Mortgage broker - ask me anything

Squeaky9

doglover34 said:

Hi
Any idea why Aldermore would hard credit search my husband 3 times and me once?? currently in application stage but his score will drop by 200 points from excellant to poor tomorrow because of this. MA said it might just be their process when underwriting but im not so sure ... its working day 7 today

Does it really drop your score 200 points? I’ve had multiple hard searches in the last few months (long story) and it’s had no significant effect on my score, certainly not dropped it 200 points.  Currently in an application too and have had two hard searches since submitting so assume it’s par for the course. 

blueorange117

Hi there 

In the process of (hopefully) buying somewhere with my partner.

He earns £90k+, perfect credit history. I earn £65k+ and with a bit more of a chequered past. Currently paying £800ish a month back on a loan I have, and have recently (last month) cleared circa 10k credit card debt. I have 1 x late payment for a credit card direct debit from 14 months ago and also two pay day loans, one settled in 2015 and one in 2016. Otherwise, my outgoings are just my half of the mortgage (in my partners name) and household bills etc.

We have around 85% LTV, which includes savings and sale of my partners current property.

I’m just really worried we won’t get a mortgage based on my adverse history. Looking for any advice on whether my past will negatively affect us out of the market and if we should hold off for another year when my loan will be paid off and one of the pay day loans will have fallen off my credit file?

Thanks in advanced. 

doglover34

Squeaky9 said:

doglover34 said:

Hi
Any idea why Aldermore would hard credit search my husband 3 times and me once?? currently in application stage but his score will drop by 200 points from excellant to poor tomorrow because of this. MA said it might just be their process when underwriting but im not so sure ... its working day 7 today

Does it really drop your score 200 points? I’ve had multiple hard searches in the last few months (long story) and it’s had no significant effect on my score, certainly not dropped it 200 points.  Currently in an application too and have had two hard searches since submitting so assume it’s par for the course. 

yeah, it showed me that tomorrow my score would drop because of these 3 hard searches?? im so confused! fingers crossed all is ok?

Suseka97

haras_n0sirrah said:

Suseka97 said:

haras_n0sirrah said:

Suseka97 said:

Firstly, thanks for setting up this thread, I've found it an invaluable read (all 59 pages so far...)

My question is that I have a DIP from my current lender (Nationwide) for my onward purchase.  The DIP was approved after being submitted to an underwriter and I think that's because I had a few loans I'd only recently cleared and so they were still showing on my credit report.   My LTV is/will be 26%.  

I'm now about to contact them to make the full application and on checking my credit file with Transunion/Credit Karma.  I can see that it still shows a Default from 2014, the account was settled in 2016. Before, when Credit Karma was run by Noddle it wasn't there, so it seems to have reappeared.   The account is closed and the status isn't D but says 'currently open' but you can see those D markers against the months from Oct 2014 to July 2016.  There's nothing on Experian and no defaults recorded on Equifax although it shows missed payments in 2014.    

The original default was with Halifax and back in 2016 I complained that they should have defaulted me in 2013, my complaint was upheld and I even got £50 compensation at the time and later on a refund because they say that on investigation they feel that they added interest and charges incorrectly.  I check all the CRAs at that time and could see that Halifax had removed the default marker and as I've said, some 6 years later in 2019 it disappeared.  So I was quite shocked to see it reappear when Noddle became Credit Karma.

Now I'm not sure what to do and a bit worried that this one old default will affect my application.   My partner's credit file (it's a joint application) is fine.  Any advice or thoughts on what I should do, if there's anything I can do that is.

Edit: just to add that I looking to port our existing mortgage (in case that makes any difference).

Was it there prior to aip - if it was and they have seen it you should be fine. You have a large deposit so I wouldn't expect it to be too much of an issue

Thank you for helping... I'm not quite sure what you mean by 'was it prior to aip' though.  We got a decision in principle, after an underwriter's review, but we've only had a soft search carried out.  I'm happy with the fact that the large deposit, which is predominantly our current house equity, will swing things in a positive direction regardless of that old default.  

I am curious as to what they see when doing a hard search vs soft search and if lenders see stuff we don't when looking at our own credit files.  

But can I just add how invaluable your advice is and if I ever need a mortgage adviser in the future... your name is top of the list!

If it was referred to the underwriter on agreement in principle with your loan to value I would bet that it is because they saw the default - they only usually refer due to credit, self employed, 90% product at the moment. If it has already been passed at agreement in principle stage I would expect you are ok
And thank you for the bottom sentence. Very kind. A number of people have messaged me to assist on their mortgage applications which, while not the original reason I did the thread, is certainly welcome.

A quick update on this and I'd appreciate your thoughts.

I called NW to set up the appointment with the mortgage consultant to put the full application through and the customer service assistant asked again a number of questions we answered during the decision in principle call.  He wanted to check whether our financial circumstances had changed, which they have not - and then said he had to redo the DIP as part of the process of arranging the mortgage consultant appointment, which I found odd.  Well low and behold he said that it was coming back with a message saying 'undisclosed credit', so again asked if we had taken out any credit since the last DIP - which we have not.   He went on to say that he would make a note of that and highlight it to the mortgage adviser.  But I'm flummoxed as to why their systems are suggesting there is undisclosed credit.  Absolutely nothing has changed on either of our credit files since the DIP issued at the end of August.

