Mortgage broker - ask me anything

K_S

IAMIAM said:

So, before I commit to this, just want to check this isn't illegal! I can do a remortgage with capital raise with Nationwide at say 80% LTV on a tracker deal completing in April and then in May, switch the deal to a fixed deal on their existing customer rate.
Is the product fee allowed to be added onto their fixed rate deals if it takes you over the 80% LTV?
To be fair, having looked at many lenders out there, most of the Big ones (Barclays/Nationwide/Platform/Lloyds) have better deals for existing customers at all LTV rates.

@IAMIAM As I mentioned earlier, whether Nationwide could decline a switch request 1 month after drawdown - I don't see anything in the intermediary product switch criteria which suggests that, but I couldn't say for sure.

If you want to be absolutely sure with recourse, if you're going direct, get the Nationwide mortgage advisor to confirm on the call (they're recorded) or in writing that you can do what you described above. If you're going through a broker, get them to confirm the same. And then if you go on to do this and it's declined by Nationwide, you have legitimate cause for a complaint

Yes, the product fee if added to the loan does not count for the LTV cieling.

laramh

Wondered if you had any experience on shared ownership mortgage and getting round additional borrowing clauses to consolidate debts... I have £80k of equity in my share  (40,000 I put in at the beginning) and now have loads of debt I’m struggling with and want to get some out. It would still leave me with a small mortgage, way less than my share is worth, and can’t understand why it seems this is not allowed. Keeping me in debt puts me in a really difficult financial situation, so wondered if you know of anyone who has got round this? 

Thanks in advance 

K_S

laramh said:

Wondered if you had any experience on shared ownership mortgage and getting round additional borrowing clauses to consolidate debts... I have £80k of equity in my share  (40,000 I put in at the beginning) and now have loads of debt I’m struggling with and want to get some out. It would still leave me with a small mortgage, way less than my share is worth, and can’t understand why it seems this is not allowed. Keeping me in debt puts me in a really difficult financial situation, so wondered if you know of anyone who has got round this? 

Thanks in advance 

@laramh Consolidating unsecured debt on to your mortgages is tricky to do at the best of times and lender criteria in this regard has gotten tougher since covid. There is no "getting around" the policies so to speak, your requirements have to fit into what is allowed, and that differs from lender to lender.

Can I ask - are you looking to raise a further advance from your existing lender to consolidate your debt into or are you trying to do this as part of a remortgage (moving to another lender)?

If the former then your choices are limited to your current lender's policies. Some don't allow any debt-con, some allow it with strict conditions and some may consider it in a more favourable light.

If the latter then depending on the rest of your circumstances, there may be options but being an SO mortgage severely limits the pool of lenders to start with. 

If you can throw some light on the following, I could give my general thoughts on the options you may have - current lender, current LTV, value of property, how much debt (and how many accounts) are you looking to consolidate, are you tied to a fix at present, clean credit history or not, etc.

I hope that makes sense.

PS: Debt consolidation on to your mortgage may not be the right route for everyone. I would recommend reading up on the MSE notes here on debt con. https://www.moneysavingexpert.com/loans/debt-help-plan/#accordion-content-02018434773-7

Blue93123

I was hoping to get some advice!

Myself and my partner are FTB looking at a property around 350k, with 70k+ deposit. We were intending to look early next year but it just so happens we found somewhere right away. With this being said, we haven't had the foresight to ensure our bank statements are squeaky clean and mine have approximately ££750+ worth in gambling deposits over the course of the months we would furnish bank statements for. My partners probably has similar in shopping, but I understand thats probably looked at more favourably to gambling.

My monthly salary is between £2500-£3000 so it is all funded by disposable income, as well as consistently profiting, but I doubt this necessarily holds any weight with lenders as I know this is considered risky behaviour.

Anyway, my November statement is clear of any gambling transactions, as will my December statement at the month-end. My question is whether there is a good chance of finding a lender who would only require one or two months bank statements, or if it would really be better to put things on hold till we have 3 months clear bank statements and hope the property is still available? I have enquired with a couple of mortgage brokers and they both advised that they need 3 months statement which is fair enough, but when I mentioned that I had statements with frequent gambling transactions, they more or less said that we will just wait and see which didnt put me at much ease, as I was rather hoping that they may be able to say that we can look at approaching a lender who typically require fewer bank statements, from experience. Not sure if this was me expecting too much, but any other insight on the best way to approach this would be appreciated!

K_S

@Blue93123 Not all mortgage lenders even require statements as per their minimum packaging requirements, but they could ask for them further on at any point during underwriting. For self-employed applications (or employed borrowers who need variable elements to be considered), I've had lenders ask for even 6+ months of statements.

