Mortgage broker - ask me anything

K_S

hannah9000 said:

Hoping someone might be able to help…we tried to buy a house earlier this year, got an AIP, put an offer on a house, instructed solicitors, then lender changed their mind and wanted a 30% deposit instead of 15% because the base rate went up. Sale fell through, everyone gutted, even the broker was gobsmacked. 

Anyway we moved on, the reason for the change in deposit is because my husband is 2yrs discharged from bankruptcy, will be 3yrs in March and we basically said we’d wait until that 3 years has passed so that we’re eligible to more high street lenders - what we’re wondering is whether we have to wait for that date to pass or if we can start looking for an AIP sooner on the basis that he’ll soon be 3yrs discharged? 

@hannah9000 Generally speaking, any eligibility criteria (BR disch 3+ years) will need to be met before you do an AIP.

With a 15% deposit and 3 years discharged, while you might meet eligibility on paper for a handful of high-street lenders like Nationwide, it's highly unlikely that you'll pass their internal scoring to get an 85% LTV mortgage.

I'm really surprised that your broker was able to find a lender that was willing to even consider 2 year disch with anything less than a 25-30%+ deposit, I can't think of a single lender in recent memory that offered 85% LTV with years since BR disch

Good luck, I hope it works out in the end!

gm12

Hi, I was wonder if anyone can advise whether Halifax publish their rates anywhere for product switches? I tied in at 5.95% a couple of weeks ago but can cancel if a cheaper rate comes up  before the end of March. However they are no longer showing me the current rates within my online account as I have now technically selected a product. 

K_S

gm12 said:

Hi, I was wonder if anyone can advise whether Halifax publish their rates anywhere for product switches? I tied in at 5.95% a couple of weeks ago but can cancel if a cheaper rate comes up  before the end of March. However they are no longer showing me the current rates within my online account as I have now technically selected a product. 

@gm12 They don't publish PT rates for intermediaries, no idea about direct.

If you booked a PT rate a couple of weeks ago, it's almost certainly lower now as Halifax PT rates have dropped twice in the last few weeks, the most recent change being today.

If you can't see current rates online on your account, might have to give Halifax direct a call on 03458500248, they should be able to switch you.

gm12

K_S said:

gm12 said:

Hi, I was wonder if anyone can advise whether Halifax publish their rates anywhere for product switches? I tied in at 5.95% a couple of weeks ago but can cancel if a cheaper rate comes up  before the end of March. However they are no longer showing me the current rates within my online account as I have now technically selected a product. 

@gm12 They don't publish PT rates for intermediaries, no idea about direct.

If you booked a PT rate a couple of weeks ago, it's almost certainly lower now as Halifax PT rates have dropped twice in the last few weeks, the most recent change being today.

If you can't see current rates online on your account, might have to give Halifax direct a call on 03458500248, they should be able to switch you.

Thank you, that’s what I thought - seems a shame in view of the mortgage charter that they don’t make it easier to see when a better rate is available…

JW2709

Hi- I know I won't be able to get a definite answer on here but I guess I'm looking for some confidence based on others experiences or from any Brokers on here. 

FTB buyers- We have reached out to my broker to who has matched me with HSBC.  Affordability is fine but wife and I do have some adverse credit.  I have 1 CCJ (£453) from 2019 satisfied this year.  Wife has late payment dated  2019 and 2021 on a catalogue.  

During DIP stage our app was 'referred' and Broker was asked to provide more info regarding the adverse credit which we have and have been told today the DIP has been approved.  Obviously this is not a guarantee as it will still require a hard check (noticed a soft check on our files).

What I would like to know is what are our chances of the hard check failing if the DIP has been reviewed and now passed?  Appreciate it could fail on things like valuation etc, but more concerned about it failing due to our credit history. 

 Broker spoke with the BDM of HSBC before we applied for DIP and was advised we should apply as we meet the criteria.  Passing DIP is a good thing and brings us one step closer but just feel nervous about the hard check and it failing at that point. 

