Mortgage broker - ask me anything

haras_n0sirrah

MortgageWonders said:

What happens if between mortgage offer and completion on a new build (5 months apart) your credit file changes negatively? But the information added is old information?

For example if your mortgage offer is August 2020 and expected completion is December 2020, and in October a new default/ccj is added to your file dated May 2019?

Would that invalidate the offer? Or would the offer still be valid as its old information? 

That may be a problem especially if the lender decides to credit check before draw down or the mortgage offer needs extending. How big a credit issue and is it satisfied?

MortgageWonders

haras_n0sirrah said:

MortgageWonders said:

What happens if between mortgage offer and completion on a new build (5 months apart) your credit file changes negatively? But the information added is old information?

For example if your mortgage offer is August 2020 and expected completion is December 2020, and in October a new default/ccj is added to your file dated May 2019?

Would that invalidate the offer? Or would the offer still be valid as its old information? 

That may be a problem especially if the lender decides to credit check before draw down or the mortgage offer needs extending. How big a credit issue and is it satisfied?

It's more of a hypothetical as things can be added any time, let's say a ccj of £2000 that no one was aware of a s it wasn't on credit file, therefore not satisfied and links to a older default?

Im more concerned something could appear from the past after exchange and cause massive problems. 

The mortgage would be with an adverse lender anyway for example 

haras_n0sirrah

gozaimasu said:

I used a broker for my last purchase and paid £399. They also got a fee from the mortgage provider. I re-mortgaged without the broker who sent me an email saying "why did you do that I told you that you wouldn't pay a fee if you stayed with the same provider?"

As a broker, if you do a re-mortgage to keep a client with the same mortgage company, do you a) get a fee from the mortgage provider, and b) get a deal where the client wouldn't pay a fee to the provider?

I had a £1495 re-mortgage fee which was added to the loan. Could my broker really have accessed a deal that stopped me paying this? Don't want to ask them direct. I thought they were telling me that I wouldn't have to pay their £199 re-mortgage fee, not the provider's fee!

We do a similar deal - we dont charge anything for a product transfer as the work we have to do is much lower than a full remortgage but the client still gets advice at no cost. 
Sometimes brokers get different deals to direct (halifax and natwest mainly) but he probably meant his fee was free not the lender fee. Was the £1499 the best deal? How big was the mortgage as the cheapest rate is not always the cheapest overall especially when big fees are factored in.
As a broker we do get paid a little something from the lender (mainly as we are taking over the liability for advice) but it isnt much. A 100k product transfer would be worth about £200 to the broker out of which they have their costs. If you like your broker and they have done a good job in the past it makes sense to go back to them for the product transfer especially if there is no cost to you to do so. You get the protection of an advised sale, the broker gets paid.

haras_n0sirrah

MortgageWonders said:

haras_n0sirrah said:

MortgageWonders said:

What happens if between mortgage offer and completion on a new build (5 months apart) your credit file changes negatively? But the information added is old information?

For example if your mortgage offer is August 2020 and expected completion is December 2020, and in October a new default/ccj is added to your file dated May 2019?

Would that invalidate the offer? Or would the offer still be valid as its old information? 

That may be a problem especially if the lender decides to credit check before draw down or the mortgage offer needs extending. How big a credit issue and is it satisfied?

It's more of a hypothetical as things can be added any time, let's say a ccj of £2000 that no one was aware of a s it wasn't on credit file, therefore not satisfied and links to a older default?

Im more concerned something could appear from the past after exchange and cause massive problems. 

The mortgage would be with an adverse lender anyway for example 

I have never had it happen (although did have a client who lost their job after exchange as she worked for Thomas cook. Managed to keep the offer via the relationship with an incredible bdm who took it all the way to the top as technically it was outside affordability on just her husbands income)
I generally tell my newbuild clients do not change jobs, mobiles, bank accounts or take out any new credit until you have the keys in your hand. The risk is not worth it 

JR27721988

haras_n0sirrah said:

JR27721988 said:

haras_n0sirrah said:

JR27721988 said:

Looking to buy but have around 12k debt in credit card and 4K left on a loan. I will be clearing these all fully within the next month, how soon should I wait before applying for a mortgage? 

Also what is the likelihood of being approved with a 10% deposit at the moment? Was hoping to use help to buy but the builder isn’t accepting at the moment due to the scheme changing 

With the debt you don't necessarily have to clear it prior to application (some lenders it needs to be off credit report or they will include it, others as long as you can confirm you will clear it and evidence you have the funds to do so they will ignore it) so that would determine which direction we would go as a broker.
10% deposit is almost impossible at the moment I will be honest. TSB turned up last week for all of 24 hours.
There is a nifty way around it that works with some clients but I cant put about it on here.

We are using the mortgage broker recommended by persimmons, they haven’t expressed any concerns on 10% but don’t know how reliable they are to be honest! 

Any advice? Should we just go ahead and see what happens or try and save the extra 5%? 

Do you know which lender you are using - they have nearly all withdrawn from 90% 

No they haven’t done a proper search or given an offer in principle yet. I’d rather they didn’t bother if it’s unlikely we will get it as won’t this negatively impact credit file? 

haras_n0sirrah

Is it a house or a flat and is there any kind of incentive from the developer e.g. contribution towards deposit. I don't believe there are any 90% newbuild products at the moment unless it is help to buy. If it is a house and the affordability is good there is a way around it.

peppapig14

been in rented accommodation 1 year, and totally forgot to update electric roll. AIP from Nationwide and full offer submitted this week. Should I update the electric role now? Will it impact the mortgage offer?

haras_n0sirrah

peppapig14 said:

been in rented accommodation 1 year, and totally forgot to update electric roll. AIP from Nationwide and full offer submitted this week. Should I update the electric role now? Will it impact the mortgage offer?

I wouldn't however you may need to provide proof of address if they cannot link you electronically 

JR27721988

haras_n0sirrah said:

Is it a house or a flat and is there any kind of incentive from the developer e.g. contribution towards deposit. I don't believe there are any 90% newbuild products at the moment unless it is help to buy. If it is a house and the affordability is good there is a
way around it.

it is a house, builder has offered 5% off the house price. 

Price is £199,000k without the 5%. Income of £43000 

haras_n0sirrah

So are you putting in 10% plus you are using 5% from the developer towards the deposit I.e. 15%?