Mortgage broker - ask me anything

MiamiHeat90

Would be keen to hear from as many views as possible, but what is the general impression of Skipton's application process in terms of how lenient they are, how much they request, how harsh the underwriting is etc.

Alvin5

Hi All. I found this forum is very helpful. I have a query concerning me long time. Hope someone can help me with it. My broker help me submitted BTL application to Santander. Currently valuation done and in the queue to UW. I was advised by broker to declare all source of income are from my savings Which make things easy. But the truth is some small parts were gifted from my Mom overseas 6 months ago and some parts are from remortgage of my current home 1 year ago. I spoke with my conveyancer and she advised me to ask broker put a note to Santander but my broker said it is okay do not need to update lender and underwriter will ask You when carry Out UW process. My worry is if UW not ask anything and approve offer. And then my solici tor notify lender will they withdraw offer? Many thanks 

K_S

@alvin5 Well, I can see why your broker is reluctant as Santander's BTL criteria is pretty clear - anyone contributing towards the purchase of a BTL needs to be named as an applicant and meet Santander's criteria. Applications with part of the deposit being gifted may be considered but probably means a manual review.

Tbh, if we're talking about a small amount gifted more than 6 months ago, you may have been able to legitimately declare your deposit as savings at this point. But now that you have stated otherwise to the solicitor, they are probably obliged to follow up on it. If you're taking about a large amount like 50-60k then your broker shouldn't have advised you to declare it as savings.

I hope that makes sense.

scoey8

I have a question re defaults and high street lenders. We got our first joint mortgage with Vida a year ago due to my partner having bad credit history (4 defaults which were 3-4.5 years old). Come remortgage time in 12 months she will only have 1 default left which is a settled mobile phone default from nearly 5 years ago. The other 3 defaults will 'expire' just a couple of months before the 2 year fixed term is up so won't show on her credit report. 

What are the chances of a high street lender accepting us? the LTV will be 60%. I've tried looking at some high street lenders criteria etc. but can't see anything for number/date of defaults. The other thing worrying me is because the other 3 defaults expire only a couple of months before we are due to remortgage, her credit file won't have time to improve? (Her score is still 'poor' while mine is 'excellent').

Really don't want to be locked in for another term at a high rate, please tell me there is hope? Thanks

Alvin5

@K_S many thanks for your prompt reply! Very helpful.Gifted deposit from my mom overseas is 26K and transferred to my account in this March 2020. I guess it is too small therefore broker advise me on this, I am worrying that My solicitor will notify Santander anyway, will it result in withdrawing offer before releasing the loan? Or it will not be a problem? Thanks!

vickielouise87

Hope someone can help - I am tearing my hair out with my broker and Natwest... 

Applied over a month ago for a 75%LTV mortgage, we have upto £100,000 deposit, partner self employed 10 years + and Ive worked for NHS for 5 years. Jobs not affected by covid. Partner has 2 settled telecommunication defaults. Broker has placed application with nastwest to start with , AIP approved, but now the full application is just taking forever. The valuation was done 2 days ago and everything fine from the perspective, its just the underwriting process I’m concerned about now.  

They’re sending a letter out to us to ‘verify’ our identity - Ive no idea why and our broker has never knows this either - so I’m obviously panicking. They just said its a form that needs signing and sending back .. no other info. 

Also, a couple of things I’m worried about on our application - were currently in 2 separate houses, he is paying £624 mortgage and I pay £525 rent. I get £1000 a month in tax credits, this will stop when we buy a house together as I will lose my entitlement to these benefits, I pay £500 a month in childcare fees, which were massively reducing the amount we could borrow. Ive taken my daughter out of nursery as I work from home now and without the help I get towards it, I simply cant afford it. She turns 3 next year so will have some entitlement to free childcare later on in the year. How will this affect my application? Will they look at things as they are now or will they look at things as a combined household? Obviously atm our outgoings are alot more running 2 homes, we’ll both be better off living together, the mortgage repayment is around £700 between the 2 of us. 

