Mortgage broker - ask me anything

JMcc123

Hi, I'm really hoping someone can help.

Long story short, in March I had an offer accepted on the house I loved my son and I, due to old debts I was paying off with Lowell my broker did an application with Aldermore. I did got a conditional offer from them, the condition being all debts were cleared prior to completion. It was about £1.5k, so all cleared.

Agreed completion date in May fot 18th June. Solicitors called 17th June advising there were delays on sellers part. Due to end of tenancy my son and I relocated (to the town where I'm buying the house) to live with my mum, but as the delays were on-going and it was difficult sharing a room while working etc, we have entered into a short term tenancy agreement in the property I'm buying (started 23/07)

Due to change of circumstances the mortgage offer can't be extended. But the seller is now ready to complete.

Here's the curve ball, deposit is safe with solicitors, outgoings have gone down as my son is no longer at nursery, completely clear of all debt, salary has increased since initial offer was recieved. 

Halifax want 15% deposit, which I'm unable to do, I have 10%, I asked my Broker to just go with Aldermore again as I just want to own the house I'm now investing money in but I have been declined!!

Only changes have been positive, apart from I no longer recieve any UC, rent here is lower than previous, £700 up per month on childcare costs, no debts. The only thing is I'm not showing on the electoral role yet?

Any ideas of what I can do? My experian credit score is 999! I have never been in better finances in my life, but im just at a total loss.

Broker wants to speak to his rep at Aldermore who is currently on AL, then potentially looking at Barclays (he was reluctant due to hard footprint on search), and then onto Kensington.

Lowell aren't showing on 3 months bank statements as they were paid off in March and aren't on experian, but are still showing equifax, despite the initial debts being over 7 years old.

sammy87

Good evening.
my partner and I have an AIP and our full application will be completed later this week.
I am really worried about some credit card debt which includes £2200 on one card and we have two other cards that have around £200 on them each.
We had these declared when applying for the AIP but I’m really anxious when the full application goes through we will then be declined because of it? 

We earn roughly £58k per annum with 10% deposit on a nearly 300k property.
any reassurance/advise would be really appreciated!

Zed42

Hi,

We have a property which has 2 mortgages on it (due to porting from a previous property and then extending the borrowing) ....

One of them is due for renewal at the end of October.

Currently, we're blatting the mortgages with overpayments (within limits ... 10% per year on one, 25% on the other).

Looking at the new current options, the overpayments seem to be limited to CMP x 3, or £10,000 (whichever is less). Thankfully the first would apply.

But is this the new "norm" ?

In which case, I guess we should look at reducing the term ?

K_S

Zizzi86 said:

Sorry I haven't read through the whole thread so unsure if this is repeated but I have a few questions on let to buy

Will my basic employment income of £19k be an issue? I do get more in overtime but it's not guaranteed 

Also will the property value which I plan to let of £72k cause any problems?

Thanks in advance 

@zizzi86 A property price of 72k and an income of 19k will rule out some BTL lenders due to minimum property price and minimum income requirements but shouldn't stop you from getting a mortgage with an appropriate lender.

K_S

JMcc123 said:

Hi, I'm really hoping someone can help.

Long story short, in March I had an offer accepted on the house I loved my son and I, due to old debts I was paying off with Lowell my broker did an application with Aldermore. I did got a conditional offer from them, the condition being all debts were cleared prior to completion. It was about £1.5k, so all cleared.

Agreed completion date in May fot 18th June. Solicitors called 17th June advising there were delays on sellers part. Due to end of tenancy my son and I relocated (to the town where I'm buying the house) to live with my mum, but as the delays were on-going and it was difficult sharing a room while working etc, we have entered into a short term tenancy agreement in the property I'm buying (started 23/07)

Due to change of circumstances the mortgage offer can't be extended. But the seller is now ready to complete.

Here's the curve ball, deposit is safe with solicitors, outgoings have gone down as my son is no longer at nursery, completely clear of all debt, salary has increased since initial offer was recieved. 

Halifax want 15% deposit, which I'm unable to do, I have 10%, I asked my Broker to just go with Aldermore again as I just want to own the house I'm now investing money in but I have been declined!!

Only changes have been positive, apart from I no longer recieve any UC, rent here is lower than previous, £700 up per month on childcare costs, no debts. The only thing is I'm not showing on the electoral role yet?

Any ideas of what I can do? My experian credit score is 999! I have never been in better finances in my life, but im just at a total loss.

Broker wants to speak to his rep at Aldermore who is currently on AL, then potentially looking at Barclays (he was reluctant due to hard footprint on search), and then onto Kensington.

Lowell aren't showing on 3 months bank statements as they were paid off in March and aren't on experian, but are still showing equifax, despite the initial debts being over 7 years old.

