One for the brokers

Pixie5740

I already have a whole of market mortgage broker and I have a meeting with him tomorrow but I wanted to run a couple of things before the meeting with the MSE posters.

Background

I'm in Scotland so any property purchase is going to move fairly quickly. I think between 6-8 weeks between offer and getting the keys.

I'm in full time employment and looking to borrow less than 3 times my salary. No dependents and over 30 years until retirement.

I've checked all 3 credit files. Nothing sinister. On electoral register. One credit card paid off in full every month and one credit card that I'm stoozing £5k on but could pay off tomorrow if necessary.

My broker has carried out a soft search with Halifax who generated a DIP for up to a 90% LTV mortgage for more than twice the amount I want to borrow.

Questions

My broker keeps going on about Halifax but I'm not sure if this is just because they offer a soft search. The Halifax rates he's given me as an illustration don't look that good and I like the look of some of Nationwide's Flexclusive offers. Can you only get the Flexclusive deals by going direct to Nationwide?

I also asked my mortgage broker about the HTB Mortgage Guarantee scheme but he said Halifax won't give me a 95% LTV because you need an excellent credit history but I thought the purpose of HTB was that the government guaranteed the mortgage. I also can't see what's so bad about my credit history. He never mentioned any of the other HTB lenders, are they more strict than Halifax?

I suppose these are really things to ask him tomorrow but I wanted to get it written down and clear in my own head before the meeting. :huh:

csgohan4

Its' not the credit rating that matters, but your credit history. I.e loans, CCJs


Having an DIP does not guarantee you a mortgage. The consensus on here is Halifax's DIP especially are not worth the paper it's written on.


Just because the government can guarantee a set amount doesn't mean they will. Will you as a tax payer guarantee someone who has multiple pay day loans and car loans with CCJ's??

With 5k on your credit card, that doesn't look good and they will deduct it from your loan amount, further reducing the affordability you can pay.

Pixie5740

csgohan4 wrote: »

Its' not the credit rating that matters, but your credit history. I.e loans, CCJs

I know that's why I never mentioned anything about credit ratings. I only mentioned credit files and history in my OP.

We don't have county courts in Scotland so I've never had a CCJ. Never been issued a decree by a sheriff either.

csgohan4 wrote: »

Having an DIP does not guarantee you a mortgage. The consensus on here is Halifax's DIP especially are not worth the paper it's written on.

Yes, I know a DIP isn't the same as a mortgage offer and based on your advice I'll take Halifax's DIP with a large pinch of salt.

csgohan4 wrote: »

Just because the government can guarantee a set amount doesn't mean they will. Will you as a tax payer guarantee someone who has multiple pay day loans and car loans with CCJ's??

I have never had a pay day loan in my life. No car loan. The only debt I have is the £5k CC mentioned in my OP.

csgohan4 wrote: »

With 5k on your credit card, that doesn't look good and they will deduct it from your loan amount, further reducing the affordability you can pay.

Yes, the £5k will impact my affordability. I've been wondering whether just to pay it off even though it's at 0% until next year. Maybe one for the broker tomorrow.

kingstreet

HTB - Mortgage Guarantee is to widen he availability of 90%+ mortgages. The underwriting is more strict regardless of the guarantee which is a guarantee of the solvency of the repossession fund, not your individual mortgage.

Nationwide Flex products are direct only and to holders of that particular account. Nationwide lends 95% only to Save To Buy members and existing borrowers.

The other 95% lenders HTB - MG or otherwise, may accept you, or they may not.

TravelBugHappy

The nationwide flexclusive deals are only for ppl that have had a nationwide current account for at least 3 months prior to application & paid at least 750 into it each month - you can only get a 95% mortgage with them if you have a save to buy accout with them for at least 6 months prior to application & save at least 50 per month in that.

HTH

TravelBugHappy

... From what you've said I can't see any reason why you wouldn't be able go get a 95% mortgage elsewhere

Pixie5740

Sorry I should have said that I do actually have at least a 10% deposit. I was just curious about HTB in case it meant I could stretch to getting a house instead of a flat.

I've used Nationwide for my main current account for over 15 years now so that's why I was having a look at their Flexclusive deals.

I suppose I was really just wondering why my broker has only ever mentioned Halifax or if he's just using it for illustrative purposes at the moment.

csgohan4

Pixie5740 wrote: »

Sorry I should have said that I do actually have at least a 10% deposit. I was just curious about HTB in case it meant I could stretch to getting a house instead of a flat.

I've used Nationwide for my main current account for over 15 years now so that's why I was having a look at their Flexclusive deals.

I suppose I was really just wondering why my broker has only ever mentioned Halifax or if he's just using it for illustrative purposes at the moment.

Is your broker fee free or paid. Either way maybe he could be getting commission or is it the best suited mortgage for your circumstances?

TravelBugHappy

I might be wrong but I think those deals you need to go direct to nationwide - not through a broker

They where really helpful when I opened my account with them recently - maybe you could go in for a chat with their own MA?

TravelBugHappy

Unless your broker is 'whole of market' he won't tell you about the nationwide deals

kingstreet

Even if your broker is whole of market he won't tell you about direct to lender only deals as he won't be able to arrange them, same as HSBC, YBS etc.

Whole of market is more accurately described as "whole of broker market."

If he is acting on a fully fee-only basis, where you are paying only for the advice and any commission from a lender is refunded to you to offset the fee, he may tell you about direct-only deals.