Mortgage broker - ask me anything

K_S

@sunnyhelper I can’t speak for your case specifically but generally speaking you’re looking for a 95% LTV mortgage with one large 2+ year old default, and multiple missed payments that are 1+ years old.

Based just on the above, its very unlikely that you’d pass credit-scoring (happens at the soft-check DIP/AIP stage) for a mainstream product at 95% LTV. Tbh it is unlikely to be straightforward even at 90% LTV.

In your place, I would be doing my best to save up the 5k needed to get you to a 10% deposit. And if there is a solid plausible reason to explain (with evidence) why the 4.5k default isn’t a true reflection of your credit-worthiness, then you could might potentially be able to look at a couple of lenders that don’t credit score.

Irrespective of the deposit, if/when you speak to a broker, do make sure you get a copy of both your Experian and Equifax statutory credit reports to hand and share the same with them so they know exactly what’s in your credit reports. Good luck!

Sunnyhelper said:

Hi,
I have been reading through a lot of these forums to see if I can find someone that is similar to our situation.  We are getting mortgage broker but was hoping to get some advice before that. I’m really worried we will get rejected so I guess I’m hoping someone here can tell me if we have any chance of being accepted. 

So…
we are FTB, looking to purchase house for £250k. We only have £20k deposit, no debt apart from credit card with balance of £750 and phone loan of £700 left to pay (£50 per month). I have 3 month of missed payments recorded from credit card March last year and my husband has a default registered on 14th September 2022 that will be satisfied by the time we apply for mortgage. The default is for £4500. We won’t apply for mortgage until after the 2 years have passed since the default was registered but even with this after looking through number of different lenders I think we will struggle getting a mortgage without 10% + deposit? Our combined income is £85k. 

Virgin money and Skipton look like we may be able to fit their criteria but I have such limited knowledge of mortgages I’m not sure if this is correct.
any thoughts if we stand a chance or do we need to build up a larger deposit? 

Thanks in advance.  

Sunnyhelper

@K_S thanks for the quick response. We have our credit files ready to share with the broker but it sounds like it’s going to be difficult to get a mortgage. 

I’m guessing when the lending criteria states what they accept in adverse credit history they do look across the full 6 years for full assessment?
this is driving me crazy and I’m trying to also not overthink but it’s near impossible. 

Thanks again, I’ll hope for the best …

Welly2125

Hello, thank you in advance for any help/guidance you can give me.

I am/was due to buy a property in a national park, the property had a local section 157 restriction attached to it which we miraculously managed to get amended to a primary residence restriction as we did not meet the criteria. This in itself took weeks and was a huge step forward.

The new problem is our mortgage has been approved and is with NatWest, who typically do not lend on these properties however none of us knew the property had the restriction until local searches came back.

Our broker has said they will consider the mortgage, and we are now in a position where our case is sat with legal team, with no idea of timeline or if it even will be approved.

we were due to exchange and complete last week, and are now in a position where we don’t even know if it will go through. Has anyone else had experience of a mortgage being sat with the legal team under these circumstances?

K_S

Welly2125 said:

Hello, thank you in advance for any help/guidance you can give me.

I am/was due to buy a property in a national park, the property had a local section 157 restriction attached to it which we miraculously managed to get amended to a primary residence restriction as we did not meet the criteria. This in itself took weeks and was a huge step forward.

The new problem is our mortgage has been approved and is with NatWest, who typically do not lend on these properties however none of us knew the property had the restriction until local searches came back.

Our broker has said they will consider the mortgage, and we are now in a position where our case is sat with legal team, with no idea of timeline or if it even will be approved.

we were due to exchange and complete last week, and are now in a position where we don’t even know if it will go through. Has anyone else had experience of a mortgage being sat with the legal team under these circumstances?

@welly2125 Over the years,I have had the very occasional experience of a post-offer legal issue cropping up which then led to the case being referred for further checks/approvals, but not for the exact same reason as your’s nor (as far as I can remember) were the lenders NatWest. So unfortunately I can’t add any useful comment on that front.

You’ve done as much as you can so there’s not really much to it than waiting to hear back from NatWest. In the unfortunate event that NatWest withdraw the offer (or come up with an impossible-to-fulfil condition) I’d expect there to be another mainstream lender that’ll be ok to lend so it shouldn’t be a showstopper.

All the best, hope it all works out in the end!

Vicki1180_0

Hello,
I never thought I would even have to.consider this, as buying a house always seemed like it would never be possible. 

I am very fortunate to have inherited some money, so here goes.

Terrible credit history overview:
-Satisfied CCJ 2022, issued 2021 £330
-11 default accounts - 2019 / 2020 /2021
Some Satisfied, not all - but will be soon. Ranging £200 - £1500.
- 1 late payment on catalogue, 6 months ago
-Total current borrowing is 2k over 11 active accounts

Looking at mortgage of around 400k, deposit of 220k max. 

What are my chances? And if it's even feasible, a rough interest rate

Thankyou for any advice

K_S

@Vicki1180_0 Generally speaking - a CCJ plus multiple defaults, all satisfied and all 3+ years old (registered), one late payment in last year - it should be fairly straightforward to get a mortgage with a 10%+ deposit.

For ballpark rates - you’re probably likely to end with the likes of Aldermore, Kensington, etc. so just have a look at their rates for their least adverse product ranges.

