Mortgage broker - ask me anything

16hm

Thanks for the reply - yes I assumed that banks would have an issue with me running two residential mortgages in parallel.  

haras_n0sirrah

16hm said:

Thanks for the reply - yes I assumed that banks would have an issue with me running two residential mortgages in parallel.  

Not all lenders will do it. Some will take the balance of the other mortgage, some take the payment. Some will need you to have already rented it out before they will ignore it, others will accept an arla letter confirming what its rentable value is. A good broker knows what will work best for your situation. 

NewHouse86

@haras_n0sirrah NatWest are asking for a letter from my solicitor to confirm that I am using a HTB ISA that will make up the £1000 difference between my current actual deposit and the deposit I declared. This is because I took into account the 25% bonus I will receive. Is this common place? My HTB ISA is with NatWest so surely they can see this already? 

haras_n0sirrah

NewHouse86 said:

@haras_n0sirrah NatWest are asking for a letter from my solicitor to confirm that I am using a HTB ISA that will make up the £1000 difference between my current actual deposit and the deposit I declared. This is because I took into account the 25% bonus I will receive. Is this common place? My HTB ISA is with NatWest so surely they can see this already? 

The bonus is not usually paid out before completion so that may be the issue. 
Do you need the extra 1k and can you source it elsewhere? A solicitor is unlikely to confirm you will be getting the bonus as it may not come through in time to be used towards your deposit 

NewHouse86

haras_n0sirrah said:

NewHouse86 said:

@haras_n0sirrah NatWest are asking for a letter from my solicitor to confirm that I am using a HTB ISA that will make up the £1000 difference between my current actual deposit and the deposit I declared. This is because I took into account the 25% bonus I will receive. Is this common place? My HTB ISA is with NatWest so surely they can see this already? 

The bonus is not usually paid out before completion so that may be the issue. 
Do you need the extra 1k and can you source it elsewhere? A solicitor is unlikely to confirm you will be getting the bonus as it may not come through in time to be used towards your deposit 

Thank you for your answer, it seems I’ve misunderstood how the deposit bonus works. I have declared my deposit would be £22,500. I currently have £21,500 across two accounts, one of which is the HTB ISA. I naively presumed that the bonus from HTB would be considered as deposit- FTB problems and not understanding the process properly. I will have to try and get the additional £1000 and declare it as a gift as I don’t want to amend my deposit on my application as this will change my LTV. 

deeleys

Hi 
I've recently put a deposit down on a new house and have been pointed in the direction of a mortgage advisor to do a financial check.  I told them I was with Santander and I just wanted to do a mortgage port, as I've got a low interest rate and an 8K penalty.  They checked with Santander who agreed in principle and said they needed 1 months pay slips.  We are doing an hour and a half zoom meeting with the advisors on Monday and they have requested a massive amount of paper work and I've read some of the threads on here about their hidden costs and the hard sell.  Is it possible for me to just go directly to Santander and organise the porting myself?
Thanks
Steve

haras_n0sirrah

deeleys said:

Hi 
I've recently put a deposit down on a new house and have been pointed in the direction of a mortgage advisor to do a financial check.  I told them I was with Santander and I just wanted to do a mortgage port, as I've got a low interest rate and an 8K penalty.  They checked with Santander who agreed in principle and said they needed 1 months pay slips.  We are doing an hour and a half zoom meeting with the advisors on Monday and they have requested a massive amount of paper work and I've read some of the threads on here about their hidden costs and the hard sell.  Is it possible for me to just go directly to Santander and organise the porting myself?
Thanks
Steve

An hour and a half zoom meeting? Who has time for that.
In terms of paperwork as brokers we need standard packaging even if the lender doesn't need it - payslips, bank statements, proof of deposit, Id - we need it all as the lender or fca could come back at any time and request documents and we have to have it on file. I would be surprised if the lender didn't need it too even if it doesn't go to an underwriter.
With regards to costs no broker costs should be hidden. It should be on an idd and should have been given to you prior to work commencing. 

I may be biased but at the moment I think using a broker is a good thing even if they go the same lender. Getting an appointment with some lenders can take a month, it can take 2 hours to get through to some lenders for an update, filling out the forms correctly, all things the broker does on your behalf. Whether you have the time to do it yourself or are happy for someone else to do it is up to you.

deeleys

haras_n0sirrah said:

deeleys said:

Hi 
I've recently put a deposit down on a new house and have been pointed in the direction of a mortgage advisor to do a financial check.  I told them I was with Santander and I just wanted to do a mortgage port, as I've got a low interest rate and an 8K penalty.  They checked with Santander who agreed in principle and said they needed 1 months pay slips.  We are doing an hour and a half zoom meeting with the advisors on Monday and they have requested a massive amount of paper work and I've read some of the threads on here about their hidden costs and the hard sell.  Is it possible for me to just go directly to Santander and organise the porting myself?
Thanks
Steve

An hour and a half zoom meeting? Who has time for that.
In terms of paperwork as brokers we need standard packaging even if the lender doesn't need it - payslips, bank statements, proof of deposit, Id - we need it all as the lender or fca could come back at any time and request documents and we have to have it on file. I would be surprised if the lender didn't need it too even if it doesn't go to an underwriter.
With regards to costs no broker costs should be hidden. It should be on an idd and should have been given to you prior to work commencing. 

