lack of activity, there was actually no balance since 2014.

Strangely on CMF it only shows on experian and clear score yet on both of these agencies own reports my score is near perfect?

Is this going to affect our application? Will we get rejected or offered a higher rate mortgage.

Seems a bit unfair for a now 7 year old missed payment!

Thanks

@jennifer34 What's the amount, what's the default date shown on the Experian report, does it show as "Current Balance: SATISFIED", what's the last status code shown on the report?

The amount on the balance when the payment was late was £239 June 2014. Then the balance was cleared jan 2015. From then the account is shown as inactive until closed in September 2017 at which point they have changed it to satisfied.

0 balance from Jan 2015 though.

K_S

Jennifer34 said:

K_S said:

Jennifer34 said:

Hi. We are FTB going to apply for a AIP next week. I thought my credit score was squeaky clean as it is on all agencies. We were advised to use check my file before applying and I was surprised to see my score was low and it had a default.

It was a missed payment in 2014 on a very account but apparently not reported until the account was closed in 2017. So it stays for 6 years from then!

I asked check my file and they said it was reported when the account was settled in 2017 which is false. It was closed in 2017 due to lack of activity, there was actually no balance since 2014.

Strangely on CMF it only shows on experian and clear score yet on both of these agencies own reports my score is near perfect?

Is this going to affect our application? Will we get rejected or offered a higher rate mortgage.

Seems a bit unfair for a now 7 year old missed payment!

Thanks

@jennifer34 What's the amount, what's the default date shown on the Experian report, does it show as "Current Balance: SATISFIED", what's the last status code shown on the report?

The amount on the balance when the payment was late was £239 June 2014. Then the balance was cleared jan 2015. From then the account is shown as inactive until closed in September 2017 at which point they have changed it to satisfied.

0 balance from Jan 2015 though.

@jennifer34 Sorry, it still isn't clear to me when the default was actually registered (which is when the 6 year clock starts). It will show as a 'D' on CMF and also mention something like "defaulted on XX/XX/20XX owing £XXX". 

Jennifer34

K_S said:

Jennifer34 said:

K_S said:

Jennifer34 said:

Hi. We are FTB going to apply for a AIP next week. I thought my credit score was squeaky clean as it is on all agencies. We were advised to use check my file before applying and I was surprised to see my score was low and it had a default.

It was a missed payment in 2014 on a very account but apparently not reported until the account was closed in 2017. So it stays for 6 years from then!

I asked check my file and they said it was reported when the account was settled in 2017 which is false. It was closed in 2017 due to lack of activity, there was actually no balance since 2014.

Strangely on CMF it only shows on experian and clear score yet on both of these agencies own reports my score is near perfect?

Is this going to affect our application? Will we get rejected or offered a higher rate mortgage.

Seems a bit unfair for a now 7 year old missed payment!

Thanks

@jennifer34 What's the amount, what's the default date shown on the Experian report, does it show as "Current Balance: SATISFIED", what's the last status code shown on the report?

The amount on the balance when the payment was late was £239 June 2014. Then the balance was cleared jan 2015. From then the account is shown as inactive until closed in September 2017 at which point they have changed it to satisfied.

0 balance from Jan 2015 though.

@jennifer34 Sorry, it still isn't clear to me when the default was actually registered (which is when the 6 year clock starts). It will show as a 'D' on CMF and also mention something like "defaulted on XX/XX/20XX owing £XXX". 

Its June 2014 it doesn't say default just late payment and the file shows it as adverse credit.

Is this the same as a default?

K_S

Jennifer34 said:

K_S said:

Jennifer34 said:

K_S said:

Jennifer34 said:

Hi. We are FTB going to apply for a AIP next week. I thought my credit score was squeaky clean as it is on all agencies. We were advised to use check my file before applying and I was surprised to see my score was low and it had a default.

It was a missed payment in 2014 on a very account but apparently not reported until the account was closed in 2017. So it stays for 6 years from then!

I asked check my file and they said it was reported when the account was settled in 2017 which is false. It was closed in 2017 due to lack of activity, there was actually no balance since 2014.

Strangely on CMF it only shows on experian and clear score yet on both of these agencies own reports my score is near perfect?

