Kent reliance - our story & timeline (mortgage with defaults and other issues)

JustMe18

Hello. Just wanted to share some positive news , as we've finally got our offer with Kent reliance, after been declined in January. Little bit of a timeline : 

27/12/23  - Applied for a full mortgage 
04/01/23 - additional documents 
16/01/23 declined
27/02/24 - re-applied
08/03/24 - offer received

A bit of a background - we have 2 defaults registered in October 2022. One was for £4500, another one for £900. One settled in January 2023, second February 2023. Had to go with Kent reliance because of this + shared ownership. We are using our current house sale as deposit ( around £50k equity). We have been declined by Kent in January, as their criteria for defaults has to be settled at least a year ago. They do some exceptions, but as we had other issues - couple of late payments in past + returned direct debit in October , they declined and asked to re-apply when defaults are 1 year old and when we can provide 3 months of "clear banking", which we did and second application was pretty much straight forward. We have good income , so planning to re-mortgage after 5 years with a high street lender, but at the moment this is the best % rate we could get based on our credit history.  Amount per month for this mortgage will be more than affordable ( £1299 per month) , so we are over the moon and getting our 4 bedroom detached house with garage and big garden, which will be built this summer. Wow, what a bumpy journey! Feel free to ask any questions about application etc. Happy to help, as I was the most nervous buyer ever! 

VAP_Driver

I’m surprised your post hasn’t received some replies. But regardless, it was good of you to post and offer support to others. Congratulations on getting your mortgage offer. Hope the rest of the process goes well, and before you know it, you’re picking up those keys to your brand new home.

JustMe18

VAP_Driver said:

I’m surprised your post hasn’t received some replies. But regardless, it was good of you to post and offer support to others. Congratulations on getting your mortgage offer. Hope the rest of the process goes well, and before you know it, you’re picking up those keys to your brand new home.

ah thank you, I think I posted a lot, whilst waiting haha, maybe people are annoyed with me now + there were couple of threads already about Kent. Just wanted to share, that everything is possible, even if you did some mistakes in past.

cass88

Firstly congratulations! Although not relevant to me I think these posts are very helpful as they can give people a good idea in future around scenarios. I use the search function within the forums a lot to find scenarios that other people have faced and quite often the answers i'm looking for are in posts exactly like yours. It's a good share

JustMe18

cass88 said:

Firstly congratulations! Although not relevant to me I think these posts are very helpful as they can give people a good idea in future around scenarios. I use the search function within the forums a lot to find scenarios that other people have faced and quite often the answers i'm looking for are in posts exactly like yours. It's a good share

thank you, i've literally read around 100 pages of thread whilst waiting

PanPen

Good luck and brilliant news thar your re application worked. Feel free to ignore my question, but was the interest rate at all competitive compared to high street lenders?

JustMe18

PanPen said:

Good luck and brilliant news thar your re application worked. Feel free to ignore my question, but was the interest rate at all competitive compared to high street lenders?

it's 6.14% - not ideal of course, but for shared ownership it's always higher. also there are other lender who offer even much higher, up to 10% lol

meefrono2222

This is awesome news, congratulations! If you don’t mind me asking, what was your LTV? Did you have to provide a larger deposit?

JustMe18

meefrono2222 said:

This is awesome news, congratulations! If you don’t mind me asking, what was your LTV? Did you have to provide a larger deposit?

Thank you! It’s 90% ( meaning I have 10% deposit?) 
actually I did offer larger deposit at the first instance , when they declined me, but they said it’s not the deposit issue, so basically we can afford to put more, but it wouldn’t help. Also our affordability is fine, we are earning around £85k and mortgage will be ££207k for 60% share. We are planning to buy it at 100% next time we re-mortgage, as currently we have a higher rate, so no point + another benefit of this - we don’t pay stamp duty , even being not FTB. After couple of years will be able to buy it at 100% and freehold.  

befree93

I hope you don't mine me reviving an old thread but just submitted my full application to Kent via my MA and I'm so nervous. Can I ask what kind of documents they requested? and did you have to provide additional bank statements? My MA has three that I've provided but I'm on edge as I had a direct debit with Chase that I believe was missed - Chase have told me they don't think it was. It's only Day 2 for me but no sign of a hard search yet? Did you receive a hard search?

firsttimeBUYER1010

Hi do u mind telling me what additional documents did they ask for ? just put my application today 🤞🏾