Mortgage broker - ask me anything

MummyDN

K_S said:

MummyDN said:

What are the chances of getting a mortgage while on probation in a new job (no first payslip yet; no break in employment for many years) when coupled with adverse credit for one of the applicants? So one applicant with good credit but in a new job and other applicant with adverse credit. Deposit of about 20%. Thank you. 

@mummydn The positives are that you have continuous employment, a healthy 20% deposit and one applicant with good credit. 

There are specialist lenders who will consider applicants in their probation period, but whether you qualify will depend on how 'bad' the adverse credit is, specifically what's in your credit report.

Thank you for your response. The adverse credit is due to 3 late mortgage payment (due to returned direct debits) that are over 12 months old. Any suggestions of possible lenders? Thanks again. 

K_S

MummyDN said:

K_S said:

MummyDN said:

What are the chances of getting a mortgage while on probation in a new job (no first payslip yet; no break in employment for many years) when coupled with adverse credit for one of the applicants? So one applicant with good credit but in a new job and other applicant with adverse credit. Deposit of about 20%. Thank you. 

@mummydn The positives are that you have continuous employment, a healthy 20% deposit and one applicant with good credit. 

There are specialist lenders who will consider applicants in their probation period, but whether you qualify will depend on how 'bad' the adverse credit is, specifically what's in your credit report.

Thank you for your response. The adverse credit is due to 3 late mortgage payment (due to returned direct debits) that are over 12 months old. Any suggestions of possible lenders? Thanks again. 

@mummydn I honestly couldn't say, any more that I could recommend a car based just on the facts that you prefer diesel and have a 50 mile round-trip to work

Unfortunately, as I'm sure you are aware, mortgage (and second charge) missed payment markers are treated differently from unsecured missed payments, plus the fact it's multiple missed payments (status 3 marker I assume?). However, on the plus side it is more than 12m old. 

Based on the limited info in your post, you *should* have options at 80% LTV and a wider choice if you can hit 75% LTV. I would recommend getting in touch with a broker, there's a list here on the MSE site https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3 The ones at the top of the list are unlikely to take your case because of how recent the missed mortgage payments are, but if you scroll down the list you should find someone who can help. Good luck! 

MummyDN

I really appreciate your help! Thanks for taking the time to respond and for the list of brokers. 

baidare

Hiya, How long does typically take for Santander to respond to valuation appeal? 

idkwhattosay

1. Is selling (main home) within 2y of purchase subject to taxation?

2. If you port mortgage to a cheaper property, do you keep the profit from the sale or is that somehow tied into the mortgage?

lantanna

I’m confused, I’m at the very early stages of proceeding with a new build. Reservation fee has been paid £1000. Property should be ready August/September. Mortgage advisor has said we should apply for the mortgage next month. At what stage do I pay my deposit? 

I was banking on not having to pay the deposit until completion in August / September giving me more time to save it up.  Now I’m concerned it’s at contract exchange point? 

K_S

lantanna said:

I’m confused, I’m at the very early stages of proceeding with a new build. Reservation fee has been paid £1000. Property should be ready August/September. Mortgage advisor has said we should apply for the mortgage next month. At what stage do I pay my deposit? 

I was banking on not having to pay the deposit until completion in August / September giving me more time to save it up.  Now I’m concerned it’s at contract exchange point? 

@lantanna The deposit (not all of it, 5% or 10%) would be needed at exchange. Often the reservation agreement will have a date on it by which exchange must be completed.

The rest of the deposit is only needed close to completion.

debtfreeohyeah

Query from me

My gf and I are looking to purchase our first home together this year. We’re in a very fortunate position to be able to have a 60% deposit. 

But… I’ve got a far from brilliant credit file (pay day loan user/idiot) but it’s improved dramatically following having a lot of stuff taken off after successful affordability complaints. 

My last pay day loan was paid off in April 2020. Here’s the breakdown of loans that would still be on file at time of applying. 

2017 - 4 loans 
2018 - 3 loans 
2019 - 3 loans 
2020 - 1 loan settled April 2020

All of these were paid off on time with no issues. I have no defaults or missed payments against these. I do have a closed credit card account on file which has 3 missed payments from 2017 but then spotless for nearly 4 years before closing the card down. 

Assuming we wait until April 2022 at the earliest - so that the last PDL was settled over two years ago, what sort of chance do we have of getting a mortgage? 

K_S

debtfreeohyeah said:

Query from me

My gf and I are looking to purchase our first home together this year. We’re in a very fortunate position to be able to have a 60% deposit. 

But… I’ve got a far from brilliant credit file (pay day loan user/idiot) but it’s improved dramatically following having a lot of stuff taken off after successful affordability complaints. 

My last pay day loan was paid off in April 2020. Here’s the breakdown of loans that would still be on file at time of applying. 

2017 - 4 loans 
2018 - 3 loans 
2019 - 3 loans 
2020 - 1 loan settled April 2020

All of these were paid off on time with no issues. I have no defaults or missed payments against these. I do have a closed credit card account on file which has 3 missed payments from 2017 but then spotless for nearly 4 years before closing the card down. 

Assuming we wait until April 2022 at the earliest - so that the last PDL was settled over two years ago, what sort of chance do we have of getting a mortgage? 

@debtfreeohyeah At low LTV and with the PDLs being 2+ years old, it should not have any material impact on your mortgage chances.

lantanna

Ah thank you KS. That’s a relief, I’m putting down 20 % in total have 14 % saved and ready to in the bank.