Mortgage broker - ask me anything

K_S

NewToThis2021 said:

Hi all, anyone know whether it is possible and what the process would be for changing a product after offer but before its been accepted? Would the application start from scratch including credit checks, providing documents etc?

@newtothis2021 With most lenders, there is no such step as "accepting an offer" other than requesting funds for completion.

The process of changing a product post-offer will differ based on the specific lender. For example with some lenders all I need to do it call the broker helpdesk and ask them to switch and a fresh offer is generated in a couple of days. With others you need to fill in a form and send it across. A few will make it even more of a pain.

ahmjt

Hi forum,
I would like some advice from the brokers here.
* MAR 2020 - I received a letter from HSBC that "my" application for bank account was denied. As I did not apply for any account with HSBC, I contacted the bank informing this.
* MAY 1 - 2020 - HSBC response received - their conclusion is it was a fraudulent  use of my identity. HSBC put a marker on CIFAS for my protection. If required I could contact HSBC to get CIFAS marker removed.
* OCT 2020 - Tried to apply for a FTB mortgage. After 6 weeks of application, informed by my broker that due to a National Hunter (NH) marker, YBS (Lender) will not be able to provide the mortgage. Never heard of National Hunter before this. My mortgage broker advised me to resolve CIFAS and NH markers before applying for any mortgage.
* FEB 2020 - Subject access request from CIFAS and NH received. CIFAS has marker as 'victim of ID impersonation'. NH has 'refer' status by HSBC for the fraudulent application.
* FEB 2020 - Requested HSBC to remove the markers. In addition, requested HSBC to cover the cost of 1000 for mortgage solicitor and house survey which I already spent.
* APR 2020 - HSBC  response received and declined to remove CIFAs and NH marker, and also declined to pay the amount requested.
Since then, I have tried to chat with 3 mortgage brokers. I  have been finding very hard to get answers from brokers at the moment.
ACCORDING TO BROKER
BROKER 1: CIFAS and NH markers are there for my own protection but I have the evidence from HSBC stating I am the victim, so I should be able to apply for mortgage without any issue. The lender may ask additional documents like copy of ID notorised in the presence of lawyer. 
BROKER 2: Strongly advised me get markers removed first, and if required to forward to Financial Ombudsmen (FOS). I can still apply for mortgages but will have to inform the broker at the very beginning with the HSBC issue.
BROKER 3: waiting for response.
Just to keep updated, I recently requested another copy of CIFAs and NH report.
Mar 2021 - CIFAS report same as Feb 2020. Latest NH report has 'inconsistency' entries provided by YBS. Previous 'refer' markers are also present - as expected.
The 'inconsistency' makers by YBS are against job, current address etc. 
The fraud:
My name, address, DOB used.
A different email, mobile, different work place, salary amount are used.
QUESTION/HELP:
I would like to get some clarity on what I can do. I have applied to FOS for the HSBC issue, do I need to also apply for the YBS 'inconsistency'? Can I or can I not apply for mortgage? I am lost and would really appreciate your help.

ahmjt  

jaye3512

Any idea how overdraft use could effect mortgage application? Partner has been using a fair bit of his overdraft which is £3000. He could have easily paid this off at anytime as we have savings but stupidly didn’t. It has been paid off now but last 3 month of statements provided to the lender show constant use of it 🤦‍♀️

K_S

jaye3512 said:

Any idea how overdraft use could effect mortgage application? Partner has been using a fair bit of his overdraft which is £3000. He could have easily paid this off at anytime as we have savings but stupidly didn’t. It has been paid off now but last 3 month of statements provided to the lender show constant use of it 🤦‍♀️

@jaye3512 On its own, use of arranged ODs should not be an issue. But how it fits in on the application depends on the rest of the scenario.

Iwillresolvemydebt

Hi there,
Contrary to my 'name', my partner and I are actually debt free now, which is a relief. 
However, we visited an IFA last week with a view to obtaining a DIP. It was declined (citing 'credit report' as the reason)... the IFA advised us on which one to go for (Nationwide @ 1.49%), despite my partner having a default (£1300) from Dec 16, which was satisfied in 2017, along with a couple of late payments prior to that. I guess my question is, should we have expected a decline, due to the default? I appreciate we cannot be certain that this is the reason. Also, are other mortgage providers as strict? If not, I there a prefered provider for these circumstances? I know there are options for those with bad debt etc but I am hopeful there are other options before reaching that stage. Furthermore, I was 'messing about' in November, and obtained a DIP through Halifax.
I guess the actual application may have still been declined. Are Halifax a little more forgiving? 

 We are 1st time buyers, £110k deposit, looking for 75% LTV. 

K_S

Iwillresolvemydebt said:

Hi there,
Contrary to my 'name', my partner and I are actually debt free now, which is a relief. 
However, we visited an IFA last week with a view to obtaining a DIP. It was declined (citing 'credit report' as the reason)... the IFA advised us on which one to go for (Nationwide @ 1.49%), despite my partner having a default (£1300) from Dec 16, which was satisfied in 2017, along with a couple of late payments prior to that. I guess my question is, should we have expected a decline, due to the default? I appreciate we cannot be certain that this is the reason. Also, are other mortgage providers as strict? If not, I there a prefered provider for these circumstances? I know there are options for those with bad debt etc but I am hopeful there are other options before reaching that stage. Furthermore, I was 'messing about' in November, and obtained a DIP through Halifax.
I guess the actual application may have still been declined. Are Halifax a little more forgiving? 

 We are 1st time buyers, £110k deposit, looking for 75% LTV. 

@iwillresolvemydebt I can't really pinpoint any lenders as that could be construed as giving advice on the basis of little to no information. From the limited info in your post, I would expect you to have mainstream/mainstream-ish options at 75% LTV so don't take the Nationwide decline as an indication of your chances.

Newhome21

Hi there, hoping someone can help or throw some suggestions my way. 

apologies in advance for the long story 😊

I’ve purchased a new build estimated completion is Nov I’ve sold my house and moved into rented for the moment - mortgage was with Halifax on old house & will remain with Halifax for new property. 

No issues with the mortgage, affordability or credit reports,etc we have a 15% deposit going down on the new house and are well within our lending limits so all is good.
now this is where the query lies: 

a friend has been given the opportunity to purchase a property they have been renting for a few years but they can’t get the full amount needed for the mortgage on their own, is there such a thing as me going on the mortgage with them to help boost the lending amount - happy to contribute towards deposit and this can be factored into the purchase or for it to be paid back at a later time, whatever needs doing to make it legal.

my concern is if something like this would have a detrimental effect on my own mortgage 

any ideas or suggestions would be greatly appreciated 

K_S

@newhome21 If you meet affordablity (as per the lender) for both mortgages and accept the risks of being equally and jointly responsible for your friend's mortgage, then it's a potential option.

CLJ2986

Have you ever had an offer pulled due to the deposit? Quick overview, 195k house, 10% deposit. Recieved an equity payment from my previous house that covers all but £300 of our deposit and that's what we stated as the source. We were also gifted £7k, and have explained that's covered our fees and my mat leave.  Offer has the condition of solicitors confirming deposit from equity, but they have spent considerable amounts of time verifying the source of the gift. Now worrying that the condition of the offer won't be met... Am I worrying over nothing? Thanks!

K_S

@clj2986 Assuming the gift is only for stamp duty, solicitor fees, etc, it shouldn't have anything to do with the lender. The sols will have been doing their AML checks.