Any advice on who to approach for a mortgage?

Monkeyballs

Hi,

I was hoping someone might be able to offer some advice as I'm just getting myself stressed out

I an a 48 year old guy, working full time and earning £37k per year with a deposit saved of £15k.

I'm looking to buy my Housing Association flat which is valued at £160k but I'm entitled to a £10k reduction due to Right to Acquire.

My problem is that I was bankrupt in 2005 and went through a DMP back in 2015 and bank with Natwest who have flat out said I do not meet their criteria for lending but won't say why - I assume it's due to these.

My current rent is £512 per month, I'm happily paying this and saving £650 per month so combined that £1162 per month which in theory I could pay towards mortgage payments (tho ideally I'd only be paying £900 and continue saving).

I've been suggested to go to a mortgage broker, can anyone suggest a trustworthy one or maybe even an alternative direct lender? 

My current credit rating is very good.

Cheers!

ACG

When did the DMP end? Assuming over 6 years ago, you have probably just been unlucky with your choice of lenders. 

Natwest (and maybe 1 or 2 others) have a blanket rule whereby if they have ever had to write off a penny (via bankruptcy or just a default), they will not give you a mortgage. 

Any broker should be able to help you or you could potentially pick another lender (not included in the DMP/bankruptcy) at random and in theory you should be ok on the adverse front. 

However there is another issue in the fact that it is a social housing flat, at 90% LTV it might rule out a couple of lenders and potentially more so if there is a high number in the block that are not privately owned. 

I would probably just go and look online, most brokers are decent people. You will get an idea from the reviews if they are good or not. 

Monkeyballs

Hi AGC,

Thanks for your reply, I appreciate you.

I started my DMP in 2013 DMP ended in 2018 (so yes, 6 years ago) and the last of my defaults finally dropped off my file about 3 years ago.

I think that having Natwest saying no right off the bat despite having my savings and my last 4 years of banking with them shook my confidence tbh. 

With regards to the number in my block not privately owned, currently all six are owned by the Housing Association but I'm in a court which has several (I'd guess 60 flats in total) blocks with approximately 20% being privately owned - all were built as Housing Association properties initially. 

Thanks,

Jemma01

Sorry, can't help with a recommendation as I just went straight to HSBC for their tracker mortgage, but when I was shopping for a house, the estate agent had free mortgage brokers that I didn't need to pay for and were paid by the lender (Patrick Williams being one estate agent), so I suggest you look for one like that as you've got nothing to lose! If you go to any estate agent you can ask them for recommendation as long as they tell you, they get paid by the lender

ACG

Jemma01 said:

Sorry, can't help with a recommendation as I just went straight to HSBC for their tracker mortgage, but when I was shopping for a house, the estate agent had free mortgage brokers that I didn't need to pay for and were paid by the lender (Patrick Williams being one estate agent), so I suggest you look for one like that as you've got nothing to lose! If you go to any estate agent you can ask them for recommendation as long as they tell you, they get paid by the lender

Can I just counter this with there are estate agent brokers and estate agent brokers. 

Some of them (generally the ones who work for the large corporate agents) are new, under targets and have limited range of lenders. 

I would personally just look for your own broker. Have a chat with them, see how you get on, do they seem cnfident etc. 

kingstreet

NatWest's flat out no is because they don't do shared ownership.

dunstonh

I've been suggested to go to a mortgage broker, can anyone suggest a trustworthy one or maybe even an alternative direct lender? 

Any whole of market local broker who is not based in an estate agent (apart from boutique estate agents - i.e.  independents).

ACG

kingstreet said:

NatWest's flat out no is because they don't do shared ownership.

Its normally me who skims the post and misses a key bit. 
Its right to aquire. 

kingstreet

ACG said:

kingstreet said:

NatWest's flat out no is because they don't do shared ownership.

Its normally me who skims the post and misses a key bit. 
Its right to aquire. 

It was the bit about the rent that put me off. I thought the OP was talking about paying rent and mortgage and getting a discount on a shared ownership purchase.

Monkeyballs

kingstreet said:

NatWest's flat out no is because they don't do shared ownership.

No, this would be 100% ownership, not shared ownership

kingstreet

Monkeyballs said:

kingstreet said:

NatWest's flat out no is because they don't do shared ownership.

No, this would be 100% ownership, not shared ownership

Yep. Pointed out to me above by the Rt Hon Member for Manchester South.