Mortgage broker - ask me anything

longtimelurker2020

Some other questions have touched on the topic of mortgages into retirement, but I’m not sure this has been specifically asked - is there an absolute maximum age that lenders will not exceed? For some reason I have 75 in mind, not sure if I read that somewhere or am imagining it.

Are there any regulations around max age or is it up to each lender to establish its policy on this? 

K_S

Amanda65 said:

Hi
I was widowed last year and sadly my OH fell ill just as a 10 year life insurance policy came to an end so still have a £68k mortgage which is on a variable interest rate as part of an RBS OneAccount.  I can afford to pay it from his pension pot but pensions advisor has said it would be better to keep a mortgage while I am still working and hold on to the pensions, with a view to repaying in the future if I choose to.  The mortgage is about 13% of my property value and my salary would more than cover the loan ratio amount / repayments.  I plan to work for another 10 years so that is the term I will take the mortgage out over to keep repayments lower but with a view of overpaying to pay quicker.
I am a long term Nationwide customer and a quick look at their website shows a 2 year fixed term deal available to me so my questions are please:

• am I better speaking to a broker to get a better deal
• would I get a better deal if I paid my 'overpayments; into an ISA or other savings vehicle and pay a lump sum at the end of the fixed term rather than a deal where I can make overpayments to the mortgage?
  

@amanda65 Sorry for your loss. Can I ask why you are looking to remortgage away from the RBS OneAccount?

K_S

teleport3 said:

K_S said:

teleport3 said:

K_S said:

teleport3 said:

K_S said:

teleport3 said:

Is it possible to get a 10% Mortage in this climate as a non first buyer?
I keep being offered 10% mortages in comparison sites, with my details, but once I. Go through to the bank mortage checker it keeps saying sorry we can only give you x amount provided I give a 15% deposit. Is my situation completely hopeless? 

@teleport3 For those looking to purchase a non-new-build house, there are a small number of 90% LTV products available for non-FTBs.

I'm not sure what you mean when you say "bank mortgage checker" but whether you will be eligible for any of the above products will depend on the whole of your circumstances.

Hi I'm trying to buy a non new build with a 10% deposit. Some websites like virgin money and halifax have an online service that checks your mortage eligibility. But virgin, tsb and halifax have came back stating that I would need a 15% deposit.

@teleport3 If that's the case then it's probably a no-go. If you haven't used a broker yet, I would recommend trying one who can look at the whole of your circumstances and make sure you haven't missed anything. Do make sure you tell them about the Virgin, Halifax and TSB DIPs. Good luck!

Thanks for your advice.
Do you think in a few months, if they begin to introduce.more and more 10% mortages that things will improve and I might be in with a chance? 

@teleport3 I really couldn't say one way or the other.

If you're looking to borrow less than 3x your income (and assuming you don't have disproportionately large outgoings or debt), and Halifax, TSB and Virgin DIPs came back with potential lending at 85% LTV, then based just on that very limited information, if I had to guess I'd say it's something minor on your credit file. All the lenders you mentioned do some form of opaque automated "credit scoring" which spits out a result based on some parameters.

Is there anything I could do to find out what the minor thing is or fix it?

@teleport3 Pore over your credit reports from all 3 agencies, check for any late payment markers, financial associations mentioned on the report, etc. Sorry I know this is generic advice but it's not always easy to pin point the issue.

K_S

longtimelurker2020 said:

Some other questions have touched on the topic of mortgages into retirement, but I’m not sure this has been specifically asked - is there an absolute maximum age that lenders will not exceed? For some reason I have 75 in mind, not sure if I read that somewhere or am imagining it.
Are there any regulations around max age or is it up to each lender to establish its policy on this? 

@longtimelurker2020 If based on earned/employed income, most lenders max out at the lower of declared retirement age or 70. A few may consider up to 75 if plausible.

If post-retirement income can be evidenced and covers affordability requirements, most lenders will go up to 80, some can go to 85 and a handful will go even beyond that.

Amanda65

K_S said:

Amanda65 said:

Hi
I was widowed last year and sadly my OH fell ill just as a 10 year life insurance policy came to an end so still have a £68k mortgage which is on a variable interest rate as part of an RBS OneAccount.  I can afford to pay it from his pension pot but pensions advisor has said it would be better to keep a mortgage while I am still working and hold on to the pensions, with a view to repaying in the future if I choose to.  The mortgage is about 13% of my property value and my salary would more than cover the loan ratio amount / repayments.  I plan to work for another 10 years so that is the term I will take the mortgage out over to keep repayments lower but with a view of overpaying to pay quicker.
I am a long term Nationwide customer and a quick look at their website shows a 2 year fixed term deal available to me so my questions are please:

• am I better speaking to a broker to get a better deal
• would I get a better deal if I paid my 'overpayments; into an ISA or other savings vehicle and pay a lump sum at the end of the fixed term rather than a deal where I can make overpayments to the mortgage?
  

@amanda65 Sorry for your loss. Can I ask why you are looking to remortgage away from the RBS OneAccount? 

Thank you.
We have never really used it properly and I would rather have more control, site of monthly payments and a better interest rate.

K_S

@amanda65 Based on the limited information in your post, assuming that your income meets affordability and the 10 year term takes you to no further than 70 years of age, you shouldn't have any problems borrowing what you need.

To get the best rate available for your circumstances, I would recommend getting in touch with a broker who can do the legwork for you. Good luck!

Amanda65

K_S said:

@amanda65 Based on the limited information in your post, assuming that your income meets affordability and the 10 year term takes you to no further than 70 years of age, you shouldn't have any problems borrowing what you need.

To get the best rate available for your circumstances, I would recommend getting in touch with a broker who can do the legwork for you. Good luck!

Mortgage term would take me to 65 and finances well within affordability range.  Will take a look, thank you

Sotts

Im buying a brand new SO property.  The lender got the valuation done really quickly.   Im now thinking i should have a home buyers report done.  Struggling to get anything booked before February.    Would my broker or solicitor have better access to a surveyor who can arrange this quicker?     
Im not sure who should arrange the HB report.

K_S

@sotts Is there a particular reason you want a survey done for a brand new flat which presumably comes with a warranty? There isn't likely to be much to report.

Sotts

K_S said:

@sotts Is there a particular reason you want a survey done for a brand new flat which presumably comes with a warranty? There isn't likely to be much to report.

Horror stories on the internet (mainly from surveyors) about snagging issues etc