Mortgage broker - ask me anything

Sarahf

K_S said:

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

Hi, My current situation is I am looking to remortgage to get additional borrowing to clear debts of around £25k, existing mortgage is just under £60k. I tried additional borrowing with my current lender (halifax) and was declined. The current value of property is around £260k so I don't understand when we have £200k equity in the house they said no. My question is if I go to a different lender, I.e. Nationwide, could I take out a brand new mortgage for £85k. Only ever missed 2 payments, Jan and Feb 21 due to lockdown but paid these when hubby got Swiss grant. For info, I work ft, secure job £29k a year, hubby is a driving instructor, profits Apr 21 £8k but April 22 £15k as things have got back to pre covid. Sorry for the long post i have 2 dependant children aswell. 

@sarahf Yes, you could move to a different lender (it would be a debt-consolidation remortgage) though you may need to pay ERC to Halifax if you're currently in a fixed period.

If you are looking at moving lenders, I would recommend getting in touch with a broker who can look at the whole scenario and advise you accordingly. The MSE guide here can help you find one, including fee-free options.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

When they look at affordability etc, say I wanted to take out over 10 years if they said no to that would they then say but if you did it over 12 that would be ok?  

@sarahf The short answer to your question is yes. Their job is to get you what you need and if a longer term will make that possible, then that's what they will suggest. And tbh you can always take out a longer term and then overpay to achieve the same interest savings as a shorter term.
https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

So update, Nationwide said no even though both mine & hubby's credit rating is good and only looking for 35% ltv. Am waiting on L & C broker to come back to me but am worried that they won't be able to help either...Will a broker be able to help find a suitable mortgage 

@sarahf You need to understand what the reason is for Nationwide declining you at low LTV. What is the reason that they gave? Have you looked at your Experian and Equifax credit reports (ignore the credit score number).

If the missed payments in Jan-21 and Feb-21 were for your Halifax mortgage account, then that could be the reason as lenders can take missed payments on mortgages much more seriously than if it were on a credit card. If you haven't already, make sure your broker knows about it and has a copy of both your credit reports.

@K_s I have told my broker and sent them copies of both credit reports. They have said they can't go any further until they know why Nationwide said no (when I asked I just got a computer says no response, hoping if I ask again tomorrow and state that my broker needs it they will be more helpful) both credit reports are good or excellent and the mortgage payments are the only ones ever missed on anything.

Thank you for all your advice so far.

K_S

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

Hi, My current situation is I am looking to remortgage to get additional borrowing to clear debts of around £25k, existing mortgage is just under £60k. I tried additional borrowing with my current lender (halifax) and was declined. The current value of property is around £260k so I don't understand when we have £200k equity in the house they said no. My question is if I go to a different lender, I.e. Nationwide, could I take out a brand new mortgage for £85k. Only ever missed 2 payments, Jan and Feb 21 due to lockdown but paid these when hubby got Swiss grant. For info, I work ft, secure job £29k a year, hubby is a driving instructor, profits Apr 21 £8k but April 22 £15k as things have got back to pre covid. Sorry for the long post i have 2 dependant children aswell. 

@sarahf Yes, you could move to a different lender (it would be a debt-consolidation remortgage) though you may need to pay ERC to Halifax if you're currently in a fixed period.

If you are looking at moving lenders, I would recommend getting in touch with a broker who can look at the whole scenario and advise you accordingly. The MSE guide here can help you find one, including fee-free options.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

When they look at affordability etc, say I wanted to take out over 10 years if they said no to that would they then say but if you did it over 12 that would be ok?  

@sarahf The short answer to your question is yes. Their job is to get you what you need and if a longer term will make that possible, then that's what they will suggest. And tbh you can always take out a longer term and then overpay to achieve the same interest savings as a shorter term.
https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

So update, Nationwide said no even though both mine & hubby's credit rating is good and only looking for 35% ltv. Am waiting on L & C broker to come back to me but am worried that they won't be able to help either...Will a broker be able to help find a suitable mortgage 

@sarahf You need to understand what the reason is for Nationwide declining you at low LTV. What is the reason that they gave? Have you looked at your Experian and Equifax credit reports (ignore the credit score number).

If the missed payments in Jan-21 and Feb-21 were for your Halifax mortgage account, then that could be the reason as lenders can take missed payments on mortgages much more seriously than if it were on a credit card. If you haven't already, make sure your broker knows about it and has a copy of both your credit reports.

