Mortgage broker - ask me anything

karenb51

Thank you for doing this! My question - what sort of things would typically cause a mortgage to be declined at full application, if everything were exactly as it was at DIP stage? We are about to apply and there will be no change to the information provided when we got the DIP, but I am driving myself mad thinking they are going to find something they don’t like on our bank statements! 

For example, we have several current accounts  each, and a joint savings account. We move money around all the time as we like to keep different ‘pots’ of savings, a separate account for all bills etc. And then there’s things like pet insurance, lots of eBay things etc.

I am worrying as we are using a lender that lends up to 4.75x salary and we need around 4.6x. The intermediaries calculator says we can borrow more than we need, but the criteria says the multiple may be reduced to 4.49x depending on the results of credit scoring, so I’m trying to preempt what might cause this! 

JR27721988

haras_n0sirrah said:

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

Sorry I haven’t worded that very well. They aren’t giving a deposit contribution they are taking it off the total house value. 

So the house price will be £189,000 and I have a £20,000 deposit 

haras_n0sirrah

karenb51 said:

Thank you for doing this! My question - what sort of things would typically cause a mortgage to be declined at full application, if everything were exactly as it was at DIP stage? We are about to apply and there will be no change to the information provided when we got the DIP, but I am driving myself mad thinking they are going to find something they don’t like on our bank statements! 

For example, we have several current accounts  each, and a joint savings account. We move money around all the time as we like to keep different ‘pots’ of savings, a separate account for all bills etc. And then there’s things like pet insurance, lots of eBay things etc.

I am worrying as we are using a lender that lends up to 4.75x salary and we need around 4.6x. The intermediaries calculator says we can borrow more than we need, but the criteria says the multiple may be reduced to 4.49x depending on the results of credit scoring, so I’m trying to preempt what might cause this! 

If everything has been declared accurately and you fit criteria it shouldn't decline 

haras_n0sirrah

JR27721988 said:

haras_n0sirrah said:

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

Sorry I haven’t worded that very well. They aren’t giving a deposit contribution they are taking it off the total house value. 

So the house price will be £189,000 and I have a £20,000 deposit 

I think you need a second opinion. I dont believe there are any 90% rates unless using something like help to buy. There may be a way around it but not as a 90% 

obc18

How long should we expect to wait for our offer from Precise once we’ve submitted our full appl?

haras_n0sirrah

obc18 said:

How long should we expect to wait for our offer from Precise once we’ve submitted our full appl?

Honestly... you are talking months rather than weeks 

LRmortgage

ACG said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Will you call Platform for me tomorrow please? 

Hahaha ACG, my admin is getting fed up of me getting her to sit on hold for me so I can get on with other stuff... 

Natztastic2

How many as a percentage of mortgages fail at full application after DIP? Are we talking low or high? 

ChilliBob

I'm looking to port my mortgage, add my partner to it and increase the size of it. My lender, Scottish Widows, tells me this is pretty standard stuff and any broker should be able to assist.

Do you think this is true?! Most online stuff seems to be for new mortgages or remortgages, this feels a bit different. 

Can the commission only type brokers assist with this or am I in chargeable territory?

I've pinged Trinty and am half way through Habito application! 

haras_n0sirrah

Natztastic2 said:

How many as a percentage of mortgages fail at full application after DIP? Are we talking low or high? 

It does happen occasionally but probably under 5%. Highest risk area currently is self employed due to how lenders are now treating things post covid.
We get payslips, credit reports, Id and bank statements upfront so there should be no reason not to get the offer if everything has been imput correctly.