Mortgage broker - ask me anything

zippy08

MFWannabe said:

zippy08 said:

MFWannabe said:

zippy08 said:

Fix or not?

That question again! What is the current thinking on this thread - is it worth fixing for 5+ years at this time, or go with a cheaper 2-year fix, betting on not much advance in the BoE Base Rate in that timeframe?
I'm on a 2.1% SVR interest-only deal and 24% LTV, and would ideally like to switch to a repayment mortgage.

What’s the interest rates on the 2 year and 5 year fixes? 

As you are only 24% ltv how quickly do you think you’ll be able to pay off the outstanding amount? I f it’s likely to be less than 5 years then I wouldn’t fix for 5 years as there will be ERC’s 

2% on 2-year fix
2.01% on 5-year fix
So not much between the two.
I don't think I could repay the o/s amount in 5 years unless I stretched things for that time - probably not feasible. I'd be left with a small-ish balance at the end of the five years that I could potentially settle from other funds available at the time.

Personally I’d fix for 5 years, especially as there’s so little difference between the two 
Its already been noted that interest rates on mortgages have started to go up and I think the longer I can lock in the better, I think interest rates are going to climb at some point in the near future, not likely to go down 
but that is my opinion 🤔

That is where my head is as well, @MFWannabe. 
Can you (or anyone) point me towards any sensible analyses of mortgage interest rate trends/outlook? I have a different dilemma of timing, which I won't digress into on this thread. If I wait 6-9 months, what is the likelihood that I would have missed the boat as far as rock-bottom rates go (considering Brexit fallout, time to recovery from Covid, etc.)?

MFWannabe

zippy08 said:

MFWannabe said:

zippy08 said:

MFWannabe said:

zippy08 said:

Fix or not?

That question again! What is the current thinking on this thread - is it worth fixing for 5+ years at this time, or go with a cheaper 2-year fix, betting on not much advance in the BoE Base Rate in that timeframe?
I'm on a 2.1% SVR interest-only deal and 24% LTV, and would ideally like to switch to a repayment mortgage.

What’s the interest rates on the 2 year and 5 year fixes? 

As you are only 24% ltv how quickly do you think you’ll be able to pay off the outstanding amount? I f it’s likely to be less than 5 years then I wouldn’t fix for 5 years as there will be ERC’s 

2% on 2-year fix
2.01% on 5-year fix
So not much between the two.
I don't think I could repay the o/s amount in 5 years unless I stretched things for that time - probably not feasible. I'd be left with a small-ish balance at the end of the five years that I could potentially settle from other funds available at the time.

Personally I’d fix for 5 years, especially as there’s so little difference between the two 
Its already been noted that interest rates on mortgages have started to go up and I think the longer I can lock in the better, I think interest rates are going to climb at some point in the near future, not likely to go down 
but that is my opinion 🤔

That is where my head is as well, @MFWannabe. 
Can you (or anyone) point me towards any sensible analyses of mortgage interest rate trends/outlook? I have a different dilemma of timing, which I won't digress into on this thread. If I wait 6-9 months, what is the likelihood that I would have missed the boat as far as rock-bottom rates go (considering Brexit fallout, time to recovery from Covid, etc.)?

I don’t think anyone can predict this unfortunately. 
Personally I don’t think there will be massive increases in the next 6-9 months but I don’t think anyone can really say. Maybe brokers may have a better idea? 

GMac14

Hi All, we were looking to get on the tail end of the Help to Buy scheme but struggled to find a suitable property. Thinking we would have to wait until well into 2021 and buy normal house with bigger saved deposit we both increased our overdrafts (I had poor credit previously rebuilt with credit builder credit cards and was looking to continue improving credit file) mine from £500 to £1,750 and my wife from £1k to £3k overdraft, neither of us have ever dipped into overdraft, no missed/late payments or have ccjs or any defaults.  Also we balanced transferred £650 from wife’s 0% card which was coming to an end to my zero balance 0% MBNA card.

Perhaps two weeks after we had done his a house on help to buy in our location came up unexpectedly. £210k purchase price, £10,500 deposit required, negotiated with Builder who agreed to accept £9k initially with balance of £1,500 for rest of deposit on completion. We have £5k gifted and rest on hand in bank as savings. 

We have only just been able to get the amount to £9k and over the last month have used one credit card for the monthly shopping bill (£600) and £1,100 for extras on the property (shower/towel rail and some sockets). From same month used credit card as in at end of the month used, we have paid off £400 towards £600 spent on shopping and £900 towards £1100 on extras, so not quite paid off in full.

As of yesterday Barclays have confirmed our mortgage has been issued, received email copy and hard copy being sent out to us and solicitors.

My concern is on the next update on credit file I will have a new balance of £600 on MBNA from balance transfer from wife’s card (declared on mortgage application as her existing cc debt) and also our overdrafts limits will both be increased and updated, so concerned it looks like we have requested this even this was done before we applied for mortgage.