I just wasnt sure if they wanted to see a clear period of time where childcare wasn’t being paid to ensure this outgoing had stopped. 

Hoping my partners income and deposit will help us. He is really good with money and has a lot of savings, where as I have been a single parent for 3 years and have struggled somewhat. I have no debts apart from car loan and my credit score is excellent. My income isnt huge but I do as much over time as I possibly can every month, which usually ends up being more than my actual monthly salary. Any words of advice/ reassurance welcome ! Losing the will to live with it all and my broker is absolutely useless.

vickielouise87

scoey8 said:

I have a question re defaults and high street lenders. We got our first joint mortgage with Vida a year ago due to my partner having bad credit history (4 defaults which were 3-4.5 years old). Come remortgage time in 12 months she will only have 1 default left which is a settled mobile phone default from nearly 5 years ago. The other 3 defaults will 'expire' just a couple of months before the 2 year fixed term is up so won't show on her credit report. 

What are the chances of a high street lender accepting us? the LTV will be 60%. I've tried looking at some high street lenders criteria etc. but can't see anything for number/date of defaults. The other thing worrying me is because the other 3 defaults expire only a couple of months before we are due to remortgage, her credit file won't have time to improve? (Her score is still 'poor' while mine is 'excellent').

Really don't want to be locked in for another term at a high rate, please tell me there is hope? Thanks

Natwest gave us in AIP and my partner has 2 settled defaults, one is from 2018 and the other 2017. Halifax apparently also accept defaults that are settled and less than £500. One of my partners was just over £500 so they declined us unfortunately. Defaults are the bane of my life and I dont even have one! 

jimmyjammy001

vickielouise87 said:

Hope someone can help - I am tearing my hair out with my broker and Natwest... 

Applied over a month ago for a 75%LTV mortgage, we have upto £100,000 deposit, partner self employed 10 years + and Ive worked for NHS for 5 years. Jobs not affected by covid. Partner has 2 settled telecommunication defaults. Broker has placed application with nastwest to start with , AIP approved, but now the full application is just taking forever. The valuation was done 2 days ago and everything fine from the perspective, its just the underwriting process I’m concerned about now.  

They’re sending a letter out to us to ‘verify’ our identity - Ive no idea why and our broker has never knows this either - so I’m obviously panicking. They just said its a form that needs signing and sending back .. no other info. 

Also, a couple of things I’m worried about on our application - were currently in 2 separate houses, he is paying £624 mortgage and I pay £525 rent. I get £1000 a month in tax credits, this will stop when we buy a house together as I will lose my entitlement to these benefits, I pay £500 a month in childcare fees, which were massively reducing the amount we could borrow. Ive taken my daughter out of nursery as I work from home now and without the help I get towards it, I simply cant afford it. She turns 3 next year so will have some entitlement to free childcare later on in the year. How will this affect my application? Will they look at things as they are now or will they look at things as a combined household? Obviously atm our outgoings are alot more running 2 homes, we’ll both be better off living together, the mortgage repayment is around £700 between the 2 of us. 

I just wasnt sure if they wanted to see a clear period of time where childcare wasn’t being paid to ensure this outgoing had stopped. 

Hoping my partners income and deposit will help us. He is really good with money and has a lot of savings, where as I have been a single parent for 3 years and have struggled somewhat. I have no debts apart from car loan and my credit score is excellent. My income isnt huge but I do as much over time as I possibly can every month, which usually ends up being more than my actual monthly salary. Any words of advice/ reassurance welcome ! Losing the will to live with it all and my broker is absolutely useless.

That's a tricky one, did you include on the original mortgage application that you receive £1k a month in tax credits and pay out £500 each month for childcare? Because it will likely be done on that, not what will happen after you move in as they wouldn't know unless your mortgage broker has put in a side note, like you allready said, you will loose the £1k tax credits I'm assuming because when you and your partner start living together he earns to much above the threshold so will need to subsidized that part but you will gain £500 as won't be sending toddler to nursery, will you be entitled to free childcare in future or does your partner earn over the threshold for that? 

vickielouise87

jimmyjammy001 said:

vickielouise87 said:

Hope someone can help - I am tearing my hair out with my broker and Natwest... 

