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  • FIRST POST
    • Jonesy7
    • By Jonesy7 10th Apr 18, 7:58 AM
    • 3Posts
    • 1Thanks
    Jonesy7
    Slowly losing the will to live...mortgage advice needed please.
    • #1
    • 10th Apr 18, 7:58 AM
    Slowly losing the will to live...mortgage advice needed please. 10th Apr 18 at 7:58 AM
    Hi All,

    We are currently in the process of buying a new build with Help to Buy.
    We started our journey in January with an independent (or so we thought) broker who told us he could help with the HTB.

    At that point we had 4 missed credit card payments from March 2017 (we then subsequently paid it off in that month and closed it) and a missed mortgage payment in June 2016 this was caught up over the next month and remains up to date. We were told in 2017 that we wouldn't be able to get a mortgage and to wait until this year which we have done. Credit report on Experian at excellent for me and fair for hubby. Equivalent both at around 500 and call credit both at 1 however all showing same info and nothing else bad on them besides the credit card and missed mortgage payment.

    We have 90k profit when our house sells which will pay off outstanding debt (credit card and a couple of loans used for our wedding) of 35k and also cover the fees, stamp duty and deposit of up to 46k for the house which is 330k
    Hubby earns 40k and I earn 6.5k and have a guaranteed maintenance agreement for the last 10yrs for my daughter. We get tax credits at a rate of 3.8k.

    The first mortgage broker got us a DIP with Nationwide for 224,000 but then we got turned down by HTB as we hadn't been told how to fill forms in and mortgage broker told us he doesn't deal with that side of things and we have to do it. We went to another advisor who helped us do the affordability and also advised us that we would have to re do the mortgage application with Nationwide.

    So this we did, Nationwide then turned us down because they said our credit utilisation was too high. Even though we are clearing all finance with the sale of our house.

    Advisor told us we had been declined by other high street lenders in a soft search so only option was precise, put application in with precise but they won't take my job into consideration because I've only had it for 6 months so going on husbands wage and tax credits alone offered a DIP at 218,000 which was fine and we could just afford the house. Full application went in on 23/3/18 and valuation fee paid.

    Precise came back yesterday for more paperwork and said that max loan would be 207k because of a tax credit overpayment which we are currently paying off with 50% of our tax credits payments.
    207k means we can't afford the house and now we are panicking because we are going to lose it...
    In the mean time the credit card missed payments have now dropped off (1 year) and as a result both our credit reports on Experian are in the excellent range.

    What are our options? My hubby is due a bonus end of this month which we can use to pay off the credit card and shop direct which contributes to the high credit utilisation. But that's a couple of weeks away and we need to get a mortgage sorted before then ideally.

    Sorry for the long post just at my wits end and panicking.
Page 1
    • amnblog
    • By amnblog 10th Apr 18, 10:04 AM
    • 10,678 Posts
    • 4,231 Thanks
    amnblog
    • #2
    • 10th Apr 18, 10:04 AM
    • #2
    • 10th Apr 18, 10:04 AM
    A tale of woe here from both Brokers from the sound of it.

    You should have had help with the Property Information Form. Not helping the applicant only delays and complicates matters.

    The key issue with Tax Credits is to check current rate is valid by obtaining the last award letting and insuring incomes still match.

    If you are only 6 months employed, that is part of the basic Precise criteria and will also effect tax credits.

    This sounds like a complex case.

    Incomes varying, missed mortgage payment in last 12 months.

    There should be Lenders that will consider your new employment income and perhaps that will cover the tax credit issue. They should also possibly live with the credit history.

    I can understand however, why you wouldn't want a third application with a third broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Jonesy7
    • By Jonesy7 10th Apr 18, 10:11 AM
    • 3 Posts
    • 1 Thanks
    Jonesy7
    • #3
    • 10th Apr 18, 10:11 AM
    • #3
    • 10th Apr 18, 10:11 AM
    Thanks for your reply, Im frustrated in that we are doing the very best we can to try and get this house.

    Would you recommend going through a third broker? Is there a way I can do a direct application with someone for help to buy or do I have to use a broker? And lastly is there a lender that you can think of that would be happy with all of the above criteria?