@K_s I have told my broker and sent them copies of both credit reports. They have said they can't go any further until they know why Nationwide said no (when I asked I just got a computer says no response, hoping if I ask again tomorrow and state that my broker needs it they will be more helpful) both credit reports are good or excellent and the mortgage payments are the only ones ever missed on anything.

Thank you for all your advice so far.

@sarahf Going by what you've said, it's almost certainly a 'credit-score' fail. (this is lender specific credit scoring, nothing to do with your Experian/Equifax credit score) and the reason for that is likely to be the mortgage missed payment from last year. As I mentioned, lender take missed payments on mortgages much more seriously that they would for unsecured products.

If they have a copy of your latest credit reports and you've mentioned the mortgage missed payments, then I don't really know why they need more information. If you don't get any further info from Nationwide, just mention to your broker that it failed on credit-score.

doglover34

K_S said:

doglover34 said:

Hey this is for my mum, who is just about to re-mortgage.. told her I'd ask the question as she isn't good with computers. Bear with me ... 

So she applied for a mortgage with a broker and got a DIP, and application went in last week - she can track her progress online with the bank BUT she's been putting in her details and they are not recognised. She contacted the bank who advised her that the DOB on the application was different to what she was telling them so the DOB when she logs in isnt recognised and to contact the broker.  The broker said that the DOB is correct and asked her to check her Credit file for a hard search as if it was wrong it would appear.  We've just done this and the hard search is on there.

So 1,... who is wrong here? we cant log in and track this now as the bank wouldnt tell us what dob was entered and will this hold up her application?? 

TIA

@doglover34 NatWest?

Yes it is. I've just got my offer and didnt have any issues but shes stressing now...

K_S

doglover34 said:

K_S said:

doglover34 said:

Hey this is for my mum, who is just about to re-mortgage.. told her I'd ask the question as she isn't good with computers. Bear with me ... 

So she applied for a mortgage with a broker and got a DIP, and application went in last week - she can track her progress online with the bank BUT she's been putting in her details and they are not recognised. She contacted the bank who advised her that the DOB on the application was different to what she was telling them so the DOB when she logs in isnt recognised and to contact the broker.  The broker said that the DOB is correct and asked her to check her Credit file for a hard search as if it was wrong it would appear.  We've just done this and the hard search is on there.

So 1,... who is wrong here? we cant log in and track this now as the bank wouldnt tell us what dob was entered and will this hold up her application?? 

TIA

@doglover34 NatWest?

Yes it is. I've just got my offer and didnt have any issues but shes stressing now...

@doglover34 I've no idea what the lender is saying about the birth-date but should be nothing to worry about, this is a very common question from clients that I've placed with NatWest.

The NatWest tracker usually starts showing only once the initial assessment has happened and that's currently taking 4-5 working days post application.

If it's still not showing after that time, then it's worth looking into.

silvercar

I posted previously about a Barclays mortgage offer that we had asked to extend and been told that they would only extend by 2 weeks. It is a 5 yr fix. Today a new offer comes through that is now a 4.5 yr fix but extended for another 6 months. We are slightly confused as to how this has happened as we didn’t apply for a new mortgage just an extension of the old one and certainly weren’t expecting another 6 months. The rate is the same. Not to look a gift horse in the mouth, but is there anything to be concerned about?

K_S

silvercar said:

I posted previously about a Barclays mortgage offer that we had asked to extend and been told that they would only extend by 2 weeks. It is a 5 yr fix. Today a new offer comes through that is now a 4.5 yr fix but extended for another 6 months. We are slightly confused as to how this has happened as we didn’t apply for a new mortgage just an extension of the old one and certainly weren’t expecting another 6 months. The rate is the same. Not to look a gift horse in the mouth, but is there anything to be concerned about?

@silvercar I haven't myself come across this before but it perhaps might be similar to the error described in this thread here https://forums.moneysavingexpert.com/discussion/6365591/help-needed-please-problem-with-mortgage-offer

Personally, I would look this gift horse in the mouth and get the broker to confirm that the new expiry date is indeed correct. What you don't want is for it to get close to completion and then for Barclays to say that the offer was already expired or the valuation is out of date, etc. 

