Mortgage broker - ask me anything

Lorenzo94

Good evening, my friend and I got a full offer from Halifax in July. The purchase fell through and we found another property and we submitted an amendment to the offer to reflect the new address.

Halifax has carried out the new evaluation (which came back yesterday as the EWS1 form was needed), and after calling them today they said that it will go back to underwriters and then it will get back to us (they’re looking at around 8 days turnaround).

I have double checked and they said they don’t need any extra paperwork or documents (I want to have everything ready so that I can speed up and move in As soon as possoble).

my questions are, how fast Halifax really is in this situations? Why is it going back to underwriters if I was told that they just amend the offer if the amount of money is lower than original offer (as it’s the case)? Also how likely is that they will need more info?

we really are desperate to move out taking into account that we had to pull out of three purchases due to EWS1 forms missing and now that we found the property with the form, the wait is killing us.

maryjane87

Good afternoon, I would really appreciate some feedback on additional borrowing. For context we bought our property three years ago and have just left our fix, initially we planned to stay here for approx another 5 years, but with all the uncertainty have decided we’re best to just stay put for the foreseeable (10-12 years). The house is big enough and no more children on the way so this won’t change. We have already put on a new roof, installed a new bathroom and new boiler but we desperately need a new kitchen - not just cosmetic, the units are rotting, and new hall carpet and minor improvements elsewhere. We would rather borrow 10-15k on the mortgage than through a personal loan (pre-approved) because the impact on our monthly outgoings will be far less, I appreciate we will pay more interest this way but it would suit our circumstances better. If also relevant, we have steady income, totally debt free except mortgage and overpay by 15%. If we took additional borrowing we would increase the overpayment to maintain 15% and aggressively overpay in two years when I return to work. The ideal would be to take this on current variable tariff, do the work, get it revalued and refix at a presumably/hopefully lower loan to value. 

I appreciate this is information overload but we would really love to hear some expert feedback. We haven’t spoken to our provided yet and are just tossing around ideas of how it might work. We currently own about 15%. 

Thank you!

haras_n0sirrah

maryjane87 said:

Good afternoon, I would really appreciate some feedback on additional borrowing. For context we bought our property three years ago and have just left our fix, initially we planned to stay here for approx another 5 years, but with all the uncertainty have decided we’re best to just stay put for the foreseeable (10-12 years). The house is big enough and no more children on the way so this won’t change. We have already put on a new roof, installed a new bathroom and new boiler but we desperately need a new kitchen - not just cosmetic, the units are rotting, and new hall carpet and minor improvements elsewhere. We would rather borrow 10-15k on the mortgage than through a personal loan (pre-approved) because the impact on our monthly outgoings will be far less, I appreciate we will pay more interest this way but it would suit our circumstances better. If also relevant, we have steady income, totally debt free except mortgage and overpay by 15%. If we took additional borrowing we would increase the overpayment to maintain 15% and aggressively overpay in two years when I return to work. The ideal would be to take this on current variable tariff, do the work, get it revalued and refix at a presumably/hopefully lower loan to value. 

I appreciate this is information overload but we would really love to hear some expert feedback. We haven’t spoken to our provided yet and are just tossing around ideas of how it might work. We currently own about 15%. 

Thank you!

Sounds like a decent idea - what is the current property value and loan amount (a new kitchen won't add value for mortgage purposes- only extensions really do that)

haras_n0sirrah

Lorenzo94 said:

Good evening, my friend and I got a full offer from Halifax in July. The purchase fell through and we found another property and we submitted an amendment to the offer to reflect the new address.

Halifax has carried out the new evaluation (which came back yesterday as the EWS1 form was needed), and after calling them today they said that it will go back to underwriters and then it will get back to us (they’re looking at around 8 days turnaround).

I have double checked and they said they don’t need any extra paperwork or documents (I want to have everything ready so that I can speed up and move in As soon as possoble).

my questions are, how fast Halifax really is in this situations? Why is it going back to underwriters if I was told that they just amend the offer if the amount of money is lower than original offer (as it’s the case)? Also how likely is that they will need more info?

we really are desperate to move out taking into account that we had to pull out of three purchases due to EWS1 forms missing and now that we found the property with the form, the wait is killing us.

