Mortgage broker - ask me anything

SuzieP2475

K_S said:

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.

Hi, 

Thanks for your reply here back in Apr, they are now looking to pursue with getting a mortgage but want it to be in both names. Now I realise you said it would be adverse and they realise that but the other issue is that the ccj isn’t paid because he still disputes it. Should he pay it off before applying for the mortgage? Does that make a significant difference? I’ve looked at his credit report and it was registered 25months ago, all other credit commitments are up to date and he’s never had any other mised payments. 

Thanks 

K_S

SuzieP2475 said:

K_S said:

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.

Hi, 
Thanks for your reply here back in Apr, they are now looking to pursue with getting a mortgage but want it to be in both names. Now I realise you said it would be adverse and they realise that but the other issue is that the ccj isn’t paid because he still disputes it. Should he pay it off before applying for the mortgage? Does that make a significant difference? I’ve looked at his credit report and it was registered 25months ago, all other credit commitments are up to date and he’s never had any other mised payments. 

Thanks 

@suziep2475 Generally speaking, from a mortgage point of view, its better if the CCJ is satisfied.

jazzyja

Lloyd's gave me an aip for a 5% mortgage. They said I fit criteria....although I have missed payments from 4 years ago. Will they have seen this on a soft search? I dont want to proceed in fear of being turned down. Thanks 

K_S

jazzyja said:

Lloyd's gave me an aip for a 5% mortgage. They said I fit criteria....although I have missed payments from 4 years ago. Will they have seen this on a soft search? I dont want to proceed in fear of being turned down. Thanks 

@jazzyja A successful DIP isn't a guarantee, but with 95% it's as good an assurance as you will get. You should be fine with a few historic missed payments, good luck!

EmzJenks

Hello!
About to submit a full mortgage application - the lender asked for 3 months business account statements as my husband is self employed - however he doesn't have a business bank account he just uses his personal account. I read it isn't a legal requirement for a sole trader to have a business bank account, so will this be ok?

K_S

EmzJenks said:

Hello!
About to submit a full mortgage application - the lender asked for 3 months business account statements as my husband is self employed - however he doesn't have a business bank account he just uses his personal account. I read it isn't a legal requirement for a sole trader to have a business bank account, so will this be ok?

@emzjenks That's fine. While it's often more convenient for underwriting to have a separate account, lenders are happy to accept the same account being used for personal and sole-trader business purposes. Good luck!

EmzJenks

K_S said:

EmzJenks said:

Hello!
About to submit a full mortgage application - the lender asked for 3 months business account statements as my husband is self employed - however he doesn't have a business bank account he just uses his personal account. I read it isn't a legal requirement for a sole trader to have a business bank account, so will this be ok?

@emzjenks That's fine. While it's often more convenient for underwriting to have a separate account, lenders are happy to accept the same account being used for personal and sole-trader business purposes. Good luck!

Perfect thank you! Had a minor panic there haha

pmortl

My daughter 26 is looking to get her first mortgage, she has a good credit record, a good 10 percent deposit, but her mortgage broker L&C have just informed her that after having just had home buyers survey done (£900) and other various checks that they are likely to decline her mortgage even though it was agreed in principle due to the distance from work place to new home.  However, with current situation of most people working from home (my daughter included) it looks like this won't be good enough, understandable that the house is near Grimsby and she currently lives in Buckinghamshire (at home with parents) but this is due to being affordable and being able to get on the housing ladder.  There must be some mortgage providers willing to lend in these situations, can anyone suggest anything or is this looking like her purchase will fall through, and then be forced to rent closer to the area for approx 18 months before trying the whole process again having lost over £1000 on various solicitor fees and purchase checks etc.  Please help!  I thought L & C would have been a good choice as being on Martin Lewis' Mortgage Guide, if this isn't the case, perhaps it should be removed.

K_S

pmortl said:

My daughter 26 is looking to get her first mortgage, she has a good credit record, a good 10 percent deposit, but her mortgage broker L&C have just informed her that after having just had home buyers survey done (£900) and other various checks that they are likely to decline her mortgage even though it was agreed in principle due to the distance from work place to new home.  However, with current situation of most people working from home (my daughter included) it looks like this won't be good enough, understandable that the house is near Grimsby and she currently lives in Buckinghamshire (at home with parents) but this is due to being affordable and being able to get on the housing ladder.  There must be some mortgage providers willing to lend in these situations, can anyone suggest anything or is this looking like her purchase will fall through, and then be forced to rent closer to the area for approx 18 months before trying the whole process again having lost over £1000 on various solicitor fees and purchase checks etc.  Please help!  I thought L & C would have been a good choice as being on Martin Lewis' Mortgage Guide, if this isn't the case, perhaps it should be removed.

@pmortl As you correctly say, this has been quite a common scenario with my clients over the past year with people lucky enough to be able to wfh moving out of cities.

However, there is still an element of plausibility (kind of job, distance, reason for moving to Grimsby, rest of the scenario, etc) that the case needs to meet and not all lenders will look upon such a distance favourably so you need to go with the right lender.

I always run the details of the move past the lender BDM before recommending a suitable lender. Volume broker like L&C might not always have the time to do so.

I'm not sure what the broker means by "they are likely to decline her mortgage". Who is the lender? If it is declined, I would recommend getting in touch with another broker before giving up.

trackboy

Any Solicitor here that could help me complete my sale before end of June?