Mortgage broker - ask me anything

K_S

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

asbing

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

 

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

K_S

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

asbing

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

I didn't mention to my advisor that i am only 4 years clear, from my own research i knew Halifax requirements were 6yrs so i have no idea why he decided to proceed with Halifax, at the beginning i was told by him that as long as you are clear then no issues, but that depends on the lender. 

Do you recommend any building societies that would fit my criteria?

asbing

asbing said:

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

I didn't mention to my advisor that i am only 4 years clear, from my own research i knew Halifax requirements were 6yrs so i have no idea why he decided to proceed with Halifax, at the beginning i was told by him that as long as you are clear then no issues, but that depends on the lender. 

Do you recommend any building societies that would fit my criteria?

i did mention*

Trying82

I'm currently awaiting a decision from Mansfield BS on my mortgage application, I feel as though it's going to be declined due to affordability.

The property price is £176000, I'm putting down a 5% deposit. I have no debts apart from two credit cards, which I have to clear. But I have two student loans, which I pay £250 per month.

I earn £42k, single person and no dependants. I have defaults from 2018/2019. No late or missed payments since.

Will there be any other options, should I be declined. I'd be gutted to loose the house I'm purchasing. 

K_S

@trying82 Is there any particular reason to feel that way?

Usually with the smaller building societies like Mansfield, I run the case in detail past them prior to a DIP. If they say ok, proceed to DIP then I submit that. The DIP is usually a manual process where the application is pretty much pre-underwritten. If there are any issues with affordability or risk appetite it simply wouldn't go past that stage. As a broker, I'd have also double checked anything that could potentially be an issue later on.

So unless there's some undisclosed information/commitment that has come up at full underwriting, it's very unlikely that my client would get to full application without being ok on affordability.

If unfortunately this doesn't go through, you should still have specialist lender options given that your defaults are 4+ years old.

Trying82 said:

I'm currently awaiting a decision from Mansfield BS on my mortgage application, I feel as though it's going to be declined due to affordability.

The property price is £176000, I'm putting down a 5% deposit. I have no debts apart from two credit cards, which I have to clear. But I have two student loans, which I pay £250 per month.

I earn £42k, single person and no dependants. I have defaults from 2018/2019. No late or missed payments since.

Will there be any other options, should I be declined. I'd be gutted to loose the house I'm purchasing. 

kingstreet

asbing said:

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

K_S said:

asbing said:

K_S said:

asbing said:

Hi, hoping someone could help me regarding getting a mortgage and credit score, does anyone know what credit score is required? i am currently on 850 on experian and a broker said 900 is required? is this the case? is it best if i wait till my score increase to proceed with the application, halifax rejected our first application as my score was "low" but my partners is above 900

@asbing I can't speak for what your broker has said but lenders do not look at credit scores, they only care about what's actually in the reports.

Halifax checks Experian so if one of my clients failed a Halifax DIP, I would ask them (ALL applicants) to get me a copy of their Experian credit report or CheckMyFile credit report, try and identify what the issue might be and then speak to the client about next steps, alternate lenders, etc.

If they haven't already, ask your broker to review your report and give you their opinion on what specifically in the report (or some aspect of your application) is causing an issue, whether there are any other mainstream lenders that will lend, etc 

This was his response which also involved my bankruptcy which was registered in 2018.

"I’m afraid that the first agreement declined. I tried to get it overturned but it was a credit score decline and they show no leniency. Your score is not high although there is no actual adverse. They later confirmed that they want a bankruptcy to be registered over 6 years ago, regardless of when you were discharged.. so that would also have been an issue

What I would suggest at this stage is we try the attached deal with Nationwide.. they are OK with bankruptcy within 3 years"

I was advised to increase my score before apply with Nationwide? could it be due to halifax bankruptcy terms and not credit score?

@asbing Ah ok, that makes sense, it's the BR that's probably causing the Halifax 'credit-score' (it's the lender's credit-scoring, nothing related to your Experian or Equifax score) decline. The age of the BR feeds into the lender's credit scoring, if that makes sense. Nothing that the broker can do to overturn that.

While Nationwide (and other mainstream lenders like HSBC, Skipton, etc.) criteria does say that they will consider BR discharged 3+ years ago, that doesn't mean that all such cases will pass the lender 'credit-scoring' at DIP stage, especially if its high LTV. Still worth a shot though, especially for low LTV apps that are otherwise strong.

If none of the mainstream lenders work, then there are smaller building societies offering mainstream/mainstream-ish rates that will consider and don't do an automated credit-scoring. If that fails as well then you'd move on to smaller specialist lenders who will definitely lend but at a much higher rate.

Hope you're able to find a solution that works for you, good luck!

I didn't mention to my advisor that i am only 4 years clear, from my own research i knew Halifax requirements were 6yrs so i have no idea why he decided to proceed with Halifax, at the beginning i was told by him that as long as you are clear then no issues, but that depends on the lender. 

Do you recommend any building societies that would fit my criteria?

Halifax uses six years from registration of bankruptcy not six years from discharge so the earlier date is the most important. However, even if you fit the criteria you may still not pass the credit score.

Trying82

K_S said:

@trying82 Is there any particular reason to feel that way?

Usually with the smaller building societies like Mansfield, I run the case in detail past them prior to a DIP. If they say ok, proceed to DIP then I submit that. The DIP is usually a manual process where the application is pretty much pre-underwritten. If there are any issues with affordability or risk appetite it simply wouldn't go past that stage. As a broker, I'd have also double checked anything that could potentially be an issue later on.

So unless there's some undisclosed information/commitment that has come up at full underwriting, it's very unlikely that my client would get to full application without being ok on affordability.

If unfortunately this doesn't go through, you should still have specialist lender options given that your defaults are 4+ years old.

Trying82 said:

I'm currently awaiting a decision from Mansfield BS on my mortgage application, I feel as though it's going to be declined due to affordability.

The property price is £176000, I'm putting down a 5% deposit. I have no debts apart from two credit cards, which I have to clear. But I have two student loans, which I pay £250 per month.

I earn £42k, single person and no dependants. I have defaults from 2018/2019. No late or missed payments since.

Will there be any other options, should I be declined. I'd be gutted to loose the house I'm purchasing. 

Thank you for your response, I've been feeling really anxious about the entire process. I had my offer today (verbally), although it's slightly lower than what I originally expected - it's doable, I'm very relieved.

debtfreeohyeah

Hi team,

looking for some advice…

my wife and I have a mortgage AIP with Skipton via a broker.

We have a 55% deposit so are in a fortunate position. We’re considering putting an offer in on a property but there’s a few things to double check before we do (there’s some confusion with the EA as to whether it’s share of freehold or leasehold and we’d need to do work to the property).

My question is, during this process, I happen to have been offered a new role which is a dream company/position for me, an incredible move for me. But the role would involve a pay cut, I’m currently on £80K and the current job offer is at £73K. I’m in a fortunate position where I can take a hit month to month for this role fortunately but am looking to reduce the gap as much as possible so that we can borrow a bit more. I may be able to get the prospective new employer up to £75k. Once I know what the final offer on the table is, we will of course notify the broker and take their advice and get them to speak to the lender. But whether it’s £73k or £75k and they have to agree a new agreement - is this all a bit pointless because would they need me to have started that new job and be at least 3 months in with payslips/pass probation?

would taking this new role at whatever salary delay our search by a few months anyway do you think?