Advice Re: self employed -mortgage lenders
Discussion
Bit of advice needed please for my sis and brother in law. They were refused a re-mortgage today by their current mortgage provider (high street bank) on the basis of his credit check. A missed payment on a credit card 4 yrs ago seems to have spoilt his side of the application.
Their situation is £133k equity in current home, £26k mortgage left over 5 years. Wanting to buy a bigger house at , borrowing £70k or so on top, so loaning £95k approx. Both are mid 40s. She's part time local govt, he is self employed (taxi limo for airports)
Sis earns £18k, he earns £31-35k.
She was quite shocked to be refused tbh over this credit card missed payment. A friend has given me details of an Indy mortgage advisor to contact but is there anything they can do to improve what on paper looks a decent situation to go asking for a mortgage uplift?
Their situation is £133k equity in current home, £26k mortgage left over 5 years. Wanting to buy a bigger house at , borrowing £70k or so on top, so loaning £95k approx. Both are mid 40s. She's part time local govt, he is self employed (taxi limo for airports)
Sis earns £18k, he earns £31-35k.
She was quite shocked to be refused tbh over this credit card missed payment. A friend has given me details of an Indy mortgage advisor to contact but is there anything they can do to improve what on paper looks a decent situation to go asking for a mortgage uplift?
200Plus Club said:
Bit of advice needed please for my sis and brother in law. They were refused a re-mortgage today by their current mortgage provider (high street bank) on the basis of his credit check. A missed payment on a credit card 4 yrs ago seems to have spoilt his side of the application.
Their situation is £133k equity in current home, £26k mortgage left over 5 years. Wanting to buy a bigger house at , borrowing £70k or so on top, so loaning £95k approx. Both are mid 40s. She's part time local govt, he is self employed (taxi limo for airports)
Sis earns £18k, he earns £31-35k.
She was quite shocked to be refused tbh over this credit card missed payment. A friend has given me details of an Indy mortgage advisor to contact but is there anything they can do to improve what on paper looks a decent situation to go asking for a mortgage uplift?
I'm a Mortgage Broker.................if they are failing the credit score then there is nothing you can do to improve their chances, other than find a lender that will accept them.Their situation is £133k equity in current home, £26k mortgage left over 5 years. Wanting to buy a bigger house at , borrowing £70k or so on top, so loaning £95k approx. Both are mid 40s. She's part time local govt, he is self employed (taxi limo for airports)
Sis earns £18k, he earns £31-35k.
She was quite shocked to be refused tbh over this credit card missed payment. A friend has given me details of an Indy mortgage advisor to contact but is there anything they can do to improve what on paper looks a decent situation to go asking for a mortgage uplift?
However, I would be surprised if the lender was saying no purely due to one missed credit card payment years ago.........there must be other factors at play.......
At the minute that's the only thing my sister is aware of, obviously it does sound harsh. She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc.
Puzzling. I will post an update if the above I go isn't right however.
Puzzling. I will post an update if the above I go isn't right however.
200Plus Club said:
At the minute that's the only thing my sister is aware of, obviously it does sound harsh. She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc.
Puzzling. I will post an update if the above I go isn't right however.
"She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc. "Puzzling. I will post an update if the above I go isn't right however.
^Whilst thats all great, if you can't pass the credit score, it means nothing..........she could be doing that but if the husband is missing payments on his personal stuff then it's not going to pass........
Sarnie said:
200Plus Club said:
At the minute that's the only thing my sister is aware of, obviously it does sound harsh. She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc.
Puzzling. I will post an update if the above I go isn't right however.
"She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc. "Puzzling. I will post an update if the above I go isn't right however.
^Whilst thats all great, if you can't pass the credit score, it means nothing..........she could be doing that but if the husband is missing payments on his personal stuff then it's not going to pass........
is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
200Plus Club said:
Sarnie said:
200Plus Club said:
At the minute that's the only thing my sister is aware of, obviously it does sound harsh. She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc.
Puzzling. I will post an update if the above I go isn't right however.
"She overpays on the current mortgage hence it's got 3 yrs or so left, she's shaved about 5 years off the term, no payment missed ever etc. "Puzzling. I will post an update if the above I go isn't right however.
^Whilst thats all great, if you can't pass the credit score, it means nothing..........she could be doing that but if the husband is missing payments on his personal stuff then it's not going to pass........
is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
"4 yrs ago apparently there was a default on a CC and the debt was sold on"
Your original post said there was a missed payment...............not that the account had gone into default, presumably after a significant missed payments.......pretty much confirms my original suspicions that a lender wouldn't decline the application on a single missed payment alone.
There will be lenders who will consider but it's unlikely to be any of the prime high street lenders.........they need to seek out professional mortgage advice....
200Plus Club said:
yes i was working on that info yesterday, last night she found out what the actual debt was and his credit score. talking to someone today apparently to see if anything can be done, it is literally a one off issue for the pair of them over the last 17 years or so of home ownership.
Something can be done, they just need to be speaking to the right people/lenders.....200Plus Club said:
yes that is the issue, 4 yrs ago apparently there was a default on a CC and the debt was sold on, he's been repaying since without a miss.
is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
So it has gone from missing one credit card payment to defaulting and the debt being sold on. Do we know if he had a CCJ issued against him?is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
Sounds like he is not being 100% honest about his financial situation.
Joey Deacon said:
200Plus Club said:
yes that is the issue, 4 yrs ago apparently there was a default on a CC and the debt was sold on, he's been repaying since without a miss.
is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
So it has gone from missing one credit card payment to defaulting and the debt being sold on. Do we know if he had a CCJ issued against him?is that one incident a show stopper totally, or would someone somewhere lend based on £133k equity against a house at £200k, on a 12 year repayment mortgage (thats all they need).
Sounds like he is not being 100% honest about his financial situation.
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