Mortgage broker - ask me anything

K_S

al2410 said:

Hi I was hoping for some advice. Me and my partner are first time buyers we are looking at a house 175000, we have a 10% deposit. Combined salary of 55k. I have two late payments logged on a store card in the last 12 months due to carelessness and 5/6 late payments 2+ years ago. My partner has no recent credit history but a few late payments 2+ years ago. We have some credit card debt but can pay this all off. What are are chances for getting a mortgage. We are so worried. 

@al2410 The late payments older than 2 years aren't likely to have a huge impact but the recent late payments may mean that you fail lender "credit-scoring" with some mainstream lenders.

Depending on what exactly your Experian and Equifax credit reports look like, unless they're very recent, I wouldn't expect the 2 late payments to completely stop you from getting a mainstream mortgage at 90% LTV.

K_S

Deliveredpizza said:

Do you know how long Virgin is presently taking for remortgage applications?

Application submitted at the end of March 2022, valuation carried out a couple of weeks later.
Both company directors with a good income. 
No increase in the amount being borrowed, so it is a like-for-like remortgage swap.
Excellent credit record, no bad debt, only borrowing 15% on a valuation of £2mil.
There have been some queries which we've responded to immediately. 
Our mortgage advisor says this timescale is usual, but it's now been over 10 weeks.
Is this what you'd expect? I will be grateful for any words of wisdom. Thanks

@Deliveredpizza Unfortunately, Virgin-Clydesdale is second only to Nationwide in abysmal service-levels currently. 

They're taking up to 10 working days to pick up responses to queries so each time they raise a query, it adds a sizeable delay to the timelines.

Plus, with 100% ltd.co.Director income, as far as underwriting is concerned, that's the income type that gets the most scrutiny in any case.

al2410

Hi,

Thanks for your response this is really helpful, the most recent late payment was just in March2022 - it is a  next store card, and very careless from me, and the one in August2021. I am hoping to get the late payment in Aug2021 removed. 

K_S

Paulnudge9 said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Hi,

I am applying for the Right to Buy. We have the offer from the housing and we've hit a stumbling block in terms of the mortgage. My mum (73) is the named tenant and she's the only name on the tenancy. I'm 43 and its a joint application. This morning, I've spoke to my bank (Halifax) who have advised that because its a joint application, the mortgage would also need to be a joint application too and it would need to be paid by my mothers 80th birthday, so less than 7 years. Do you know of any lenders who don't have this age limit? Where we could get a term of 15, 20, 25 years?

any advice would be great

@paulnudge9 You'll need a lender that lends on RTB, lends on your property type and ignores the age of applicants who aren't contributing to the income. Sorry I don't know who that might be off of the top of my head.

Also, normally the lender will require that the names on the S125 match the applicants on the mortgage.

al2410

K_S said:

al2410 said:

Hi I was hoping for some advice. Me and my partner are first time buyers we are looking at a house 175000, we have a 10% deposit. Combined salary of 55k. I have two late payments logged on a store card in the last 12 months due to carelessness and 5/6 late payments 2+ years ago. My partner has no recent credit history but a few late payments 2+ years ago. We have some credit card debt but can pay this all off. What are are chances for getting a mortgage. We are so worried. 

@al2410 The late payments older than 2 years aren't likely to have a huge impact but the recent late payments may mean that you fail lender "credit-scoring" with some mainstream lenders.

Depending on what exactly your Experian and Equifax credit reports look like, unless they're very recent, I wouldn't expect the 2 late payments to completely stop you from getting a mainstream mortgage at 90% LTV.

Thanks for your response this is really helpful, the most recent late payment was just in March2022 - it is a  next store card, and very careless from me, and the one in August2021 was my last car payment due to direct debt issue. I am hoping to get the late payment in Aug2021 removed. Would there be a specific Mortgage lender you would recommend  ?

K_S

al2410 said:

K_S said:

al2410 said:

Hi I was hoping for some advice. Me and my partner are first time buyers we are looking at a house 175000, we have a 10% deposit. Combined salary of 55k. I have two late payments logged on a store card in the last 12 months due to carelessness and 5/6 late payments 2+ years ago. My partner has no recent credit history but a few late payments 2+ years ago. We have some credit card debt but can pay this all off. What are are chances for getting a mortgage. We are so worried. 

@al2410 The late payments older than 2 years aren't likely to have a huge impact but the recent late payments may mean that you fail lender "credit-scoring" with some mainstream lenders.

Depending on what exactly your Experian and Equifax credit reports look like, unless they're very recent, I wouldn't expect the 2 late payments to completely stop you from getting a mainstream mortgage at 90% LTV.

Thanks for your response this is really helpful, the most recent late payment was just in March2022 - it is a  next store card, and very careless from me, and the one in August2021 was my last car payment due to direct debt issue. I am hoping to get the late payment in Aug2021 removed. Would there be a specific Mortgage lender you would recommend  ?

@al2410 Sorry there simply isn't enough information about the requirements, applicants' circumstances, contents of the credit files, etc. to be able to name any lenders.

moz86

Hi, I have googled this question in many different ways and can't ever find a response that fits the scenario...

I have 2 mortgages.  One fixed rate ends October 2023 1.94% and the other fixed rate ends October 2024 1.84%.  They are 75k and 248k respectively.  

I'm thinking to hedge against interest rate rises, when the first fix is up, borrow say 240k on top of the 75k to then almost pay off the other fix (FD so allowed unlimited overpayments as long as I don't pay it off completely).  Basically fixing the whole thing together at say 3% as it may be by then.

It'd mean having £315k + £248k mortages at the same time.  Would FD let me do that, borrow money off them to pay them back on another mortgage?  Hopefully that makes sense.  LTV would still be 60%.

Other option is borrow say 90k extra and pay off some of the £248k and make the 2 mortgages about even which would hedge against a rise or fall in interest rate.

K_S

@moz86 I'm not entirely sure what you'd achieve but as long as your income can support a total borrowing of 315k + 248k, you may be able to do what you want.

No idea about FD policies as it's a direct only lender.

moz86

K_S said:

@moz86 I'm not entirely sure what you'd achieve but as long as your income can support a total borrowing of 315k + 248k, you may be able to do what you want.

No idea about FD policies as it's a direct only lender.

Thanks.  It's difficult to explain, but thinking if I fix at say 3% for the whole lot in 2023, it could save me getting stung by say 5-6% in 2024. Hedging against the worst case I suppose by taking a small hit now.  

rdchick

Hello! 

So we were declined from nationwide yesterday, they didn't give us a full reason as to why but the broker seems to think it's probably due to previous adverse history which I guess is fair. 

Backstory is, I had a CCJ, it's just fallen off my file, my rating is now 'very good'. All my payments are completely up to date and all is well. However on my bank statements it has payments to Lowell (this could be what nationwide don't like). I don't have to hand the amount needed to pay them off, however if it was a deal breaker I could potentially ask my brother for a little lend and then pay him back after the sale. 

My partner has a rating of 'good', no real adverse credit other than a couple of late payments in April 2017 due to a mix up when moving properties from the midlands to the south. 

Our broker (well his colleague as our broker is away this week) has done a DIP with Halifax and we were instantly approved (she wanted some good news to go with the decline of nationwide) however.... Halifax was who my CCJ was with originally, so surely they're gonna know?! 

As this all happened late yesterday afternoon she was going to speak to her bosses about whether to proceed or not or try elsewhere. 

Do you have any thoughts on it? I worry that if we go ahead with Halifax we could easily screw ourselves with another hard search and another decline and in turn another few week delay in getting a mortgage at all.

Thanks in advance ❤️