Applied over a month ago for a 75%LTV mortgage, we have upto £100,000 deposit, partner self employed 10 years + and Ive worked for NHS for 5 years. Jobs not affected by covid. Partner has 2 settled telecommunication defaults. Broker has placed application with nastwest to start with , AIP approved, but now the full application is just taking forever. The valuation was done 2 days ago and everything fine from the perspective, its just the underwriting process I’m concerned about now.  

They’re sending a letter out to us to ‘verify’ our identity - Ive no idea why and our broker has never knows this either - so I’m obviously panicking. They just said its a form that needs signing and sending back .. no other info. 

Also, a couple of things I’m worried about on our application - were currently in 2 separate houses, he is paying £624 mortgage and I pay £525 rent. I get £1000 a month in tax credits, this will stop when we buy a house together as I will lose my entitlement to these benefits, I pay £500 a month in childcare fees, which were massively reducing the amount we could borrow. Ive taken my daughter out of nursery as I work from home now and without the help I get towards it, I simply cant afford it. She turns 3 next year so will have some entitlement to free childcare later on in the year. How will this affect my application? Will they look at things as they are now or will they look at things as a combined household? Obviously atm our outgoings are alot more running 2 homes, we’ll both be better off living together, the mortgage repayment is around £700 between the 2 of us. 

I just wasnt sure if they wanted to see a clear period of time where childcare wasn’t being paid to ensure this outgoing had stopped. 

Hoping my partners income and deposit will help us. He is really good with money and has a lot of savings, where as I have been a single parent for 3 years and have struggled somewhat. I have no debts apart from car loan and my credit score is excellent. My income isnt huge but I do as much over time as I possibly can every month, which usually ends up being more than my actual monthly salary. Any words of advice/ reassurance welcome ! Losing the will to live with it all and my broker is absolutely useless.

That's a tricky one, did you include on the original mortgage application that you receive £1k a month in tax credits and pay out £500 each month for childcare? Because it will likely be done on that, not what will happen after you move in as they wouldn't know unless your mortgage broker has put in a side note, like you allready said, you will loose the £1k tax credits I'm assuming because when you and your partner start living together he earns to much above the threshold so will need to subsidized that part but you will gain £500 as won't be sending toddler to nursery, will you be entitled to free childcare in future or does your partner earn over the threshold for that? 

Thanks for your reply. I mentioned it in an email to my broker when sending over all the payslips, statement etc, as my tax credits are paid into another bank account, to try and help me budget better. I pay my rent and childcare from my halifax account and then my salary, over time and child maintenance goes into my santander account, which is what I use for food, car and daily living expenses etc. I was honest about my situation but I didnt include the tax credits as an income nor the child care costs as they wont be relevant when we live together. My broker just submitted my santander account statements and said he would send the others if Natwest requested them. 

My daughter will just be entitled to the free childcare all 3 year olds get ..30 hrs per week, term time.  I dont think theres an income threshold for this, everyone is entitled to it as far as I am aware. 

K_S

Alvin5 said:

@K_S many thanks for your prompt reply! Very helpful.Gifted deposit from my mom overseas is 26K and transferred to my account in this March 2020. I guess it is too small therefore broker advise me on this, I am worrying that My solicitor will notify Santander anyway, will it result in withdrawing offer before releasing the loan? Or it will not be a problem? Thanks!

@Alvin5 Well, I personally would never advise a client with 26k overseas gifted deposit from 6 months ago to declare it as savings if they told me about it. My estimate of "low" would be a few thousand pounds, no more.

Whether it will be a problem or not is not something I could say but in your place I would consider letting Santander know as you've already told the conveyancer, hopefully they will still consider it. Good luck.