Mortgage broker - ask me anything

MSN2220

Hello,
Please could you share which lenders accept being in overdraft each month. This is for shared ownership 95%. 

Many thanks! 

Suseka97

haras_n0sirrah said:

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?

No, not really - we just thought it was going to be straightforward with porting the mortgage, we do have an ERP if we go, but it'll only be around £1k if we did.   The truth is I had no idea we would have to jump through so many hoops.  Also knowing that the LTV would be quite low, again I imagined we'd have little to no problems.  I feel now we are stuck on this hamster wheel until we can speak to the mortgage consultant and the appointment is booked for 20th October.  If at that point I get any sense that this is going to be a drawn out and protracted affair I'm quite prepared to sign up with a mortgage broker and go to the market, but one guy we spoke with suggested we'd only get £70k and our mortgage if ported would be £106k.   I'm not happy with them doing a hard search if they are already on the fence - but I guess that's unavoidable. I'm just holding out hope that when a mortgage consultant looks at this properly, rather than the a customer services bod who is simply punching numbers into a machine, then sense will prevail. 

It would have helped if, when it was first declined and then sent to the underwriter, they would have explained what the problem was.  Then I'd know what I'm dealing with - but all I got was an email with the DIP accepted and general blurb about what comes next.  I did go back to the original customer services bod who was dealing with this and asked if he could enlighten me as to what had transpired, but he didn't appear to know either.

As I've said, if things go pear-shaped I'll be looking for a broker   and cursing the fact I will have wasted x number of weeks in waiting for NW to sort their act out.  I'll also be sending in a formal complaint about their time-wasting.  Why offer the DIP in the first place, if there was some key issue that needed resolving - am right pee'd off.

haras_n0sirrah

MSN2220 said:

Hello,
Please could you share which lenders accept being in overdraft each month. This is for shared ownership 95%. 

Many thanks! 

This is my area - I am a shared ownership mortgage specialist
Most lenders are ok being in overdraft, if going over your overdraft limit it is more of an issue

blueorange117

haras_n0sirrah said:

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)

Thanks so much for the speedy reply - really reassuring to hear on the face of it you think no issues. 

granville14

haras_n0sirrah said:

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

Thank you for this information - Where are you based? Can you recommend a broker in the West Yorkshire area that deals with bad credit history at all?

Mrcsmrs

Have to pipe up here and say that we contacted Haras after she’d provided some advice on another thread and we are both in awe of her speedy and reliable service. She’s been absolutely brilliant helping us with a pretty complex situation and if anyone here is needing a broker we wouldn’t hesitate to recommend her. She’s utterly amazeballs. Thank you Haras! 😊

haras_n0sirrah

Mrcsmrs said:

Have to pipe up here and say that we contacted Haras after she’d provided some advice on another thread and we are both in awe of her speedy and reliable service. She’s been absolutely brilliant helping us with a pretty complex situation and if anyone here is needing a broker we wouldn’t hesitate to recommend her. She’s utterly amazeballs. Thank you Haras! 😊

No problem at all N. Happy we are getting things sorted for you

Squeaky9

Mrcsmrs said:

Have to pipe up here and say that we contacted Haras after she’d provided some advice on another thread and we are both in awe of her speedy and reliable service. She’s been absolutely brilliant helping us with a pretty complex situation and if anyone here is needing a broker we wouldn’t hesitate to recommend her. She’s utterly amazeballs. Thank you Haras! 😊

Ditto, we’ve moved further in our mortgage application with haras in a week than our previous application had moved in 7 weeks! She’s also saved us a tonne of money and more importantly (for me), stress. I’m so relieved things are now looking up and we might actually get this house. So, so grateful. 😀😌

trackboy

Hi,
I am currently in secure job on railway earning well over 50k. I have recently started a 2nd job working from home. I will be getting my first pay cheque from my 2nd job by end of October. 

I have seen a property that I like and have made offer hoping to be accepted. My question is during the times like now would it be possible to get mortgage using both my job. Are there any Lenders that will accept me with 10% deposit. 

haras_n0sirrah

trackboy said:

Hi,
I am currently in secure job on railway earning well over 50k. I have recently started a 2nd job working from home. I will be getting my first pay cheque from my 2nd job by end of October. 

I have seen a property that I like and have made offer hoping to be accepted. My question is during the times like now would it be possible to get mortgage using both my job. Are there any Lenders that will accept me with 10% deposit. 

Generally you will need 6 months in a second job before lenders will include it. How much do you need to borrow? Would it fit affordability on just the first job? There is a lender with 15% deposit who may include a second job with less than 6 months however it will be subject to a plausibility check (are the jobs in similar fields, are the hours in each job sustainable etc)