Mortgage broker - ask me anything

K_S

Cashy87 said:

Hi there just looking for some advice.

Looking to move to a new build home next year but have issues with our credit history - it is on my husband's report but he is the main applicant for the mortgage. We will be applying for the mortgage in January 2022 and moving in May 2022.  Issues are:

1. Default on a bank account from March 2016.
2. 2 missed mortgage payments ending in January 2019 (this was from a house my husband owned with an ex partner he had not lived in the house for years prior to this but this is all settled now).

We currently own a home and are selling up and will rent until new build is ready. We have been told by mortgage advisor that we can get an adverse credit mortgage but the rates are really high - he came back to us with this option automatically so I'm wondering whether he has just gone for a lender he knows that will take us without doing any other searches? Are there any specialists that anyone can recommend here that would give us a more competitive rate?

We are a family of 4, my husband is the only one who works and he makes about £50k a year. House we want to buy is £188k. We have low outgoings, no debt and own our car outright, no childcare costs.   Our current mortgage is with a credit union, we don't really want to go with them at the new house as their rates are also high at 4.74%.  We would like to use the Help To Buy scheme for small house builders but we don't know whether this scheme will continue next year, house is not ready until May so it will depend on whether the government continue it in 2022/2023 financial year.  We have about £30k equity in the house plus some savings in the bank so if the help to buy doesn't happen, we will still have money for a good deposit.

We are in West of Scotland - thank you in advance! 

@cashy87 Just picking out pertinent details - one 5+ year old default, 2 mortgage missed payments that will be 3+ years old when you apply, purchase price 188k, you will have at least a 15%+ deposit, 50k income, 2 dependents, no debt and no significant outgoings.

Quick thoughts (please keep in mind that these are based on the limited information in your post) -

- If you are only applying after the last mortgage arrears on your credit report are 3 years old, you should potentially have access to mainstream/mainstream-ish rates 

- If you will have the flexibility to up the deposit to 20% if needed, that will improve the likelihood of the above

kingstreet

A sensible broker skis downhill! You find an option which means the client knows he/she can proceed.

Then, when you actually need to (January 2022) you work on "placing" the application with the lender offering the best terms. Things are changing so fast at the moment there is little point working to generate a recommendation which will be totally meaningless in five plus months' time!

stinabean

OK another one - 

After telling the EA where to go (kindly) in terms of pushing me to talk to their in house broker, she has not relented and is really piling the pressure on. If we didn't adore the house I'd care less - but I've given in and said yes I'll talk to the broker before the offer deadline.

My new worry is - I have a DIP from a lender and the broker we're going to use. What if my conversation with the in house broker turns up a lower deal and makes them think I can't afford it? I'm spiralling and unsure if this scenario commonly exists or if I'm genuinely imagining the worst most unlikely situation.

Thanks

Cashy87

Thank you both for your replies, very helpful and given me some hope. Where is best to look for reputable broker who could deal with circumstances like ours? I don't mind paying more for a good broker if I can get a lower interest rate. Many thanks. 

kelpies66

what is the lowest amount available from mortgage lender im looking for a very small amount.15k.

K_S

kelpies66 said:

what is the lowest amount available from mortgage lender im looking for a very small amount.15k.

@kelpies66 There are a handful of mainstream lenders who will go all the way down to 5k loan size.

kelpies66

K_S said:

kelpies66 said:

what is the lowest amount available from mortgage lender im looking for a very small amount.15k.

@kelpies66 There are a handful of mainstream lenders who will go all the way down to 5k loan size.

thanks, i did post in another thread but was sent in this direction.my credit score is below 200,i have no CCJs,IVAs or bankruptcy etc,just defaults.also no missed payments last 11 months.looking to borrow 15k,property is 45 and i have a 30k deposit.(its in scotland) hence the price.

K_S

kelpies66 said:

K_S said:

kelpies66 said:

what is the lowest amount available from mortgage lender im looking for a very small amount.15k.

@kelpies66 There are a handful of mainstream lenders who will go all the way down to 5k loan size.

thanks, i did post in another thread but was sent in this direction.my credit score is below 200,i have no CCJs,IVAs or bankruptcy etc,just defaults.also no missed payments last 11 months.looking to borrow 15k,property is 45 and i have a 30k deposit.(its in scotland) hence the price.

@kelpies66 In that case you are probably severely limited in your options due to the combination of low property value, low loan size, Scotland and multiple defaults plus other adverse.

James-may

I have a Santander mortgage, we are hoping to complete next week.
At what point do I get the £1000 cashback from Santander?, and does it pay automatically into the account the direct debit is paid from?
Thanks for any wisdom.

kingstreet

James-may said:

I have a Santander mortgage, we are hoping to complete next week.
At what point do I get the £1000 cashback from Santander?, and does it pay automatically into the account the direct debit is paid from?
Thanks for any wisdom.

Usually paid to solicitor with mortgage funds. It would show on your draft completion statement. Check your offer though as a few lenders, Nationwide for one, pays the cashback into the account from which payments are made a few days after the first payment goes out.