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    • jw89
    • By jw89 5th Aug 18, 10:34 PM
    • 2Posts
    • 0Thanks
    Precise.. really necessary?
    • #1
    • 5th Aug 18, 10:34 PM
    Precise.. really necessary? 5th Aug 18 at 10:34 PM

    After a bit of a steer from the very helpful brokers on here.

    We're FTBs, looking to use H2B. Property is 310k, so @75% we're looking for 233k. This is well within affordability by any calc - comes in at under 3 times our combined income.

    My credit history is excellent - no missed payments, heavy usage of credit cards generally repaid in full, big limits with no issues.

    My OH earns more than me, but has a handful of PDLs on her file. The most recent of which shows up as being repaid last month, because she let them freeze the account and has only just cleared it. She got herself in a bit of a mess last year but is sorted and comfortably saving 500+ a month whilst covering the rent and all bills.

    Our broker initially sent us to Nationwide, and we failed an AIP at the first hurdle. Having spoken to some other lenders, the broker is now advising us that the next stop will be Precise.

    Is that really the case? What are the chances of placing this on the high street with historic, albeit recent, PDL usage? Not expecting a definitive answer but a steer would be good.

    Thanks so much in advance!
Page 1
    • Thrugelmir
    • By Thrugelmir 5th Aug 18, 10:56 PM
    • 62,031 Posts
    • 55,220 Thanks
    • #2
    • 5th Aug 18, 10:56 PM
    • #2
    • 5th Aug 18, 10:56 PM
    Bottom line is that your partner has trouble managing their finances, i.e. PDL's. A mortgage lender is going to be concerned that they'll struggle to conduct themselves over a 25-35 year period. Mortgage lending is a low margin business. Not geared to excessive account administration in the main. Specialist lenders therefore target the less popular areas of mortgage lending. Where the rates reflect the perceived risk.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • Edi81
    • By Edi81 6th Aug 18, 9:19 AM
    • 637 Posts
    • 574 Thanks
    • #3
    • 6th Aug 18, 9:19 AM
    • #3
    • 6th Aug 18, 9:19 AM
    You need to look at this from a lender view. You have a joint income of 70k and have said your OH warms more than you so is on 35k a year at least.

    Someone on that salary shouldn!!!8217;t be needing to use PDL.....

    The best you can hope for is a couple of years with Precise and then remortgage to a more mainstream lender.
    • sal_III
    • By sal_III 6th Aug 18, 9:29 AM
    • 780 Posts
    • 782 Thanks
    • #4
    • 6th Aug 18, 9:29 AM
    • #4
    • 6th Aug 18, 9:29 AM
    If you have savings for a deposit why did she resort to PDLs recently? Not exactly the financial discipline/prudence that the high street lenders are looking for.

    It's not the end of the world if you have to go to a lender with higher appetite for risk and naturally higher rates for a couple of years, until your wife cleans her act. With the equity buildup compared to renting you will end up saving money.
    • jw89
    • By jw89 6th Aug 18, 9:48 AM
    • 2 Posts
    • 0 Thanks
    • #5
    • 6th Aug 18, 9:48 AM
    • #5
    • 6th Aug 18, 9:48 AM
    Long story short is our joint income has more than doubled in the last year, hers particularly, and our combined is around 100k.

    The circumstances surrounding the PDL usage represent a one time event in her life that isn't going to repeat itself - and her income is more than twice what it was back then.

    Almost the entire mortgage deposit has been saved since then. I had a couple of investments tied up that have since been released and will provide 20k towards a deposit.
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