Mortgage broker - ask me anything

msaverpenny93

Thank you. I had seen a post on here that someone who had a lendable loan was told by high street lender that they were considered a payday loan and it had stressed me out 

msaverpenny93

*they were told to wait 12 months from paying the loan to apply. My loan will have been paid off over a year by time I’m ready to buy next year. 

K_S

msaverpenny93 said:

*they were told to wait 12 months from paying the loan to apply. My loan will have been paid off over a year by time I’m ready to buy next year. 

@msaverpenny93 Everyone's circumstances and requirements are different, lender approaches can vary, etc.

There are as many different products in the market as there are applicant circumstances.

What I'm trying to say is that by itself the loan mentioned *should not* stop you from getting a mainstream mortgage, be that today or a year later.

S_

Hey

My partner and I are looking to apply for a mortgage next month. He has a good credit score but my report has 2 adverse entries. 

I have a default from a Barclays credit card which is due to come off in July this year and one from a short term loan which is due to come off Feb 2023, however, this one is unsatisfied as I have no idea what it is and when I search the company they no longer exist so unable to contest it. 

I have a history of using payday loans with my last one being taken out in 2018 and paid in 2019. 

We have a 5% deposit but I’m worried that our application will be declined because of my history. I now only have 1 credit card and a phone contract. 

Thanks 

K_S

S_ said:

Hey

My partner and I are looking to apply for a mortgage next month. He has a good credit score but my report has 2 adverse entries. 

I have a default from a Barclays credit card which is due to come off in July this year and one from a short term loan which is due to come off Feb 2023, however, this one is unsatisfied as I have no idea what it is and when I search the company they no longer exist so unable to contest it. 

I have a history of using payday loans with my last one being taken out in 2018 and paid in 2019. 

We have a 5% deposit but I’m worried that our application will be declined because of my history. I now only have 1 credit card and a phone contract. 

Thanks 

@S_ If the only issues on your credit report are two defaults registered 5+ years ago, that should not by itself stop you from getting a 95% LTV mortgage. Whether that will be with a mainstream lender or not will depend on the specifics, the rest of the application, what the Experian and Equifax reports actually look like, etc. The pdl should not be a huge factor given that the most recent one was closed 2+ years ago. 

Russellm8787

Good morning, looking for some help. I own my house outright but am under 55 and want to borrow about 30k to do up the garden and house. House is valued at around 220000 whqt options do i have? A lot of online calculators dont take unencumbered property into account. 

K_S

Russellm8787 said:

Good morning, looking for some help. I own my house outright but am under 55 and want to borrow about 30k to do up the garden and house. House is valued at around 220000 whqt options do i have? A lot of online calculators dont take unencumbered property into account. 

@russellm8787 Most lenders will treat this as a capital-raise remortgage, so you could just go with that at this early stage.

Otterhound

Hello,

I'm looking to get a mortgage later in the year and need some advice:

I've been in my current job for three months, which is a permanant position.

I've just been offered a better job (three grand a year better pay, bigger company, better prospects etc.) but the catch is it's a three year fixed-term position. It would likely be renewed at the end of the contract but it's still fixed-term.

My question is should I stick with my current job until the mortgage is sorted out or should I take the new offer? The extra salary would help with the application but would the limited contract work against me?

K_S

Otterhound said:

Hello,

I'm looking to get a mortgage later in the year and need some advice:

I've been in my current job for three months, which is a permanant position.

I've just been offered a better job (three grand a year better pay, bigger company, better prospects etc.) but the catch is it's a three year fixed-term position. It would likely be renewed at the end of the contract but it's still fixed-term.

My question is should I stick with my current job until the mortgage is sorted out or should I take the new offer? The extra salary would help with the application but would the limited contract work against me?

@otterhound I want to be very upfront that I can't really tell you which would be a better course of action mortgage-wise as there are more aspects that come into play rather than just perm vs FTC. Hopefully the points below (strictly limited to the employment contract) will help inform your thought process -

- Being in your first FTC will definitely limit your options compared to being in a perm position. Having said that, if you have a track record in the industry and your FTC is in the same line of work as the previous role/s, then you may have a couple of mainstream lenders willing to consider given the unusually long FTC period.

- Some lenders will treat FTC income like contract income (eg: 50k annual FTC income pro-rated to 46 weeks).

Kabazzzz

Hi,

My partner and I are hoping to buy this year but I found an error on my credit report.   A hard search was done in 2019 when I applied for finance for my car, it was refused.  I should've checked at the time but didn't.  I think they mixed up my post code with my current address with that of my old address so it now shows that I have a linked address on my report despite having never living there or having anything to do with it.

I reported it to Experian and they contacted Volkswagen who responded saying that they wouldn't remove it from my report unless I was able to provide a loan reference but, as I never took out any finance, I have no reference!

My question is, will this affect any mortgage application and if so, should I fight to get it removed?

Thanks