Mortgage broker - ask me anything

kingstreet

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.

Imagine a spectrum.

Bad credit data at one end, good credit data at the other. Half way along is no credit data. A well-managed credit card with Cap One or Vanquis would help to balance the negative far more than your current "no data" position. Make sure it is repaid in full each month by direct debit.

As K_S says, time elapsed and loan to value are the biggest determinants.

userdlk22

Hi,

I’m looking for some advice about my chances of obtaining a mortgage. I have a satisfied CCJ of £600 (issued Jan 2019, satisfied October 2019), 1 default of £500 (January 2019), and 1 default of £90 (December 2018). I have not missed a single payment since January 2019, and do not currently owe any money.

My partner has a perfect credit score (999) and has never missed a payment.

We have a deposit of around £65,000 and are looking at properties around the £200,000 mark.

Could you please let me know what our chances are of getting a mortgage with me on it? Would the interest rates be incredibly high?

Any help would be much appreciated - this is all so stressful!

Thank you.

K_S

userdlk22 said:

Hi,

I’m looking for some advice about my chances of obtaining a mortgage. I have a satisfied CCJ of £600 (issued Jan 2019, satisfied October 2019), 1 default of £500 (January 2019), and 1 default of £90 (December 2018). I have not missed a single payment since January 2019, and do not currently owe any money.

My partner has a perfect credit score (999) and has never missed a payment.

We have a deposit of around £65,000 and are looking at properties around the £200,000 mark.

Could you please let me know what our chances are of getting a mortgage with me on it? Would the interest rates be incredibly high?

Any help would be much appreciated - this is all so stressful!

Thank you.

@userdlk22 What options you have will largely be determined by what's in your credit report.

The positives - all the defaults and CCJs are satisfied and 4+ years old (its the reg date that matters), your credit history is clean for 4+ years, your LTV is sub 75%. 

Based on just the info in your post, your chances of getting a mortgage are 100%.

Passing a mainstream lender DIP would be 50-50 I think but definitely worth a try.

The next option for mainstream-ish rates would be smaller lenders/building-societies that don't credit score. These lenders will take a view on the case and use some common sense to decide whether to consider or not.

Lastly, if the above fails as well then you have the specialist adverse lender (the likes of Precise, Kensington, etc.). They usually offer different Tiers for the products (depending on the age and number of adverse on your report, you would fall into the light adverse tiers) I wouldn't class their rates as "terribly high". For example, the lowest 5yr fix rate that Precise might offer for someone in your scenario is around 5.5% so about a percent or so higher than the average 75% LTV mainstream rate on offer.

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 (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.

Hi again K_S, so we now have an update and aDIP from NatWest. Slightly higher rate but we can afford that. What makes NatWest so different from Halifax. Think I am nervous of the same thing happening again now. Waiting for my broker to call me back so I can express my concerns to him and also make sure we are on the same page in terms of what info went into the DIP incase it did have any errors - gif forbid . Thanks in advance 

K_S

CH156 said:

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 (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.

Hi again K_S, so we now have an update and aDIP from NatWest. Slightly higher rate but we can afford that. What makes NatWest so different from Halifax. Think I am nervous of the same thing happening again now. Waiting for my broker to call me back so I can express my concerns to him and also make sure we are on the same page in terms of what info went into the DIP incase it did have any errors - gif forbid . Thanks in advance 

@CH156 That's great to hear!

You are absolutely right to be cautious before submitting another full application and incurring another new hard check. I'm sure your broker has done this but at the very least he should have taken the time to understand why Halifax declined the application at full underwriting and what kind of carry-over (if any) it has to the NatWest app.

Do keep two things in mind though -
- that it is entirely possible that NatWest declines the app at manual subjective review based on the details of the default. Unfortunately beyond getting a positive DIP there's not much the broker can do about that at this stage.
- NatWest has a history of declining applications at full application where the applicant has had historic credit issues with any RBS group company on which they hold information within their systems. This doesn't get picked up at DIP. One of my clients applications got declined for a 15 year old default that he had had on his NatWest student overdraft while at university! He didn't even know about it.

Fingers crossed it goes well.

CH156

K_S said:

CH156 said:

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 (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.

Hi again K_S, so we now have an update and aDIP from NatWest. Slightly higher rate but we can afford that. What makes NatWest so different from Halifax. Think I am nervous of the same thing happening again now. Waiting for my broker to call me back so I can express my concerns to him and also make sure we are on the same page in terms of what info went into the DIP incase it did have any errors - gif forbid . Thanks in advance 

@CH156 That's great to hear!

You are absolutely right to be cautious before submitting another full application and incurring another new hard check. I'm sure your broker has done this but at the very least he should have taken the time to understand why Halifax declined the application at full underwriting and what kind of carry-over (if any) it has to the NatWest app.

Do keep two things in mind though -
- that it is entirely possible that NatWest declines the app at manual subjective review based on the details of the default. Unfortunately beyond getting a positive DIP there's not much the broker can do about that at this stage.
- NatWest has a history of declining applications at full application where the applicant has had historic credit issues with any RBS group company on which they hold information within their systems. This doesn't get picked up at DIP. One of my clients applications got declined for a 15 year old default that he had had on his NatWest student overdraft while at university! He didn't even know about it.

Fingers crossed it goes well.

Thanks again for being so responsive K_S I actually bank with RBS and Have never had any adverse with them so should be all good there. Still super nervous, and I am eager to speak to him as I was half expecting him to come back with a more adverse lender rather than a bank like NW

First_Time_Buyer000

My house purchase fell through due to the conveyancing searches returning an issue. I had also received a formal offer from Nationwide that is valid for 6 months for the property. We are now on the search for a different property. Is it possible to port the existing interest rate for a different property? Not sure if Nationwide usually allows this. Thanks. 

kingstreet

First_Time_Buyer000 said:

My house purchase fell through due to the conveyancing searches returning an issue. I had also received a formal offer from Nationwide that is valid for 6 months for the property. We are now on the search for a different property. Is it possible to port the existing interest rate for a different property? Not sure if Nationwide usually allows this. Thanks. 

No. It's a new application at the current/prevailing rates.

First_Time_Buyer000

Further to my earlier question, is it better to cancel the mortgage offer with Nationwide? Or find a new property and then ask for the mortgage offer to be amended? Thanks in advance.

kingstreet

First_Time_Buyer000 said:

Further to my earlier question, is it better to cancel the mortgage offer with Nationwide? Or find a new property and then ask for the mortgage offer to be amended? Thanks in advance.

As I said. It's a new app at a new rate. The offer can't be amended for a change of property.