So, I've had another look at all CRA records and Transition (Credit Karma) still has an £85 bill showing for one creditor, which was the last to be cleared a few weeks back (it was a mistake by Barclays Partner Finance), I've also got a live Barclaycard which I pay in full as and when the statement is produced, which obviously shows as an outstanding balance- but much less than before.    On Equifax (Clearscore) it's still showing £795 against an account which was closed 2 months ago (last update Jul 20) and also the current Barclaycard balance and on Experian (MSE Credit Club) it still has 4 accounts which were closed mid-August.  

I realise that CRAs update records at different timescales and when the DIP was referred to the underwriter I had to provide evidence from all our creditors to prove the accounts had been settled, which I did - all bar the £85 one which I can now prove is settled, but that can hardly be it - can it?

When I asked the adviser if he could clarify what it is showing as undisclosed, he wasn't able to clarify.  Any ideas why we keep getting flagged this way?  I would have thought that seeing as an underwriter had approved the DIP., the next step would be straightforward - seem's I'm mistaken with that assumption.

haras_n0sirrah

granville14 said:

Hi... we are 6.5 years post bankruptcy, and 8 years post repossession with approx 10% deposit... is it worth even trying how things are at the minute?? We are desperate to own our own house again... thank you

There is a 10% lender who will consider bankruptcy and repossession over 6 years - whether they would need a 15% deposit at the current time I am not sure but it is within their criteria subject to a senior underwrite. So I would say don't give up hope but there is a possibility you may need 15% if it didn't pass credit check at 90

haras_n0sirrah

Barnes10 said:

Hi all (I’m posting here as the thread seems to be really active)
I'm planning on applying for a mortgage with my partner at some point early next year. I've been working for my current employer for just over two years now, but my contract is coming to an end at the end of the year. I got a new job starting in Novermber, as well as another one, with the provisional start date of January. The problem is the second job is much better paid, but they can't commit to the start date due to coronavirus, and I won't know until December if I'll be able to start in January.

How would me taking the first new job in November and leaving it in January look for potential mortgage providers? Not sure if that'd affect me getting a mortgage in, say, March-April? From what I've read they normally require the last three payslips and at that time I'd be able to provide the payslips relating to the better-paying job. 

I suppose what I'm asking is whether the lenders look at the average length of any previous employment, or, provided that I can provide the payslips, they won't mind me jumping ship twice in a relatively short time? The job provisionally starting in January has no probation period so that shouldn't affect the application, am I right?

Thank you, I’d appreciate any input!

There are lenders who will proceed with a new signed job offer as long as you have a confirmed start date within 3 months of application. You would need a 15% deposit
If you did change jobs it wouldn't make a massive issue to be honest.

haras_n0sirrah

Tinkerbell1981 said:

haras_n0sirrah said:

Tinkerbell1981 said:

Hello
I currently have a joint mortgage with £120'000 remaining. We have only had the mortgage for 16 months so there will be an early repayment charge of approx £4000. I am separating from my boyfriend and we have accepted an offer on our house. I went on Halifax website and calculated how much i could borrow and it came out at £118'000. However upon ringing Halifax they have said i can transfer the mortgage to a new property and avoid the early repayment charge but when i went through everything on the phone with them lending only came out at £91'000. I did have £244 on a very account £740 on a credit card and £551 on another credit card however i did clear these before i spoke with Halifax but they still appear on my credit file until it updates. I have been clear of a DMP for 4 years 1 default in 2017 and 1 missed payment Jan 2019.  . Is the likely cause of the difference in lending the outstanding balances still appearing. I literally have 0 debt now. They said reapply in 30 days.
I need at least £118'000 for the property i want which is £140'000 less a 15% deposit. Thank you.

That is quite a gap from 118 down to 91k. What is your income?

£22' 300 from employment income then £3700 universal credit and £3640 maintenance payments

It might be the universal credit - halifax don't allow universal credit but they do allow tax credits. Other lenders do accept universal credit

haras_n0sirrah

doglover34 said:

Hi
Any idea why Aldermore would hard credit search my husband 3 times and me once?? currently in application stage but his score will drop by 200 points from excellant to poor tomorrow because of this. MA said it might just be their process when underwriting but im not so sure ... its working day 7 today

I wouldn't know I am afraid. I would expect a check on aip, full application and offer.

haras_n0sirrah

blueorange117 said:

Hi there 

In the process of (hopefully) buying somewhere with my partner.

He earns £90k+, perfect credit history. I earn £65k+ and with a bit more of a chequered past. Currently paying £800ish a month back on a loan I have, and have recently (last month) cleared circa 10k credit card debt. I have 1 x late payment for a credit card direct debit from 14 months ago and also two pay day loans, one settled in 2015 and one in 2016. Otherwise, my outgoings are just my half of the mortgage (in my partners name) and household bills etc.

