Mortgage broker - ask me anything

joseffoliver97

Hi All,

Long story short, I had money troubles growing up (18-22) and got myself in debt and CIFAS Cat 6 marker.

Thankfully I have changed my life and finances.  Myself and my partner are looking at moving out in the next few months and I wanted to look at our options.

In an ideal world we will buy a house but I feel that my credit history (currently 450 credit score) and CIFAS marker will hold us back.

Will we be able to do anything about getting a mortgage - perhaps having my partner (good credit history) as the main person with me on the side? If it helps, my salary is £25k annually plus monthly bonus £1000-3000.  My partners is £22k.  We have around £20-25k saved.

Is there any chance of us being able to buy? And if not are we likely to have similar issues renting?  I wish I could get rid of this CIFAS marker as it has ruined my life the last two years but I am stuck with it for another four.

any help much appreciated

[Deleted User]

I received my offer but HSBC made a mistake on the valuation. My solicitor is trying to chase the bank, it has been over a month. The broker claims he has no way to chase HSBC in this regard, could anyone confirm if brokers can or cannot?

Would I be able to speak to HSBC?

gd55

Would any broker be able to advise on potential timings for getting a mortgage after an IVA please?

My IVA started in September 2017, and was settled in January 2022. The normal six years from start date will therefore be September 2023 for it to drop off my credit record.

I'm now rebuilding - am using credit cards for food, petrol etc and paying in full, and have savings pots and a solid budget in place.

Currently my boyfriend and I rent separately. This sumer we will move in to a rented place together to "test the waters" so to speak.

On from that, we will be saving up a deposit with the ultimate aim of buying a property. We will both be FTBs.

To get to the question - how soon after September 2023 when the IVA drops off my report are we likely to be able to get a mortgage deal, and not too shocking a rate if at all possible? I appreciate this is a bit of a crystal ball question, so I thank you for any general guidance/previous examples you may be able to offer.

His credit had been poor in the past due to living outside of the UK for a few years, but is pretty solid now - he has a credit card with a "prime" lender, and no defaults etc.

K_S

gd55 said:

To get to the question - how soon after September 2023 when the IVA drops off my report are we likely to be able to get a mortgage deal, and not too shocking a rate if at all possible? I appreciate this is a bit of a crystal ball question, so I thank you for any general guidance/previous examples you may be able to offer.

@gd55 As I'm sure you can appreciate, there are a lot of different aspects that can have an impact on your options. With respect to the age of a satisfied IVA - very very generally speaking, once it's been satisfied for 2 years you should have specialist options at relatively reasonable rates assuming you've kept a clean history in the interim period.

K_S

[Deleted User] said:

I received my offer but HSBC made a mistake on the valuation. My solicitor is trying to chase the bank, it has been over a month. The broker claims he has no way to chase HSBC in this regard, could anyone confirm if brokers can or cannot?

Would I be able to speak to HSBC?

@strictgold5208 You can definitely call HSBC and try find out more information. What exactly is the mistake that they made? I can't think of anything related to a valuation that would necessarily take a month to rectify.

gd55

K_S said:

gd55 said:

To get to the question - how soon after September 2023 when the IVA drops off my report are we likely to be able to get a mortgage deal, and not too shocking a rate if at all possible? I appreciate this is a bit of a crystal ball question, so I thank you for any general guidance/previous examples you may be able to offer.

@gd55 As I'm sure you can appreciate, there are a lot of different aspects that can have an impact on your options. With respect to the age of a satisfied IVA - very very generally speaking, once it's been satisfied for 2 years you should have specialist options assuming you've kept a clean history in the interim period.

Thanks for the super-swift response!

That's really helpful, a couple of years will give us a good chance to save up a chunky deposit and check we are definitely compatible for living together!!

K_S

joseffoliver97 said:

Hi All,

Long story short, I had money troubles growing up (18-22) and got myself in debt and CIFAS Cat 6 marker.

Thankfully I have changed my life and finances.  Myself and my partner are looking at moving out in the next few months and I wanted to look at our options.

In an ideal world we will buy a house but I feel that my credit history (currently 450 credit score) and CIFAS marker will hold us back.

Will we be able to do anything about getting a mortgage - perhaps having my partner (good credit history) as the main person with me on the side? If it helps, my salary is £25k annually plus monthly bonus £1000-3000.  My partners is £22k.  We have around £20-25k saved.

Is there any chance of us being able to buy? And if not are we likely to have similar issues renting?  I wish I could get rid of this CIFAS marker as it has ruined my life the last two years but I am stuck with it for another four.

any help much appreciated

@joseffoliver97 I don't really have any useful comments to make I'm afraid. As a broker I am not able to handle any applicants with CIFAS markers other than categories 1, 2 and 4 (assuming I've got the numbers right) so I don't really have any experience of speaking to lenders about it.

