mortgage application worries - beacon

attagirl_2

Hi all,

after going though L&C my DH and I have now applied for a mortgage with beacon.

The mortgage is for £70k, house is worth £105k. We're buying it from my father, who is gifting us the equity in place of a deposit.

We've sent off tax credits award letters, child maintenance letters and proof of disability living allowance. They've not asked to see my husbands pay slips (although we have them here - he earns £16.5k pa).

I received a phonecall yesterday from the broker saying they would like to see the tax credit award for 2008-2009 (we haven't received it yet), and bank statements showing the april payment of child maintenance from my ex. The account that the payment goes into has gone over it's overdraft limit during april caused by my error in paying the council tax by standing order (utterly my fault because I haven't calculated for it after the 2 months when it wasn't paid ). The account was made good within 1 week. I have ordered the statements from the bank and am expecting them within a few days.

The same afternoon, I received a call from the surveyors who'd been instructed by beacon to carry out the valuation (I'm letting them into the house as my father is a shift worker).

So, I'm feeling positive about the fact that they're arranging a valuation (at beacon's cost - it's a freebie with the mortgage application) but terrified about the bank statements.

Thanks for reading I guess I just wanted to vent my fears

AG xx

attagirl_2

has anyone else had a mortgage with beacon recently or are there any of the brokers / advisors that have had successful applications with them?

We're reeally interested to hear other peoples experiences with Beacon, we're only 2 weeks after our broker put in our initial application and it seems to be progressing fine - just losing sleep atm!!!!!

AG xx

attagirl_2

no-one's got anything to say about beacon then

I've been reading the other mortgage threads to get ideas about timescales etc, I was just hoping to find someone with beacon experience

mightymouse

Hi

google 'beacon home loans', they deal with selected agents - packagers in sub prime area otherwise watch their rates and charges when in arrears.(not that you will be in arrears of course), you should not need to sign in just enter their site should do it.

MortgageMamma

Don't worry about this

Its normal for a lender to check the consistency and persistency of payments of WFTC and child maintenance. You are borrowing well below market value but a lot hangs on the valuation.

Beacon on the whole aren't one of my favorite lenders, they serve a purpose when theres not many to choose from, but I tend to use Leeds Building Society for family gifted equity purchases below 75% with minor adverse credit. They are very good for that - obviously I don't know your circumstances like your L&C adviser does but if you don't have a bad credit record you might not be getting a good deal

ALso, dont worry about going OD. If you do it on a regular basis it will be a problem, but if its just a DD mix up and you can explain it then they will be able to see you put it right I think.

attagirl_2

Thank you MM, that's fantastically helpful xxxx

minimike2

Beacon are limiting thier lending significantly this year. They actually have some pretty decent rates and I rate them as one of the best sub prime lenders, but they do cherry pick what they want. Do you know if L&C have been able to apply direct to them or if they have gone through a packager?

The question I would be asking is the above, plus "How much funding have Beacon allocated to xxxx". They are allocating different amounts to different places, so you are best to try and get your application in with one with a decent amount allocated.

Conrad

Beacon are my favorite sub prime lender with some really attractive deals. On the whole I find them dependable and they have offered every case I've put thier way, but then I am incredibly meticulous which helps avoid dissapointments latterly.

In the end your application will be stress tested against the 'responsible lending' benchmark.
If the lender has doubts about ongoing ability to pay ON TIME IN FULL EVERY MONTH then the case wont succeed.

It's really impossible for anyone to give you reassurance as each case is dependant on its own individual merits.
All I can say is good luck.

minimike2

I would also add that the begining of the month is a better time to put in an application with them, rather than the end, as the funding allocation I believe is on a calander monthly basis!

Diseydi

I am in the process of buying a house from a family who are taking out a mortgage through Beacon Home Loans. I am being told that they have the mortgage offer but we are unable to exchange yet as the mortgage is being audited, therefore a second survey was done on the house they are buying and another set of solicitors (B Legal) are involved asking more questions of the family. Is this normal and do I have anything to worry about with respect to their offer being taken back thus the chain falling through. I am so frustrated as no one can seem to answer me. I am also being told it takes at least 7 working days for the second set of solicitors to reveiw the responses to their questions. Can any one advise.........

unite79

diseydi - Its normal practice for the audit val - I think this is a ruse they use to try to get people so !!!!ED off.