I have car loan of £6k / £135 per month, £700 on Virgin credit card at 0%, £600 on MBNA, paying £50 a month to both, Wife has loan of £2.5k and credit card of £1.5k all disclosed on mortgage app, we are fine on affordability, just wanted to check that now mortgage has been issued and Barclays have done credit check, is it likely they will do more and if so will the increase in overdrafts make any difference and will we be ok paying off only £1300 of £1700 spent on the credit card? 

Simple answer would be to pay it off in full but would struggle to do that with Christmas coming up, been advised by Broker we should be fine just don’t buy anything else, which we are not, or change anything which will mess with credit file, which we won’t.

Any guidance appreciated.

K_S

GMac14 said:

Simple answer would be to pay it off in full but would struggle to do that with Christmas coming up, been advised by Broker we should be fine just don’t buy anything else, which we are not, or change anything which will mess with credit file, which we won’t.

Any guidance appreciated.

@GMac14 I see nothing in there to second-guess the advice given to you by your broker, they know your case the best (income, affordability, etc). Good luck!

GMac14

K_S said:

GMac14 said:

Simple answer would be to pay it off in full but would struggle to do that with Christmas coming up, been advised by Broker we should be fine just don’t buy anything else, which we are not, or change anything which will mess with credit file, which we won’t.

Any guidance appreciated.

@GMac14 I see nothing in there to second-guess the advice given to you by your broker, they know your case the best (income, affordability, etc). Good luck!

Think we are fine with income and affordability I’m on £34k with regular bonus of circa £500 per month which hasn’t been accounted for as only just started earning, wife on £28k working in school, outgoings totalled with everything listed at £2,700 and my wage £2150 and wife around £1650 plus £150 CMS per month. Main concern was actions in increasing overdraft and spending on credit cards as these will only now show up on credit reports with delay on them appearing 

BlueRydav

Hi,
I've exchanged on a new build (HTB) but my mortgage offer will expire at the end of this month, and it now becoming clearer that completion will not be until January. The offer cannot be extended as the product will expire (Santander), and I have to reapply. My income is heavily commission based and the last few months I have only earned 500, but have earned over £12k in commission since start of financial year. Basic salary is £32,500 and mortgage required is £184,000. £4000 on a 0% credit card.

My questions are:
- Would Santander consider the commission annually, opposed to the last 3 months payslips? Last year I was training so no real year on year track record available unfortunately.
- If I can get a written commission guarantee (£10,000) for the year, would this be accepted by Santander? At 65% or 100% income?

I'm desperately trying to find my way out of this hole, but both my mortgage broker and solicitor appear to be ignoring my emails/calls whcih started 10 days ago, which doesn't make me feel any better, especially as I've been generally passive throughout the process so it's not like I've annoyed them!

Thanks

K_S

@BlueRydav Santander will consider requests for over extension but there will be redecisioning (based on current policy) and reassessment of affordability.

Unfortunately, for considering monthly bonus/commission, Santander policy is to look at the most recent 3 payslips. I don't see them doing it the way you suggested.

It's concerning that your broker isn't getting back to you. Even if it's a difficult conversation, he/she should be clearly laying out your options at this stage as they have all the information about your circumstances.

BlueRydav

K_S said:

@BlueRydav Santander will consider requests for over extension but there will be redecisioning (based on current policy) and reassessment of affordability.

Unfortunately, for considering monthly bonus/commission, Santander policy is to look at the most recent 3 payslips. I don't see them doing it the way you suggested.

It's concerning that your broker isn't getting back to you. Even if it's a difficult conversation, he/she should be clearly laying out your options at this stage as they have all the information about your circumstances.

Thank you. The only way I can see around this is waiting for my December payslip at the end of the month, as 2 of the 3 months will then show commission (NOV 590 + DEC 2440)? Would commission in only 2 out of 3 months be acceptable, and what timeframe would I be looking at for a new offer? I'd likely be up against the notice to complete!

K_S

BlueRydav said:

K_S said:

@BlueRydav Santander will consider requests for over extension but there will be redecisioning (based on current policy) and reassessment of affordability.

Unfortunately, for considering monthly bonus/commission, Santander policy is to look at the most recent 3 payslips. I don't see them doing it the way you suggested.

It's concerning that your broker isn't getting back to you. Even if it's a difficult conversation, he/she should be clearly laying out your options at this stage as they have all the information about your circumstances.

Thank you. The only way I can see around this is waiting for my December payslip at the end of the month, as 2 of the 3 months will then show commission (NOV 590 + DEC 2440)? Would commission in only 2 out of 3 months be acceptable, and what timeframe would I be looking at for a new offer? I'd likely be up against the notice to complete!

@BlueRydav Santander require "regular" commission payments so 2 out of 3 months might not suffice. 

greenpanda

How long should it take for my mortgage broker to get back to me with a deal? We've sent in our documents and I don't want to chase too soon.