Will I get a mortgage?

[DrHolmes]

I have some defaults on my credit history from a few years ago, they are all settled/satisfied. (
My parents just sold a property and have 20-25k to lend to me as a deposit.
Have found a nice place to live at 75k. So with 20-25k from my parents that's a pretty good deposit.
When I spoke to the mortgage advisor he advised i'd prob not get a mortgage over 90k (thats ok, plenty places round here under that value). We entered all my outgoings, the price of the flat, the deposit etc and that i had settled defaults. This then showed a list of banks that would still be willing to lend.
Last night my mum e-mailed me to say the mortgage advisor said he had two no's so far but stil waiting for some banks to get back to him. I am so worried. I need to get out of the place I am living now and I really like this flat i have viewed twice. I have noted interest. I just want a yes and to get it all sorted so no one else will buy it!
Also, there is a problem because my parents are not UK residents anymore.
How will I ever get a mortgage if even with 20-25k the banks still say no?
The whole "computer says no" thing really annoys me. I earn 24k a year and don't have much outgoings, we calculated what id be for food, gas, leccy, fuel etc and i can easily afford the repayments. So whhyyyy do they still no? arghhh

[BlueberryHill]

Good luck, see what happens ask your advisor, maybe your parents could act as guarantors (not sure how this would work if they are not resident here). If not you may need to wait a couple of years so that the defaults 'drop' off your record and in the meantime build up a good credit history.

[DrHolmes]

Yes, that is what I am afraid of! I currently live with my dp and his parents and just want my own space. I am pinning all my hope on this guy managing to find someone willing to lend. If he can't i think I will sink into a depressive state.
I was young when i got the credit and didn't understand how it would affect me.
I am angry at myself but also just impatient and want to know asap!
Thanks for the luck, think Im going to need it.

[pettyprudence]

Try Halifax. My colleague has a terrible credit history and they have just been approved for a 90% mortgage with them (their broken arranged it for them).

Good luck - there will be a mortgage out there for you :)

[lalalonglegs]

Any mortgage adviser worth his/her salt should have an idea which banks to approach given your difficulties and either have built up a relationship with them himself or have a colleague that can help you. If your mortgage adviser is unable to find anyone, then try another company until you find one that can. Given the huge amount of equity you would have and your current wage, you should be low risk but it depends how recently these defaults were.

[DrHolmes]

The most recent one was settled last year. So looking at 2018 for that last one to have come off. Or does it go by the actual default date not the date it was settled?

Petty Thanks, I will speak to him to see if he has tried halifax. I txt a friend telling her of my difficulties and she also said her friend had gotone through halifax even though they had terrible history so that's a glimmer of hope.

Apparently the mortgage advisor i have is good so fingers crossed!

[pettyprudence]

DrHolmes my colleague was rejected by Lloyds Tsb about 6-9 months ago as their defaults were very recent, but even just this small time passing and keeping up with their payments has made a difference. Their accounts are not settled and are ongoing. I only know this much about their finances as we are both looking to buy our first houses at the same time and so we have been comparing notes etc... They have a much smaller deposit too.

[DrHolmes]

Ok so does look a bit better for me then. All mine are settled and anything else i have i haven't missed any payments in over 2 years.

What i don't like is the more this guy trys different places the more searches are on my history which is also not looked at favourably.

[LordEmsworth]

Is it possible that the flat is the problem - some lenders won't lend on ex-council flats / flats above shops / flats above a certain floor etc...

[DrHolmes]

Well, it is part of a maisonette so a house that's been split up, not ex council or near shops or anything. Also I haven't given the details of the flat so all they know is i want a mortgage of 80k.

[Jaynebxl]

In your first post you said you had found a nice place for 75k ... Is that a typo? If not then that would explain why you can't get a mortgage for 80/k ... Banks won't lend more than the property is worth.

[DrHolmes]

The place I want is 75k.
The mortgage advisor said he has put in to see who will lend for 80k. I think if he has one saying yes then we will put the actual application in for 75k.
When i went in for the discussion i had only viewed some places, didn't have a place i wanted to put in an offer yet.
I think he just used 80k as it was a safer bet than the 90k he thinks would be my limit based on salary and history. So at the moment it's just to see if there will be banks willing to lend up to 80k.
After the meeting i then went back to the place worth 75k for second viewing and decided to note interest so the application is not for the 75k flat just as a base i think.

[Jaynebxl]

Ah I see!

[flow4]

You need a broker who knows the lenders well. He needs to know (or be very sure that) a lender will say 'yes' BEFORE he submits your application, because each time you are rejected, it damages your credit record further. It is a bad idea to just put in one application after another, and your chances go down each time. Tbh, if your broker doesn't know that, I don't think he's as good as you've been told.

