Mortgage broker - ask me anything

LessThanSte

Hi all. Quick one - are early repayment charges ever waived by lenders?

More detail: We remortgaged with Scottish Widows 18 months ago, but got offered a house that we couldn't refuse. Had planned to use SW again, but they have dramatically increased the minimum LTV such that they have no products that would be any use for us (and, to be honest, wouldn't be any use even if we were remortgaging with them. There's ~6 months left on the minimum term. I'm wondering if, given the fact we have to go elsewhere (not through choice), we might have an argument. Or is it unheard of?

Carl2510

LessThanSte said:

Hi all. Quick one - are early repayment charges ever waived by lenders?

More detail: We remortgaged with Scottish Widows 18 months ago, but got offered a house that we couldn't refuse. Had planned to use SW again, but they have dramatically increased the minimum LTV such that they have no products that would be any use for us (and, to be honest, wouldn't be any use even if we were remortgaging with them. There's ~6 months left on the minimum term. I'm wondering if, given the fact we have to go elsewhere (not through choice), we might have an argument. Or is it unheard of?

Think it would only be waived if you go with the same lender again that’s what I was told with Platform 

haras_n0sirrah

JamesJohnston02 said:

Hi! I’m currently going the process to remove my name off the deeds and mortgage from a property I jointly own with my brother. We have now got the lender to sign the TR1 form and sent it onto the solicitor. Who I believe will then send it on to the Land Registry.
I’m going through this process so that I can purchase a property with my girlfriend, and I’m unsure at which point I can apply for the mortgage? Is it at the point that the solicitor submits the TR1 form to the LR or is it once the land titles have been updated (which could take months/weeks)?
Any help would be much appreciated!
thanks

You can apply at any time - you would just need to be off the other property before completion

haras_n0sirrah

samw2311 said:

Hi, me and my partner are going for a shared ownership mortgage, we have to go with Kent reliance as that’s our only option (a broker has come to this conclusion) due to my complicated self employment history. Anyway we have reserved a house etc been through underwriting and they’ve come back and said they can’t quite lend enough on the 2 yr fixed but if we go to the 5yr fixed at 4.39% they can as they lend £25k more on a 5 year. We plan to staircase and buy 100% in 5 years as financially we will be in the position to, so yes we have to suck up the rate now, but is it a silly thing to do? It’s a case of being on the property ladder or not, it’s our only option , it’s more than affordable, and we’ve got our hearts set on moving into our own first home. ?  So now we are waiting for a valuation -  It is a new build so they’ve just had a valuation done to put it up for sale, should we be worried still about it all going through? All were waiting on now is a valuation? We don’t know wether we can relax or not or if there is another potential hurdle with valuation.... hope this makes sense. Thanks in advance 

I am a shared ownership specialist - kent certainly do lend a lot more on their 5 yr deal than their 2 year. There isn't a massive difference between the two (3.99% vs 4.39%) If it is now approved subject to valuation then as long as the valuation is ok it will go to offer.

haras_n0sirrah

Daisydoooo said:

Hi, we recently went through a broker and received an AIP from Santander. We had no deposit and they allowed us to use a personal loan for it. I wasn't asked if I'd ever been bankrupt and didn't volunteer it but I was 8.5 years ago (discharged march 2013) and I'm worrying now it may be an issue. Have I got any chance of this being successful? If not are there any other lenders who would consider us with a deposit sourced from a loan. We have great credit scores and good incomes. We are only just beginning so would be better to know before we start spending on solicitors etc if its not going to work. I have emailed my broker too by the way and 'declared' all.

This is from the santander website. I am afraid Santander won't do it. Even if they don't pick it up in underwriting the solicitor will do a bankruptcy search and report to the lender. 

Bankruptcy

Any customer who has ever been bankrupt will be declined.

If you have no deposit can you not try and save 5% and go down the help to buy or shared ownership route?

haras_n0sirrah

LessThanSte said:

Hi all. Quick one - are early repayment charges ever waived by lenders?

More detail: We remortgaged with Scottish Widows 18 months ago, but got offered a house that we couldn't refuse. Had planned to use SW again, but they have dramatically increased the minimum LTV such that they have no products that would be any use for us (and, to be honest, wouldn't be any use even if we were remortgaging with them. There's ~6 months left on the minimum term. I'm wondering if, given the fact we have to go elsewhere (not through choice), we might have an argument. Or is it unheard of?

I am afraid they won't waive the erc - can you not agree with the vendor that the completion date will be after your tie in expires?

Daisydoooo

haras_n0sirrah said:

Daisydoooo said:

Hi, we recently went through a broker and received an AIP from Santander. We had no deposit and they allowed us to use a personal loan for it. I wasn't asked if I'd ever been bankrupt and didn't volunteer it but I was 8.5 years ago (discharged march 2013) and I'm worrying now it may be an issue. Have I got any chance of this being successful? If not are there any other lenders who would consider us with a deposit sourced from a loan. We have great credit scores and good incomes. We are only just beginning so would be better to know before we start spending on solicitors etc if its not going to work. I have emailed my broker too by the way and 'declared' all.

This is from the santander website. I am afraid Santander won't do it. Even if they don't pick it up in underwriting the solicitor will do a bankruptcy search and report to the lender. 

Bankruptcy

Any customer who has ever been bankrupt will be declined.

If you have no deposit can you not try and save 5% and go down the help to buy or shared ownership route?

Hiya, yes we could but the help to buy scheme for us ends in March because from April it changes and we have both owned houses years ago so wouldn't be able to use the scheme. We wouldn't have enough time to save 5% ourselves and then use HTB. Our only option now I think is to save a 10-15% deposit and buy from another lender in a couple of years

haras_n0sirrah

Have you considered shared ownership? 

Daisydoooo

haras_n0sirrah said:

Have you considered shared ownership? 

We've not really looked at it but might be worth a shot, thanks.

haras_n0sirrah

Daisydoooo said:

haras_n0sirrah said:

Have you considered shared ownership? 

We've not really looked at it but might be worth a shot, thanks.

I am a shared ownership specialist - you need 5% deposit of the share (so if a 50% share of a 200k property you would need a 5k deposit)
Ex bankruptcy not an issue - have just had a completion for someone who was bankrupt 6 years ago with a 5% deposit on shared ownership