We have around 85% LTV, which includes savings and sale of my partners current property.

I’m just really worried we won’t get a mortgage based on my adverse history. Looking for any advice on whether my past will negatively affect us out of the market and if we should hold off for another year when my loan will be paid off and one of the pay day loans will have fallen off my credit file?

Thanks in advanced. 

At 85% I don't think you will have too many issues with a missed credit card and historic payday loans. I would expect to get this onto the high street (I know some lenders who are ok with payday loans as long as not within the last 12 months and are not habitually used)

haras_n0sirrah

Suseka97 said:

haras_n0sirrah said:

Suseka97 said:

haras_n0sirrah said:

Suseka97 said:

Firstly, thanks for setting up this thread, I've found it an invaluable read (all 59 pages so far...)

My question is that I have a DIP from my current lender (Nationwide) for my onward purchase.  The DIP was approved after being submitted to an underwriter and I think that's because I had a few loans I'd only recently cleared and so they were still showing on my credit report.   My LTV is/will be 26%.  

I'm now about to contact them to make the full application and on checking my credit file with Transunion/Credit Karma.  I can see that it still shows a Default from 2014, the account was settled in 2016. Before, when Credit Karma was run by Noddle it wasn't there, so it seems to have reappeared.   The account is closed and the status isn't D but says 'currently open' but you can see those D markers against the months from Oct 2014 to July 2016.  There's nothing on Experian and no defaults recorded on Equifax although it shows missed payments in 2014.    

The original default was with Halifax and back in 2016 I complained that they should have defaulted me in 2013, my complaint was upheld and I even got £50 compensation at the time and later on a refund because they say that on investigation they feel that they added interest and charges incorrectly.  I check all the CRAs at that time and could see that Halifax had removed the default marker and as I've said, some 6 years later in 2019 it disappeared.  So I was quite shocked to see it reappear when Noddle became Credit Karma.

Now I'm not sure what to do and a bit worried that this one old default will affect my application.   My partner's credit file (it's a joint application) is fine.  Any advice or thoughts on what I should do, if there's anything I can do that is.

Edit: just to add that I looking to port our existing mortgage (in case that makes any difference).

Was it there prior to aip - if it was and they have seen it you should be fine. You have a large deposit so I wouldn't expect it to be too much of an issue

Thank you for helping... I'm not quite sure what you mean by 'was it prior to aip' though.  We got a decision in principle, after an underwriter's review, but we've only had a soft search carried out.  I'm happy with the fact that the large deposit, which is predominantly our current house equity, will swing things in a positive direction regardless of that old default.  

I am curious as to what they see when doing a hard search vs soft search and if lenders see stuff we don't when looking at our own credit files.  

But can I just add how invaluable your advice is and if I ever need a mortgage adviser in the future... your name is top of the list!

If it was referred to the underwriter on agreement in principle with your loan to value I would bet that it is because they saw the default - they only usually refer due to credit, self employed, 90% product at the moment. If it has already been passed at agreement in principle stage I would expect you are ok
And thank you for the bottom sentence. Very kind. A number of people have messaged me to assist on their mortgage applications which, while not the original reason I did the thread, is certainly welcome.

A quick update on this and I'd appreciate your thoughts.

I called NW to set up the appointment with the mortgage consultant to put the full application through and the customer service assistant asked again a number of questions we answered during the decision in principle call.  He wanted to check whether our financial circumstances had changed, which they have not - and then said he had to redo the DIP as part of the process of arranging the mortgage consultant appointment, which I found odd.  Well low and behold he said that it was coming back with a message saying 'undisclosed credit', so again asked if we had taken out any credit since the last DIP - which we have not.   He went on to say that he would make a note of that and highlight it to the mortgage adviser.  But I'm flummoxed as to why their systems are suggesting there is undisclosed credit.  Absolutely nothing has changed on either of our credit files since the DIP issued at the end of August.

So, I've had another look at all CRA records and Transition (Credit Karma) still has an £85 bill showing for one creditor, which was the last to be cleared a few weeks back (it was a mistake by Barclays Partner Finance), I've also got a live Barclaycard which I pay in full as and when the statement is produced, which obviously shows as an outstanding balance- but much less than before.    On Equifax (Clearscore) it's still showing £795 against an account which was closed 2 months ago (last update Jul 20) and also the current Barclaycard balance and on Experian (MSE Credit Club) it still has 4 accounts which were closed mid-August.  

I realise that CRAs update records at different timescales and when the DIP was referred to the underwriter I had to provide evidence from all our creditors to prove the accounts had been settled, which I did - all bar the £85 one which I can now prove is settled, but that can hardly be it - can it?

When I asked the adviser if he could clarify what it is showing as undisclosed, he wasn't able to clarify.  Any ideas why we keep getting flagged this way?  I would have thought that seeing as an underwriter had approved the DIP., the next step would be straightforward - seem's I'm mistaken with that assumption.

This is the reason I always get credit reports as the information on the credit reports and the information that is reality don't always match. Is there a reason you have to use Nationwide?