Mortgage broker - ask me anything

TableLegs4

Hello, I used to have a CCJ on my credit record for £25K. I never paid it off and ignored all the letters for demands. This has subsequently fallen off my credit record about 5 years ago.
The lender did put a charge on the house for the unsecured loan, but said house was co-owned by the ex and myself. We've since sold the house and only had to inform the lender of the sale, to satisfy Land Registry. I was able to walk away from the sale of the house, without having to pay them what they wanted. 
My credit score has shot up ever since it dropped off and i've had no issues with obtaining personal loans, car credit or credit cards. If i was ever asked if i had a CCJ in the past i would have said no. But then these were borrowings of small amounts compared to a mortgage. 

However, i am now in a position to purchase a new house with my new partner, and i was looking to see if i need to mention anything about it to a broker or lender if asked? Most likely i will want to say "no". But i didn't know if there were any additional checks that could be carried out to find this CCJ. 

I've bought a report from Trust Online, for England and Wales, and they do not show anything about the CCJ either. 

K_S

crispy99 said:

K_S said:

crispy99 said:

I’ve got to the final checks on our mortgage application and the lender is now questioning a £100 payment I made to debt collectors in December, it was the last payment for historic council tax debt. It’s not on my credit file and I literally have no other debt. 

They said they need to think about it and make a decision as DMPs should be settled a min of 2 years ago. Does this really could as adverse credit if it’s not on my credit file or even a dmp? 

It just seems crazy that if I applied again in a few weeks they wouldn’t have that bank statement to even know about it.

@crispy99 Well, tbh your broker should have picked this up when he/she reviewed your bank statements. If it is related to a DMP which ended only in December, and the lender criteria is that DMPs should have been settled 2+ years ago, then it's down to their discretion. Hopefully, they will override the policy in this case, good luck!

I really thought a dmp was a type of plan to consolidate all debts into a single plan over a certain period. This is directly with the council, just the department is called enforcement so they picked up on this on the bank statement. Ah just impossible to get this over the line, I’m going to have to wait until my next statement so I don’t have to show Decembers I guess.
  

You're right, that's what a DMP typically is, an informal plan agreed with multiple lenders to pay off unsecured debt like CCs, loans etc. In practise, afaik a DMP does not include 'priority debts' like Council Tax, rent, court debt, etc.

But mainstream lenders can be a bit more loose on what they deem to be an equivalent arrangement.

K_S

TableLegs4 said:

Hello, I used to have a CCJ on my credit record for £25K. I never paid it off and ignored all the letters for demands. This has subsequently fallen off my credit record about 5 years ago.
The lender did put a charge on the house for the unsecured loan, but said house was co-owned by the ex and myself. We've since sold the house and only had to inform the lender of the sale, to satisfy Land Registry. I was able to walk away from the sale of the house, without having to pay them what they wanted. 
My credit score has shot up ever since it dropped off and i've had no issues with obtaining personal loans, car credit or credit cards. If i was ever asked if i had a CCJ in the past i would have said no. But then these were borrowings of small amounts compared to a mortgage. 

However, i am now in a position to purchase a new house with my new partner, and i was looking to see if i need to mention anything about it to a broker or lender if asked? Most likely i will want to say "no". But i didn't know if there were any additional checks that could be carried out to find this CCJ. 

I've bought a report from Trust Online, for England and Wales, and they do not show anything about the CCJ either. 

@tablelegs4 Afaik, no lender asks about CCJs/defaults registered more than 6 years ago.

bubby08

bubby08 said:

K_S

Many Thanks I am only looking to remortgage half the the value of the property and as I said there is nothing outstanding on the property. Thank you for advice regarding the score according to the both CRA the only adverse factor is the default.

when you say time remaining on my personal tax bill, I just pay monthly installments as far as I am aware there isn’t deadline in terms when it needs to repaid.

Thank you so much K_S

Hi K_S can you expand on your comment regarding the deadline and how much is outstanding in relation to my personal tax. Also I am about to change my car which is pcp, in doing so paying off my outstanding pcp agreement, would doing this whilst taking a new pcp agreement negatively impact my remortgage chances.

thank you so much K_S

TableLegs4

K_S said:

TableLegs4 said:

Hello, I used to have a CCJ on my credit record for £25K. I never paid it off and ignored all the letters for demands. This has subsequently fallen off my credit record about 5 years ago.
The lender did put a charge on the house for the unsecured loan, but said house was co-owned by the ex and myself. We've since sold the house and only had to inform the lender of the sale, to satisfy Land Registry. I was able to walk away from the sale of the house, without having to pay them what they wanted. 
My credit score has shot up ever since it dropped off and i've had no issues with obtaining personal loans, car credit or credit cards. If i was ever asked if i had a CCJ in the past i would have said no. But then these were borrowings of small amounts compared to a mortgage. 

However, i am now in a position to purchase a new house with my new partner, and i was looking to see if i need to mention anything about it to a broker or lender if asked? Most likely i will want to say "no". But i didn't know if there were any additional checks that could be carried out to find this CCJ. 

I've bought a report from Trust Online, for England and Wales, and they do not show anything about the CCJ either. 

@tablelegs4 Afaik, no lender asks about CCJs/defaults registered more than 6 years ago.

Thank you K_S, much appreciated. 

Apart from the credit report and Trust Online, would you happen to know of anywhere else that a lender may use as due diligence? 

Coolbeans2010

Hi I wonder if you can help. 

