Interesting news from my broker.

smithers74

I applied for an advantage product (90% LTV) and it's now been pulled. I had a feeling that would happen.

She's now submitted an application to Kensington...however having just looked at the latest news reports I'm not holding my breath.

It looks like if you are less than prime you won't get an LTV higher than 75% at the moment.

I'm off to sob into my coffee.

CloverFTB

Hi Smithers,

I'm so sorry to hear that. We are looking to apply to Advantage 90% LTV Self cert. Is that what you applied for? Did they give any reason for your application being pulled?

Good luck with Kensignton, hope it all goes well for you.

Clover

smithers74

CloverFTB wrote: »

Hi Smithers,

I'm so sorry to hear that. We are looking to apply to Advantage 90% LTV Self cert. Is that what you applied for? Did they give any reason for your application being pulled?

Good luck with Kensignton, hope it all goes well for you.

Clover

Hi Clover,

Basically the product we applied for was pulled and they had nothing else suitable/affordable for us.

I *think* that's what she said, I was too busy looking like this :huh:

She also said that the past few weeks have been very difficult with all kinds of products being pulled, rates rising and she hasn't seen any FTB's for weeks.

Hillbilly_2

Beware of Kensington just got a letter telling me the interest rate will be 9.10% from 1st September with Kensington. Check the fine print carefully.

Conrad

Please do not use brokers who do not recognise the key difference between 'securitising' and 'balance sheet' lenders.
No thinking broker would recommend the likes of Advantage or Kensington for now.

Balance sheet lenders such as the many BUILDING SOCIETIES in the sub prime arena, do not need to sell thier mortgage onto a third party investor so they are less affected by the turmoil and more likely to stay the course. This is because they lend thier own savers money.

Kensington and all the other sub prime non balance sheet lenders do need to sell thier mortgages to investors. As such brokers shouldnt be recommending such lenders for now as even the lenders themselves do not know whether they can secure funding for now.

The sub prime balance sheet lenders include:

UCB (Nationwide)
Accord (Yorkshire BS)
SALT (derbyshire BS)
Coventry BS

and many more

CloverFTB

Hi Conrad,

Thanks for that info. Kensignton, Accord and central capital are the ones suggested to us but looking at their criteria we were wary we would be accepted.

Can you suggest any ‘Balance sheet’ lenders who offer a 90% LTV Self Cert mortgage for FTB? Only credit problem is several late payments on unsecured credit.

Unfortunately, the ones you mentioned only either go to 85% LTV or income multiples are just slightly too low.

We are just really worried as we need to apply asap and cannot risk being rejected.

Thanks for your time and help.

Clover

homer_j_3

Why are you self cert?

Conrad

AMBER - BUT BE VERY QUICK (like yesterday) AS EVERYONE IS PILING IN SO THEY WILL LIKELY REDUCE TO 855 / INCREASE RATES

CloverFTB

We need to go self cert as recently self-employed (but over 12 months) and accounts do not reflect our current and forecast position. We have looked in depth at all options however self cert is 100% the way to go for us. We know that we will be paying higher interest but we just need to get a mortgage.

Clover

CloverFTB

Thanks Conrad!

Away to look into that straight away!

Clover

CloverFTB

I was hoping they would have their lending criteria on show but no luck...

Conrad, are you a broker? If so and you are willing, it would be great to discuss this further with you...

Clover