It's hard to give a firm answer, you could potentially place it now even with recent bank statements but it comes down to the specifics. If it's clear that the gambling is not excessive, well within your disposable income, not funded by debt (eg: Betfair deposits taking you into your overdraft, large amount of cc debt, etc), it should be possible assuming there are no other nasties in the rest of your circumstances.

Just to clear, not all lenders will give you a blanket refusal for any gambling transactions visible on your current account.

If you can wait, I would recommend waiting till you have a streak of clear bank statements as that would make it much easier.

Tanyarfr

Hello, I was a FTB, up for remortgage end of feb. My mortgage is currently £455pm @ 2.50%, the deal Halifax has offered is 2.84% and is £278pm, but when I checked last week it was £281pm. Do you think it’s worth waiting for 4-6 weeks to see if the repayment amount decreases more? It’s a shame the monthly payments have even increased, but I want to try get the lowest I can, but unsure of interest rate trends atm. Thank you in advance 

laramh

@laramh Consolidating unsecured debt on to your mortgages is tricky to do at the best of times and lender criteria in this regard has gotten tougher since covid. There is no "getting around" the policies so to speak, your requirements have to fit into what is allowed, and that differs from lender to lender.

Can I ask - are you looking to raise a further advance from your existing lender to consolidate your debt into or are you trying to do this as part of a remortgage (moving to another lender)?

If the former then your choices are limited to your current lender's policies. Some don't allow any debt-con, some allow it with strict conditions and some may consider it in a more favourable light.

If the latter then depending on the rest of your circumstances, there may be options but being an SO mortgage severely limits the pool of lenders to start with. 

If you can throw some light on the following, I could give my general thoughts on the options you may have - current lender, current LTV, value of property, how much debt (and how many accounts) are you looking to consolidate, are you tied to a fix at present, clean credit history or not, etc.

I hope that makes sense.

PS: Debt consolidation on to your mortgage may not be the right route for everyone. I would recommend reading up on the MSE notes here on debt 

Happy to switch lenders, not iced in to current supplier
Current supplier is Halifax, I have a 30% share which was initially £72,000. It’s now worth about £100,000. I have a mortgage of £22,500.
My debt consists of 3 credit cards, a loan and an overdraft totalling £23,000. I have a clean credit history, currently with a good status. 

Just seems so silly to be kept in financial difficulty with the possibility of not being able to pay mortgage and rent etc when I have money I can utilise and then be £700 a month better off? 

laramh

@K_S
sorry last comment was directed for you! 

K_S

laramh said:

@laramh Consolidating unsecured debt on to your mortgages is tricky to do at the best of times and lender criteria in this regard has gotten tougher since covid. There is no "getting around" the policies so to speak, your requirements have to fit into what is allowed, and that differs from lender to lender.

Can I ask - are you looking to raise a further advance from your existing lender to consolidate your debt into or are you trying to do this as part of a remortgage (moving to another lender)?

If the former then your choices are limited to your current lender's policies. Some don't allow any debt-con, some allow it with strict conditions and some may consider it in a more favourable light.

If the latter then depending on the rest of your circumstances, there may be options but being an SO mortgage severely limits the pool of lenders to start with. 

If you can throw some light on the following, I could give my general thoughts on the options you may have - current lender, current LTV, value of property, how much debt (and how many accounts) are you looking to consolidate, are you tied to a fix at present, clean credit history or not, etc.

I hope that makes sense.

PS: Debt consolidation on to your mortgage may not be the right route for everyone. I would recommend reading up on the MSE notes here on debt

Happy to switch lenders, not iced in to current supplier
Current supplier is Halifax, I have a 30% share which was initially £72,000. It’s now worth about £100,000. I have a mortgage of £22,500.
My debt consists of 3 credit cards, a loan and an overdraft totalling £23,000. I have a clean credit history, currently with a good status. 

Just seems so silly to be kept in financial difficulty with the possibility of not being able to pay mortgage and rent etc when I have money I can utilise and then be £700 a month better off? 

@laramh As you are probably already aware, Halifax doesn't permit further advances on SO mortgages for debt con, though they are fine with it on standard ownership.

From what I can see, I think you will struggle to find a lender who will allow you to remo and raise cash for debt consolidation. If you haven't talked to a broker already to see if you have any options, I'd recommend doing so. Good luck!

laramh

@K_S
thanks for your advise... 
feel very frustrated with it all! 

Will talk to a broker and see if there’s anything I can do