Mortgage broker - ask me anything

becky8690

"The Valuation Report contains details of specific issues which will need to be addressed by our conveyancer before Completion."

Just received our mortgage offer from Leeds, is this something to worry about?

penino

lemmings11 said:

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?

What’s the value of the flat and how old is it?

haras_n0sirrah

lemmings11 said:

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?

lemmings11 said:

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?

If it is rpi that should be fine. The problem ones are the ones which double every 10 years 

haras_n0sirrah

emma_829 said:

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. 

I late payment should be ok. 

haras_n0sirrah

b608837 said:

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? 

The loan should not affect the buy to let. Some buy to let's are based on rental income, some are based on overall affordability. It wont affect the former but may affect the latter

haras_n0sirrah

zakg2012 said:

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? 

The lenders do have separate help to buy products. I would look at the limits for the new help to buy regional scheme if you are looking for next year as you are unlikely to get it through on time for the current scheme.
The credit card limit shouldn't impact anything 

haras_n0sirrah

becky8690 said:

"The Valuation Report contains details of specific issues which will need to be addressed by our conveyancer before Completion."

Just received our mortgage offer from Leeds, is this something to worry about?

I would ask for a copy of the valuation and see what it says

Michelle1992

We will be looking at do extra borrowing with nationwide next year to clear our H2B equity loan. My husband pays into a sharesave scheme, would this be taken into account on affordability? Also we both do salary sacrifice for childcare vouchers, when doing their mortgage calculator online do we put in the amount we sacrifice (full amount £243 each) or the amount it actually costs us in take home when taken into consideration tax savings and discount from work (£486 of vouchers cost us around £275 per month) 
Thanks  

haras_n0sirrah

The lenders will include the childcare vouchers as a commitment. Most exclude share save from their affordability as it is savings rather than a commitment 

lemmings11

penino said:

lemmings11 said:

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?

What’s the value of the flat and how old is it?

£450000 and 4 years old.