Mortgage broker - ask me anything

greenpanda

K_S said:

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.

Thank you for your advice. We will get it paid off as it seems like quite a big dent to the mortgage 

RapidMoney1

K_S said:

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  Santander originally made an error when issuing the mortgage offer and stated the purchase price was 320k, despite us stating we are paying 325k (5k over the banks valuation).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?

They haven’t acknowledged it yet. The issue became apparent when they sent over the Sale Contract to sign and crossed the correct purchase price (325k) out and replaced it with what’s contained in the mortgage offer (320k), I have sent an email explaining the situation and resent the memo of sale which clearly states £325k.

I am hoping I am worrying for no reason, but thought I’d post here to see if anyone had experience with navigating these kinds of situations and what
I can expect next week with approaching Santander to get it corrected.

ScottL45

Hi there.  I have my mortgage offer already and hoping to exchange within the next couple of weeks.  Is anybody experiencing lenders (Santander for me) making last minute checks/requesting last minute revised bank statements just prior to funds being released, specifically in regards of the current situation?  Thanks.

Carl2510

ScottL45 said:

Hi there.  I have my mortgage offer already and hoping to exchange within the next couple of weeks.  Is anybody experiencing lenders (Santander for me) making last minute checks/requesting last minute revised bank statements just prior to funds being released, specifically in regards of the current situation?  Thanks.

I am no MA but I think you wouldn’t ask this question if something hasn’t changed in your circumstances, the lenders have every right to check Up until completion. Wether they do you won’t know until it happens. 

K_S

ScottL45 said:

Hi there.  I have my mortgage offer already and hoping to exchange within the next couple of weeks.  Is anybody experiencing lenders (Santander for me) making last minute checks/requesting last minute revised bank statements just prior to funds being released, specifically in regards of the current situation?  Thanks.

@ScottL45 Not as a matter of course and there are no hard and fast rules about it. The longer it has been between offer and completion, the likelier it is that some form of refresh on the case takes place - credit check, latest payslip, latest bank statement, etc.

If there has been a material change in circumstances, the applicant is expected to let their broker or lender know.

K_S

RapidMoney1 said:

K_S said:

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?

They haven’t acknowledged it yet. The issue became apparent when they sent over the Sale Contract to sign and crossed the correct purchase price (325k) out and replaced it with what’s contained in the mortgage offer (320k), I have sent an email explaining the situation and resent the memo of sale which clearly states £325k.

I am hoping I am worrying for no reason, but thought I’d post here to see if anyone had experience with navigating these kinds of situations and what
I can expect next week with approaching Santander to get it corrected.

@rapidmoney1 Going by what you've said, I don't foresee any major problems other than the time it takes Santander to correct their mistake. If you're using a broker they may be able to push things through with the BDM.

K_S

greenpanda said:

K_S said:

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.

Thank you for your advice. We will get it paid off as it seems like quite a big dent to the mortgage 

If you can pay it off then that should improve the max borrowing figure. If you will be applying soon after clearing the loan, do make sure you have evidence of the loan being paid off (such as a final statement) to hand as your broker/lender may want to confirm the same after reviewing your bank statement. Good luck!

RapidMoney1

K_S said:

RapidMoney1 said:

K_S said:

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?

They haven’t acknowledged it yet. The issue became apparent when they sent over the Sale Contract to sign and crossed the correct purchase price (325k) out and replaced it with what’s contained in the mortgage offer (320k), I have sent an email explaining the situation and resent the memo of sale which clearly states £325k.

I am hoping I am worrying for no reason, but thought I’d post here to see if anyone had experience with navigating these kinds of situations and what
I can expect next week with approaching Santander to get it corrected.

@rapidmoney1 Going by what you've said, I don't foresee any major problems other than the time it takes Santander to correct their mistake. If you're using a broker they may be able to push things through with the BDM.

Thanks for the reassurance and time. I’ll be sure to be on the phone to all parties from 09:05 (I am not a monster, they deserve their morning coffee) to push things through.

K_S

misscaraxo said:

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. 

@misscaraxo If the product was fee-free or you chose to add it to the loan, you won't be charged.

K_S

chloeH95 said:

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? 

 @chloeH95 Second home resi mortgages are available from plenty of lenders. You *may* potentially get one with a 15% deposit, but that will depend on the rest of your circumstances (income, outgoings, credit history, plausibility of your case, etc etc)