Mortgage broker - ask me anything

K_S

IAMIAM said:

Are people getting declined remortgages due to having taken covid mortgage payment holidays, especially if there is no payments showing on the 3 bank statements?

@IAMIAM I've had a bit of difficulty placing a couple of landlord customers for their BTL remos after having taken covid payment holidays on their mortgages, but haven't had any resi clients of mine (yet) who came to me for a remo after having taken payment holidays.

Scott8519

Hello, thank you for taking the time out to respond to everyone's questions. I've been reading through the thread and its been great for providing insight.  Like everyone else here, I'm having issues with my mortgage application. I initially applied via my broker in March, just before the lockdown but it got put on hold as the products were taken off the market. I then reapplied on 24th June. The underwriting went fine but the valuation took a while as it is a new build S/O flat and the developer wouldn't have surveyors on the property until 22nd September.  The valuation was completed but then they required the EWS1, which the developer said would be ready near completion. Covid has delayed the development, so the EWS1 was finally sent to me on the 10th November. I sent this to my broker, who then sent this to Kent Reliance and then onto the surveyor. I keep contacting my broker each week and she says it's in a queueing system and I just have to be patient. I'm really stressed out understandably and my broker says it will be fine as Kent are good at approving mortgages but they are slow. The exchange date is on the 11th but because of covid the developer/housing association is being flexible. I was wondering if the mortgage is likely to be approved, I'm starting to panic especially with Christmas coming and offices closing down. 
Thank you in advance for your help.

K_S

@Scott8519 I fully understand why you might be stressed but it's exactly as your broker said - most lenders are so clogged up with business that as soon as human review is required, things fall into a queue which can take a long time to get looked at. You have to trust your broker on this one. She has probably done a whole lot of work on your case by now and is as invested as you in getting you to completion and her cut of the proc fee.

There's nothing in your post to indicate that the mortgage application is at risk of being declined. Unfortunately, delays are extremely common across lenders at the moment. There are some lenders who don't accept phone calls and can take days to respond to emails, and that's from brokers!

Scott8519

K_S said:

@Scott8519 I fully understand why you might be stressed but it's exactly as your broker said - most lenders are so clogged up with business that as soon as human review is required, things fall into a queue which can take a long time to get looked at. You have to trust your broker on this one. She has probably done a whole lot of work on your case by now and is as invested as you in getting you to completion and her cut of the proc fee.

There's nothing in your post to indicate that the mortgage application is at risk of being declined. Unfortunately, delays are extremely common across lenders at the moment. There are some lenders who don't accept phone calls and can take days to respond to emails, and that's from brokers!

Thank you for your feedback. I understand the delays are due to covid and the stamp duty holiday. Its been nearly 6 months and I haven't heard of delays like this so I got a bit nervous. Thank you again for your feedback

Penguin_

My 5 year fixed ends next June. I am now in a DMP with StepChange & have £78k left on mortgage. How far out from my current deal should I start looking?

K_S

Penguin_ said:

My 5 year fixed ends next June. I am now in a DMP with StepChange & have £78k left on mortgage. How far out from my current deal should I start looking?

@Penguin_ Generally speaking, if you are looking to remortgage (move away from the current lender), you can start looking 6 months prior to your fix.

If you are looking to change lenders, with an ongoing DMP, your options may be limited. You could also consider doing a product switch with your current lender (just changing products) which usually involves no new credit checks or affordability/income assessments. Hope that helps.

Penguin_

K_S said:

Penguin_ said:

My 5 year fixed ends next June. I am now in a DMP with StepChange & have £78k left on mortgage. How far out from my current deal should I start looking?

@Penguin_ Generally speaking, if you are looking to remortgage (move away from the current lender), you can start looking 6 months prior to your fix.

If you are looking to change lenders, with an ongoing DMP, your options may be limited. You could also consider doing a product switch with your current lender (just changing products) which usually involves no new credit checks or affordability/income assessments. Hope that helps.

Thanks, I think I am just going to stick with Natwest for now, do I just wait until about 3 months out & contact Natwest then? What are current rates?

K_S

Penguin_ said:

K_S said:

Penguin_ said:

My 5 year fixed ends next June. I am now in a DMP with StepChange & have £78k left on mortgage. How far out from my current deal should I start looking?

@Penguin_ Generally speaking, if you are looking to remortgage (move away from the current lender), you can start looking 6 months prior to your fix.

If you are looking to change lenders, with an ongoing DMP, your options may be limited. You could also consider doing a product switch with your current lender (just changing products) which usually involves no new credit checks or affordability/income assessments. Hope that helps.

Thanks, I think I am just going to stick with Natwest for now, do I just wait until about 3 months out & contact Natwest then? What are current rates?

@penguin_ That probably makes sense. It's 3 or 4 months if going through a broker, if going direct it you can pick a new deal 3 months in advance (so around March) and Natwest will switch you over to the new deal when your fix ends in June.

You'll have to check rates with them at the time.

Penguin_

Thanks @K_S I will do that
I was only wondering what their rates are now as a comparison of what I am on now.

K_S

Penguin_ said:

Thanks @K_S I will do that
I was only wondering what their rates are now as a comparison of what I am on now.

@penguin_ They don't publish direct rates on the website as far as I can tell, they might if you call them. What's your LTV (or house value), and I can tell you what the intermediary rates are for product switches at the moment.