Mortgage broker - ask me anything

Peppermint90

Just out of curiosity...do lender valuations ever over-value a property? like value it more than the purchase/offer price? or even if it is worth more, will they just value it so that it equals the purchase price? 

K_S

Peppermint90 said:

Just out of curiosity...do lender valuations ever over-value a property? like value it more than the purchase/offer price? or even if it is worth more, will they just value it so that it equals the purchase price? 

@peppermint90 The latter -  the lower of the agreed purchase price and the valuation. 

MissMia60

Northern Ireland has rent to buy option. Is that better taking a mortgage out myself?

Peppermint90

My broker didn't include my previous address in my AIP as I was only there temporarily for 5 months whilst trying to find a bigger place to rent...I'm pretty sure it should have been included though. The address shows up on my credit report so the lender is bound to pick up on it. Will it be a rejection because of the omission or will they give me a chance to explain? 

K_S

Peppermint90 said:

My broker didn't include my previous address in my AIP as I was only there temporarily for 5 months whilst trying to find a bigger place to rent...I'm pretty sure it should have been included though. The address shows up on my credit report so the lender is bound to pick up on it. Will it be a rejection because of the omission or will they give me a chance to explain? 

@Peppermint90 I personally would not have omitted any previous address. Is this a mortgage broker or a lender mortgage advisor who keyed the DIP? How do you know they didn't key that address in?

It's only because with the amount of automation that some mainstream lenders use for "scoring" an application and checking for inconsistency flags, sometimes you may end up with a rejection with no clear reason (other than a generic one).

Just to be clear this is not to say your application is in trouble, I'm just explaining the context. I hope that makes sense. 

K_S

MissMia60 said:

Northern Ireland has rent to buy option. Is that better taking a mortgage out myself?

@MissMia60 It's hard to give a definitive answer as it depends on your circumstances and needs.

Generally speaking, if you want to "try out" the property for a while before deciding whether to buy it, this might make sense.

Otoh if you can get a mortgage now then going down that route may give you a wider choice of properties.

Sotts

K_S said:

@Sotts Assuming the EWS is in order, I don't see anything particular in your post to be worried about. Trust your broker Good luck and I hope you get some good news soon!

Thanks for the reply.  I just need to calm down 😂😂

alexxela

Hello! I need your advice please. I have a nationwide mortgage, started on 1st of May 2019. I want to upgrade house and found a deal with another lender. When is it reccomendable to complete in order to avoid the early repayment charge? Thank you. 

K_S

alexxela said:

Hello! I need your advice please. I have a nationwide mortgage, started on 1st of May 2019. I want to upgrade house and found a deal with another lender. When is it reccomendable to complete in order to avoid the early repayment charge? Thank you. 

@alexxela To avoid an ERC on your current Nationwide mortgage, the earliest you can pay if off is the day after the current fix ends. For example if your fix ends on 31 May 2021, you can pay it off ERC free on 1 June 2021. If it's a Nationwide tracker mortgage then you should be able to pay it off anytime without incurring a penalty.

You might have other options though to avoid the ERC - such as porting the Nationwide mortgage to the new property and adding on additional borrowing.

IAMIAM

Which lenders currently offer overpayment/underpayment/mortgage holidays/payback/overpayment reserves etc...
Apart from offset which has ridiculous rates, I cannot seem to find any mainstream lenders offering this to new customers