Mortgage broker - ask me anything

CH156

Hi everyone, I wonder if I can ask the opinion of the brokers on here please. We had a DIP with the Halifax, and reserved our house followed by the full mortgage application. I have a setteled 2k default from 2018, and between me and my partner we earn 70400, with 15% deposit (from equity in home at the moment). So we were looking to borrow £220k, as deposit was £40k. I full disclosed my loan and car finance which payments equal around 900pm. But now the halifax has declined us on affordability and number of unsecured debt. Is there any hope elsewhere?

K_S

@ch516 If the Halifax FMA got declined on affordability and debt after a positive DIP, it sounds like the DIP was filled in incorrectly or not as per criteria.

Based on the limited info in your post - 70k income, looking to borrow 220k (slightly above 3x income) at 85% LTV, 900pm debt payments and one 5yr old satisfied default, you *should* have mainstream options.

CH156 said:

Hi everyone, I wonder if I can ask the opinion of the brokers on here please. We had a DIP with the Halifax, and reserved our house followed by the full mortgage application. I have a setteled 2k default from 2018, and between me and my partner we earn 70400, with 15% deposit (from equity in home at the moment). So we were looking to borrow £220k, as deposit was £40k. I full disclosed my loan and car finance which payments equal around 900pm. But now the halifax has declined us on affordability and number of unsecured debt. Is there any hope elsewhere?

rally8765

Nationwide. If the broker receives a message from the lender after the application and valuation saying:

“The maximum amount we can lend your client over the current term is £xxx.xxx.xx”, which is slightly lower than the requested amount, does it mean they are prepared to offer the amount they suggested provided that I cover the remainder with my deposit? And if so, how long after the broker asks them to go ahead with the revised amount do they tend to issue an offer? 

Thanks

CH156

K_S said:

@ch516 If the Halifax FMA got declined on affordability and debt after a positive DIP, it sounds like the DIP was filled in incorrectly or not as per criteria.

Based on the limited info in your post - 70k income, looking to borrow 220k (slightly above 3x income) at 85% LTV, 900pm debt payments and one 5yr old satisfied default, you *should* have mainstream options.

CH156 said:

Hi everyone, I wonder if I can ask the opinion of the brokers on here please. We had a DIP with the Halifax, and reserved our house followed by the full mortgage application. I have a setteled 2k default from 2018, and between me and my partner we earn 70400, with 15% deposit (from equity in home at the moment). So we were looking to borrow £220k, as deposit was £40k. I full disclosed my loan and car finance which payments equal around 900pm. But now the halifax has declined us on affordability and number of unsecured debt. Is there any hope elsewhere?

Thanks K_S the broker said it was 'worth a try' with halifax. But now doesnt seem to hopefull about a Plan B. I disclosed absolutely everything. Sent CMF docs three times to be checked, i was worried about how much my loan was so made sure I covered all bases. He did seem suprised, but I dont think they went back and questioned the decline. Are there any other companies that may entertain the situation I have? Also my husbands file is clean as can be, he has no debt, but has a credit card. However if he spends anything on it, its clear by payday. I just feel like its never going to happen for people like me more so feel i have let down my husband. Halifax obviously dont think I am a good candidate. We are currently with Santander but they wont give us enough to cover the new house. Although we have never missed a payment with them in 16 yrs.

K_S

CH156 said:

K_S said:

@ch516 If the Halifax FMA got declined on affordability and debt after a positive DIP, it sounds like the DIP was filled in incorrectly or not as per criteria.

Based on the limited info in your post - 70k income, looking to borrow 220k (slightly above 3x income) at 85% LTV, 900pm debt payments and one 5yr old satisfied default, you *should* have mainstream options.

CH156 said:

Hi everyone, I wonder if I can ask the opinion of the brokers on here please. We had a DIP with the Halifax, and reserved our house followed by the full mortgage application. I have a setteled 2k default from 2018, and between me and my partner we earn 70400, with 15% deposit (from equity in home at the moment). So we were looking to borrow £220k, as deposit was £40k. I full disclosed my loan and car finance which payments equal around 900pm. But now the halifax has declined us on affordability and number of unsecured debt. Is there any hope elsewhere?

But now doesnt seem to hopefull about a Plan B. I disclosed absolutely everything. Sent CMF docs three times to be checked, i was worried about how much my loan was so made sure I covered all bases. He did seem suprised, but I dont think they went back and questioned the decline. Are there any other companies that may entertain the situation I have? Also my husbands file is clean as can be, he has no debt, but has a credit card. However if he spends anything on it, its clear by payday. I just feel like its never going to happen for people like me more so feel i have let down my husband. Halifax obviously dont think I am a good candidate. We are currently with Santander but they wont give us enough to cover the new house. Although we have never missed a payment with them in 16 yrs.

@ch156 Based on the info in your post (70k income, 85% LTV, 220k loan, 900pm background debt, no credit issues other than a 5yr old satisfied default) it doesn't make any sense to me that you don't have mainstream or mainstream-ish options to borrow 220k but there's probably something in the details (kind of income, dependents, non-loan commitments, high cc balances even if cleared monthly, etc.) that's not captured in your post.

