Mortgage broker - ask me anything

K_S

dlk2021 said:

Hi. My partner and I are looking to buy our first house, but I have adverse credit. I have a fully satisfied CCJ for £621 that was issued in January 2019 and fully satisfied by October 2019, so issued three years ago now (the CCJ did not result from a default). I also have a few old defaults (most recent being January 2020 for £180 and the others being at least 4 years old), which are all settled/paid. I have not missed a single payment or had any negative markers recorded on my report in over two years. My partner's credit score is perfect (999 on Experian) and he has never missed a single payment or anything in his life. We have a combined annual income of £48,000 and have been in full time employment with our current jobs for 3 years (myself) and 5 years (him). We want to look at a house price of around £170,000 or less and have a deposit of around £20,000. Do you think we have a chance? Thank you in advance.

@dlk2021 The important points are - most recent CCJ was registered 3+ years ago, most recent default (£180) was registered 2+ years ago, all settled, clean credit history for 2+ years and looking to borrow at 90% LTV. 

With a 15% deposit, you would almost certainly been fine. At 90% LTV you *should* have a few lenders who will consider thanks to the small size of the most recent default.

K_S

baidare said:

Hi, which lenders use different surveyors for valuation than Santander? We had down valuation with Santander and would like to try with other lender that uses different surveyor. The seller wont budge on the price we have tried. 

@baidare Sorry, can't recall off of the top of my head. Would have to dig through recent Santander apps to see. Might also differ across regions.

It's important to remember that even with another lender that uses a different panel of surveyors, there's no guarantee that the main surveyor won't panel it out to the same surveyors that down-valued it for Santander. 

dlk2021

K_S said:

dlk2021 said:

Hi. My partner and I are looking to buy our first house, but I have adverse credit. I have a fully satisfied CCJ for £621 that was issued in January 2019 and fully satisfied by October 2019, so issued three years ago now (the CCJ did not result from a default). I also have a few old defaults (most recent being January 2020 for £180 and the others being at least 4 years old), which are all settled/paid. I have not missed a single payment or had any negative markers recorded on my report in over two years. My partner's credit score is perfect (999 on Experian) and he has never missed a single payment or anything in his life. We have a combined annual income of £48,000 and have been in full time employment with our current jobs for 3 years (myself) and 5 years (him). We want to look at a house price of around £170,000 or less and have a deposit of around £20,000. Do you think we have a chance? Thank you in advance.

@dlk2021 The important points are - most recent CCJ was registered 3+ years ago, most recent default (£180) was registered 2+ years ago, all settled, clean credit history for 2+ years and looking to borrow at 90% LTV. 

With a 15% deposit, you would almost certainly been fine. At 90% LTV you *should* have a few lenders who will consider thanks to the small size of the most recent default.

Thank you so much for your reply, that has definitely put my mind at ease! We would be able to stretch to 85% LTV. If we did this, would we have to go to a specialist mortgage provider with high interest rates, or do you think there would be any high street lenders with 'normal' rates available to us?

K_S

dlk2021 said:

K_S said:

dlk2021 said:

Hi. My partner and I are looking to buy our first house, but I have adverse credit. I have a fully satisfied CCJ for £621 that was issued in January 2019 and fully satisfied by October 2019, so issued three years ago now (the CCJ did not result from a default). I also have a few old defaults (most recent being January 2020 for £180 and the others being at least 4 years old), which are all settled/paid. I have not missed a single payment or had any negative markers recorded on my report in over two years. My partner's credit score is perfect (999 on Experian) and he has never missed a single payment or anything in his life. We have a combined annual income of £48,000 and have been in full time employment with our current jobs for 3 years (myself) and 5 years (him). We want to look at a house price of around £170,000 or less and have a deposit of around £20,000. Do you think we have a chance? Thank you in advance.

@dlk2021 The important points are - most recent CCJ was registered 3+ years ago, most recent default (£180) was registered 2+ years ago, all settled, clean credit history for 2+ years and looking to borrow at 90% LTV. 

With a 15% deposit, you would almost certainly been fine. At 90% LTV you *should* have a few lenders who will consider thanks to the small size of the most recent default.

Thank you so much for your reply, that has definitely put my mind at ease! We would be able to stretch to 85% LTV. If we did this, would we have to go to a specialist mortgage provider with high interest rates, or do you think there would be any high street lenders with 'normal' rates available to us?

@dlk2021 Never say never but with multiple defaults and a CCJ on the report, I wouldn't expect you to have mainstream options at 85% LTV. Your most likely option will be a 2 year fix with a specialist lender. At the end of the fix, you could look at remortgaging to mainstream/ish rates depending on how your credit file looks at the time. 