Is this going to affect our application? Will we get rejected or offered a higher rate mortgage.

Seems a bit unfair for a now 7 year old missed payment!

Thanks

@jennifer34 What's the amount, what's the default date shown on the Experian report, does it show as "Current Balance: SATISFIED", what's the last status code shown on the report?

The amount on the balance when the payment was late was £239 June 2014. Then the balance was cleared jan 2015. From then the account is shown as inactive until closed in September 2017 at which point they have changed it to satisfied.

0 balance from Jan 2015 though.

@jennifer34 Sorry, it still isn't clear to me when the default was actually registered (which is when the 6 year clock starts). It will show as a 'D' on CMF and also mention something like "defaulted on XX/XX/20XX owing £XXX". 

Its June 2014 it doesn't say default just late payment and the file shows it as adverse credit.

Is this the same as a default?

@jennifer34 Doesn't sound like a default based on what you have said. If you are still worried I would recommend using a broker would can have a look at the credit report and place it accordingly. Good luck!

sharp910sh

K_S said:

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.

0.5% is £1500. Yes I have been baking my budget on 15% deposit, I have started viewings but yet to make an offer. 

T_J_A_8691

Good morning,

We are in the process of selling our home (we havent found anywhere yet so will move i with family until we do).

We are looking to port our current mortgage to save on the ERC - we are with Newbury so i need to check if we can have a 1/2 month break etc or do should we look at different lenders ? (ERC £3,040 in year 2 current fixed rate 3.44) looking at a 10% deposit)
Joint income £65500 before overtime on a 17 year mortgage.Overtime is guaranteed at various points through the year-last 3 wage slips have a good amount on them.

Our plan was to pay off most of our debt before the new mortgage- we have managed this although we will be paying one CC off next month- this will leave us with 2 CC at 0% int.

No late payments/defaults/27% debt ratio currently.

do Lenders look at the live in-date info which will show the last couple of cards  that have been paid off as £0 or balances from the last credit  report dates?

Many thanks 

K_S

@T_J_A_8691 The current debt (irrespective of whether you intend to pay it off by completion) may be considered as ongoing by some lenders (potentially reducing the maximum borrowing amount) for the purposes of calculating affordablity. This may or may not impact you depending on how much you need to borrow.

Smegasaurus

Hi very knowledgeable people. 

Just wondered what's about for mortgages on a student stipend? My rental has become a bit precarious and I'd like to get out ideally without having to rent again. 

I have 2 years left on my student stipend (about 19k/year) and have a guaranteed job after. It's a further professional qualification so will go back into my previous job just better paid! My OH would go in with me but he only earns about 10k/year because he works part time self employed. 

We have a saved deposit of around 70k (maybe able to increase a bit with parental help). No debt. No dependents. 

Would be able to get something acceptable for 180-190k around where I am. 

I've got an appointment with a local broker but just wanted to know if I'm dreaming or not! 

Would having a letter from my employer saying I'm guaranteed a job etc. Be of any use? Or anything else I can do to increase chances.

K_S

@Smegasaurus There are a few lenders who will consider stipend income subject to the specifics. You *should* have a few options assuming your partner's SE income is considered.

susanneblue

hi, i am looking to get a further advance on my mortgage with the Halifax, i want to borrow an extra £30,000 for home improvements, this would bring my mortgage unto 65% LTV, i applied for the extra borrowing online but was refused due to affordability.
 i will speak to their advisers at some point.

just checking what the likely hood of being accepted will be as they don't really ask much on line.

the Mortgage is  in my sole name as my husband doesn't have good credit.
my personal income is only £13500 pa. I have paid off all my credit cards, and have a loan which runs out next May.
all bills etc come out of my bank account but my husband does actually pay for everything, all bills, the loan and our mortgage, so meaning i do have basically my whole wage to myself. 
if i speak to Halifax would they be able to look and see that he sends me £730 each month, i also receive £200pm from my daughter for rent.
i have spent the last 18 months clearing my debt so i could apply for this money, i was paying £500 pm to clear the debts so i can definitely afford any extra payments.
i asked to borrow over the full term left on my mortgage which is 23 years meaning only an extra payment of £133 pm which i know i can definitely afford.
 would they look into things further to see i can afford the extra?