Mortgage broker - ask me anything

charlieboy82

Ah interesting, thank you both

alfie2632

Looking to buy first property in the future. Got really bad adverse credit at the moment. Got debt relief order ( discharged 3 years 6 month ) 1 marked unsatisfied  CCJ ( although satisfied as part of DRO ) which is  5.5 years old , 3 defaults 5.5 years old and 1 is 4.5 years old ( all of them included in were included dro ) 

Out of interest I applied a few months ago for a DIP with NATIONWIDE. Got rejected as expected. But tried again last week and got accepted. 

Which has now got me wondering. I am I right in prsuming I am being set up to fail?. 90% LTV BTW 

K_S

alfie2632 said:

Looking to buy first property in the future. Got really bad adverse credit at the moment. Got debt relief order ( discharged 3 years 6 month ) 1 marked unsatisfied  CCJ ( although satisfied as part of DRO ) which is  5.5 years old , 3 defaults 5.5 years old and 1 is 4.5 years old ( all of them included in were included dro ) 

Out of interest I applied a few months ago for a DIP with NATIONWIDE. Got rejected as expected. But tried again last week and got accepted. 

Which has now got me wondering. I am I right in prsuming I am being set up to fail?. 90% LTV BTW 

@alfie2632 A DRO being a form of insolvency, a lot of lenders treat it similar to BR. Nationwide will consider applicants who have been discharged for more than 3 years, so in theory you should be eligible for a Nationwide product.

Having said that, with multiple CCJ+defaults on the report, I wouldn't have expected a positive DIP at 90% LTV with Nationwide. However, assuming that you've filled in the DIP form accurately, a positive DIP means you should definitely try Nationwide before moving on to more expensive lenders. An application might still be declined at manual review, but you never know.

alfie2632

K_S said:

alfie2632 said:

Looking to buy first property in the future. Got really bad adverse credit at the moment. Got debt relief order ( discharged 3 years 6 month ) 1 marked unsatisfied  CCJ ( although satisfied as part of DRO ) which is  5.5 years old , 3 defaults 5.5 years old and 1 is 4.5 years old ( all of them included in were included dro ) 

Out of interest I applied a few months ago for a DIP with NATIONWIDE. Got rejected as expected. But tried again last week and got accepted. 

Which has now got me wondering. I am I right in prsuming I am being set up to fail?. 90% LTV BTW 

@alfie2632 A DRO being a form of insolvency, a lot of lenders treat it similar to BR. Nationwide will consider applicants who have been discharged for more than 3 years, so in theory you should be eligible for a Nationwide product.

Having said that, with multiple CCJ+defaults on the report, I wouldn't have expected a positive DIP at 90% LTV with Nationwide. However, assuming that you've filled in the DIP form accurately, a positive DIP means you should definitely try Nationwide before moving on to more expensive lenders. An application might still be declined at manual review, but you never know.

Thanks for reply. My intention was too wait till march 2024 when I'm left with the dro and 1 default on file. Hopefully this will be enough to scrape through manual review. No debt and half decent joint salary 🤞 gets us over the line

Thewannabedebtfree

Hi there, we are looking at taking out a DMP. Approx£26k worth of debt. We have a house with a mortgage with 190k remaining. We are looking at moving in the next few years with money my partner will receive. 

If we were on a DMP, My partner gets money can we still move, without increasing the mortgage?

So effectively getting a more expensive house, with the same mortgage?

thanks a lot 

silvercar

Thewannabedebtfree said:

Hi there, we are looking at taking out a DMP. Approx£26k worth of debt. We have a house with a mortgage with 190k remaining. We are looking at moving in the next few years with money my partner will receive. 

If we were on a DMP, My partner gets money can we still move, without increasing the mortgage?

So effectively getting a more expensive house, with the same mortgage?

thanks a lot 

New home = new mortgage decision. New application, so the lender will be looking at your credit history and outgoings etc

I'm sure a broker will advise what sort of mortgage you could get. A low LTV will help, but a DMP will effect things.

K_S

Thewannabedebtfree said:

Hi there, we are looking at taking out a DMP. Approx£26k worth of debt. We have a house with a mortgage with 190k remaining. We are looking at moving in the next few years with money my partner will receive. 

If we were on a DMP, My partner gets money can we still move, without increasing the mortgage?

So effectively getting a more expensive house, with the same mortgage?

thanks a lot 

@thewannabedebtfree If you are porting the current mortgage on a like for like basis (no additional borrowing or worse LTV) with no changes to terms, and the mortgage is portable, lenders do often manually waive affordability/credit-scoring requirements. So when it’s time to move, speak to your lender to see what approach they take.

edlondon

Hello all

I would really appreciate any thoughts or advice on the likelihood of me being able to secure a mortgage.

I have a few old bad debts as follows:

2 x defaults from July 2018 for £1,507 (they are both actually for the same thing- one from the credit card company and the other from the company it sold the debt too). Satisfied/settled in 2019.

1 x default from April 2018 for £919. satisfied / settled in 2019.

missed payments / arrangement to pay from 2016-18 on a credit card
and then being in a DMP on that card for 5 months, ending in July 2019. Settled.

Since September 2019. completely clear credit rating.

In terms of the mortgage:

I would need 4.5x salary (or 4x minimum)
I do have a 15% deposit.
I have been in a job 4.5 years.


many thanks!

K_S

@edlondon 2/3 satisfied defaults all registered 5+ years ago, clean credit file for 4+ years, looking to borrow at 85% LTV.

I can’t see any obvious reason why you wouldn’t be able to get what you need from a mainstream lender. You might not pass a DIP for every single mainstream lender but there should definitely be a few.

Worst case scenario (if there’s something else relevant in the background missing from your post) you might need to use something like Accord Cascade which will be very slightly more expensive.

Definitely nothing I see there which suggests you may need to go down the specialist/adverse route.

edlondon said:

Hello all

I would really appreciate any thoughts or advice on the likelihood of me being able to secure a mortgage.

I have a few old bad debts as follows:

2 x defaults from July 2018 for £1,507 (they are both actually for the same thing- one from the credit card company and the other from the company it sold the debt too). Satisfied/settled in 2019.

1 x default from April 2018 for £919. satisfied / settled in 2019.

missed payments / arrangement to pay from 2016-18 on a credit card
and then being in a DMP on that card for 5 months, ending in July 2019. Settled.

Since September 2019. completely clear credit rating.

In terms of the mortgage:

I would need 4.5x salary (or 4x minimum)
I do have a 15% deposit.
I have been in a job 4.5 years.


many thanks!

edlondon

@K_S thank you so much for your helpful comments. There is also the DMP I mention in the post, but I guess you took that into account? There is no other adverse information on my credit report. Thanks again.