Mortgage time approaching - nightmare deposit amount!

[Deleted User]

Hello Forum'ers.

Im wondering if someone could cast some light, or give me an alternative method.

I have recently gotten out of some debt, cleared debt, had defaults, NO CCJ's, but some missed payments ETC.

This was over 18 months ago now, maybe even 24, Myself and partner have saved up a 10% deposit for the house price we are aiming for (£150k), I've no missed payments in 2 years, no defaults, no CCJ's so to me, i've got a fairly clean slate now for 2 years.

I have been speaking with 2 mortgage advisor's, as I'm curious as to when will be a good time to begin applications ETC.

Both have come back to me after looking at my credit profile, and said that I MAY get accepted, but will need a hefty deposit (25%).

Now, I have friend's who have a much worse credit profile and history than mine, and some of them have achieved a mortgage with 10% deposit, I'm not for one second doubting the advisors, but 25% with a fairly clean profile/history in the last 2 years, I feel is ampoule enough to get a 10% deposit mortgage, Do they claim commission if they get a higher deposit. meaning they'll get more commission, or is it just that they potentially don't want to work with me and are trying to way-lay me else where? Not that I've said/done anything out of the ordinary for them to not want to work with me.

Is this a case of shopping around? It's a brand new thing to me, so I'm unsure whether I'd need to pay for applications, or is there a way I can do this myself free of charge?

Thankyou.

_Penny_Dreadful

[Deleted User] said:

Hello Forum'ers.

Im wondering if someone could cast some light, or give me an alternative method.

I have recently gotten out of some debt, cleared debt, had defaults, NO CCJ's, but some missed payments ETC.

This was over 18 months ago now, maybe even 24, Myself and partner have saved up a 10% deposit for the house price we are aiming for (£150k), I've no missed payments in 2 years, no defaults, no CCJ's so to me, i've got a fairly clean slate now for 2 years.

I have been speaking with 2 mortgage advisor's, as I'm curious as to when will be a good time to begin applications ETC.

Both have come back to me after looking at my credit profile, and said that I MAY get accepted, but will need a hefty deposit (25%).

Now, I have friend's who have a much worse credit profile and history than mine, and some of them have achieved a mortgage with 10% deposit, I'm not for one second doubting the advisors, but 25% with a fairly clean profile/history in the last 2 years, I feel is ampoule enough to get a 10% deposit mortgage, Do they claim commission if they get a higher deposit. meaning they'll get more commission, or is it just that they potentially don't want to work with me and are trying to way-lay me else where? Not that I've said/done anything out of the ordinary for them to not want to work with me.

Is this a case of shopping around? It's a brand new thing to me, so I'm unsure whether I'd need to pay for applications, or is there a way I can do this myself free of charge?

Thankyou.

Brokers don’t receive commission based on the size of your deposit. It seems an odd conclusion to jump to that the brokers don’t want to work with you because they’re saying you’ll need a 25% deposit. The brokers don’t set the lending criteria, the lenders do. The broker tries to match you to the best lender for your circumstances.  

Two brokers have both suggested that based on your profile you’ll require a 25% deposit. You could try a 3rd broker to see what they say. There are a few who regularly post on the forum. It could just be that 25% is the minimum deposit for your profiles in the mortgage market at this particular point in time. Forget what your friends may or may not have done as you really don’t know the full details of their borrowing profiles. 

Mark_d

In my opinion you shouldn't have a problem getting the mortgage you want...assuming you have a steady income and you meet the affordability checks. If you bank with an organisation that offers reasonable mortgage rates, such as HSBC/First Direct or Nationwide, then I would talk to them directly rather than using a broker.

Bigphil1474

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

[Deleted User]

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

ReadySteadyPop

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

SDLT_Geek

ReadySteadyPop said:

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

Hi Crashy!  You are instantly recognisable.
This section of the Forum has been quieter without you.
The "Pop" in your name is an allusion to your oft predicted "pop" that the housing market is about to suffer?

[Deleted User]

ReadySteadyPop said:

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

Ignore my ignorance, but what would that mean?

BarelySentientAI

[Deleted User] said:

ReadySteadyPop said:

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

Ignore my ignorance, but what would that mean?

Ignore Crashy, they've been predicting 30-40% price drops for over a decade and everything they post is trying to make that happen.  All in good spirits, but can confuse new forumites.

2 years isn't a huge amount of time for your credit record to be clean, so it might just be that 25% is their way of accounting for this rather than restricting the total amount you can borrow.

[Deleted User]

BarelySentientAI said:

[Deleted User] said:

ReadySteadyPop said:

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

Ignore my ignorance, but what would that mean?

Ignore Crashy, they've been predicting 30-40% price drops for over a decade and everything they post is trying to make that happen.  All in good spirits, but can confuse new forumites.

2 years isn't a huge amount of time for your credit record to be clean, so it might just be that 25% is their way of accounting for this rather than restricting the total amount you can borrow.

Yeah.

My obvious issue is that I know for a fact that a few of my friends have had CCJ’s, and still have defaults, yet attained a mortgage at a 10% deposit, I’m guessing that the only way to really know is to apply?

BarelySentientAI

[Deleted User] said:

BarelySentientAI said:

[Deleted User] said:

ReadySteadyPop said:

[Deleted User] said:

Bigphil1474 said:

Doesn't sound like it's your credit profile, could well be other circumstances - type of job, income etc?  As Mark says above, if you're with a decent bank, try them first. It's quite easy to get an Agreement in Principle with most banks, and you'll soon find out if they'll lend to you. It's not a 100% guarantee but a good indicator and as it's your normal bank, I would expect it to increase your chances of success.

Thankyou, They haven’t actually asked me about my job or income yet which is odd, and another reason I’m a bit baffled by them saying I NEED a 25% deposit for a mortgage.

Not sure if it’s allowed to be mentioned, but I earn £39k+ a year and have a disposable income of around £750 after my current rent and bills.

Im with NatWest and Santander, I’ve had a AIP with NatWest, I’ll try with Santander too.

They are cushioning themselves against future price falls, they want you to pay for that essentially, that is how they make money as a lending business, the market changes very quickly, mortgage rates are rising again as risk is constantly re-priced.

Ignore my ignorance, but what would that mean?

Ignore Crashy, they've been predicting 30-40% price drops for over a decade and everything they post is trying to make that happen.  All in good spirits, but can confuse new forumites.

2 years isn't a huge amount of time for your credit record to be clean, so it might just be that 25% is their way of accounting for this rather than restricting the total amount you can borrow.

Yeah.

My obvious issue is that I know for a fact that a few of my friends have had CCJ’s, and still have defaults, yet attained a mortgage at a 10% deposit, I’m guessing that the only way to really know is to apply?

Different lenders have different ways of meeting their risk.  One might only lend at 25% deposit, another might lend at 10% deposit but at a higher interest rate.

A good broker will know which are which and place you in the best position for your circumstances.  There are also some lenders/brands that only go through brokers so they can access offers that you can't.

Someone like @ACG or @kingstreet might be able to give you a better answer than I can.