Mortgage broker - ask me anything

Bakerman1989

Hi!

Just want to check what you think my chances of getting my application approved are and if I am correct to worry? 

Applying with my wife to Halifax for a 95% LTV mortgage. The Product Code we have been recommended is: FDT258.  My main concern is around two historic accounts which have late payments / arrears, and whether this will be an issue.

Both accounts are with utility companies - British Gas and United Utilities - and relate to my university house.  The British Gas account was brought up to date the next month (so shows 1 in July 2017 on Equifax report; nothing reported through Experian), whereas the United Utilities Account was settled after 2 months (shows 2 in Jan 2018 on Equifax, again nothing on Experian).  Both accounts are showing as satisfied and were closed at the start of 2018 (BG in Jan / UU in Feb). The amount in arrears were small: £70 & £200.

Other than above, both mine and my wife's credit history is OK, we have a few years of paying / managing small amounts of debt (e.g. rent, car loan, credit cards, etc.), and we are comfortable RE. affordability with the mortgage.

Our broker seems to think all should be fine and once our application is accepted / mortgage offer is made then we are good to go, but I am just a little concerned that our application will be accepted and then come to underwriting time or exchange & completion it'll be reviewed and rejected.

K_S

@Bakerman1989 Based on the limited info in your post, if you get past the Halifax (soft-check) DIP stage, you should be fine. I wouldn't expect a couple of late payments more than 3 years old to cause any issues beyond that point.

If it fails credit-scoring at the DIP then there's no harm done, your broker will look at the next best lender.

Bakerman1989 said:

Hi!

Just want to check what you think my chances of getting my application approved are and if I am correct to worry? 

Applying with my wife to Halifax for a 95% LTV mortgage. The Product Code we have been recommended is: FDT258.  My main concern is around two historic accounts which have late payments / arrears, and whether this will be an issue.

Both accounts are with utility companies - British Gas and United Utilities - and relate to my university house.  The British Gas account was brought up to date the next month (so shows 1 in July 2017 on Equifax report; nothing reported through Experian), whereas the United Utilities Account was settled after 2 months (shows 2 in Jan 2018 on Equifax, again nothing on Experian).  Both accounts are showing as satisfied and were closed at the start of 2018 (BG in Jan / UU in Feb). The amount in arrears were small: £70 & £200.

Other than above, both mine and my wife's credit history is OK, we have a few years of paying / managing small amounts of debt (e.g. rent, car loan, credit cards, etc.), and we are comfortable RE. affordability with the mortgage.

Our broker seems to think all should be fine and once our application is accepted / mortgage offer is made then we are good to go, but I am just a little concerned that our application will be accepted and then come to underwriting time or exchange & completion it'll be reviewed and rejected.

Bakerman1989

K_S said:

@Bakerman1989 Based on the limited info in your post, if you get past the Halifax (soft-check) DIP stage, you should be fine. I wouldn't expect a couple of late payments more than 3 years old to cause any issues beyond that point.

If it fails credit-scoring at the DIP then there's no harm done, your broker will look at the next best lender.

Thanks very much K_S - fingers crossed for credit scoring!

silvercar

Moneysimples said:

Sorry ps: The new lender cant reduce the mortgage borrowing amount and keep the original deal, so if any changes are made - so does the rates like applying all over again basically - there is literally no way around this?

Why not? Ask them if they will consider.

Did you go through a broker for this? If so, the broker should have been aware that you couldn't increase the amount with HTB. Not sure if your solicitor would be expected to know.

Moneysimples

silvercar said:

Moneysimples said:

Sorry ps: The new lender cant reduce the mortgage borrowing amount and keep the original deal, so if any changes are made - so does the rates like applying all over again basically - there is literally no way around this?

Why not? Ask them if they will consider.

Did you go through a broker for this? If so, the broker should have been aware that you couldn't increase the amount with HTB. Not sure if your solicitor would be expected to know.

