Mortgage broker - ask me anything

haras_n0sirrah

hema123456789 said:

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

Conservatories will. Usually space adds value, other things add saleability

Toyo_86

Hi Haras

Hope you are well.

i have now been able to finally exchange contract. In preparation for completion in a few weeks, I decided to arrange for Broadband with Virgin at the new property. They told me that it will only be a soft search carried out on me but ClearScore has now alerted me that a hard score was carried out on me. Will this be an issue? Thanks

sodb1

Hoping a broker can help me with my remortgaging plans for Q1 2021.

I have a property in my sole name. It has £110k left on the mortgage with HSBC and a fair valuation is: £235k.
I am also just about to complete on a property with my wife. This was classified as an additional property mortgage (which had higher LTV requirements).

My intention was to sell my first property in connection with the joint-purchase of the 2nd property but the 1st property has struggled to sell. It is more suited to 1st time buyers. Due to time pressures, I couldn't wait for the house to sell so borrowed £40k from family to finance part of the 2nd property's deposit. I agreed to pay this amount back as soon as the 1st property sold but I'm not completely comfortable with holding that kind of debt and not knowing when the 1st time buyer market will pick up.

My fixed rate period on the 1st property ends in March 2021 so I wanted to know if the following plan would work in theory....
Let's assume I would pass all the financial affordability criteria from mortgage lenders.

- Remortgage the first property to a new lender with additional borrowing - Plan is to borrow £150k against property value of £235k and pay off existing mortgage of £110k. LTV on 1st property would then be around 65%.
- Specifically find a mortgage product with no / low product fees, valuation fees and ERCs. Nationwide has one such offer at the moment with an acceptable interest rate.
- Use £40k left over to pay back the loan
- Continue to market the 1st property for sale without the stress of needing an urgent sale. I have enough income to cover the mortgage repayment and the property would not be vacant.

Are there any holes in this plan?
Are mortgage lenders particularly strict when you remortgage to them with additional borrowing?
I do have the option to remortgage with my current lender but their similar products have much higher product fees.

Thanks

becky8690

haras_n0sirrah said:

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.

Affordability wouldn't be an issue anyway as we can afford the amount we have applied for with his 80% wage anyway. Im just worried they may turn around and question about his company surviving after another lockdown as it restructured after the first lockdown and made alot of redundancies

Rachel*

Hoping someone can give me some advice on here.. 

I received my mortgage offer at the beginning of October (after over a month of stress getting numerous documents for HSBC!), but I am now about to go on furlough again (I work in retail). I’m not looking to exchange/complete until January anyway (my survey isn’t until middle of this month, and the sellers are still waiting on a survey for their property) - so do I need to inform HSBC? When I complete I should be back at work full time so my circumstances will be the same as when I received my mortgage offer? (Obviously if I’m not back at work then that would change things) 

I am a FTB (buying on my own as well) with 35% deposit. 

[Deleted User]

What do you think lenders will do with regards to offers being made and then the person is furloughed for the four weeks, but their employment / job / future salary is not at risk? I’m borrowing virtually the max over 35 years with platform, am due to exchange but we be furloughed or part furloughed for the next four weeks. Platform already have a letter from employer from the previous return to work after lockdown stating my salary and the fact that my job is secured. 

ScottL45

haras_n0sirrah said:

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.

Do you think this is at all likely on existing mortgage offers?

trackboy

What percentage of overtime is counted for mortgage and how many months worth of payslip do I need to prove that.
Thanks.

Dolbls7

This thread is great (getting back in the zone looking to move) I have a question re equity and debt.
I’m looking to move as we need more space. Our current property has £120k equity but we have £20k debt from 2 loan and cc between us from car and home improvements. Is it wise to try and pay these Debts down first or could we look to move whilst stamp duty exemption is on and use some equity to pay off the debt upon completion? (We pass on affordability with salaries according to a few websites and have no negative missed payments etc on our credit file).

Thank you!

emma_829

I’ve made an application to Nationwide through a broker. I foolishly didn’t check all three credit files (rookie error) and turns out I have a late payment 14 months ago. Was an error with Anglian Water when closing the account and I settled it as soon as I got the letter, but 30 day late payment marked on credit file. Anyway, found this out after the application had been submitted and now panicking. I’ve disputed it, because the bill they sent had no due date and I had a direct debit in place and when I spoke to them they confirmed the last direct debit in July would cover the full balance...obviously it did not and they needed more. I’m expecting to get a decline before I can sort this with Anglian Water. Some people tell me as it’s just one late payment it’s not a track record and they will understand, but I’m not so sure. 

Any help you can offer on Nationwide’s thoughts on this would be great. My broker just said that as we had an AIP and they haven’t asked for anything else I shouldn’t worry. If worse comes to worse we can apply with another lender. My thought process is the less credit searches the better.