Mortgage broker - ask me anything

manama2022

Hi there, 

Very nervous FTB here. I am waiting on a final decision any day now from Nationwide for a joint application for the Helping Hands scheme. We were initially referred before DIP as my partner has some missed payments over a year ago. The DIP was accepted when we changed from 95-90% LTV. Nationwide have only asked for one payslip each, proof of deposit and my bank statements not hers. Is there any reason for this? My credit reports are squeaky clean but I do occasionally use my arranged overdraft. MB says this should not be an issue, is this so?

Wracking my brain all day and night as to why they could say no.Many Thanks. 

K_S

manama2022 said:

Hi there, 

Very nervous FTB here. I am waiting on a final decision any day now from Nationwide for a joint application for the Helping Hands scheme. We were initially referred before DIP as my partner has some missed payments over a year ago. The DIP was accepted when we changed from 95-90% LTV. Nationwide have only asked for one payslip each, proof of deposit and my bank statements not hers. Is there any reason for this? My credit reports are squeaky clean but I do occasionally use my arranged overdraft. MB says this should not be an issue, is this so?

Wracking my brain all day and night as to why they could say no.Many Thanks. 

@manama2022 Nothing to read into re the documents requested. There's an awful amount that lenders can automatically verify with all the information that they have access to and where they can't do that adequately, that's when they ask for documents from applicants.

Occasional use of an arranged OD should not make any material difference on its own.

kingstreet

Latest payslip - verify basic income only. No OT/bonus etc.

No bank statement for her - open banking.

POD - standard.

Occasional use of a small authorised overdraft not normally a problem.

manama2022

K_S said:

manama2022 said:

Hi there, 

Very nervous FTB here. I am waiting on a final decision any day now from Nationwide for a joint application for the Helping Hands scheme. We were initially referred before DIP as my partner has some missed payments over a year ago. The DIP was accepted when we changed from 95-90% LTV. Nationwide have only asked for one payslip each, proof of deposit and my bank statements not hers. Is there any reason for this? My credit reports are squeaky clean but I do occasionally use my arranged overdraft. MB says this should not be an issue, is this so?

Wracking my brain all day and night as to why they could say no.Many Thanks. 

@manama2022 Nothing to read into re the documents requested. There's an awful amount that lenders can automatically verify with all the information that they have access to and where they can't do that adequately, that's when they ask for documents from applicants.

Occasional use of an arranged OD should not make any material difference on its own.

Thank you so much that all makes sense. 

Have you any knowledge re. Nationwides Helping Hands scheme specifically? Seen mixed reviews online, some saying it is basically impossible to be accepted on as it is only available to a minute number of applicants. I figured we have already hit most of the criteria to get this far along? Especially considering the DIP was initially referred....

K_S

manama2022 said:

K_S said:

manama2022 said:

Hi there, 

Very nervous FTB here. I am waiting on a final decision any day now from Nationwide for a joint application for the Helping Hands scheme. We were initially referred before DIP as my partner has some missed payments over a year ago. The DIP was accepted when we changed from 95-90% LTV. Nationwide have only asked for one payslip each, proof of deposit and my bank statements not hers. Is there any reason for this? My credit reports are squeaky clean but I do occasionally use my arranged overdraft. MB says this should not be an issue, is this so?

Wracking my brain all day and night as to why they could say no.Many Thanks. 

@manama2022 Nothing to read into re the documents requested. There's an awful amount that lenders can automatically verify with all the information that they have access to and where they can't do that adequately, that's when they ask for documents from applicants.

Occasional use of an arranged OD should not make any material difference on its own.

Thank you so much that all makes sense. 

Have you any knowledge re. Nationwides Helping Hands scheme specifically? Seen mixed reviews online, some saying it is basically impossible to be accepted on as it is only available to a minute number of applicants. I figured we have already hit most of the criteria to get this far along? Especially considering the DIP was initially referred....

@manama2022 I have arranged HH products for clients and while the credit-scoring threshold and background-debt limits can indeed be hard to meet, it's a great product for compatible applicants.

I can't comment on the outcome of your specific case as I know nothing about it, but generally speaking you've got this far, had the DIP referred (which means an actual person has looked it over) and are using a mortgage broker so that's all positive.

