Mortgage broker - ask me anything

K_S

davesbargains said:

Looking to buy a second house (girlfriend and daughter live in the one we jointly own, no plans to sell) if I can.

I earn a good salary and would pass affordability checks for what I need I believe. Only have a 10% deposit though (that’s a lot of money, we live in London) and can’t move away to a cheaper place because of my child.

Currently renting and would rather spend the money on a mortgage, rent is so high as need a 2 bed.

The kicker? Bad credit from mistakes I’ve made previously . Last defaults over 2 years old, but still there.

Do I have any options with a 10% deposit and bad credit? Who should I speak to?

Cheers

@davesbargains As you identified, the defaults registered between 2-3 years ago will limit your options as will the 10% deposit. What's the LTV on the current house? If you want to get a realistic idea of your options, I would recommend speaking with an experienced broker who can look at the whole picture, including the contents of your credit report and give you an informed opinion.

MidCentury

Good evening,

we applied directly on the NatWest website for an AIP for a 95% mortgage, which was approved for the amount requested, with potential lending approx 50% above the value we were looking for. We have now had an offer accepted on a property at a lower value than the AIP we originally applied for, but I am now in two minds regarding going direct with NatWest, or instruct a broker. If we have already approached NatWest directly, can we then apply to NatWest through a broker, assuming they couldn’t place us with a better alternative?

Thank you in advance!

K_S

MidCentury said:

Good evening,

we applied directly on the NatWest website for an AIP for a 95% mortgage, which was approved for the amount requested, with potential lending approx 50% above the value we were looking for. We have now had an offer accepted on a property at a lower value than the AIP we originally applied for, but I am now in two minds regarding going direct with NatWest, or instruct a broker. If we have already approached NatWest directly, can we then apply to NatWest through a broker, assuming they couldn’t place us with a better alternative?

Thank you in advance!

@midcentury Yes, you could use a broker but they will have to do their own AIP and then progress it to a full application.

MidCentury

K_S said:

MidCentury said:

Good evening,

we applied directly on the NatWest website for an AIP for a 95% mortgage, which was approved for the amount requested, with potential lending approx 50% above the value we were looking for. We have now had an offer accepted on a property at a lower value than the AIP we originally applied for, but I am now in two minds regarding going direct with NatWest, or instruct a broker. If we have already approached NatWest directly, can we then apply to NatWest through a broker, assuming they couldn’t place us with a better alternative?

Thank you in advance!

@midcentury Yes, you could use a broker but they will have to do their own AIP and then progress it to a full application.

Thanks for confirming that!

Gemm83

Hi, I've seen previously on this thread an MA posted a screen shot of the Santander mortgage tracker (ie what the MA would see as to whereabouts in the process it is) would anyone have something similar for the Halifax to look at? I've asked DH to contact our MA as we haven't heard anything for 3 weeks but he "doesn't want to keep bothering him" 🙄 I'm a born worrier and thought looking at something similar would put my mind at ease a bit! Many Thanks 😊

K_S

@gemm83 Sharing the Halifax case dashboard isn't very useful unfortunately. It's not laid out with clear dates. Plus from my experience they are frequently riddled with errors, for example two of my offered cases are still showing pending documentation, etc.

Unless he has set these expectations, 3 weeks is a long time without an update for a broker application. You should not feel hesitant at all to follow-up if you are feeling like you are in the dark. I always make it a point to drop a Thursday/Friday update email to clients with ongoing applications to appraise them of the status, even if it is just informing them that the application/documentation/response is still in the queue to be picked up at the lender's end.

Gemm83

@K_S
Thanks for your reply. DH has emailed him this morning at my insistence and he came straight back with "I will chase for update". It's just making me feel a little unsettled! So many posts on here saying people have a had an offer from Halifax within a week, yet 4 weeks since full application we have yet to hear anything 🙄

Smoulder80

Not sure if our MB has dropped the ball or he is just poor at communicating.
Application went in with Barclays on 19th May, a couple of additional documents requested that were submitted same day
A few more documents requested 27th, again submitted same day.
Valuation took place 2nd June.
Chased MB 4th June to see if any updates - 'Barclays have requested copies of IDs (submitted to MB on 19th May), will upload now' 
Rang again today to check all day - 'Barclays are taking 5 days to acknowledge anything at the moment'

So the question is should the ID have been submitted on the 19th (i.e. MB dropped the ball) or is it normal practice that they would attest to having seen them and only upload if requested?
its a 90% LTV mortgage, good credit scores and income multiple is just under 3 x salary

K_S

Smoulder80 said:

Not sure if our MB has dropped the ball or he is just poor at communicating.
Application went in with Barclays on 19th May, a couple of additional documents requested that were submitted same day
A few more documents requested 27th, again submitted same day.
Valuation took place 2nd June.
Chased MB 4th June to see if any updates - 'Barclays have requested copies of IDs (submitted to MB on 19th May), will upload now' 
Rang again today to check all day - 'Barclays are taking 5 days to acknowledge anything at the moment'
So the question is should the ID have been submitted on the 19th (i.e. MB dropped the ball) or is it normal practice that they would attest to having seen them and only upload if requested?
its a 90% LTV mortgage, good credit scores and income multiple is just under 3 x salary

@smoulder80 I avoid Barclays like the plague so can't speak for them off of the top of my head. Generally speaking, with most mainstream lenders, when an application is submitted, the system confirms whether the applicants were electronically identified. If not, they will usually ask for copies of ID/address proof, etc. to be uploaded along with the initial packaging. For non-UK nationals, this requirement can come up during the underwriting process as well.

Karlos88

Hi, I’m after some advice!
I currently own a house which is sold and going through solicitor etc at the moment. I am wanting to buy a new build property with my partner and we have found the house we want. The trouble is my partner has missed payments and payday loans on credit report. I am really concerned that we won’t be accepted for a mortgage.

Here are the details:
income -
P1 - £38900
P2 - £34900

We have a 5% deposit and 5% from the builder. House price is £254,995.

My credit report is excellent, no missed payments etc, paid a mortgage for nearly 5 years. Have a loan that’s £420 per month, other than that no other financial commitments.

My partner has a fair credit rating, nearly good. However had pay day loans in the past, the latest settled December 2019. Also has a capital one credit card with a limit of £200. Missed payments 3 months in a row Oct, nov, Dec 2019. Then up to date and missed 2 payments feb and March 2020. Since then all payments made in time. 

MB has our credit reports and is going to try place us with Barclays. DIP done on 04/06/21, hard search showing on credit reports and approved subject to underwriter approval. I have read Barclays lending criteria and it says no missed payment of 3 or more in last 2 years. Which I’m thinking we don’t meet criteria. I have expressed my concern to the MA however they seem to think it will be fine. 

Am I worrying about nothing? I know the MA does this for a living and will have dealt with these situations before but I can’t stop worrying.