Mortgage broker - ask me anything

K_S

@logon94 Based on what you've said, I don't see any reason why Aldermore would decline. They will take sal+ share of np. Having said that, I still don't understand why you wouldn't be able to borrow what you need from a mainstream lender that will consider sal+share of np, like HSBC or Coventry, etc.

Being a new build, there could be other relevant factors that mean you can't use a mainstream lender.

Or perhaps you are term-limited due to age and so need the higher affordability that Aldermore offers to make it fit.

logon94

@K_S thank you. You have been a great help 

I am 28 so this adds to the confusion to why my broker decided on Aldermore. Oh well, I guess I can move to a mainstream lender when our fixed term is up.

Thanks again.

BV88

Hi, Would any brokers on here know which of the mainstream lenders offer mortgage where part of the income is in foreign currency (USD) and it is not discounted in the borrowing multiple? UK resident but approx 60% of salary is paid in USD.

Many thanks 

salduck

Hi
at what stage should I expect to see a hard search from Barclays? And when do they book valuations? Any idea on timescales? Broker says all is fine, no documentation requested etc but nothing appearing??? 

K_S

salduck said:

Hi
at what stage should I expect to see a hard search from Barclays? And when do they book valuations? Any idea on timescales? Broker says all is fine, no documentation requested etc but nothing appearing??? 

@salduck I wouldn't worry too much about when the hard-search shows on your file as it's not always consistent. Through brokers, Barclays does a hard-footprint credit search at the DIP stage.

Valuations are booked at initial assessment, usually a couple of days after submission of the full application.

Lil10

Hi,
I am looking for some advice please. 

My partner recently racked up quite a lot of debt without me knowing, some going into arrears and also a few have defaulted. They have all been paid bar one loan now which we will be chipping away at.

We own our home but really need a bigger house. He is the main earner but obviously has now messed up his credit file. Mine is brilliant. I am guessing moving is now going to be off the cards for a while with his report. 

Is there anything we can do to improve it and how long do you think we should wait before looking into moving?

Thank you for reading x

dlk2021

Hi,

I am looking to hopefully buy with my partner who has a perfect credit history, not a single negative marker. I, however, have a CCJ of £600 (from January 2019 - satisfied October 2019), 1 default of £80 (from October 2016 - paid), 2 defaults from the same company totalling £580 (from June 2018 - paid), and another default of £160 (from January 2020 - paid). Basically, I owe nothing on any of the above accounts, so my total debt is £0. I have not missed a payment on anything for 30 months. 

We have a deposit of around £60,000 and are looking to buy a house in the range of £160,000- max £200,000. 

Would we stand a chance of getting a mortgage with ‘normal’ rates? And would we have any high street lenders available to us due to a relatively large deposit?

Thank you.

homeless9

Hi, (Topic: Adding my Help To Buy loan to my mortgage)

- 2 years into my mortgage.
- 5 year term.
- Help To Buy loan which I'll need to pay interest on starting in 3 years time. This is approx £35,000 based on my valuation of the house.

I'd like to get the Help To Buy loan added to my mortgage ASAP. House prices are going up which increases what I have to pay back, also interest rates are going up. Although I may end up with a worse interest rate than my current term if I remortgage now, I think that would at least be negated by the interest rate going up in future.

Charges for ending my current term early: There is a '5% charge on the balance owed on the day I redeem it'. I assume this means that I pay a 5% fee on whatever I owe within the 5 year term. I think this will be at worst ~£500, which isn't too bad.

I phoned my lender to see if I could get a rough idea of whether I could add the ~£35,000 to my mortgage and all they said to me was that I needed to gets a RICS surveyor to value my house and then get back to them. The problem with this is if I get the valuation done now and then go back to my lender and they say they cannot lend me the money then I'd have forked out a good chunk of money to get the valuation done for nothing as it obviously expires after a few months.

Maybe I should have again emphasised that I needed a rough idea if I'd likely be able to borrow the ~£35,000 extra before going about getting the valuation done this early into my mortgage term/only 2 years out from getting the HTB loan.

I am actually earning less now than I was when I took out the mortgage just 2 years ago as a small side business of mine ended. This hasn't caused me any issues with paying my bills etc. I made £15,000 from investments over the past 2 years, so can make a £10,000 overpayment on my mortgage which will help towards borrowing the extra money. I am employed and work a 30 hour week, but could easily work a 35 hour week if that's what needs to be done to borrow the extra money.

Sorry for the long post....

I am just after some advice on what to do and if there is anything I haven't mentioned that I should consider. Should I just contact a mortgage advisor and get them to run through my details on their systems to see if in theory any lenders would help me out with this? Do you guys think it's a good idea to get the HTB loan added to my mortgage ASAP? Should I contact my current lender again to see if they can give me a rough idea of whether they can help?

K_S

Lil10 said:

Hi,
I am looking for some advice please. 

My partner recently racked up quite a lot of debt without me knowing, some going into arrears and also a few have defaulted. They have all been paid bar one loan now which we will be chipping away at.

We own our home but really need a bigger house. He is the main earner but obviously has now messed up his credit file. Mine is brilliant. I am guessing moving is now going to be off the cards for a while with his report. 

Is there anything we can do to improve it and how long do you think we should wait before looking into moving?

Thank you for reading x

@lil10 Quick thoughts -

- To improve your credit history, it's primarily about making sure it's squeaky clean going forward.

- I wouldn't automatically assume that you can't move anytime soon. As long as you aren't looking at high-LTV, there are plenty of specialist lenders that will consider applicants with defaults, even where unsatisfied. To illustrate what I'm referring to, have a look at the product range for one of the specialist lenders in that space.
https://www.pepper.money/intermediary/residential-mortgage-products/

-  If you're only interested in mainstream lenders, with multiple defaults on the credit-file, then at mid/low LTV you probably need at least 2+ years of clean credit history to stand a chance. This is just a very very very general observation so please only take it in that vein.

K_S

dlk2021 said:

Hi,

I am looking to hopefully buy with my partner who has a perfect credit history, not a single negative marker. I, however, have a CCJ of £600 (from January 2019 - satisfied October 2019), 1 default of £80 (from October 2016 - paid), 2 defaults from the same company totalling £580 (from June 2018 - paid), and another default of £160 (from January 2020 - paid). Basically, I owe nothing on any of the above accounts, so my total debt is £0. I have not missed a payment on anything for 30 months. 

We have a deposit of around £60,000 and are looking to buy a house in the range of £160,000- max £200,000. 

Would we stand a chance of getting a mortgage with ‘normal’ rates? And would we have any high street lenders available to us due to a relatively large deposit?

Thank you.

@dlk2021 So it's 4 defaults with the latest 2+ years old and 1 CCJ 3+ years old, all satisfied and a clean credit history for 2+ years. Looking to buy at 60-70% LTV.

I can't speak for the outcome of your specific case as there may be more relevant info in the background and will also depend on what's actually in your Experian and Equifax reports. But very very generally speaking, with the above profile, I would not expect you to pass lender "credit-scoring" with high-street lenders. The easiest way to check would be to do a couple of soft-footprint DIPs with high-street lenders and see what they return. A positive DIP is not a guarantee of lending but it's definitely a hugely encouraging sign if it passes.

You might still be able to access close to mainstream / mainstream-ish rates with smaller building societies that don't 'credit-score' but that will depend on the details.