Vicki1180_0 said:

Hello,
I never thought I would even have to.consider this, as buying a house always seemed like it would never be possible. 

I am very fortunate to have inherited some money, so here goes.

Terrible credit history overview:
-Satisfied CCJ 2022, issued 2021 £330
-11 default accounts - 2019 / 2020 /2021
Some Satisfied, not all - but will be soon. Ranging £200 - £1500.
- 1 late payment on catalogue, 6 months ago
-Total current borrowing is 2k over 11 active accounts

Looking at mortgage of around 400k, deposit of 220k max. 

What are my chances? And if it's even feasible, a rough interest rate

Thankyou for any advice

KardiaCleoScylla

Hello

We are two full time working professionals currently renting for 1000pcm looking to buy our first home for around 200k (Joint income 70k+, no bad credit history, no issues within the last 6 years,never missed rent or any other payments) We struggle saving for a deposit, one of us is currently concentrating on paying off a 6k credit card and the other a 200£pcm loan until late 2025. We realistically will need until early 2026 to save for a 5-10%deposit. We have nobody who could help towards the deposit or who we could live with to save rent. We will be out of our rental contract in 2026 and continuing renting is not an option anymore.

We are wondering now if it would be worth considering a 0%deposit mortgage with a higher interest rate already in early 2025, when the credit card debt has been paid. Would it make sense to pay a higher interest rate but use the 12k which would be spent in rent -just in order to save a deposit between 10-15k- for the mortgage? Also we assume house prices may be rising between 2025&2026

Thank you for your advice 

K_S

KardiaCleoScylla said:

Hello

We are two full time working professionals currently renting for 1000pcm looking to buy our first home for around 200k (Joint income 70k+, no bad credit history, no issues within the last 6 years,never missed rent or any other payments) We struggle saving for a deposit, one of us is currently concentrating on paying off a 6k credit card and the other a 200£pcm loan until late 2025. We realistically will need until early 2026 to save for a 5-10%deposit. We have nobody who could help towards the deposit or who we could live with to save rent. We will be out of our rental contract in 2026 and continuing renting is not an option anymore.

We are wondering now if it would be worth considering a 0%deposit mortgage with a higher interest rate already in early 2025, when the credit card debt has been paid. Would it make sense to pay a higher interest rate but use the 12k which would be spent in rent -just in order to save a deposit between 10-15k- for the mortgage? Also we assume house prices may be rising between 2025&2026

Thank you for your advice 

@KardiaCleoScylla Quick food for thought -

- don't assume that a "100% LTV" mortgage (eg: Skipton track record or Accord 99%) will be a lot more expensive than a 95% LTV one. Have a look and see what kind of difference it is and whether or not it makes a difference to your decision. You will definitely pay a bit more but it might not be as large of a difference as you imagine. I've pasted a snapshot from Skipton below.

- you're only looking to borrow less than 3x your total income, and that being the case the 200pcm loan and 6k cc debt is unlikely to make a difference to your borrowing chances. Nothing wrong in waiting to be debt-free, but don't do it assuming that it's a show stopper for your mortgage chances.

- ultimately, how all this works out financially timing-wise is largely outside your control. House prices may rise/fall, interest rates may rise/fall, no one really knows. 

All the best!

annetheman

Hi brokers,
Thanks so much for all the help you give in this thread, you are saving sanity here, truly!!

My mortgage offer from Santander expires on 22nd September and we are nowhere near exchange (second Title application rumbling on...), so my mortgage broker did submit a new application yesterday 4th September. I got a hard search alert and today, 5th September, my broker confirmed my application has been accepted pending valuation.

For this house (dodgy kitchen extension, otherwise standard), Santander's valuation passed in March at the price agreed, though the surveyor advised me to get a damp survey. I did and have the report.

Do you think it's possible that the valuation could fail this second time around, given that the house has been un-lived in for a year now (was 6 months then); it is visibly worse but it's not a wreck - just lots of spider webs and dirt. Just clearly a bit abandoned?

Have you seen the same surveyor decline something they approved 6 months prior without major disaster befalling it?

This valuation wait is sickening but I have a horrible feeling it won't pass this time, unfortunately

Thanks so much. 

K_S

@annetheman Generally speaking from my experience, not specific to your case or Santander -

For all the offer extensions that I've done - as far as I can remember the valuation has always been desktop-refreshed and it's never changed materially.

All the best!

annetheman said:

Hi brokers,
Thanks so much for all the help you give in this thread, you are saving sanity here, truly!!

My mortgage offer from Santander expires on 22nd September and we are nowhere near exchange (second Title application rumbling on...), so my mortgage broker did submit a new application yesterday 4th September. I got a hard search alert and today, 5th September, my broker confirmed my application has been accepted pending valuation.

For this house (dodgy kitchen extension, otherwise standard), Santander's valuation passed in March at the price agreed, though the surveyor advised me to get a damp survey. I did and have the report.

Do you think it's possible that the valuation could fail this second time around, given that the house has been un-lived in for a year now (was 6 months then); it is visibly worse but it's not a wreck - just lots of spider webs and dirt. Just clearly a bit abandoned?

Have you seen the same surveyor decline something they approved 6 months prior without major disaster befalling it?

This valuation wait is sickening but I have a horrible feeling it won't pass this time, unfortunately

Thanks so much.