Hope the offer comes through soon, good luck!

wubbzy

thank you for this opportunity before i go ahead and apply.

I am 45 and earned £38000 last year - 2 long standing jobs, first time buyer
my husband is 54 and earned £19500 - long standing job, first time buyer

we have lived in local authority accommodation for 25 years, expect 55% discount and the house value around £140000
we have no further deposit
we can easily afford the mortgage
we don't want to wait any longer due to age and fear of right to buy ending.

bad bits
I have 2 x 5 year old CCJs
several missed payments - over 2 years ago
I pay all my defaults with step change
my credit is improving I have 2 credit building CC which i use and pay in full, have done for 2 years

My husband
several missed payments and 2 companies default him still every month even though he also pays everything through step change (we have never missed these payments to stepchange)
the debts add up to a lot and it will take us 7 years to pay even at £500 per month, my husbands portion is substantially more than mine
his credit is poor and not improving

!. is it even worth me trying to buy ?
2. should i / can i do it alone ?

IAMIAM

Recommendations on good offset lenders? 
First Direct seems to be interest only with £50k salary criteria.
I cannot seem to see anything for Barclays or Scottish Widdows or YBS - but I presume they are repayment only and have a salary criteria also?

K_S

wubbzy said:

thank you for this opportunity before i go ahead and apply.

I am 45 and earned £38000 last year - 2 long standing jobs, first time buyer
my husband is 54 and earned £19500 - long standing job, first time buyer

we have lived in local authority accommodation for 25 years, expect 55% discount and the house value around £140000
we have no further deposit
we can easily afford the mortgage
we don't want to wait any longer due to age and fear of right to buy ending.

bad bits
I have 2 x 5 year old CCJs
several missed payments - over 2 years ago
I pay all my defaults with step change
my credit is improving I have 2 credit building CC which i use and pay in full, have done for 2 years

My husband
several missed payments and 2 companies default him still every month even though he also pays everything through step change (we have never missed these payments to stepchange)
the debts add up to a lot and it will take us 7 years to pay even at £500 per month, my husbands portion is substantially more than mine
his credit is poor and not improving

!. is it even worth me trying to buy ?
2. should i / can i do it alone ?

@wubbzy Based on the limited info in your post, you're looking to borrow 63k at less than 50% LTV using an RTB mortgage and earn more than enough to support that level of borrowing.

Your adverse credit history and ongoing DMPs with Stepchange with definitely take mainstream lenders off the table, but you may still have options.

The size of the background debt (40k+?) may be an issue, but it'll depend on the details and the rest of the case.

You're unlikely to be able to do it alone as usually for RTB mortgages lenders will require that the applicants match the names on the S125 offer letter from the council.

I would recommend getting in touch with an experienced mortgage broker to get a realistic idea of your chances. Good luck!

K_S

IAMIAM said:

Recommendations on good offset lenders? 
First Direct seems to be interest only with £50k salary criteria.
I cannot seem to see anything for Barclays or Scottish Widdows or YBS - but I presume they are repayment only and have a salary criteria also?

@IAMIAM I don't really have any preference, whatever's the most cost-effective for the client at that point and available to them.

No idea about FD & YBS as they're both direct-only lenders, but from the lenders available to intermediaries, afaik it's only Barclays, SW and Accord that offers I/O on offset products.

22225

Dear broker, please help... we have a deposit of 560k and are borrowing or hoping to borrow 318k. Both of us are employed. The price we got accepted on for the house is 886k. We just found out that Nationwide our mortgage provider has done a desktop valuation on it and has undervalued it (they say it's only worth 850k.) However they say its with the underwriters who may still decide to give us the loan???? I dont really understand this. How does that work exactly??

My second worry is that the deposit is partially made up from equity from our house sale. We have just exchanged on our present home and complete in 3 weeks. Then we are moving into my in laws until the new house deal is done. But it's just occurred to me... will this change of address harm my mortgage application with Nationwide??? I am v stressed now. We agreed our sale of our current buyers in January. We didnt want to lose them, so once we had an offer accepted on a house and a DIP we decided to get on with exchanging. Was this a terrible idea?? I'm worried wevecsort of ruined our lives a bit... sorry for hyperbole but please could a broker advise. Our own broker isnt v communicative. Thank you x