The underwriter queue is 8 working days at the moment so if you are in that queue then that is the time they are currently working on

haras_n0sirrah

davetherave85 said:

I am looking for a lender for my father. Details are:

-20-25% LTV.
-Property already owned (owned for years) but mortgage coming to an end.
-Age 65 with minimal self employed income .
-property is let out.
-credit rating ok but not great.

Are there any lenders out there that could help him?

Current mortgage is interest only but they want him to pay it off due to his age.

Thanks! 

If it is being let out then many buy to let mortgages are able to go into 90's and are interest only

haras_n0sirrah

NHB2020 said:

NHB2020 said:

haras_n0sirrah said:

NHB2020 said:

Hello, hoping someone can help (possibly put my mind at ease anyway!) 
Situation - I am buying a house with my partner, he's selling his house and we're going to buy together (I am a FTB) but he's going to port his mortgage. We've had a DIP approved with Nationwide (15% deposit) and we've had an offer accepted on a house that is a lot less than our DIP. 
I previously had an adverse credit history (due to my young stupidity!), I was in a DMP which finished 2 years ago, I am now debt free and earn 35k (partner earns slightly more). My credit history does show old payday loans which are satisfied, some have been removed following affordability complaints. I do also have old defaults - some due to drop off soon. My Experian and Clearscore scores are both in the Fair/Good bracket. However, I am really stressing myself out about our appointment for the mortgage and whether my past will have a detrimental effect to us getting a mortgage together. 
Any advice? 

Is the debt on your credit report or is that now clear. Nationwide are pretty awful at the moment. 

The debts on my credit report are all settled and satisfied - I'm expecting that the defaults will be dropping off soon as they are old. I'm currently debt free, and don't owe anything. My partners current mortgage is with Nationwide already. 
I did advise them at the DIP stage about the DMP and old defaults but they weren't bothered and were accepted (after being referred as I am a FTB). 

On back of this, I have further information. Defaults are 5 years old, and were settled 2 years ago during DMP (most settled over 2 years). No further credit history problems, and I am debt free. 

Nationwide and not known for being great with defaults and dmp's - you may get lucky. If it doesn't go through there are other lenders who will be more leniant

maryjane87

haras_n0sirrah said:

maryjane87 said:

Good afternoon, I would really appreciate some feedback on additional borrowing. For context we bought our property three years ago and have just left our fix, initially we planned to stay here for approx another 5 years, but with all the uncertainty have decided we’re best to just stay put for the foreseeable (10-12 years). The house is big enough and no more children on the way so this won’t change. We have already put on a new roof, installed a new bathroom and new boiler but we desperately need a new kitchen - not just cosmetic, the units are rotting, and new hall carpet and minor improvements elsewhere. We would rather borrow 10-15k on the mortgage than through a personal loan (pre-approved) because the impact on our monthly outgoings will be far less, I appreciate we will pay more interest this way but it would suit our circumstances better. If also relevant, we have steady income, totally debt free except mortgage and overpay by 15%. If we took additional borrowing we would increase the overpayment to maintain 15% and aggressively overpay in two years when I return to work. The ideal would be to take this on current variable tariff, do the work, get it revalued and refix at a presumably/hopefully lower loan to value. 

I appreciate this is information overload but we would really love to hear some expert feedback. We haven’t spoken to our provided yet and are just tossing around ideas of how it might work. We currently own about 15%. 

Thank you!

Sounds like a decent idea - what is the current property value and loan amount (a new kitchen won't add value for mortgage purposes- only extensions really do that)

The current value is around £115k based on our two neighbours selling in last two years - we got ours cheap because it was reduced to sell due to previous sale falling through. (£105k) and we owe £95k now. 

becky8690

Hi Sarah,
Were very close to our offer being issued but now with the possible second lockdown and my husband being a shop manager im worried that of the shops close and my husband is furloughed or whatever they may do they may now issue us with an offer. In your professional opinion how do you think a short lockdown might affect people in the retail sector

hema123456789

Do conservatories and block paving at the front add value for the purpose of mortgage?

haras_n0sirrah

becky8690 said:

Hi Sarah,
Were very close to our offer being issued but now with the possible second lockdown and my husband being a shop manager im worried that of the shops close and my husband is furloughed or whatever they may do they may now issue us with an offer. In your professional opinion how do you think a short lockdown might affect people in the retail sector

I am expecting lenders may want updated payslips prior to releasing funds - lenders were doing this during the first lockdown.
Just hope the surveyors go out this time.