You could potentially just look at buying in your partner's name, though you will be limited by their income.

joseffoliver97

K_S said:

joseffoliver97 said:

Hi All,

Long story short, I had money troubles growing up (18-22) and got myself in debt and CIFAS Cat 6 marker.

Thankfully I have changed my life and finances.  Myself and my partner are looking at moving out in the next few months and I wanted to look at our options.

In an ideal world we will buy a house but I feel that my credit history (currently 450 credit score) and CIFAS marker will hold us back.

Will we be able to do anything about getting a mortgage - perhaps having my partner (good credit history) as the main person with me on the side? If it helps, my salary is £25k annually plus monthly bonus £1000-3000.  My partners is £22k.  We have around £20-25k saved.

Is there any chance of us being able to buy? And if not are we likely to have similar issues renting?  I wish I could get rid of this CIFAS marker as it has ruined my life the last two years but I am stuck with it for another four.

any help much appreciated

@joseffoliver97 I don't really have any useful comments to make I'm afraid. As a broker I am not able to handle any applicants with CIFAS markers other than categories 1, 2 and 4 (assuming I've got the numbers right) so I don't really have any experience of speaking to lenders about it.

You could potentially just look at buying in your partner's name, though you will be limited by their income.

K_S said:

joseffoliver97 said:

Hi All,

Long story short, I had money troubles growing up (18-22) and got myself in debt and CIFAS Cat 6 marker.

Thankfully I have changed my life and finances.  Myself and my partner are looking at moving out in the next few months and I wanted to look at our options.

In an ideal world we will buy a house but I feel that my credit history (currently 450 credit score) and CIFAS marker will hold us back.

Will we be able to do anything about getting a mortgage - perhaps having my partner (good credit history) as the main person with me on the side? If it helps, my salary is £25k annually plus monthly bonus £1000-3000.  My partners is £22k.  We have around £20-25k saved.

Is there any chance of us being able to buy? And if not are we likely to have similar issues renting?  I wish I could get rid of this CIFAS marker as it has ruined my life the last two years but I am stuck with it for another four.

any help much appreciated

@joseffoliver97 I don't really have any useful comments to make I'm afraid. As a broker I am not able to handle any applicants with CIFAS markers other than categories 1, 2 and 4 (assuming I've got the numbers right) so I don't really have any experience of speaking to lenders about it.

You could potentially just look at buying in your partner's name, though you will be limited by their income.

Thanks for letting me know.  Are you aware if this is across the board (not dealing with cat 6 CIFAS) or will there be advisers that deal with this?

with regard to buying in my partners name.  Her credit history is good with no previous issues.  Her salary is £21,000.  How much roughly would she be able to lend if we can put down a deposit of £35k?

thanks

[Deleted User]

K_S said:

[Deleted User] said:

I received my offer but HSBC made a mistake on the valuation. My solicitor is trying to chase the bank, it has been over a month. The broker claims he has no way to chase HSBC in this regard, could anyone confirm if brokers can or cannot?

Would I be able to speak to HSBC?

@strictgold5208 You can definitely call HSBC and try find out more information. What exactly is the mistake that they made? I can't think of anything related to a valuation that would necessarily take a month to rectify.

They did a valuation on the entire block of flats instead of my single flat. It is a block of 10 studio flats. Even when they did that, they got the number of floors wrong!

K_S

rincha said:

Hi, wanted your opinion on my chances of being accepted on a Barclays mortgage. My broker submitted the full application on Monday 14th April. He says we should be ok and worst case would be that we have to adapt the deposit/pay loan of etc.

I believe I will be ok because we have some flexibility in increasing the deposit or paying of my personal loan. I am someone who worries so would appreciate your opinion Hence why I’m here.

My wife and I are currently living with my parents and have had an offer accepted as we wish to move out.

Joint income is £68k from employment and I own a rental which I have 3 years Sa302s averaging £10,500 per year income after expenses. Rent is £12k per year.

I have a personal loan of £17k, 4 years remaining at £357 per month – can be paid off if needed as we have sufficient savings.

I also have another mortgage for the rental, which is £420 a month. Rental is worth £360k, with mortgage balance of £58k remaining for another 12 years.

No other debt, all cards are zero; credit reports are excellent, no previous missed payments, or adverse credit issues. Bank statements are all ok, no gambling etc.

The house we are trying to buy is £425k, and we have 20% deposit (£85k), trying for a mortgage of £340k which is very close to the top of our limit – 4.5 x income - that's my worry, being close to the limit. 

We have applied for Barclays 2 year fixed at 2.14% which is £1300 a month

@rincha Given that your broker has placed you with Barclays, I'm sure they must have done the numbers and are confident of a positive outcome. You can play around with the Barclays affordability calculator here if you wish to 
https://resources.barclays.co.uk/mortgage-calculators/residential-affordability

Good luck and hope you get an offer soon!