BigBoss

K_S said:

BigBoss said:

K_S said:

@bigboss Hard to say, depends on what your report looks like, reason for the Halifax DIP decline, your requirements and the rest of the background details. Your broker would be best placed to answer that question.

Halifax uses Experian, so any change on the Equifax report is unlikely to have a material impact either way. 

What did the Halifax decline say? Did it give an LTV cap or a straight decline?

Straight decline for “total credit score” being below the approval level. I mentioned Equifax only because they’ve responded quickest - the other agencies have also received a dispute. 

Interestingly, Equifax modified my file immediately and my "score" increased dramatically with them. Now just waiting for the other CRAs to rectify the bank's mistake.

BigBoss said:

• 2/3 credit referencing agencies are showing that 'AR' lasted until July 2022, which is one year incorrect. Experian is showing that it was correctly cleared at this time. I am I the process of correcting those two incorrect showings.

@Bigboss Apologies, I went by what you said earlier that your Experian report was showing it correctly.

If the Halifax decline was based on an incorrect Experian report, then there's perhaps a chance for it to change once your Experian report is fixed.

Yeah my bad, that's because I later found out that Experian show adverse issues in their report slightly differently than the other two CRAs. The negative information is listed in account details rather than in the colour coded key/legend like the others. Can't say how quick Experian can/will fix it, but hopefully it'll be soon. Will my broker be able to help with this side of things at all?

Would adding notices of correction to my Experian/Transunion accounts be worthwhile until they have been changed to show the correct circumstances?

Thanks again for all of your responses.

IAMIAM

When you remortgage from a different lender to Barclays/Natwest/Skipton. These three. And you potentially just want a small additional borrowing (say its £146k redemption and you just want to round it up to £150k and get the difference following payment to previous lender). Is this allowed and the loan is just one big pot, rather than a separate further loan advance like HSBC/First Direct do. Is this the case for any amount, whether £4k or £14k. 

Also, do Barclays and Natwest not allow you to apply direct, it sees Barclays you have to book an appointment looking online?

K_S

BigBoss said:

K_S said:

BigBoss said:

K_S said:

@bigboss Hard to say, depends on what your report looks like, reason for the Halifax DIP decline, your requirements and the rest of the background details. Your broker would be best placed to answer that question.

Halifax uses Experian, so any change on the Equifax report is unlikely to have a material impact either way. 

What did the Halifax decline say? Did it give an LTV cap or a straight decline?

Straight decline for “total credit score” being below the approval level. I mentioned Equifax only because they’ve responded quickest - the other agencies have also received a dispute. 

Interestingly, Equifax modified my file immediately and my "score" increased dramatically with them. Now just waiting for the other CRAs to rectify the bank's mistake.

BigBoss said:

• 2/3 credit referencing agencies are showing that 'AR' lasted until July 2022, which is one year incorrect. Experian is showing that it was correctly cleared at this time. I am I the process of correcting those two incorrect showings.

@Bigboss Apologies, I went by what you said earlier that your Experian report was showing it correctly.

If the Halifax decline was based on an incorrect Experian report, then there's perhaps a chance for it to change once your Experian report is fixed.

Yeah my bad, that's because I later found out that Experian show adverse issues in their report slightly differently than the other two CRAs. The negative information is listed in account details rather than in the colour coded key/legend like the others. Can't say how quick Experian can/will fix it, but hopefully it'll be soon. Will my broker be able to help with this side of things at all?

Would adding notices of correction to my Experian/Transunion accounts be worthwhile until they have been changed to show the correct circumstances?

Thanks again for all of your responses.

@bigboss Generally speaking, I don't think a notice of correction will help in this scenario.

Your broker may be able to guide you on what needs to be corrected but with mainstream lenders they are unlikely to be able to do anything to override errors on the report. I hope that makes sense.

K_S

IAMIAM said:

When you remortgage from a different lender to Barclays/Natwest/Skipton. These three. And you potentially just want a small additional borrowing (say its £146k redemption and you just want to round it up to £150k and get the difference following payment to previous lender). Is this allowed and the loan is just one big pot, rather than a separate further loan advance like HSBC/First Direct do. Is this the case for any amount, whether £4k or £14k.
I don't see anything particularly complicated and you should end up with one single loan part of 150k.

Also, do Barclays and Natwest not allow you to apply direct, it sees Barclays you have to book an appointment looking online? Sorry, no idea how it works direct.

@iamiam Comments inline above.