@jmcc123 Sorry to hear about the trouble you're having. I can't say much without knowing all the pertinent details and seeing your credit report. But, based on the limited info in your post, I don't see enough to say that you would struggle to get a mortgage at 90% LTV with the right lender.

K_S

sammy87 said:

Good evening.
my partner and I have an AIP and our full application will be completed later this week.
I am really worried about some credit card debt which includes £2200 on one card and we have two other cards that have around £200 on them each.
We had these declared when applying for the AIP but I’m really anxious when the full application goes through we will then be declined because of it? 

We earn roughly £58k per annum with 10% deposit on a nearly 300k property.
any reassurance/advise would be really appreciated!

@sammy87 Assuming the AIP has been keyed in correctly, I don't see anything to worry about.

JMcc123

K_S said:

JMcc123 said:

Hi, I'm really hoping someone can help.

Long story short, in March I had an offer accepted on the house I loved my son and I, due to old debts I was paying off with Lowell my broker did an application with Aldermore. I did got a conditional offer from them, the condition being all debts were cleared prior to completion. It was about £1.5k, so all cleared.

Agreed completion date in May fot 18th June. Solicitors called 17th June advising there were delays on sellers part. Due to end of tenancy my son and I relocated (to the town where I'm buying the house) to live with my mum, but as the delays were on-going and it was difficult sharing a room while working etc, we have entered into a short term tenancy agreement in the property I'm buying (started 23/07)

Due to change of circumstances the mortgage offer can't be extended. But the seller is now ready to complete.

Here's the curve ball, deposit is safe with solicitors, outgoings have gone down as my son is no longer at nursery, completely clear of all debt, salary has increased since initial offer was recieved. 

Halifax want 15% deposit, which I'm unable to do, I have 10%, I asked my Broker to just go with Aldermore again as I just want to own the house I'm now investing money in but I have been declined!!

Only changes have been positive, apart from I no longer recieve any UC, rent here is lower than previous, £700 up per month on childcare costs, no debts. The only thing is I'm not showing on the electoral role yet?

Any ideas of what I can do? My experian credit score is 999! I have never been in better finances in my life, but im just at a total loss.

Broker wants to speak to his rep at Aldermore who is currently on AL, then potentially looking at Barclays (he was reluctant due to hard footprint on search), and then onto Kensington.

Lowell aren't showing on 3 months bank statements as they were paid off in March and aren't on experian, but are still showing equifax, despite the initial debts being over 7 years old.

@jmcc123 Sorry to hear about the trouble you're having. I can't say much without knowing all the pertinent details and seeing your credit report. But, based on the limited info in your post, I don't see enough to say that you would struggle to get a mortgage at 90% LTV with the right lender.

Thank you for getting back to me, I'm totally baffled by it.
The only thing my broker can think of is the electoral register, he's had my credit report from experian and check my file and there's nothing to suggest I would get declined from a High Street Lender, never mind Aldermore 🤦‍♀️
We're going to wait to see if the Aldermore Rep can give any more details. 
The DIP from Aldermore was declined at first as they stated I'd taken a loan out last month, but that was all cleared up, so im not too sure.
Negative factors on my report is my highest credit limit is £2,000 and the average age of my accounts are 33 months.
I'm just so confused! X

K_S

Mcsuze said:

We have our mortgage offer, proceeds from the sale of our house means a low LTV of 16٪. House prices are through the roof so kind dad gifted us the extra we needed for our house purchase. As this has been deposited in our savings, we ticked this as the source with our lender. Solicitor says lender will need a declaration of no interest from my parents. Will this be a problem now we have our mortgage offer? Dad is happy to provide any proof necessary, but I mistakenly assumed that the lender needed to know the source so they knew we had the money! Will it be a problem to send this now that we have the offer based on the source being savings and not a gift? 
Thank you in advance

@mcsuze You should be fine. Deposits partly made up of gifts from parents is almost universally ok with lenders.

Owleyes00

Hi, my MB has got me an AIP from Halifax and has submitted the full application. I realised when she was asking me about expenditure I failed to mention my monthly pension contributions (the direct question wasn’t asked and because it comes out as salary sacrifice I didn’t even think about it). I’m now worried there will be issues with affordability!

nb. The pension contributions are shown on my payslips which I obviously gave to my MB and is factored into the take home pay so I should think it is pretty clear I’m not deliberately trying to deceive anyone!

K_S

Owleyes00 said:

Hi, my MB has got me an AIP from Halifax and has submitted the full application. I realised when she was asking me about expenditure I failed to mention my monthly pension contributions (the direct question wasn’t asked and because it comes out as salary sacrifice I didn’t even think about it). I’m now worried there will be issues with affordability!

nb. The pension contributions are shown on my payslips which I obviously gave to my MB and is factored into the take home pay so I should think it is pretty clear I’m not deliberately trying to deceive anyone!

@owleyes00 Nothing to worry about