Mortgage broker - ask me anything

greenpanda

My husband has around 3.5k left on his student loan. Will this effect the amount he is allowed to borrow? He pays off over £400 a month on it, so it should be cleared in less than a year. 

A family member has offered to pay off the remaining if it effects the amount we can borrow, but I'd rather not do this.

RapidMoney1

Hey, wondered if you’d be able to put my nerves at ease before I contact my solicitors on Monday... we’re due to exchange and complete next week and whilst preparing the contracts to sign my solicitor has noted a discrepancy between the purchase price listed on the mortgage offer and the purchase price in the Sales Memo.  Santander originally made an error when issuing the mortgage offer and stated the purchase price was 320k, despite us stating we are paying 325k (5k over the banks valuation). Do you happen to know possible timescales involved in getting this resolved? Will it involve a new mortgage offer being issued and we’d need to wait to receive before continuing or can it be dealt with by just updating Santander’s system? There is no material change to the offer (mortgage amount will be the same, LTV is the same, etc)... we are simply paying £5k additional from our own pockets. Any guidance will be appreciated, thank you!

K_S

greenpanda said:

My husband has around 3.5k left on his student loan. Will this effect the amount he is allowed to borrow? He pays off over £400 a month on it, so it should be cleared in less than a year. 

A family member has offered to pay off the remaining if it effects the amount we can borrow, but I'd rather not do this.

@greenpanda Very generally speaking (as there are a few different kinds of student loans depending on when he finished uni) a regular student loan payment is likely to be factored into in a lender’s affordability assessment thus impacting max borrowing.

Is £400 the minimum he needs to pay or what he chooses to pay?

greenpanda

K_S said:

greenpanda said:

My husband has around 3.5k left on his student loan. Will this effect the amount he is allowed to borrow? He pays off over £400 a month on it, so it should be cleared in less than a year. 

A family member has offered to pay off the remaining if it effects the amount we can borrow, but I'd rather not do this.

@greenpanda Very generally speaking (as there are a few different kinds of student loans depending on when he finished uni) a regular student loan payment is likely to be factored into in a lender’s affordability assessment thus impacting max borrowing.

Is £400 the minimum he needs to pay or what he chooses to pay?

£400 is roughly what he needs to pay. It's a (relatively) small amount left but from what I can see online our borrowing could be potentially £20k less because if it.

K_S

greenpanda said:

K_S said:

greenpanda said:

My husband has around 3.5k left on his student loan. Will this effect the amount he is allowed to borrow? He pays off over £400 a month on it, so it should be cleared in less than a year. 

A family member has offered to pay off the remaining if it effects the amount we can borrow, but I'd rather not do this.

@greenpanda Very generally speaking (as there are a few different kinds of student loans depending on when he finished uni) a regular student loan payment is likely to be factored into in a lender’s affordability assessment thus impacting max borrowing.

Is £400 the minimum he needs to pay or what he chooses to pay?

£400 is roughly what he needs to pay. It's a (relatively) small amount left but from what I can see online our borrowing could be potentially £20k less because if it.

@greenpanda In that case, whatever the minimum amount is that he needs to pay will most likely be factored as an outgoing commitment, thus reducing the max borrowing figure. Even if it's only for another year, the lender will still need to assure themselves that your disposable income will comfortably cover the mortgage payments during that period.

K_S

RapidMoney1 said:

Hey, wondered if you’d be able to put my nerves at ease before I contact my solicitors on Monday... we’re due to exchange and complete next week and whilst preparing the contracts to sign my solicitor has noted a discrepancy between the purchase price listed on the mortgage offer and the purchase price in the Sales Memo.  Santander originally made an error when issuing the mortgage offer and stated the purchase price was 320k, despite us stating we are paying 325k (5k over the banks valuation). Do you happen to know possible timescales involved in getting this resolved? Will it involve a new mortgage offer being issued and we’d need to wait to receive before continuing or can it be dealt with by just updating Santander’s system? There is no material change to the offer (mortgage amount will be the same, LTV is the same, etc)... we are simply paying £5k additional from our own pockets. Any guidance will be appreciated, thank you!

