Mortgage broker - ask me anything

mowgliisaG

haras_n0sirrah said:

mowgliisaG said:

For all the MBs out there..how many self employed cases which are agreed at DIP are you seeing then declined given the current climate??

Honestly - not many but I am anal about checking the last 3 months business bank statements to ensure they reflect the income being declared

And what are you checking on the last 3 months bank statements? Are you comparing to pre Covid turnover or this time last year turnover..

Purplestars89

Hi 
I have taken out payday loans in the past the last one was settled just over 12 months ago , all were paid back on time with no missed payments etc. Ideally I would like to apply for a mortgage with a high street lender early next year. Do you think this will be possible ? 

BigD74

haras_n0sirrah said:

I have my own question. Purely for research (being nosey) purposes.

Those of you who are getting mortgages now did you go
1) direct to lender
2) via a fee charging broker
3) via a fee free broker 
4) via an estate agency broker
And what made you choose the route you chose? Would you do anything differently next time?

 For those that chose a broker what made you choose that broker (were they the cheapest, most responsive, friendliest etc)

We went with a fee free broker. Me and my partner made appointments with a broker and my bank (Santander) before we viewed even a single house. We did this to get confirmation we could even afford a mortgage, because we are FTB, had some debt, I was in my mid-40s and were under the impression we must be a difficult case for any mortgage provider. Before we walked in we seriously were prepared to be laughed out of the room (HAHAHA. Get out). Of course we are were/are much closer to ordinary and not even remotely difficult, and both the broker and bank were really helpful to confirm the fact that YES we were likely to be accepted for a mortgage and NO you are not exceptional. The broker was almost disappointed that we weren't

We spend about an hour each with both the bank and MB, and we liked the (fee free) broker, they were clear in the services they offered, how they got paid for it and liked their references/reviews. Also we liked the free advice, because we had no intention of buying at that point and made that very clear prior to the appointment. Because we agreed that HTB was the way forward, we needed to use a broker anyway, but as FTB we probably would have chosen a broker in any case. Since that appointment we had dealings with a few builder-recommended brokers as part of of the qualification process, but was dissuaded from using them from evidence in various sources, pointing out that these folks may not be fully impartial (same advice regarding builder recommended solicitors). Now we are going through our first house buying process, we have stuck with our fee-free broker and it all seems to be going OK, they found a good deal (with Santander). But of course we have no experience to go on, apart from on this forum. 

haras_n0sirrah

mowgliisaG said:

haras_n0sirrah said:

mowgliisaG said:

For all the MBs out there..how many self employed cases which are agreed at DIP are you seeing then declined given the current climate??

Honestly - not many but I am anal about checking the last 3 months business bank statements to ensure they reflect the income being declared

And what are you checking on the last 3 months bank statements? Are you comparing to pre Covid turnover or this time last year turnover..

We want to see that the income is healthy and roughly supporting of the declared tax returns. 

xxxmiwxxx

Hi. Not sure if you can help. We are due to complete and move in a few weeks. We have just had a call at ten to 5 saying that our buyer has had a call from the bank about his wife being furloughed for this lockdown. The application was accepted obviously but there’s been a change. Is this a common problem and easily resolved or is it likely to fall through? 🙁

mowgliisaG

haras_n0sirrah said:

mowgliisaG said:

haras_n0sirrah said:

mowgliisaG said:

For all the MBs out there..how many self employed cases which are agreed at DIP are you seeing then declined given the current climate??

Honestly - not many but I am anal about checking the last 3 months business bank statements to ensure they reflect the income being declared

And what are you checking on the last 3 months bank statements? Are you comparing to pre Covid turnover or this time last year turnover..

We want to see that the income is healthy and roughly supporting of the declared tax returns. 

How about for directors of an ltd? More turnover than tax returns..

haras_n0sirrah

Purplestars89 said:

Hi 
I have taken out payday loans in the past the last one was settled just over 12 months ago , all were paid back on time with no missed payments etc. Ideally I would like to apply for a mortgage with a high street lender early next year. Do you think this will be possible ? 

It should be doable as long as it was only occasional usage and paid off 12 months prior to application

haras_n0sirrah

xxxmiwxxx said:

Hi. Not sure if you can help. We are due to complete and move in a few weeks. We have just had a call at ten to 5 saying that our buyer has had a call from the bank about his wife being furloughed for this lockdown. The application was accepted obviously but there’s been a change. Is this a common problem and easily resolved or is it likely to fall through? 🙁

This isn't great - they are likely to refuse to release funds until they have confirmation of a return to work date

haras_n0sirrah

mowgliisaG said:

haras_n0sirrah said:

mowgliisaG said:

haras_n0sirrah said:

mowgliisaG said:

For all the MBs out there..how many self employed cases which are agreed at DIP are you seeing then declined given the current climate??

Honestly - not many but I am anal about checking the last 3 months business bank statements to ensure they reflect the income being declared

And what are you checking on the last 3 months bank statements? Are you comparing to pre Covid turnover or this time last year turnover..

We want to see that the income is healthy and roughly supporting of the declared tax returns. 

How about for directors of an ltd? More turnover than tax returns..

I think they mainly want to see that you are trading again at a healthy level. I had one to look at today - took £30 last month and clients are on uc. Tax assessments show turnover of £120k - this clearly isn't trading again so I had to tell them sorry.

yousnorkmaiden

Any experience with reasonably high credit utilisation and Santander? I'm at 75% (£15k), with a 'fair' credit score - I had a few late payments (1s) 38 months ago. My husband's is good - low credit utilisation. 
We have DIP from them through a broker who seems quite good - we've good salaries (£150k between us), not affected by Covid in any way. 83.1% LTV - we're borrowing less than half of our affordability.