With a deposit that size and only old repayment problems, from what I've been told, you should be able to get a mortgage without too much trouble (tho I'm not certain from what you've said whether you have 25k of a 75k flat, or 25k + 75k mortgage).

Some lenders won't do mortgages on flats at all, so it could be the property that's the problem, not you. Again, your broker should know this.

Have a look on the Moneysavingexpert.com discussion boards. There are brokers there who'll give you their opinions.

[AliceWChild]

I'd think about speaking to another financial advisor. I've just been through the process with a complicated set up and she got us through first time. Things your guy is doing run contrary to her advice, for example you don't put in apps until the offer has been accepted, certainly not for speculative amounts, and multiple applications damage your chances. She knew straight off who would or wouldn't be likely to accept and had lines direct to the business development managers to check this. Of course I'm not a financial advisor so it could be she's wrong, but she's got us through a tricky situation so I don't think that's the case.

[DrHolmes]

flow It is 25k of a 75k flat.
They don't know it's a flat yet cause like I say he was just trying to see who was willing to lend at 80k.
I looked at my credit report and I see bank of scotland and Igroup have searched although it does say "unrecorded entry" so i on't think that does affect the report?
I am going to call him tomorrow to see what he is up to. I was told he is very good.
I'm also going to ask if he has tried Halifax. I will do some research to see who else I could use.

[flow4]

With a 33% deposit, your salary and debts that are all paid off, I think you shouldn't have too much of a problem getting a mortgage, though I do think you need to pick your lender.

I'm afraid I agree with Alice: it doesn't sound like your broker is as good as you've been told... Unless you are misunderstanding what he's told you, and he has just checked your needs against lenders' criteria rather than actually making applications.

He should be able to do a full search of all available lenders and check your situation/details against lenders' criteria. There will be some with criteria that rule you out - e.g. need salary over £25K, won't lend on flats, need 'excellent' credit score, etc... But he ought to be able to rule these out and find the best 'deals' that you are eligible for and would get. This is the whole point of using a broker, IMO... The 'public' search engines won't always show you criteria, so you can waste your time applying if you do your own independent application; but a broker should have access to search engines that mean he almost never makes an application that is rejected, providing you give him full and accurate information...

Whereabouts are you? One of us might be able to recommend another broker.

Or here is the link to the MSE mortgage discussion board - have a read of other similar threads, even if you don't want to post directly yourself: forums.moneysavingexpert.com/forumdisplay.php?f=15

[Quodlibet]

I don't understand why your broker is searching for an £80k lend when you only need a £50k mortgage on your £75k flat?

Bear in mind it is in broker's interest (not yours) to get mortgage as large as possible.

If you only need £50k - which is 2x your income, and you'll be 66% LTV then I can't see why a broker would find it hard to find you something!

[dietstartsmonday]

Look up a company called simply finance. They are helping me and they are good.

[DrHolmes]

Flow you might be correct in that he is currently searching criteria at the moment. I'm going to have to call him tomorrow to find out what he is actually doing because I am not 100% myself.
I am using him through rightmove which is who the property is listed with. So, i do think he will be doing his best because otherwise he won't get paid, he'll be on comission won't he?
I'm sorry I get confused by all of this!
I am in North East Scotland.

Thanks diet will look them up.

[flow4]

I umm-ed and ahh-ed about getting a broker... In the end, I decided that since there were quite a lot of things I didn't totally understand, I needed someone who could communicate well and *explain them to me. I 'phoned around a few and finally picked someone who was straight-talking and clear. I think that if you don't understand, because your broker hasn't been able to explain things to you well enough, then that's going to make you feel quite out-of-control, and house buying is stressful enough without that!

I didn't know it was possible to get a broker through Rightmove... I'd have a couple of reservations about a broker who gets his custom that way... For a start, it means he doesn't get enough personal recommendations to keep him going, and needs to advertise. That might mean he's young/new and inexperienced. It also means he may be searching for mortgages with the highest commission for him, rather than the best deal for you. He may not - he may be totally scrupulous - but it must be a temptation.

Why not have a couple of 'phone conversations with other brokers, and see if they can answer your questions better? :)

[DrHolmes]

I am going to do that flow. Thanks :)

[flow4]

:)

[financialwizard]

Can I just say that there is sooooo much regulation with regard to mortgage advice now that it would be very hard for a mortgage consultant to recommend a product because it earns them the most commission. Plus there is usually very very little difference between lenders for commission.

It sounds to me like the broker is talking to BDM's to see what he can do for you.

As for advertising on Rightmove, isn't it obvious that a mortgage broker would do that? Like car insurance is advertised on auto trader. How else is someone to get business without relying on word of mouth (might not be bad at his job).