Mortgage broker - ask me anything

K_S

luis1988 said:

K_S said:

luis1988 said:

We was wondering if it’s possible to remortgage with a different bank on just that part of the old mortgage to find a better deal?

@luis1988 Unfortunately no. If you currently have a 2 part mortgage with Santander, you are stuck with Santander for now unless you are willing to pay the ERC on the other part.

Tbh your broker or Santander advisor should have explained this to you when you ported with additional borrowing last month.

Ah, thought this may be the case as couldn’t find any information anywhere. 

We went direct to Santander when we moved we had to stay with them anyway due to a very high ERC, but I don’t recall anyone mentioning it although I don’t think I asked the specific question. 

So I just checked again and they are offering 2.69%. If we move lenders we will need to re-do our 90% LTV for a £505k mortgage. The ERC is just over £4k. Do you think it’s worth exploring other lenders based on those numbers or will we struggle to get enough saving due to having to pay the ERC? 

Thanks again!

@luis1988 Probably a non-advised sale in that case.

It's not possible to give a firm answer to your question without crunching all the numbers, but with an overall 90% LTV mortgage and the 90% market as it is currently, it's unlikely to make sense to pay the ERC and move lenders. But that's just a general view.

luis1988

K_S said:

luis1988 said:

K_S said:

luis1988 said:

We was wondering if it’s possible to remortgage with a different bank on just that part of the old mortgage to find a better deal?

@luis1988 Unfortunately no. If you currently have a 2 part mortgage with Santander, you are stuck with Santander for now unless you are willing to pay the ERC on the other part.

Tbh your broker or Santander advisor should have explained this to you when you ported with additional borrowing last month.

Ah, thought this may be the case as couldn’t find any information anywhere. 

We went direct to Santander when we moved we had to stay with them anyway due to a very high ERC, but I don’t recall anyone mentioning it although I don’t think I asked the specific question. 

So I just checked again and they are offering 2.69%. If we move lenders we will need to re-do our 90% LTV for a £505k mortgage. The ERC is just over £4k. Do you think it’s worth exploring other lenders based on those numbers or will we struggle to get enough saving due to having to pay the ERC? 

Thanks again!

@luis1988 Probably a non-advised sale in that case.

It's not possible to give a firm answer to your question without crunching all the numbers, but with an overall 90% LTV mortgage and the 90% market as it is currently, it's unlikely to make sense to pay the ERC and move lenders. But that's just a general view.

K_S said:

luis1988 said:

K_S said:

luis1988 said:

We was wondering if it’s possible to remortgage with a different bank on just that part of the old mortgage to find a better deal?

@luis1988 Unfortunately no. If you currently have a 2 part mortgage with Santander, you are stuck with Santander for now unless you are willing to pay the ERC on the other part.

Tbh your broker or Santander advisor should have explained this to you when you ported with additional borrowing last month.

Ah, thought this may be the case as couldn’t find any information anywhere. 

We went direct to Santander when we moved we had to stay with them anyway due to a very high ERC, but I don’t recall anyone mentioning it although I don’t think I asked the specific question. 

So I just checked again and they are offering 2.69%. If we move lenders we will need to re-do our 90% LTV for a £505k mortgage. The ERC is just over £4k. Do you think it’s worth exploring other lenders based on those numbers or will we struggle to get enough saving due to having to pay the ERC? 

Thanks again!

@luis1988 Probably a non-advised sale in that case.

It's not possible to give a firm answer to your question without crunching all the numbers, but with an overall 90% LTV mortgage and the 90% market as it is currently, it's unlikely to make sense to pay the ERC and move lenders. But that's just a general view.

Ok thought that might be the case! Thanks for your help. Speaking to Santander and paying off £999 gets a cheaper rate of 2.39% so will go with that. Thanks again!

Gareth1985

Hi,
Thanks for your advice throughout this thread. 
Is it possible to predict whether the LTV% for first time buyers will increase by this time next year (2021). I'm hoping to purchase my first home then but could only afford a deposit (including a contribution from the Scottish First Home Fund) based on an 85% LTV. Currently, the maximum appears to be 80%, which requires an additional £10k to my deposit contribution.
Kind regards.

K_S

Gareth1985 said:

Hi,
Thanks for your advice throughout this thread. 
Is it possible to predict whether the LTV% for first time buyers will increase by this time next year (2021). I'm hoping to purchase my first home then but could only afford a deposit (including a contribution from the Scottish First Home Fund) based on an 85% LTV. Currently, the maximum appears to be 80%, which requires an additional £10k to my deposit contribution.
Kind regards.

@gareth1985 Sorry, the figures aren't clear to me. What's the price of the property, your deposit, the First Home Fund contribution and how much you are looking to borrow?

Gareth1985

K_S said:

Gareth1985 said:

Hi,
Thanks for your advice throughout this thread. 
Is it possible to predict whether the LTV% for first time buyers will increase by this time next year (2021). I'm hoping to purchase my first home then but could only afford a deposit (including a contribution from the Scottish First Home Fund) based on an 85% LTV. Currently, the maximum appears to be 80%, which requires an additional £10k to my deposit contribution.
Kind regards.