 Can any brokers provide some advise on what would normally happy if it got declined and what brokers can do to perhaps challenge or overturn?  I know I could be worrying about nothing, but feeling stressed!

thanks in advance!

K_S

JW2709 said:

Hi- I know I won't be able to get a definite answer on here but I guess I'm looking for some confidence based on others experiences or from any Brokers on here. 

FTB buyers- We have reached out to my broker to who has matched me with HSBC.  Affordability is fine but wife and I do have some adverse credit.  I have 1 CCJ (£453) from 2019 satisfied this year.  Wife has late payment dated  2019 and 2021 on a catalogue.  

During DIP stage our app was 'referred' and Broker was asked to provide more info regarding the adverse credit which we have and have been told today the DIP has been approved.  Obviously this is not a guarantee as it will still require a hard check (noticed a soft check on our files).

What I would like to know is what are our chances of the hard check failing if the DIP has been reviewed and now passed?  Appreciate it could fail on things like valuation etc, but more concerned about it failing due to our credit history. 

 Broker spoke with the BDM of HSBC before we applied for DIP and was advised we should apply as we meet the criteria.  Passing DIP is a good thing and brings us one step closer but just feel nervous about the hard check and it failing at that point. 

 Can any brokers provide some advise on what would normally happy if it got declined and what brokers can do to perhaps challenge or overturn?  I know I could be worrying about nothing, but feeling stressed!

thanks in advance!

@jw2709 Going by the part in bold above - the chances of it getting declined on full-app for reasons of adverse history is very-low as it sounds like the DIP referral triggered a manual review after requesting additional adverse details which resulted in a DIP pass. So someone’s already looked at it and ticked off the reason for the ‘refer’.

For general info wrt to soft-check at DIP vs hard-check at full-app (FMA), with the vast majority of lenders, both type of credit-checks return the exact same level of detail, no more no less. Some lenders have a few variations - checking different credit bureaus at DIP and FMA, checking only current address accounts at DIP and 6 year addresses at FMA, etc.

FirstLadyKirkman

Hi I posted on here recently as am applying for a remortgage with HSBC. MB finally put through application Monday (no hard search done yet). I need to make a purchase on Saturday and want CC protection. 

I know they say not to take out a NEW line of credit whilst applying/just before but would the use of an existing card be just as bad/viewed as negatively? 

K_S

FirstLadyKirkman said:

Hi I posted on here recently as am applying for a remortgage with HSBC. MB finally put through application Monday (no hard search done yet). I need to make a purchase on Saturday and want CC protection. 

I know they say not to take out a NEW line of credit whilst applying/just before but would the use of an existing card be just as bad/viewed as negatively? 

@FirstLadyKirkman If you make the purchase on your cc on Saturday and pay off the balance immediately, then it should have no impact on your credit file and no relevance to your mortgage app.

Lizzybeebum

Hello.
I have worked with a Broker to get an AIP with Halifax, despite 2 small defaults on my account from 2018. 

My bank statements show 2 additional payments to Lowell and PRA group - debt collection agencies for very old credit card defaults that no longer show on my credit file. The monthly payments are small £5 and £18 - but the debt balance is quite high £4.7K and £3K.

Is this likely to impact my application or cause it get rejected?

K_S

Lizzybeebum said:

Hello.
I have worked with a Broker to get an AIP with Halifax, despite 2 small defaults on my account from 2018. 

My bank statements show 2 additional payments to Lowell and PRA group - debt collection agencies for very old credit card defaults that no longer show on my credit file. The monthly payments are small £5 and £18 - but the debt balance is quite high £4.7K and £3K.

Is this likely to impact my application or cause it get rejected?

@lizzybeebum For the vast majority of applications, Halifax does not ask for bank statements, neither at the initial packaging stage nor at underwriting/assessment, so this is very unlikely to impact your application.