    I've literally been trying to get hold of my broker since yesterday after receiving the news about the lower offer and have had no joy. Slightly frustrating.
    • Noobie2011
    • By Noobie2011 10th Apr 18, 10:39 AM
    • 272 Posts
    • 50 Thanks
    Noobie2011
    • #4
    • 10th Apr 18, 10:39 AM
    • #4
    • 10th Apr 18, 10:39 AM
    I am currently in the process of a HTB and me and my oartner have a few missed payments about 12 months old aswell as old paydays and AR agreements and also quite a bit of debt with high utilisation which we are not planning to get rid off before the mortgage completes. On top of this I have just started a new job and only 2 weeks in. For this reason we were going with Kensington through our broker but they wanted 1 months payslip but woukd still need to decide if being in a probationary period for the initial 3 months of job would be fine.

    In the end our broker told us last Friday he had secured a DIP with Natwest and we were very shocked indeed and he has assured it should all be fine now as they know everything upfront. I am skeptical but it does seem a good broker can open doors for you as opposed to a bad broker who will just run through the process and not understand your unique situation
    • Noobie2011
    • By Noobie2011 10th Apr 18, 10:43 AM
    • 272 Posts
    • 50 Thanks
    Noobie2011
    • #5
    • 10th Apr 18, 10:43 AM
    • #5
    • 10th Apr 18, 10:43 AM
    Although I forgot to say but our broker has advised we fill the HTB form in but could help however I found it straight forward unless I am missing something.

    Have not sent it off yet so may just double check it before I do
    • kingstreet
    • By kingstreet 10th Apr 18, 11:03 AM
    • 33,872 Posts
    • 18,390 Thanks
    kingstreet
    • #6
    • 10th Apr 18, 11:03 AM
    • #6
    • 10th Apr 18, 11:03 AM
    Make sure you do the HTB Affordability calculator based on the data you have entered before you submit PIF & Res.

    https://www.gov.uk/government/publications/help-to-buy-equity-loan-calculator-and-guidance

    For example, you enter Child Benefit and Child Tax credits but they are not included in the affordability calculations.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • amnblog
    • By amnblog 10th Apr 18, 11:15 AM
    • 10,678 Posts
    • 4,231 Thanks
    amnblog
    • #7
    • 10th Apr 18, 11:15 AM
    • #7
    • 10th Apr 18, 11:15 AM
    I would have thought that your first step is to see what your current broker's 'plan B' is.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Jonesy7
    • By Jonesy7 10th Apr 18, 12:37 PM
    • 3 Posts
    • 1 Thanks
    Jonesy7
    • #8
    • 10th Apr 18, 12:37 PM
    • #8
    • 10th Apr 18, 12:37 PM
    Noobie, as one of the replies states, make sure you have done your affordability check and worked out what your disposable income is before you submit the PIF form, this is what we hadnt done and had it sent back. We went to a FA on the HTB panel and they helped us with this.

    Thanks for your replies, we are arguing the case that because i was on maternity leave with my twins before taking my current job and hopefully they will take my wages into consideration.
    • Noobie2011
    • By Noobie2011 10th Apr 18, 3:49 PM
    • 272 Posts
    • 50 Thanks
    Noobie2011
    • #9
    • 10th Apr 18, 3:49 PM
    • #9
    • 10th Apr 18, 3:49 PM
    Noobie, as one of the replies states, make sure you have done your affordability check and worked out what your disposable income is before you submit the PIF form, this is what we hadnt done and had it sent back. We went to a FA on the HTB panel and they helped us with this.

    Thanks for your replies, we are arguing the case that because i was on maternity leave with my twins before taking my current job and hopefully they will take my wages into consideration.
    Originally posted by Jonesy7
    Yes I have done that affordability check and was fine but I am going to ring our local HTB agent and just run through everything so we do not mess up something stupid. Our broker advised our Mortgage application can still go through some of the way without the HTB tick but they will then hold off on making an offer until this is supplied. We are anyway unable to receive an offer until I provide my 1st months payslip with new job which is just over 2 weeks away
    • kingstreet
    • By kingstreet 10th Apr 18, 4:59 PM
    • 33,872 Posts
    • 18,390 Thanks
    kingstreet
    We wouldn't dream of letting applicants anywhere near the Property Information Form and affordability calculators.

    It's an area we want to control and monitor closely.

    Some brokers are muppets...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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