I wouldn't give up just yet. If this is one of the volume brokers then I would suggest getting a second opinion from a good experienced broker. You can ask friends, family or colleagues for recommendations. Do make sure to tell them about the Halifax decline and share a copy of the CMF credit reports.

K_S

rally8765 said:

Nationwide. If the broker receives a message from the lender after the application and valuation saying:

“The maximum amount we can lend your client over the current term is £xxx.xxx.xx”, which is slightly lower than the requested amount, does it mean they are prepared to offer the amount they suggested provided that I cover the remainder with my deposit? And if so, how long after the broker asks them to go ahead with the revised amount do they tend to issue an offer? 

Thanks

@rally8765 Assuming that you're talking about a full application:

First question - yes

Second q - a couple of working days at most

CH156

K_S said:

CH156 said:

K_S said:

@ch516 If the Halifax FMA got declined on affordability and debt after a positive DIP, it sounds like the DIP was filled in incorrectly or not as per criteria.

Based on the limited info in your post - 70k income, looking to borrow 220k (slightly above 3x income) at 85% LTV, 900pm debt payments and one 5yr old satisfied default, you *should* have mainstream options.

CH156 said:

Hi everyone, I wonder if I can ask the opinion of the brokers on here please. We had a DIP with the Halifax, and reserved our house followed by the full mortgage application. I have a setteled 2k default from 2018, and between me and my partner we earn 70400, with 15% deposit (from equity in home at the moment). So we were looking to borrow £220k, as deposit was £40k. I full disclosed my loan and car finance which payments equal around 900pm. But now the halifax has declined us on affordability and number of unsecured debt. Is there any hope elsewhere?

But now doesnt seem to hopefull about a Plan B. I disclosed absolutely everything. Sent CMF docs three times to be checked, i was worried about how much my loan was so made sure I covered all bases. He did seem suprised, but I dont think they went back and questioned the decline. Are there any other companies that may entertain the situation I have? Also my husbands file is clean as can be, he has no debt, but has a credit card. However if he spends anything on it, its clear by payday. I just feel like its never going to happen for people like me more so feel i have let down my husband. Halifax obviously dont think I am a good candidate. We are currently with Santander but they wont give us enough to cover the new house. Although we have never missed a payment with them in 16 yrs.

@ch156 Based on the info in your post (70k income, 85% LTV, 220k loan, 900pm background debt, no credit issues other than a 5yr old satisfied default) it doesn't make any sense to me that you don't have mainstream or mainstream-ish options to borrow 220k but there's probably something in the details that's not captured in your post.

I wouldn't give up just yet. If this is one of the volume brokers then I would suggest getting a second opinion from a good experienced broker. You can ask friends, family or colleagues for recommendations. Do make sure to tell them about the Halifax decline and share a copy of the CMF credit reports.

Thanks again, yes there must be something lurking, and perhaps its something I'm not aware of that could make a huge difference but I live in hope. Definitely looking at a second opinion. Grateful for your comments on the matter @K_S

Penguin_

Would me having no credit card debt, loans, overdrafts or car finance negate 5 old defaults which are being repaid each month? As in would it be possible to look at mainstream lenders or would I still be looking at using a bad credit history mortgage company? 

I earn £37k, my other half £34k & we would have about £45,000 deposit.

rally8765

K_S said:

rally8765 said:

Nationwide. If the broker receives a message from the lender after the application and valuation saying:

“The maximum amount we can lend your client over the current term is £xxx.xxx.xx”, which is slightly lower than the requested amount, does it mean they are prepared to offer the amount they suggested provided that I cover the remainder with my deposit? And if so, how long after the broker asks them to go ahead with the revised amount do they tend to issue an offer? 

Thanks

@rally8765 Assuming that you're talking about a full application:

First question - yes

Second q - a couple of working days at most

Yep it’s a full application and they have carried out the valuation of the property already too. 

Thanks for the comment, I’ll try not worry too much now and wait for good news over the coming two days hopefully. 

K_S

Penguin_ said:

Would me having no credit card debt, loans, overdrafts or car finance negate 5 old defaults which are being repaid each month? As in would it be possible to look at mainstream lenders or would I still be looking at using a bad credit history mortgage company? 

I earn £37k, my other half £34k & we would have about £45,000 deposit.

@penguin_ Not having any background debt or significant outgoings would definitely help with affordability but is very unlikely to negate the adverse impact of 5 unsatisfied defaults on your credit report.

I can't speak for your specific case but generally speaking I would be very surprised if an applicant managed to pass a mainstream lender DIP with that profile.

I wouldn't lump all adverse/specialist lenders into one single bracket. Every adverse lender offers products for different tiers (eg: someone with a 18 month old default may fall into a more expensive product tier than someone with a 3+ year old default). So the same lender might offer a 60% LTV purchase rate of 6% for the 'best' tier and 9% for the 'worst'. I hope that makes sense. 

Very very generally speaking, with defaults on your file, the lower the LTV, the better your options.