Mortgage broker - ask me anything

K_S

homewishes said:

Hi. My wife took out an IVA in Sept 2016 and in June 2021 I paid off all of the remaining balance. The IVA is showing satisfied as of Nov 21. We would like to move house this year to accommodate our growing family. 

We have not found a house yet to pull the trigger on but new houses are being built in an area we would like to move too which are will be available later this year.

Timings of applying for a mortgage...

Say house is ready Nov 2022

Best to start applying for mortgages post Sept 2022 to get more lenders? "6 year period for IVA to disappear from Credit file".

@homewishes This thread may help answer some of your questions. https://forums.moneysavingexpert.com/discussion/6350897/advice-on-finding-a-mortgage-with-a-recently-discharged-iva

MrBounce

K_S said:

MrBounce said:

I am in the process of going through a mortgage through Halifax Intermediary and my anxiety is going through the roof, waiting for a decision. I am self employed. 

My MA submitted on full app on Thursday and they did a hard search and took payment for Valuation. I have no personal borrowing as pay off my credit card in full each month and just some BTLs.

The MA said it was accepted through the system, so not concerned about it... I am stressing until i get an official decision.

If the system says yes, is it normally straightforward from there? 

@mrbounce I can't comment on your specific case or outcome, but generally speaking, the answer to your question is Yes

Thank you. Although my MA said it is very unusual for things to go wrong after the computer/system says yes especially as all our documentation matches what we have keyed in.... I will be stressed until i have it in writing... But I can't help feeling anxious, as I now really want this property 😬

Oni0nMan

Hello, I've got a query about debt collection searches and mortgage applications.

We're looking to buy a new build, would mean paying our 10% and waiting around 7 months until completion.

My partner has a very old debt we're intending to payoff after coming into considerable money recently but Northampton Courts have no record and going to the original creditor may trigger searches on her credit file. We don't have records for any DCA's that may own the debt either.

Our main concern is the current debt collection agency runs a debt collection search on her somewhere in the 7 months between exchange and completion.

Just how badly would this mark on her credit file be if it were to happen?

Many thanks in advance

K_S

Oni0nMan said:

Hello, I've got a query about debt collection searches and mortgage applications.

We're looking to buy a new build, would mean paying our 10% and waiting around 7 months until completion.

My partner has a very old debt we're intending to payoff after coming into considerable money recently but Northampton Courts have no record and going to the original creditor may trigger searches on her credit file. We don't have records for any DCA's that may own the debt either.

Our main concern is the current debt collection agency runs a debt collection search on her somewhere in the 7 months between exchange and completion.

Just how badly would this mark on her credit file be if it were to happen?

Many thanks in advance

@oni0nman I'm not sure what exactly a 'debt collection search' would look like on the credit report so can't usefully comment on your question.

You are right to be cautious as most new-build mortgage offers will require an extension after 6 months and most lenders at that point will refresh their credit check. So any significant adverse movement in the report could impact the mortgage offer.

Pabs89

Hi there, was just looking to pick someone’s brains, we’ve had our current mortgage with nationwide for nearly 5 years, but are moving and want to borrow a additional 40k, we had a mortgage in principle agreed, and submitted our full application, 2weeks ago, our valuation was carried out a week ago, still waiting to hear, what I was wondering was wether the application would have gone to the underwriters before the valuation was carried out, I’m self employed so was told it will automatically go to underwriters. We’ve never missed any mortgage payments, but I have quite a few missed payments around 2-3 years ago, and the suspense is killing me, wondered if they definitely hard check existing customers, and if so if it will have already been done, there’s nothing showing up on my credit files, except soft search at dip, and then another one when I sent over my documents 

silvermountains

silvermountains said:

Does the Coventry BS communicate that a mortgage has been approved pending the valuation to follow, or does it all come in one communication?

  Good morning  

K_S

silvermountains said:

silvermountains said:

Does the Coventry BS communicate that a mortgage has been approved pending the valuation to follow, or does it all come in one communication?

  Good morning  

@silvermountains Apologies, I don't know how it works direct and haven't done a Coventry resi app in a while so can't remember off of the top of my head. In any case, the broker should be able to tell whether underwriting is complete or not.

K_S

Pabs89 said:

Hi there, was just looking to pick someone’s brains, we’ve had our current mortgage with nationwide for nearly 5 years, but are moving and want to borrow a additional 40k, we had a mortgage in principle agreed, and submitted our full application, 2weeks ago, our valuation was carried out a week ago, still waiting to hear, what I was wondering was wether the application would have gone to the underwriters before the valuation was carried out, I’m self employed so was told it will automatically go to underwriters. We’ve never missed any mortgage payments, but I have quite a few missed payments around 2-3 years ago, and the suspense is killing me, wondered if they definitely hard check existing customers, and if so if it will have already been done, there’s nothing showing up on my credit files, except soft search at dip, and then another one when I sent over my documents 

@pabs80 Based on the info in your post and the stage you have gotten to, I don't think you have much to worry about with regard to the credit file or 2+ year old missed payments.

Soku

Hi. I am trying to get a mortgage with one of the main lenders. Their offer is a little bit lower than expected and I would need to cover it with a higher deposit. I would like to avoid it.

I got a pay rise today. Should I come back to them with this info asking to recalculate my affordability based on new circumstances? Is there a chance they would come back with a higher offer?

K_S

Soku said:

Hi. I am trying to get a mortgage with one of the main lenders. Their offer is a little bit lower than expected and I would need to cover it with a higher deposit. I would like to avoid it.

I got a pay rise today. Should I come back to them with this info asking to recalculate my affordability based on new circumstances? Is there a chance they would come back with a higher offer?

@soku Depends on the lender policy and the reason for the shortfall in maximum borrowing.

Assuming that that is the reason for a shortfall - some will accept confirmation from employer to consider a new pay-rise, some will need to see it on a payslip before considering.