Mortgage help

Talltree12

Hi
We are in talks with a broker and are awaiting his verdict but I was just hoping for a little reassuring. 

We have found our dream house and thought the mortgage would be relatively straightforward. However last week a random missed payment appeared on my partners credit report. We have contacted the business in question and it is an incorrect red flag. They said it should be marked as settled within 50 days. 
We did hope to have the mortgage application in by next week so the damage has been done unfortunately. 

Our broker seems fairly confident we can work around it by increasing our deposit to 20% and increasing the mortgage length.

Now its just a waiting game for are broker to do the research and hopefully we will get issued a new decision in principle early next week.

Has anyone got any advice on how easy it is to obtain a mortgage for people with missed payments on their report? I imagine we will be going through a specialist lender now.

Thrugelmir

One missed payment or several? 

K_S

Talltree12 said:

Hi
We are in talks with a broker and are awaiting his verdict but I was just hoping for a little reassuring. 

We have found our dream house and thought the mortgage would be relatively straightforward. However last week a random missed payment appeared on my partners credit report. We have contacted the business in question and it is an incorrect red flag. They said it should be marked as settled within 50 days. 
We did hope to have the mortgage application in by next week so the damage has been done unfortunately. 

Our broker seems fairly confident we can work around it by increasing our deposit to 20% and increasing the mortgage length.

Now its just a waiting game for are broker to do the research and hopefully we will get issued a new decision in principle early next week.

Has anyone got any advice on how easy it is to obtain a mortgage for people with missed payments on their report? I imagine we will be going through a specialist lender now.

@talltree12 On its own, it's unlikely that a single status '1' marker on one account will move an 85% LTV application from mainstream to specialist. Of course this is assuming that everything else in the background is straightforward.

Is it showing on both Equifax and Experian or only one of those? If it's only on one then there may be an option to use a lender that doesn't use that credit bureau and doesn't ask any explicit questions about missed payments in their application.

I would expect it be fine and your broker should be able to find you a suitable lender, good luck!

Talltree12

Hi 
Thanks for the responses. It's one of those where your mind just wonders to the worst case scenario. 

My partner did have a rough patch a few years back, missed payments etc.. However she has tried hard to get her credit score back up, it's now fair. 

She has 2/3 old missed payments still showing on her credit report but they are 5-6 years old so right at the back end of the report. So it's just this recent incorrect one that's causing the issue. 

Our broker has said he's as confident as he can be that he will be able to secure us a deal but is taking a few days to do his research to make sure its right.

Hence the worry has started. We can get to a 20% mortgage and can stretch to a 35 year term initially. The broker said he would look to fix for 2 years and then once the incorrect missed payment is gone from her report we can remortgage to a better rate and reduce term.

It's going to be a long easter weekend of worry

K_S

Talltree12 said:

Hi 
Thanks for the responses. It's one of those where your mind just wonders to the worst case scenario. 

My partner did have a rough patch a few years back, missed payments etc.. However she has tried hard to get her credit score back up, it's now fair. 

She has 2/3 old missed payments still showing on her credit report but they are 5-6 years old so right at the back end of the report. So it's just this recent incorrect one that's causing the issue. 

Our broker has said he's as confident as he can be that he will be able to secure us a deal but is taking a few days to do his research to make sure its right.

Hence the worry has started. We can get to a 20% mortgage and can stretch to a 35 year term initially. The broker said he would look to fix for 2 years and then once the incorrect missed payment is gone from her report we can remortgage to a better rate and reduce term.

It's going to be a long easter weekend of worry

@talltree12 5+ year old missed payments will have no impact at all, especially with a 15%+ deposit, so don't stress about that.

Talltree12

K_S said:

Talltree12 said:

Hi 
Thanks for the responses. It's one of those where your mind just wonders to the worst case scenario. 

My partner did have a rough patch a few years back, missed payments etc.. However she has tried hard to get her credit score back up, it's now fair. 

She has 2/3 old missed payments still showing on her credit report but they are 5-6 years old so right at the back end of the report. So it's just this recent incorrect one that's causing the issue. 

Our broker has said he's as confident as he can be that he will be able to secure us a deal but is taking a few days to do his research to make sure its right.

Hence the worry has started. We can get to a 20% mortgage and can stretch to a 35 year term initially. The broker said he would look to fix for 2 years and then once the incorrect missed payment is gone from her report we can remortgage to a better rate and reduce term.

It's going to be a long easter weekend of worry

@talltree12 5+ year old missed payments will have no impact at all, especially with a 15%+ deposit, so don't stress about that.

Thanks that definitely sounds positive. 

Not sure if my broker is over playing the importance then maybe?

So in general 4 missed payments on a credit file shouldn't cause massive issues, even the more recent one?

We did hope to put down a 15% deposit to allow us to do work to the property but the broker said it was likely we would need to go to 20% and extend the term from 30 to 35 years to get it through. Does this sound over the top on the face of it?

The broker seems a top guy and has countless good reviews so I'm sure he is genuine.

It may just be me thinking the worst. 

Thanks again

K_S

@talltree12 Sorry if it came across that way, but I'm definitely not second guessing your broker. They know all the details, I know just the very limited info in your posts  

Given the recency of the missed payment, you absolutely did the right thing by using a broker and if you have any questions at all about what he's recommending, be sure to ask, I'm sure he will be happy to address any concerns.

Talltree12

Looking online it seems most lenders won't consider defaults or missed payments at all. 

Am I correct in thinking this. Could this be why my broker is been a bit cautious in his expectations? 

K_S

@talltree12 Defaults on your credit file are much more serious than missed payments, I didn't see any mention of defaults in your posts.

I know it's easier said than done, and perhaps the long weekend makes it worse, but you've done all you can and just need to give your broker some time to come back with options.