I may be biased but at the moment I think using a broker is a good thing even if they go the same lender. Getting an appointment with some lenders can take a month, it can take 2 hours to get through to some lenders for an update, filling out the forms correctly, all things the broker does on your behalf. Whether you have the time to do it yourself or are happy for someone else to do it is up to you.

Thanks.  We've been with Santander for many years and bank and have savings with them.  I just think it is a lot of work to get this amount of information together for a straight mortgage port.

Suseka97

deeleys said:

haras_n0sirrah said:

deeleys said:

Hi 
I've recently put a deposit down on a new house and have been pointed in the direction of a mortgage advisor to do a financial check.  I told them I was with Santander and I just wanted to do a mortgage port, as I've got a low interest rate and an 8K penalty.  They checked with Santander who agreed in principle and said they needed 1 months pay slips.  We are doing an hour and a half zoom meeting with the advisors on Monday and they have requested a massive amount of paper work and I've read some of the threads on here about their hidden costs and the hard sell.  Is it possible for me to just go directly to Santander and organise the porting myself?
Thanks
Steve

An hour and a half zoom meeting? Who has time for that.
In terms of paperwork as brokers we need standard packaging even if the lender doesn't need it - payslips, bank statements, proof of deposit, Id - we need it all as the lender or fca could come back at any time and request documents and we have to have it on file. I would be surprised if the lender didn't need it too even if it doesn't go to an underwriter.
With regards to costs no broker costs should be hidden. It should be on an idd and should have been given to you prior to work commencing. 

I may be biased but at the moment I think using a broker is a good thing even if they go the same lender. Getting an appointment with some lenders can take a month, it can take 2 hours to get through to some lenders for an update, filling out the forms correctly, all things the broker does on your behalf. Whether you have the time to do it yourself or are happy for someone else to do it is up to you.

Thanks.  We've been with Santander for many years and bank and have savings with them.  I just think it is a lot of work to get this amount of information together for a straight mortgage port.

Just adding my experience here - albeit with a different lender.  We actually went direct to Nationwide with the mistaken view that because we'd banked with them for 16+ years, had a mortgage with them for longer and had all our savings accounts with them, that the fact all we wanted to do was port the mortgage it would be a straightforward (and short) telephone call.

We were shocked that the DIP was initially declined, then after having to send off a whole bunch of paperwork it was approved. Okay, we thought - that's the hard bit over and the full application will be straightforward.  Erm, no.  We ended up on a 3 1/2 hour telephone call having to go through all of our finances again.  Now in our case we'd had only just paid off all our credit accounts and had taken early retirement, so I can understand it was slightly more complicated.  But still, we had to dig out oodles of paperwork and answer a gazillion questions.  

We finally got our mortgage offer (some 2-weeks on from the full application) but if I ever had to do this all again I would definitely go through a broker.  Worth their weight in gold. 

haras_n0sirrah

Suseka97 said:

deeleys said:

haras_n0sirrah said:

deeleys said:

Hi 
I've recently put a deposit down on a new house and have been pointed in the direction of a mortgage advisor to do a financial check.  I told them I was with Santander and I just wanted to do a mortgage port, as I've got a low interest rate and an 8K penalty.  They checked with Santander who agreed in principle and said they needed 1 months pay slips.  We are doing an hour and a half zoom meeting with the advisors on Monday and they have requested a massive amount of paper work and I've read some of the threads on here about their hidden costs and the hard sell.  Is it possible for me to just go directly to Santander and organise the porting myself?
Thanks
Steve

An hour and a half zoom meeting? Who has time for that.
In terms of paperwork as brokers we need standard packaging even if the lender doesn't need it - payslips, bank statements, proof of deposit, Id - we need it all as the lender or fca could come back at any time and request documents and we have to have it on file. I would be surprised if the lender didn't need it too even if it doesn't go to an underwriter.
With regards to costs no broker costs should be hidden. It should be on an idd and should have been given to you prior to work commencing. 

I may be biased but at the moment I think using a broker is a good thing even if they go the same lender. Getting an appointment with some lenders can take a month, it can take 2 hours to get through to some lenders for an update, filling out the forms correctly, all things the broker does on your behalf. Whether you have the time to do it yourself or are happy for someone else to do it is up to you.

Thanks.  We've been with Santander for many years and bank and have savings with them.  I just think it is a lot of work to get this amount of information together for a straight mortgage port.

Just adding my experience here - albeit with a different lender.  We actually went direct to Nationwide with the mistaken view that because we'd banked with them for 16+ years, had a mortgage with them for longer and had all our savings accounts with them, that the fact all we wanted to do was port the mortgage it would be a straightforward (and short) telephone call.

We were shocked that the DIP was initially declined, then after having to send off a whole bunch of paperwork it was approved. Okay, we thought - that's the hard bit over and the full application will be straightforward.  Erm, no.  We ended up on a 3 1/2 hour telephone call having to go through all of our finances again.  Now in our case we'd had only just paid off all our credit accounts and had taken early retirement, so I can understand it was slightly more complicated.  But still, we had to dig out oodles of paperwork and answer a gazillion questions.  

We finally got our mortgage offer (some 2-weeks on from the full application) but if I ever had to do this all again I would definitely go through a broker.  Worth their weight in gold. 

Glad things worked out for you