My partner and I have a meeting with a mortgage broker next week, and I am nervous!

So history; partner has a house worth £240k with £115k mortgage.  We would like to jointly own this house, rent it out, release some equity for a deposit and buy a new (second home).  So I guess we are looking at a let to buy (we should get £950pcm for the rental)

Joint income of  £101k a year (me £65k, him £36k).

I have a good credit score, but £15k credit card debt and loans total £15k. I am currently paying £1000 a month on top of minimum payments to pay down the credit cards.  

He has an excellent credit score, with one loan at £5000. 

Will there be any options for us given my debt?  I am very embarrassed about it. 

Thank you for your time.

K_S

Coolbeans2010 said:

Hi I wonder if you can help. 

My partner and I have a meeting with a mortgage broker next week, and I am nervous!

So history; partner has a house worth £240k with £115k mortgage.  We would like to jointly own this house, rent it out, release some equity for a deposit and buy a new (second home).  So I guess we are looking at a let to buy (we should get £950pcm for the rental)

Joint income of  £101k a year (me £65k, him £36k).

I have a good credit score, but £15k credit card debt and loans total £15k. I am currently paying £1000 a month on top of minimum payments to pay down the credit cards.  

He has an excellent credit score, with one loan at £5000. 

Will there be any options for us given my debt?  I am very embarrassed about it. 

Thank you for your time.

@coolbeans2010 Definitely looks like a let-to-buy with a transfer of equity on the BTL remortgage side. 35k of total debt with 100k application income isn't likely to be an insurmountable issue. What kind of impact the background debt has on your max borrowing depends on the lender, how much you're looking to borrow, and the rest of the background details etc.

If you haven't done so already, it might be worth playing around with a couple of lenders affordability calcs to see what they're returning.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

You have definitely done the right thing by speaking to a whole of market mortgage broker, good luck!

Coolbeans2010

K_S said:

Coolbeans2010 said:

Hi I wonder if you can help. 

My partner and I have a meeting with a mortgage broker next week, and I am nervous!

So history; partner has a house worth £240k with £115k mortgage.  We would like to jointly own this house, rent it out, release some equity for a deposit and buy a new (second home).  So I guess we are looking at a let to buy (we should get £950pcm for the rental)

Joint income of  £101k a year (me £65k, him £36k).

I have a good credit score, but £15k credit card debt and loans total £15k. I am currently paying £1000 a month on top of minimum payments to pay down the credit cards.  

He has an excellent credit score, with one loan at £5000. 

Will there be any options for us given my debt?  I am very embarrassed about it. 

Thank you for your time.

@coolbeans2010 Definitely looks like a let-to-buy with a transfer of equity on the BTL remortgage side. 35k of total debt with 100k application income isn't likely to be an insurmountable issue. What kind of impact the background debt has on your max borrowing depends on the lender, how much you're looking to borrow, and the rest of the background details etc.

If you haven't done so already, it might be worth playing around with a couple of lenders affordability calcs to see what they're returning.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

You have definitely done the right thing by speaking to a whole of market mortgage broker, good luck!

Thank you, that has put my mind at ease somewhat and as each month goes on the debt is coming down.  Looking at the affordability, it is coming out around what we were hoping to borrow (about £400k). 

Can I ask a quick one about bonuses?  I don't have a guaranteed one, but I have had some for the last couple years at varying amounts. I can prove that through payslips - could that be considered? 

Thank you again. Super helpful.

K_S

Coolbeans2010 said:

K_S said:

Coolbeans2010 said:

Hi I wonder if you can help. 

My partner and I have a meeting with a mortgage broker next week, and I am nervous!

So history; partner has a house worth £240k with £115k mortgage.  We would like to jointly own this house, rent it out, release some equity for a deposit and buy a new (second home).  So I guess we are looking at a let to buy (we should get £950pcm for the rental)

Joint income of  £101k a year (me £65k, him £36k).

I have a good credit score, but £15k credit card debt and loans total £15k. I am currently paying £1000 a month on top of minimum payments to pay down the credit cards.  

He has an excellent credit score, with one loan at £5000. 

Will there be any options for us given my debt?  I am very embarrassed about it. 

Thank you for your time.

@coolbeans2010 Definitely looks like a let-to-buy with a transfer of equity on the BTL remortgage side. 35k of total debt with 100k application income isn't likely to be an insurmountable issue. What kind of impact the background debt has on your max borrowing depends on the lender, how much you're looking to borrow, and the rest of the background details etc.

If you haven't done so already, it might be worth playing around with a couple of lenders affordability calcs to see what they're returning.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

You have definitely done the right thing by speaking to a whole of market mortgage broker, good luck!

Thank you, that has put my mind at ease somewhat and as each month goes on the debt is coming down.  Looking at the affordability, it is coming out around what we were hoping to borrow (about £400k). 

Can I ask a quick one about bonuses?  I don't have a guaranteed one, but I have had some for the last couple years at varying amounts. I can prove that through payslips - could that be considered? 

Thank you again. Super helpful.

@coolbeans2010 This is a general statement - with most mainstream lenders, if you have been paid a bonus for the most recent two years, they will consider the average or the latest year's bonus, whichever is lower. Depending on the specific lender, they will use it at 50%, 60%, 100%, etc for affordability calcs.

CurlyJules

Are there remortgaging deals for a couple who earns in different currencies (Euro and GBP)? Currently with a Building Society but we have both been banking for 30+ years with Natwest and their offer is not really "competitive". Thanks in advance.