Mortgage broker - ask me anything

haras_n0sirrah

StephAW said:

haras_n0sirrah said:

StephAW said:

We remortgaged a few months ago to NatWest and it started inSeptember. Our first payment was last month. We’ve just decided though to look for a bigger house. I rang the NatWest yesterday to see how much more we could borrow, but the computer said no due to something in our credit file but they couldn’t see what. We’ve checked out credit file this morning and both are excellent. My score on Equifax is 502 and Experian is 985. Partners is just as good. The only thing I can see is on Equifax everything is green apart from our new mortgage to NatWest is grey and says unclassified. It doesn’t show as a missed payment but our payment from last month is just not showing.  Does this sound like a reason why it would have declined? Do I just need to wait for this to be updated before asking NatWest again? 

Also are they able to actually see our credit report or is it an automatic thing that just comes back saying no? As if they could see the full report they could see there is nothing bad on there. 

Sorry for the long post. 

Ah that is a shame - what is the new loan to value?

73% 

I wouldn't know without looking at credit report and your circumstances. Happy to do so but you would need to approach me via pm

sofsar

haras_n0sirrah said:

sofsar said:

Our working tax credits award amount has gone less this week as it’s been updated automatically  because Iv started working more this tax year and it’s joint income award. 

I gave my July child/working tax award letter (actual income declared 2019/2020) to broker for application with Leeds but with this new award which is estimated obviously as it’s not April yet, do I need to tell my broker or no? 

It basically means I’m getting £3500 less for whole year and I’m worried like sick if the lender would lend me less now. 

When I get tax credits award letters one thing I look for is if the income on the award and the income the client now earns is within the disregard. If your income is higher now than on the letter by more than 2.5k leeds may want the new award letter. Have you looked at lenders calculator to see if it still fits affordability?

haras_n0sirrah said:

sofsar said:

Our working tax credits award amount has gone less this week as it’s been updated automatically  because Iv started working more this tax year and it’s joint income award. 

I gave my July child/working tax award letter (actual income declared 2019/2020) to broker for application with Leeds but with this new award which is estimated obviously as it’s not April yet, do I need to tell my broker or no? 

It basically means I’m getting £3500 less for whole year and I’m worried like sick if the lender would lend me less now. 

When I get tax credits award letters one thing I look for is if the income on the award and the income the client now earns is within the disregard. If your income is higher now than on the letter by more than 2.5k leeds may want the new award letter. Have you looked at lenders calculator to see if it still fits affordability?

Yes I tried calculating it and I get different figures between 108-116k. they did say they would lend me £114k on DIP instead of 121k what I asked for which Iv now sorted out by putting more towards deposit and gift deposit etc. 

Think I started to panic too much yesterday. When I added my income £9,600 and husbands £9,000 then child tax credits £6,200, £1,800 child benefit and exclude any working tax it seems fine what they would lend. 

Gem_M90

Hi, 
I have had my mortgage offer from Halifax with the condition "you have declared intent to repay some or all of your existing credit commitments before or on completion"
On application, I had credit outstanding on my credit report which had been paid but the report had yet to update. My broker included this as well as my other credit and ticked that it would be clear. 
Currently I have around £4500 to clear across a credit card and 2 mail order accounts, I have cleared more than half of what was shown on my credit report on application. 
I am due to complete early March 2021 and will probably need until then to clear what I have remaining. I just wondered what evidence Halifax are likely to request when the condition seems to allow me until the day of completion to repay my credit. Obviously my credit report may take months to update, so come the time will a simple screenshot of the live balances suffice? I have spoken briefly about it with my solicitor who doesn't seem to think its an issue and will simply ask me for the evidence at the time if completion if halifax request it. 
Just wondered if someone could tell me the type of evidence they'd normally request. 

xx26xx10xx95

Hi, 3 months worth of bank statements show £250 (July), £300 (Aug) and £200 (Sept) of gambling transactions. In Sept £120 (in 6x£20 separate transactions) were made in 1 day and 2 days later £80 (in 4x£20 separate transactions) were made in 1 day. Would this ring alarm bells?

haras_n0sirrah

Gem_M90 said:

Hi, 
I have had my mortgage offer from Halifax with the condition "you have declared intent to repay some or all of your existing credit commitments before or on completion"
On application, I had credit outstanding on my credit report which had been paid but the report had yet to update. My broker included this as well as my other credit and ticked that it would be clear. 
Currently I have around £4500 to clear across a credit card and 2 mail order accounts, I have cleared more than half of what was shown on my credit report on application. 
I am due to complete early March 2021 and will probably need until then to clear what I have remaining. I just wondered what evidence Halifax are likely to request when the condition seems to allow me until the day of completion to repay my credit. Obviously my credit report may take months to update, so come the time will a simple screenshot of the live balances suffice? I have spoken briefly about it with my solicitor who doesn't seem to think its an issue and will simply ask me for the evidence at the time if completion if halifax request it. 
Just wondered if someone could tell me the type of evidence they'd normally request. 

The solicitor is meant to ask for evidence that you have the funds to clear credit that you are saying you will clear. You are declaring that you will clear it within 30 days of completion 

haras_n0sirrah

xx26xx10xx95 said:

Hi, 3 months worth of bank statements show £250 (July), £300 (Aug) and £200 (Sept) of gambling transactions. In Sept £120 (in 6x£20 separate transactions) were made in 1 day and 2 days later £80 (in 4x£20 separate transactions) were made in 1 day. Would this ring alarm bells?

There are some lenders who dont tend to need bank statements so I would probably look more in that direction.
With gambling if it is disposable income then that is one thing. If it is causing bouncing direct debits it is likely to raise questions with whoever looks at it 

BertieN

Hi and thank you for providing advice.

Per my earlier post on a different thread, I had an offer with Accord but I now need to change property as the old one has been withdrawn due to broken chain. The new property is actually lower in value so won't affect my affordability. Both are new built from reputable builders. Will it just be a case of conducting a new valuation or am I looking at a brand new application (1st took 2 months!!) with new credit checks, etc. 

haras_n0sirrah

BertieN said:

Hi and thank you for providing advice.

Per my earlier post on a different thread, I had an offer with Accord but I now need to change property as the old one has been withdrawn due to broken chain. The new property is actually lower in value so won't affect my affordability. Both are new built from reputable builders. Will it just be a case of conducting a new valuation or am I looking at a brand new application (1st took 2 months!!) with new credit checks, etc. 

Some lenders you can just change property, others you have to start again. I am not too sure where accord sits on this as have never had this come up on an accord application 

xx26xx10xx95

haras_n0sirrah said:

xx26xx10xx95 said:

Hi, 3 months worth of bank statements show £250 (July), £300 (Aug) and £200 (Sept) of gambling transactions. In Sept £120 (in 6x£20 separate transactions) were made in 1 day and 2 days later £80 (in 4x£20 separate transactions) were made in 1 day. Would this ring alarm bells?

There are some lenders who dont tend to need bank statements so I would probably look more in that direction.
With gambling if it is disposable income then that is one thing. If it is causing bouncing direct debits it is likely to raise questions with whoever looks at it 

Thanks, we've sent them off to the lender this weekend. It's disposable. He has never had any DD's bounce or missed payments. Good credit rating and only has 1 credit commitment in his car finance. 

keljnr

Hi haras,
We are due to remortgage, do the lenders go off last year's earnings? I only ask as 7 months ago my income increased. Will the bank's take this into account? 

I am self employed.
Many thanks.