Mortgage broker - ask me anything

K_S

colin7834 said:

Currently trying to secure an AIP and my broker says because I have a default on my credit from July 2017 (settled as of March 2021) I would likely need a specialist product, which I would need to complete a joint application on, I would rather complete a single application, is this really the case?

@colin7834

Two aspects to it. One, do you need a specialist lender because of the 1 default. One 4-5 year default *should* not on its own mean a jump to a specialist, but depends on the rest of the scenario.

If you do need a specialist lender and have left off your partner due to adverse credit, then yes most specialist lenders will not allow that.

colin7834

K_S said:

colin7834 said:

Currently trying to secure an AIP and my broker says because I have a default on my credit from July 2017 (settled as of March 2021) I would likely need a specialist product, which I would need to complete a joint application on, I would rather complete a single application, is this really the case?

@colin7834

Two aspects to it. One, do you need a specialist lender because of the 1 default. One 4-5 year default *should* not on its own mean a jump to a specialist, but depends on the rest of the scenario.

If you do need a specialist lender and have left off your partner due to adverse credit, then yes most specialist lenders will not allow that.

Thanks @K_S for the fast response. Is there some specialists that would allow a solo application then? I guess its that or wait till Aug 2023 when the default should drop off on its own?

K_S

colin7834 said:

K_S said:

colin7834 said:

Currently trying to secure an AIP and my broker says because I have a default on my credit from July 2017 (settled as of March 2021) I would likely need a specialist product, which I would need to complete a joint application on, I would rather complete a single application, is this really the case?

@colin7834

Two aspects to it. One, do you need a specialist lender because of the 1 default. One 4-5 year default *should* not on its own mean a jump to a specialist, but depends on the rest of the scenario.

If you do need a specialist lender and have left off your partner due to adverse credit, then yes most specialist lenders will not allow that.

Thanks @K_S for the fast response. Is there some specialists that would allow a solo application then? I guess its that or wait till Aug 2023 when the default should drop off on its own?

@colin7834 Sorry don't know off of the top of my head. 

Is it just that one default in your report that's causing the need for a specialist lender? If so I'd definitely get a second opinion on that before accepting that as the case.

colin7834

K_S said:

colin7834 said:

K_S said:

colin7834 said:

Currently trying to secure an AIP and my broker says because I have a default on my credit from July 2017 (settled as of March 2021) I would likely need a specialist product, which I would need to complete a joint application on, I would rather complete a single application, is this really the case?

@colin7834

Two aspects to it. One, do you need a specialist lender because of the 1 default. One 4-5 year default *should* not on its own mean a jump to a specialist, but depends on the rest of the scenario.

If you do need a specialist lender and have left off your partner due to adverse credit, then yes most specialist lenders will not allow that.

Thanks @K_S for the fast response. Is there some specialists that would allow a solo application then? I guess its that or wait till Aug 2023 when the default should drop off on its own?

@colin7834 Sorry don't know off of the top of my head. 

Is it just that one default in your report that's causing the need for a specialist lender? If so I'd definitely get a second opinion on that before accepting that as the case.

Ok, thanks again. I’ll speak to my broker again in the morning and maybe look to get a second opinion. 

wubbzy

can i please ask, can i get a mortgage on my own as my husbands credit is very bad, mine isn't great but is a lot better, this is due to using step change and having a joint payment plan in place with them.

we currently rent and a mortgage would be the same amount as our rent, i can also afford the extras like contents insurance and home running costs if things need repairing for example.

If the answer is yes, do i just use my income and how would monthly expenses be worked as there 50/50, I have 2 CCJ which will be 6 years old in 18 months time.

K_S

wubbzy said:

can i please ask, can i get a mortgage on my own as my husbands credit is very bad, mine isn't great but is a lot better, this is due to using step change and having a joint payment plan in place with them.

we currently rent and a mortgage would be the same amount as our rent, i can also afford the extras like contents insurance and home running costs if things need repairing for example.

If the answer is yes, do i just use my income and how would monthly expenses be worked as there 50/50, I have 2 CCJ which will be 6 years old in 18 months time.

@wubbzy Very very generally speaking - if you are able to use a mainstream lender (unlikely with 2 CCJs on your report but could be possible at low LTV) then you should be able to apply on your own even though you're a married couple. If you have to use a specialist lender then it gets very difficult as they generally don't like leaving off a spouse due to bad credit.

wubbzy

thank you, do you think i would be a lot better off waiting 18 months then, all i will have then is a couple of defaults which are being paid, but obviously still a low credit rating, I only have mobile phone contracts and 2 credit cards with very low usage on my credit history and won't be applying for anything else.

K_S

wubbzy said:

thank you, do you think i would be a lot better off waiting 18 months then, all i will have then is a couple of defaults which are being paid, but obviously still a low credit rating, I only have mobile phone contracts and 2 credit cards with very low usage on my credit history and won't be applying for anything else.

@wubbzy I couldn't really say unfortunately. It'll all depend on what your credit report looks like, your borrowing requirements and the rest of your circumstances.

Cortinaa_GTR

Due to remortgage imminently.

Unsure of current house value but assuming it has gone up

Nov 19 - Valuation - £265k
Jan 22 - Balance - £168k

Looking at deals online I'm technically hovering above the 60% threshold when I may actually be below it. I don't want to fudge the value but it can make a difference.

Also product fee or no product fee? Most seem to have a 1k fee so you are effectively buying an articficially low rate which when worked back in creates a similar rate to the no product fee deals so either way they are going to get you. :-(

BrunoYMY

Hi 

I have an AIP through a mortgage broker but my bank have contacted me to speak over my finances to see if there is anything they can do for me. Is it wise to speak to the bank anyway and see what they are offering and would another mortgage search effect the agreement I have in principle? 

Thanks.