Mortgage broker - ask me anything

suzikettles

Hi we currently have 109000 outstanding on our FixedT mortgage until dec this yr  its repayment with a 2% fee if we change it we want to look at porting our mortgage as we want to buy a new build 
our current home is worth approx 300,000 - 320,000 and the houses we are looking at are around 250000  - 280000  we are downsizing as kids are away!!  Are we better to pay the fee  and do a new deal altogether or port ?
we want to buy a new build and not get into the offers over bidding that is going crazy up here in the Highlands we have seen a couple of houses we would like to look at but dont want to waste folks time if moving is not a viable option also husband is self employed with earnings reduced due to covid but we have never defaulted etc  I am main earner  ideally I would like a shorter term than we currently have 
   

K_S

suzikettles said:

Hi we currently have 109000 outstanding on our FixedT mortgage until dec this yr  its repayment with a 2% fee if we change it we want to look at porting our mortgage as we want to buy a new build 
our current home is worth approx 300,000 - 320,000 and the houses we are looking at are around 250000  - 280000  we are downsizing as kids are away!!  Are we better to pay the fee  and do a new deal altogether or port ?
we want to buy a new build and not get into the offers over bidding that is going crazy up here in the Highlands we have seen a couple of houses we would like to look at but dont want to waste folks time if moving is not a viable option also husband is self employed with earnings reduced due to covid but we have never defaulted etc  I am main earner  ideally I would like a shorter term than we currently have 
   

@suzikettles It's hard to say what would work out cheaper overall but in any case it may be worth speaking to your lender and confirming that you can indeed port, as with most lenders you will still need to meet affordability.

GreenCat80

K_S said:

@greencat80 This is what MSE says. If that is indeed correct, I would not expect any positive/negative impact from it.

• You won't be credit checked. While Tesco Bank will do a soft credit search to confirm your identity, as it's effectively a prepaid card that doesn't allow borrowing, this isn't to check your ability to repay. Plus, the check won't appear to other lenders, so won't affect your creditworthiness, even if you're rejected.

Thanks K_S, I went through the process and it said that they only perform a soft check but it will be on my credit file, so I closed it down before confirming it. Am I right thinking it'll be better to avoid anything on my file if possible?

suzikettles

yes as far as I am aware we ccan port as I spoke to them (Leeds) yesterday

Skint2019

Hi, just wondering if Halifax tend to offer a 10 year fix option to existing customers as a product transfer?  Our deal with them is coming to an end in April. Thankyou 

Mortgage_99

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

K_S

Skint2019 said:

Hi, just wondering if Halifax tend to offer a 10 year fix option to existing customers as a product transfer?  Our deal with them is coming to an end in April. Thankyou 

@skint2019 Can't speak for you specifically or how it works direct, but from memory it's only 2/3/5 year fixes that come up as options when I do Halifax PTs for clients.

K_S

Mortgage_99 said:

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

@mortgage_99 Assuming you've told your broker about the past history with Halifax, it should hopefully be fine. Mainstream lender AIPs are fully automated and while you would assume that these things would be picked up, that isn't always the case. Good luck!

lantanna

I’m in a bit of a quandary about what to do for the best, you have advised me before KS so I’m hopeful you or one of the other brokers can provide some clarity. 

Sale agreed £174950 new build. 

£35000 Deposit 
£32858 salary 
FTB
25 year term due to age 42 
£2800 Halifax credit card
AIP with Nationwide direct 
 
Default with satsuma loan 2016 for £1500 (satisfied June 2020) 
115 missed payment markers on credit file between 2016 and 2019 end.
One AR marker for Capital One 2017, credit card back on track after that. 

Heavy payday loan user, last loan on file Moneyboat Jan 2020 paid on time. 

Sub prime loans such as Satsuma, H&T, one doorstep loan in 2016

Transunion is my worst report and shows soft check from Nationwide. 

2 years clear credit history but I did use an overdraft for most of the last qtr 2021. Now paid off in full from savings. 

I know my deposit and affordability is good but I’m panicking about all this bad credit. My check my file report has me at 640 in the fair category. 

I spoke to an advisor at YBS today and they said the underwriter may appeal the credit score part if they were satisfied once they’d looked into things.  How ever I’ve since ruled that out due to only 10 days extension date. 

I’ve spoken to 3 advisors, none of which I felt took the time to really understand my situation. 

The first said she was reasonably confident but couldnt say she was really confident and was happy to take forward the Nationwide AIP I got (£250 fee) if successful the 2nd was an adverse broker and required £295 for a successful AIP so I didn’t proceed. The 3rd basically laughed and told me not to worry too much after looking at my credit file and said to just go with my AIP that I’d done myself to save the £250 application fee that he charged upon successful offer. 

I just don’t know whether to just proceed with Nationwide myself and hope for the best or keep talking to Brokers.  It’s clear Brokers are swamped atm. 

Thank you for taking the time to read, I’m finding this very stressful and being a solo buyer it’s tough being on your own with the worry. 

I wish there was more clarity surrounding what lenders will and won’t accept. I’m happy to go the Broker route just haven’t seemed to have found the right one yet.

Can you shed any light on how Nationwide would view the adverse when they go digging? 

Do you recommend I return to a Broker to try an uncover a likely accept? 

I’m terrified of getting a decline and damaging credit file further.

K_S

@lantanna If you have a Nationwide DIP that's been accurately keyed in, that's as much assurance as you can get prior to a full application.

If for whatever reason the Nationwide app gets declined at full underwriting, that's definitely NOT the end of the road. Not once have I had a situation where a client's mortgage chances were materially damaged solely due to one hard-check from a recent failed mortgage application.

Good luck!