Kent reliance Mortgage with few credit issues

JustMe18

Hello. We have applied to buy Shared ownership newbuild , which will be built next July. We have some adverse credit history , couple of late British gas payments and 2 silly defaults ( didn’t pay for 2 months and then paid everythjng off in one go, that was 1 year ago , me and my husband got 1 each). It was hard to get AIP because of this, also credit score  rating was average. We applied for AIP with Kent reliance , it went to underwriters, but was approved in the end. Since then my husbands credit score is jumped to Excellent ( 980 out of 999) and mine to good. We have now applied for a full mortgage offer - passed initial hard credit check on 23/12 , then broker said affordability and Valuation was fine too. Good sign so far?
Now Kent requested 13 new documents, I am so stressed, there were "check my file" credit reports they wanted to see, I guess because even they knew about default it doesn't show on Experian, what they use, also some silly questions about payments from my mum, about childcare payments , which we don't have etc.
I know it's just a guessing, but How likely are our chances, if it wasn't refused yet? Apart from defaults a year ago, we had a few missed payments for British has, nothing major, never been in other debts. We have agreement with Kent to pay off all our loans when we get this mortgage .
we have relatively good income of £90k and we have a 10% deposit ( or more if needed, because we are also selling our current house).

Anyone is waiting decision from Kent too?

ACG

You should be fine. 

JustMe18

ACG said:

You should be fine. 

what indicates that ?  is it because it has passed hard credit check and then valuation has also passed? I'm so scared it can still be declined for some reason or Kent are normally pretty good with adverse, as they are specialist lenders....

ACG

If it wasnt shared ownership, I would be saying you are too good for Kent. 
You will be far from their worst customer. If they will accept people with worse credit, you would imagine that they will accept you... It does not always work like that, sometimes risk profiles for lenders change, other times you get an awkward underwriter and other times there are other factors that come in to play - but you would be so far from their worst customer, that I can only think it is a formality. 

JustMe18

Only buying shared, because we only would have around £55k from the sale on our current house - that’s deposit ( for a shared  one its  £23k) , solicitor fees + Kent wants us to pay off our outstanding credit cards etc. If we would buy full market value, its not enough and we also would need to pay stamp duty. In this case affordability is lower than we need. Plus hard to find a decent house like this in this area - 4 bed detached with garage and shared is very rare option. So we decided to go with Kent and then after fixed deal comes to an end, our default would clear and affordability will also be better, so we can staircase into 100% of this house.

annetheman

JustMe18 said:

Only buying shared, because we only would have around £55k from the sale on our current house - that’s deposit ( for a shared  one its  £23k) , solicitor fees + Kent wants us to pay off our outstanding credit cards etc. If we would buy full market value, its not enough and we also would need to pay stamp duty. In this case affordability is lower than we need. Plus hard to find a decent house like this in this area - 4 bed detached with garage and shared is very rare option. So we decided to go with Kent and then after fixed deal comes to an end, our default would clear and affordability will also be better, so we can staircase into 100% of this house.

That's a great plan, IMO the best way to make SO work for you. As someone who is currently on a SO mortgage from Kent Reliance, I am sure you will be okay! I panicked, too. But there was a KR thread about 3 years ago that we were all panicking in, and many has worse files than you.

JustMe18

annetheman said:

JustMe18 said:

Only buying shared, because we only would have around £55k from the sale on our current house - that’s deposit ( for a shared  one its  £23k) , solicitor fees + Kent wants us to pay off our outstanding credit cards etc. If we would buy full market value, its not enough and we also would need to pay stamp duty. In this case affordability is lower than we need. Plus hard to find a decent house like this in this area - 4 bed detached with garage and shared is very rare option. So we decided to go with Kent and then after fixed deal comes to an end, our default would clear and affordability will also be better, so we can staircase into 100% of this house.