Been on the phone to the new lender - because it was through a broker they cant extend/cant make any changes towards a new offer without also changing the interest rate etc...

Broker was the one that told me itd be ok to add it onto the borrowing amount

silvercar

Moneysimples said:

silvercar said:

Moneysimples said:

Sorry ps: The new lender cant reduce the mortgage borrowing amount and keep the original deal, so if any changes are made - so does the rates like applying all over again basically - there is literally no way around this?

Why not? Ask them if they will consider.

Did you go through a broker for this? If so, the broker should have been aware that you couldn't increase the amount with HTB. Not sure if your solicitor would be expected to know.

Been on the phone to the new lender - because it was through a broker they cant extend/cant make any changes towards a new offer without also changing the interest rate etc...

Broker was the one that told me itd be ok to add it onto the borrowing amount

It doesn't make sense that you get worse terms because it is through a broker, I would expect that the broker needs to request the changes rather than you because brokers go through different channels. What does your broker say? Can your broker request the change.

Maybe a broker can advise on here, but I would expect that a broker should know that you can't add to a borrowing amount when you have HTB. If this is correct then your broker would be liable for any losses you incur as a result.

Moneysimples

silvercar said:

Moneysimples said:

silvercar said:

Moneysimples said:

Sorry ps: The new lender cant reduce the mortgage borrowing amount and keep the original deal, so if any changes are made - so does the rates like applying all over again basically - there is literally no way around this?

Why not? Ask them if they will consider.

Did you go through a broker for this? If so, the broker should have been aware that you couldn't increase the amount with HTB. Not sure if your solicitor would be expected to know.

Been on the phone to the new lender - because it was through a broker they cant extend/cant make any changes towards a new offer without also changing the interest rate etc...

Broker was the one that told me itd be ok to add it onto the borrowing amount

It doesn't make sense that you get worse terms because it is through a broker, I would expect that the broker needs to request the changes rather than you because brokers go through different channels. What does your broker say? Can your broker request the change.

Maybe a broker can advise on here, but I would expect that a broker should know that you can't add to a borrowing amount when you have HTB. If this is correct then your broker would be liable for any losses you incur as a result.

Interesting you say this re the broker as I really do query why its taken so long either way - I first contacted him re this process May last year, he missed out on an original deal I wanted which saw me then accepting an offer £100 more in monthly repayments. It got passed to my Solicitors in August and here I am in January and its still not complete. The solicitors have admitted to me that they caused a delay of around a month as they werent familiur with H2B and didnt chase them...

Ive asked what the new offer rate would take my payments upto if I accept this and its £250 more a month.

aussie_in_wales

I currently have a mortgage in two parts, as I ported my existing mortgage when I bought my new house just over 5 years ago to avoid the early repayment fees and added on the extra needed.

My fix ends next year. Do I need to stay with the same lender as the mortgage is split into two parts or am I able to re-mortgage with a new lender if they have a better deal at the time?

K_S

@aussie_in_wales You can remortgage (change lenders) to a new lender but it'll have to be for both parts together, so with the new lender (with the vast majority of lenders) you end up with one single mortgage part.

aussie_in_wales said:

I currently have a mortgage in two parts, as I ported my existing mortgage when I bought my new house just over 5 years ago to avoid the early repayment fees and added on the extra needed.

My fix ends next year. Do I need to stay with the same lender as the mortgage is split into two parts or am I able to re-mortgage with a new lender if they have a better deal at the time?

aussie_in_wales

K_S said:

@aussie_in_wales You can remortgage (change lenders) to a new lender but it'll have to be for both parts together, so with the new lender (with the vast majority of lenders) you end up with one single mortgage part.

aussie_in_wales said:

I currently have a mortgage in two parts, as I ported my existing mortgage when I bought my new house just over 5 years ago to avoid the early repayment fees and added on the extra needed.

My fix ends next year. Do I need to stay with the same lender as the mortgage is split into two parts or am I able to re-mortgage with a new lender if they have a better deal at the time?

Thank you very much for your help