Mortgage broker - ask me anything

Monik2510a

Hi. We've submitted additional information requested by Leeds BS on the 15th Ocotber and still waiting to hear back. The application was submitted on the 22nd September. Is everyone taking so long at the moment? 

haras_n0sirrah

Toyo_86 said:

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

Broadband should be fine 

haras_n0sirrah

sodb1 said:

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

The lenders will have to agree with the 40k additional borrowing and the purpose of it (some will treat it as debt con so that is one factor)
In principle though it should be fine 

haras_n0sirrah

Rachel* said:

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. 

Technically a change of circumstances should be reported. Whether you choose to wait and see is up to you. If I was in your position I wouldn't exchange until I was back at work 

haras_n0sirrah

DeletedUser said:

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. 

I wouldn't exchange until you are back at work. There is a possibility lenders may ask for updated payslips prior to releasing funds 

haras_n0sirrah

trackboy said:

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

It varies. Some are 100% as long as it is reflected in last p60. Some are 60% if on last 3 months payslips, some are 0

haras_n0sirrah

Dolbls7 said:

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!

If you can move before the stamp duty exemption ends I would do that 

lemmings11

I’m currently in the process of buying a flat. My solicitor has raised concerns about the lease being onerous in respect of the ground rent. It increases every 15 years inline with RPI. I’ve already received my mortgage offer from Halifax but it was on condition that there were onerous terms in the lease. In your opinion do you think this is onerous? And I know it may be hard to say but my solicitor is concerned that it may get harder to get a mortgage in the future making resale difficult. What are your thoughts as a broker, should I be concerned?

b608837

I have a residential property ltv is 69% of original price however they feel the property has increased in value although i’ve never got it officially revalued.

I have £50,000 savings that I wanted to use to buy a 180k rental property however I haven’t found one I like yet. If I borrow 15k to do up my current home and apply for a btl in 3-6 months will the loan affect it? I was planning on borrowing from my bank over 7 years. Should I wait until after I get the btl mortgage to do up my own home? 

zakg2012

Hi,
I am currently clearing the last bit of my credit card debt in preparation for applying for a mortgage next year. Over the time I have had my cards I have amassed several cards with high credit limits. Once paid off I have closed down a couple of the newer ones as I simply don't need them. I have always been careful to keep my utilisation low. 

I'll be fully paid off in the next 2-3 months. That will leave me with 2 cards I have had for several years with a perfect payment history, one at 6k and one at 7k credit limits. I don't intend to spend on them any more so utilisation won't be a factor. Should I reduce the credit limits on these cards as I have heard a high amount of available credit can make lenders twitchy about impulsive purchases?

Also we are looking at help to buy. Do lenders have separate rates for H2B customers or can I use the figures advertised for traditional 75% customers to get an idea of what rate I may be able to get?