That's a great plan, IMO the best way to make SO work for you. As someone who is currently on a SO mortgage from Kent Reliance, I am sure you will be okay! I panicked, too. But there was a KR thread about 3 years ago that we were all panicking in, and many has worse files than you.

Actually you won't believe - I read almost whole  that thread lol  and I saw you there too. I am still waiting, their turnaround times are much lower these days, only 2 days for a documents check ( 3 years ago it was 15 days). So they did ask another question about defaults 2 days ago, as dates were not matching with what MA has entered and they thought these are different defaults, so MA has reassured them that we only had 1 default each, not 2 . MA then said they are back assessing the case . Valuation was done on 27/12 though and house is only being built in July, so we have time, but ideally would like to know ASAP about the offer. 
We also had already SO previously, also new built, but much smaller, so selling this one and getting big one ( detached with garage, 4 bed)

JustMe18

ACG said:

You should be fine. 

Hi, just got a decline from Kent. I don't know what to do.....they didn't like we had some returned DD in past. Affordability and everything else is fine.

ACG

What do you mean by you had some cancelled DDs? 

That being said, Kent Reliance are now part of Precise and I really do not like precise, they have this strange thing of saying they can do this that and the other but as soon as you combine 2 things its almost like they are looking for a reason to say no. 

But your situation is far too good for Kent really so I cant help but wonder if there is something you have not mentioned because they should be over the moon to accept a couple of utitlity bill defaults (that dont even sound like defaults). 

JustMe18

ACG said:

What do you mean by you had some cancelled DDs? 

That being said, Kent Reliance are now part of Precise and I really do not like precise, they have this strange thing of saying they can do this that and the other but as soon as you combine 2 things its almost like they are looking for a reason to say no. 

But your situation is far too good for Kent really so I cant help but wonder if there is something you have not mentioned because they should be over the moon to accept a couple of utitlity bill defaults (that dont even sound like defaults). 

Hi,we  are trying to appeal....as we disagree with everything, not sure if there is option to be reviewed by different underwriter, as  returned DD shouldn't make any difference, as it's my own choice to pay by DD, we have around 6 accounts for different purpose, also we always have couple of thousands in savings and that DD was £48 and was paid on time later. They now want us to provide "clear" 3 months statement without any returned DD or any other issues, but funny enough that issue was on 23/10, so literally 3 months will be on 23/01. I'm shattered, as our MA adviser checked and we should fit the criteria.  I'm not sure what to do now, as don't want to pay £500 again. AIP itself took around 7 days and they knew all our issues before hand. They won't even take extra deposit, because our affordability is more than enough.  This is what they asking for : “we would ask that the applicants are able to provide 3 full months’ clear bank statements showing no returned items and sufficient affordability to meet the new mortgage payment and rent payment before they re-apply.  We would also ask that no further payments are missed on any existing credit so that we can see that all credit is being maintained in a satisfactory manner.“ 
We don't have any outstanding debts or late payments in the last 3 months and actually only 1 in 6 months for British gas, which was only once. They knew prior the application we had 2 defaults and they were fine with those. We earn £6k per month + self employment, new mortgage payment is £1300 per month. 

ACG

Ah ok. 
Just to play devils advocate here, you have a history of missed payments a year ago. You also have missed payments much more recently... Thats veering from a blip to a trend of poor money management. 

Im not judging here, just trying to explain it from the lenders side. 

I would still class it as mild and it is one of the reasons why I avoid Precise (which is part of a group with Kent Reliance). Kent were really good back in the day, when they merged they took the Precise philosophy of underwriting which is basically look for a reason to not lend (in my opinion). 

Honestly, I dont know how your appeal will go. Thats not me being negative, its a genuine I have no idea. I think it is worth an appeal as I think it is mild, its not like you have missed or paid late on mortgage/rent payments (I assume). But knowing Precise its almost like the underwriters are lending their own money.

Although adverse is what I do on a daily basis, shared ownership is not really my bag, but I feel like there are other building societies who may consider it.