@RapidMoney1 I'm hoping I understood you correctly. Irrespective of what the valuation came back with, the purchase price on the mortgage offer should reflect the actual purchase price.

Unfortunately, even if it is the lender's mistake they can unfortunately take their own sweet time to correct it and reissue the offer. I may be wrong but I highly doubt the solicitor will proceed to exchange without getting a corrected offer from the lender.

Ideally, you, the broker or the solicitor should have picked this up and got it corrected back when the offer was issued. Just ask your broker to fix it, hopefully it'll be a quick turnaround at the lender's end.

RapidMoney1

K_S said:

RapidMoney1 said:

Hey, wondered if you’d be able to put my nerves at ease before I contact my solicitors on Monday... we’re due to exchange and complete next week and whilst preparing the contracts to sign my solicitor has noted a discrepancy between the purchase price listed on the mortgage offer and the purchase price in the Sales Memo.  Santander originally made an error when issuing the mortgage offer and stated the purchase price was 320k, despite us stating we are paying 325k (5k over the banks valuation). Do you happen to know possible timescales involved in getting this resolved? Will it involve a new mortgage offer being issued and we’d need to wait to receive before continuing or can it be dealt with by just updating Santander’s system? There is no material change to the offer (mortgage amount will be the same, LTV is the same, etc)... we are simply paying £5k additional from our own pockets. Any guidance will be appreciated, thank you!

@RapidMoney1 I'm hoping I understood you correctly. Irrespective of what the valuation came back with, the purchase price on the mortgage offer should reflect the actual purchase price.

Unfortunately, even if it is the lender's mistake they can unfortunately take their own sweet time to correct it and reissue the offer. I may be wrong but I highly doubt the solicitor will proceed to exchange without getting a corrected offer from the lender.

Ideally, you, the broker or the solicitor should have picked this up and got it corrected back when the offer was issued. Just ask your broker to fix it, hopefully it'll be a quick turnaround at the lender's end.

Thanks for getting back to me. I did spot it and alerted Santander when I received the mortgage offer but was advised it was a matter that will be picked up in the conveyancing process and there wasn’t anything I could do to progress the correction.

K_S

RapidMoney1 said:

K_S said:

RapidMoney1 said:

Hey, wondered if you’d be able to put my nerves at ease before I contact my solicitors on Monday... we’re due to exchange and complete next week and whilst preparing the contracts to sign my solicitor has noted a discrepancy between the purchase price listed on the mortgage offer and the purchase price in the Sales Memo.  Santander originally made an error when issuing the mortgage offer and stated the purchase price was 320k, despite us stating we are paying 325k (5k over the banks valuation). Do you happen to know possible timescales involved in getting this resolved? Will it involve a new mortgage offer being issued and we’d need to wait to receive before continuing or can it be dealt with by just updating Santander’s system? There is no material change to the offer (mortgage amount will be the same, LTV is the same, etc)... we are simply paying £5k additional from our own pockets. Any guidance will be appreciated, thank you!

@RapidMoney1 I'm hoping I understood you correctly. Irrespective of what the valuation came back with, the purchase price on the mortgage offer should reflect the actual purchase price.

Unfortunately, even if it is the lender's mistake they can unfortunately take their own sweet time to correct it and reissue the offer. I may be wrong but I highly doubt the solicitor will proceed to exchange without getting a corrected offer from the lender.

Ideally, you, the broker or the solicitor should have picked this up and got it corrected back when the offer was issued. Just ask your broker to fix it, hopefully it'll be a quick turnaround at the lender's end.

Thanks for getting back to me. I did spot it and alerted Santander when I received the mortgage offer but was advised it was a matter that will be picked up in the conveyancing process and there wasn’t anything I could do to progress the correction.

 @RapidMoney1 So what's the solicitor saying, do they need an offer with the correct purchase price?

misscaraxo

I have just had a mortgage offer which we have declined as we are going with another lender. The offer I am rejecting is from Barclays, we haven’t paid anything up front. Will they charge us for cancelling our application after offer? Thanks. 

chloeH95

I had a mortgage which I’ve recently been brought out of but I also have a small mortgage left which a family member lives in. Can I get a second home mortgage with a 15 % deposit?