Mortgage broker - ask me anything

Tman1985

Hi, I am 17 years into a 25 year mortgage, paying interest only  and originally put down a large deposit, so there is around 250 K equity in the property, I am looking to release a portion of this by adding onto the term ( owe my father some money for roof repair 4 K, and accumalated approx 2500 on credit cards which id like to pay off as soon as possible.
If you can let me know what options are available, i am in full time employment, i believe sometime back i spoke to the mortgage company as i remember they wouldnt do equity release if under 55 years old.
thanks

minimalgecko

Hi Mortgage Advisors on MSE,

I am using a mortgage advisor and am currently waiting to hear from them after we submitted a structural report to the lender after they said they wanted to see one before agreeing to lend on a particular house (Coventry BS). 

I emailed my MA today to see if there was any update and they had an out of office on until Wednesday. The wait is driving me crazy and I suspect the decision would have been made by now.

I have my mortgage account number, would I be ok to pick up the phone to Coventry to get an update? 

Cheers

Rach7379

Rach7379 said:

haras_n0sirrah said:

Rach7379 said:

Not sure if this  has already been covered, but we are currently selling a property and are being told that the buyers are waiting on the underwriters and being told it is delayed to 12 - 16 weeks due to covid 19 is this true do you think or do you think we are being given the run around?

12-16 weeks is a long time. Do you know which lender?

Unfortunately I do not know who their lenders is, all I know is that they are going through their huge backlog and they should have an answer soon. Just do not feel like we are being told everything 

Have found out that they are trying to get a mortgage through Santander and that the forms were submitted on 8th October and have still not heard anything 

AyrshireMark

Hiya, firstly thanks for the offer of advice.... Much appreciated. My query relates to buying a second home. We're due to pay off our mortgage in a few year's time and are thinking of buying a second home.... A flat, originally for our kids whilst they're at uni, but then for us to use. Our plan is to remortgage our home (I think that might technically be an unencumbered mortgage) to give us around £180k (60% LTV on £300k House, repayment at £855 pcm at 1.34% over 20 years). We would use this as the deposit for an interest only second home mortgage (£150k on a 300k flat, 20 years at 2.69%, £365 pcm). The £30k balance would cover transaction costs. Affordability wise, we'd be paying roughly what we're paying just now, and our combined income is around £100k. For the interest only, we'll have around £100k in our LISAs by then. What I'd like to know is A) are there any problems with what I've suggested above? E. G. Would either lender have an issue? and b) is there a better way of doing this? 

Monik2510a

My husband is taking a shared ownership mortgage (just in his name due to my adverse credit history). There will be three of us living in the property: my husband, myself and our 2 year old son. The original mortgage application was with Leeds Building Society, applied on the 22nd September and after submiting additional information twice, we have been told today by our MA that Leeds all of a sudden has reduced the amount they are willing to lend by nearly 20k, we won't be able to get that much deposit. Our MA tried to find another lender, who would be willing to do mortgage in just my husbands name, without me being classed as financially dependent. He said he is struggling to find a lender thag would be able to do 90LTV and that the majority of lenders now only do 85LTV, is this right? 
He has suggested to go with Santander as we fit the criteria and we should be ok. Would you recommend Santander in our case?
Also, my husbands dad will be gifting him money towards deposit - I know that he will be taking out a loan, which we will not have to repay, his dad will be paying off the loan as he promised that he will help when we decide to buy a house. Are we likely to have any issues with the source of deposit? 
Thank you

haras_n0sirrah

ChonkyChops said:

Do you happen to know if a mortgage application was sent to the wrong underwriters (needed to be sent to a contracting underwriter, but was sent to standard one) that it would have be underwritten again fully taking the total estimated current underwriting time? i.e. we've waited 14 working days on the incorrect underwriters, do we have to wait 14 days for the correct one now? Or can information be shared to speed up the process? THANK YOU!

I haven't heard of there being different underwriters? Which lender is this? There is senior underwriting with many lenders for more complex cases but I haven't heard of special contractor underwriters.

haras_n0sirrah

Ennu said:

Hi, 
I have my residential capital repayment mortgage with HSBC. The 2 year fixed term (1.59%) ends on 31st Jan. I have 30k left on the mortgage. I’ve just received a letter from the bank saying that my term is coming to an end and that I’ll be moved onto the banks variable rate which is 3.94%. The letter goes onto say that because I don’t have enough term left on the mortgage (due to be paid off Nov 22), they cannot offer me any deals. 

Ordinarily when one term ends, I set up a new term to get best rates. In this instance, I’m not sure what to do. I don’t have enough savings to pay off the mortgage but feel like I’m being penalised for working so hard to pay it off. 

Can I move my mortgage to another provider this late in the day? Is it worth doing or should I just suck it up, so to speak? 

Any advice would be gratefully received. 

Thank you

While you can change lender the saving will probably not be worth the paperwork to do it. 

haras_n0sirrah

dewaart said:

What is best at the moment, a 3,5 or7 year fixed mortgage?

It completely depends on your circumstances and the ltv. 

haras_n0sirrah

Tman1985 said:

Hi, I am 17 years into a 25 year mortgage, paying interest only  and originally put down a large deposit, so there is around 250 K equity in the property, I am looking to release a portion of this by adding onto the term ( owe my father some money for roof repair 4 K, and accumalated approx 2500 on credit cards which id like to pay off as soon as possible.
If you can let me know what options are available, i am in full time employment, i believe sometime back i spoke to the mortgage company as i remember they wouldnt do equity release if under 55 years old.
thanks

Are you able to change to a repayment mortgage as this would open your options. Most interest only lenders now have a minimum income and minimum equity figure 

haras_n0sirrah

minimalgecko said:

Hi Mortgage Advisors on MSE,

I am using a mortgage advisor and am currently waiting to hear from them after we submitted a structural report to the lender after they said they wanted to see one before agreeing to lend on a particular house (Coventry BS). 

I emailed my MA today to see if there was any update and they had an out of office on until Wednesday. The wait is driving me crazy and I suspect the decision would have been made by now.

I have my mortgage account number, would I be ok to pick up the phone to Coventry to get an update? 

Cheers

You can but the lender may not discuss it with you