I would recommend getting in touch with an experienced broker and seeing what your options are. If they do quote a high broker fee, make sure you speak to a couple so you're not unnecessarily overpaying. Also try a find a broker that only charges upon issue of mortgage offer, not at application or DIP stage. That way the broker has more 'skin in the game'.

dlk2021

K_S said:

dlk2021 said:

K_S said:

dlk2021 said:

Hi. My partner and I are looking to buy our first house, but I have adverse credit. I have a fully satisfied CCJ for £621 that was issued in January 2019 and fully satisfied by October 2019, so issued three years ago now (the CCJ did not result from a default). I also have a few old defaults (most recent being January 2020 for £180 and the others being at least 4 years old), which are all settled/paid. I have not missed a single payment or had any negative markers recorded on my report in over two years. My partner's credit score is perfect (999 on Experian) and he has never missed a single payment or anything in his life. We have a combined annual income of £48,000 and have been in full time employment with our current jobs for 3 years (myself) and 5 years (him). We want to look at a house price of around £170,000 or less and have a deposit of around £20,000. Do you think we have a chance? Thank you in advance.

@dlk2021 The important points are - most recent CCJ was registered 3+ years ago, most recent default (£180) was registered 2+ years ago, all settled, clean credit history for 2+ years and looking to borrow at 90% LTV. 

With a 15% deposit, you would almost certainly been fine. At 90% LTV you *should* have a few lenders who will consider thanks to the small size of the most recent default.

Thank you so much for your reply, that has definitely put my mind at ease! We would be able to stretch to 85% LTV. If we did this, would we have to go to a specialist mortgage provider with high interest rates, or do you think there would be any high street lenders with 'normal' rates available to us?

@dlk2021 Never say never but with multiple defaults and a CCJ on the report, I wouldn't expect you to have mainstream options at 85% LTV. Your most likely option will be a 2 year fix with a specialist lender. At the end of the fix, you could look at remortgaging to mainstream/ish rates depending on how your credit file looks at the time. 

I would recommend getting in touch with an experienced broker and seeing what your options are. If they do quote a high broker fee, make sure you speak to a couple so you're not unnecessarily overpaying. Also try a find a broker that only charges upon issue of mortgage offer, not at application or DIP stage. That way the broker has more 'skin in the game'.

Thank you for that advice, that's really helpful. I did imagine that it would be a specialist lender. Fingers crossed all goes smoothly for us!

SR24

Hi. Freehold flat (two storey only and a block of 4 purpose built).
 Are mortgages available?

 Small LTV mortgage required less than 15% LTV.

 Wondering what current situ is re lending in this scenario please.

K_S

SR24 said:

Hi. Freehold flat (two storey only and a block of 4 purpose built).
 Are mortgages available?

 Small LTV mortgage required less than 15% LTV.

 Wondering what current situ is re lending in this scenario please.

@sr24 Depends on what you mean by 'freehold'. Are you talking about a situation where the freehold is shared between the 4 flats and there is lease for each property? If yes then it should be fairly straightforward.

If it's a 'true freehold' (I've seen them in some parts of the NE and SW) with no lease, then it gets more complicated.

Pinkpegasus

Hi, I hope
you can answer my question. 

I’m about to start looking to remortgage and I am adding my partner onto the martgage that I get, we didn’t add him when we bought the house as he had a slight blip with credit that is now off his record. 

We are looking to get a joint account to pay bills and mortgage from but keeping our own personal accounts.
is it better to get the new joint account before we try to remortgage or after as I don’t want too many credit checks if possible. 

Thanks in advance. 

K_S

Pinkpegasus said:

Hi, I hope
you can answer my question. 

I’m about to start looking to remortgage and I am adding my partner onto the martgage that I get, we didn’t add him when we bought the house as he had a slight blip with credit that is now off his record. 

We are looking to get a joint account to pay bills and mortgage from but keeping our own personal accounts.
is it better to get the new joint account before we try to remortgage or after as I don’t want too many credit checks if possible. 

Thanks in advance. 

@Pinkpegasus On its own, a single hard check for a current account application should have no material impact on your mortgage chances.

However, if you going to be up at night worrying about it, then it might be worth post-poning or getting something like a Starling bank joint current account which only does a soft-check as long as you aren't asking for an overdraft. https://help.starlingbank.com/business/topics/setting-up-an-account/do-you-do-a-credit-check-when-i-apply-for-an-account/

pinkthink123

Hi. I’m looking to buy with my partner but have poor credit history (a score of 514/1000) and some sizeable debts (totalling £30k) which I’m still clearing. I have 7 defaults, 4 in 2018 and 3 older, but haven’t missed a payment for several years. My income is £41k and I have £1100 a month left over after all bills and spending is taken in to account. Would I be laughed at for enquiring? My partner has good credit history, more than double my salary and a sizeable amount of equity in his current property so we’d have a very good deposit.