Mortgage advice

helpmegodplease

Hi I was hoping to get some advice from someone more knowledgable than me on my situation

 

A quick summary of the timeline in this ongoing saga; 

AIP agreed by nationwide for lending up to £305,000 (they said this figure was low based on the fact we took advantage of the mortgage holiday in April and March but cancelled it and paid our mortgage for the 3rd month when we were confident our jobs were safe) 

Husband earns a basic salary of £70,000 full time, permanent role.

I work part time for £9,000 a year on a fixed time basis. 

Offer accepted on a house priced at £355,000

£105,000 equity in our current house based on offer we have accepted

Our current lending on our home is £194,000 

Credit/outgoings 

£3500 on a credit card (0% TIL may 21) 

£4700 car loan (£112 per month) 

£40,000 pcp agreement on husbands car until March 2023 (£490 per month) 

Waited on nationwide for 6 weeks (!) for initial appointment for full application. There was a problem with my name on the mortgage account which I had previously changed but now all names are correct.  The plan was to port the mortgage with an increase of roughly £55,000 onto our current mortgage. 

However during our conversations with various advisors at nationwide, they decided they were now only happy to lend us £191,000 based on their computer. A full application was never proceeded with, we were told by a number of different advisors during this period that it was with underwriters etc. When it never was. We have issued a complaint about the handling of this case because we have truly been led down a garden path by them and have now incurred a early repayment fee of around £7000. 

Which leads us to now, we have used a mortgage broker previously because my husband used to be a contractor employed by a LTD company, so contacted them.

A hard search was done on credit file by Barclays for an amount £10,000 higher than we require, which was rejected. 

They have now applied for a AIP with Santander who say they are only happy to lend £220,000.  As it stands today they are contacting Santander to find out why this is. 

Is there anything wrong with our application? Our broker hasn’t gave us any explanation really of why this is happening, is it a problem with our affordability or are we just having no luck with the 2 lenders he has tried? 

We are basically looking for a mortgage for £257,000 due to the Early repayment charge and seem to be struggling? 

Any insight would be really appreciated! 

Thank you 

helpmegodplease

And our credit scores are perfect on Experian 999 and 977 (was 999 until the search by Barclays) 

declan199210

Before you apply again.

find a decent broker. You are going to struggle to lend £300k+ I would imagine 

helpmegodplease

We don’t need £300,00+ just £257,000 🙈 

What we are uncertain of is if it’s a problem with our figures or applying to the wrong lenders 

enthusiasticsaver

The outstanding debt you have will affect the amount a lender will give you. The monthly repayments of £600+ and they probably work on 5% for the credit card so that is another £175 so £775 deducted on affordability checks. If you have children and childcare costs some also take that off. Taking a repayment holiday probably didn't help either and most lenders are tightening up due to fears about a recession. You can try another broker but I doubt that £79k income will get you £257k with the monthly deductions for debt

haras_n0sirrah

Did the brokers get copies of credit files?
Some lenders are more generous than others.
Before doing aip's a broker should be checking against the lender calculator with your credit file and proof of income. We ask for all documents upfront including credit file and this is why- so we can check affordability before trying a lender 

helpmegodplease

Hi, yes the broker has copies of our credit files, he is using the affordability calculators based on all the information we have provided him with and then the lenders are coming back with reduced amounts than he is seeing when he uses the affordability calculator , hope that makes sense. 

haras_n0sirrah

That is strange unless something is being imput incorrectly it should match 

csgohan4

was your broker from the estate agent? they usually have a bad rep and rightly so

kingstreet

Any recent changes in credit? EG Car finance not properly closed down when new agreement started?

helpmegodplease

No nothing of the sort, no recent credit applications and our Experian has no errors and is squeaky clean. 

Maybe it’s a broker issue he is more of a contractor specialist which we aren’t these days, any advice on how to find a decent broker ? 

Thanks for all the help everyone