Has anyone applied for a mortgage with TSB with slightly adverse credit?

Oakeshott

Has anyone applied for a mortgage with TSB with slightly adverse credit?

We both have excellent credit but we had our application with Nationwide turned down because I have an 8 year old missed payment. (It’s not on my credit record anymore but I am still paying off the company the debt was passed on to after the missed payment, which is evident from my bank statements.) 

Our broker said Halifax would be likely to accept us, but I’ve just seen a much better deal with TSB, which is rather go for, but I’m not sure if TSB is a ‘strict’ lender?

Squeaky9

We did last year so things may have changed. But my partner has one default (settled) which at the time was 3 years old, and quite a few missed payments (over 12 months old). We had no problems getting a mortgage with TSB.  

[Deleted User]

Some lenders will classify you as being in a debt management plan since you are still repaying a debt from years ago.  Broker probably wants to go to a lender who wont ask for bank statements.   In my experience TSB dont usually ask for bank statements so if a DIP passes then there is as good a chance as any that it will go through.   HSBC also dont ask for bank statements for any case and both are generally more competitive than Halifax at the moment 
Is your broker authorised with TSB? A lot arent

Oakeshott

Deleted_User said:

Some lenders will classify you as being in a debt management plan since you are still repaying a debt from years ago.  Broker probably wants to go to a lender who wont ask for bank statements.   In my experience TSB dont usually ask for bank statements so if a DIP passes then there is as good a chance as any that it will go through.   HSBC also dont ask for bank statements for any case and both are generally more competitive than Halifax at the moment 
Is your broker authorised with TSB? A lot arent

That’s good to know. Mine is authorised with them. My only worry now is this won’t be my first mortgage application. I don’t know if having prior applications will have ruined my credit temporarily? 

london21

Oakeshott said:

Deleted_User said:

Some lenders will classify you as being in a debt management plan since you are still repaying a debt from years ago.  Broker probably wants to go to a lender who wont ask for bank statements.   In my experience TSB dont usually ask for bank statements so if a DIP passes then there is as good a chance as any that it will go through.   HSBC also dont ask for bank statements for any case and both are generally more competitive than Halifax at the moment 
Is your broker authorised with TSB? A lot arent

That’s good to know. Mine is authorised with them. My only worry now is this won’t be my first mortgage application. I don’t know if having prior applications will have ruined my credit temporarily? 

Communicate with your broker.
TSB are quite flexible.
If just 2 applications should not affect your report but when it gets to 3+ might look like  you are making lots of application in a short space of time. 

[Deleted User]

The issue will be when the lender asks in the application 'have you recently been declined for a mortgage?'.   If the answer is a yes/no then that is fine, if the answer is a free format then the broker has got to word that quite carefully to ensure they dont think it is a debt management plan.  Your broker is best placed to advise really.  Your main goal at the moment is to get a mortgage and they will direct the best way to achieve that

Oakeshott

Deleted_User said:

The issue will be when the lender asks in the application 'have you recently been declined for a mortgage?'.   If the answer is a yes/no then that is fine, if the answer is a free format then the broker has got to word that quite carefully to ensure they dont think it is a debt management plan.  Your broker is best placed to advise really.  Your main goal at the moment is to get a mortgage and they will direct the best way to achieve that

Thanks. I’m not actually sure what it is technically classed as. I was still at uni, I missed one payment, the account was immediately passed on to a company called Wescot and I agreed a reduced monthly payment with them (with zero interest), which I’ve paid on time ever since. I never thought it would be a problem but I suppose that’s a company that only deals with missed payments so it can look bad. 

csgohan4

Oakeshott said:

Deleted_User said:

The issue will be when the lender asks in the application 'have you recently been declined for a mortgage?'.   If the answer is a yes/no then that is fine, if the answer is a free format then the broker has got to word that quite carefully to ensure they dont think it is a debt management plan.  Your broker is best placed to advise really.  Your main goal at the moment is to get a mortgage and they will direct the best way to achieve that

Thanks. I’m not actually sure what it is technically classed as. I was still at uni, I missed one payment, the account was immediately passed on to a company called Wescot and I agreed a reduced monthly payment with them (with zero interest), which I’ve paid on time ever since. I never thought it would be a problem but I suppose that’s a company that only deals with missed payments so it can look bad. 

How much is it and why not pay it off early? 8 years is a long time to be paying it off