@gareth1985 Sorry, the figures aren't clear to me. What's the price of the property, your deposit, the First Home Fund contribution and how much you are looking to borrow?

- Property: £265,000
- Deposit: £15,000 + £25,000 (First Home Fund) = £40,000
- Mortgage: £225,000

From my mortgage advisor - An 80% LTV mortgage of this house price (£265,000) requires a deposit  contribution of £53,000 - £25,000 (FHF) = personal savings of £28,000. 
Whereas, an 85% LTV only requires a deposit of £39,750 (minus the FHF £25,000) = personal savings of £14,750. 

glass_halffull

My partner and I are both teachers, I am on a permanent contract so no problem there, but my partner has been put on a 1 year temporary contract, which is likely to be extended by a further 1 year temporary contract . Would we be okay being approved for a mortgage with my partners employment situation?

Also, do brokers have access to better interest rates than us doing our own research could access?

K_S

glass_halffull said:

My partner and I are both teachers, I am on a permanent contract so no problem there, but my partner has been put on a 1 year temporary contract, which is likely to be extended by a further 1 year temporary contract . Would we be okay being approved for a mortgage with my partners employment situation?
Also, do brokers have access to better interest rates than us doing our own research could access?

@GlassHalfFull Not all lenders will accept an applicant on an FTC as described above, but if your partner has been continously employed as a teacher prior to the FTC, there should be options available.

There are a few lenders who only work through brokers, and some lenders offer exclusives to certain mortgage networks, but largely you will potentially have access to similar rates.

Generally speaking brokers should be able to identify the right lender and best rate quicker than a client would.

K_S

Gareth1985 said:

K_S said:

Gareth1985 said:

Hi,
Thanks for your advice throughout this thread. 
Is it possible to predict whether the LTV% for first time buyers will increase by this time next year (2021). I'm hoping to purchase my first home then but could only afford a deposit (including a contribution from the Scottish First Home Fund) based on an 85% LTV. Currently, the maximum appears to be 80%, which requires an additional £10k to my deposit contribution.
Kind regards.

@gareth1985 Sorry, the figures aren't clear to me. What's the price of the property, your deposit, the First Home Fund contribution and how much you are looking to borrow?

- Property: £265,000
- Deposit: £15,000 + £25,000 (First Home Fund) = £40,000
- Mortgage: £225,000
From my mortgage advisor - An 80% LTV mortgage of this house price (£265,000) requires a deposit  contribution of £53,000 - £25,000 (FHF) = personal savings of £28,000. 
Whereas, an 85% LTV only requires a deposit of £39,750 (minus the FHF £25,000) = personal savings of £14,750.

@gareth1985 At 85% LTV for the scenario outlined in your post, there are only about 2-3 lenders in the market presently and as you've talked to a broker I guess you're not eligible for those products for whatever reason. It opens up a bit more at 80% with 6-7 lenders in the mix.

As to whether that will improve in the coming year or not, your guess is as good as mine. Imho if the economy comes out of the doldrums and things start looking up, that should filter through to the mortgage market as well. Sorry I couldn't be more helpful!

Gareth1985

K_S said:

Gareth1985 said:

K_S said:

Gareth1985 said:

Hi,
Thanks for your advice throughout this thread. 
Is it possible to predict whether the LTV% for first time buyers will increase by this time next year (2021). I'm hoping to purchase my first home then but could only afford a deposit (including a contribution from the Scottish First Home Fund) based on an 85% LTV. Currently, the maximum appears to be 80%, which requires an additional £10k to my deposit contribution.
Kind regards.

@gareth1985 Sorry, the figures aren't clear to me. What's the price of the property, your deposit, the First Home Fund contribution and how much you are looking to borrow?

- Property: £265,000
- Deposit: £15,000 + £25,000 (First Home Fund) = £40,000
- Mortgage: £225,000
From my mortgage advisor - An 80% LTV mortgage of this house price (£265,000) requires a deposit  contribution of £53,000 - £25,000 (FHF) = personal savings of £28,000. 
Whereas, an 85% LTV only requires a deposit of £39,750 (minus the FHF £25,000) = personal savings of £14,750.

@gareth1985 At 85% LTV for the scenario outlined in your post, there are only about 2-3 lenders in the market presently and as you've talked to a broker I guess you're not eligible for those products for whatever reason. It opens up a bit more at 80% with 6-7 lenders in the mix.

As to whether that will improve in the coming year or not, your guess is as good as mine. Imho if the economy comes out of the doldrums and things start looking up, that should filter through to the mortgage market as well. Sorry I couldn't be more helpful!

Unfortunately, only a select number of banks / building society’s accept the First Home Fund! Thanks anyway. Fingers crossed things improve for everyone!

cockerhoop47

K_S said:

@cockerhoop47 Without knowing all the facts, it's impossible to second-guess your broker's recommendation unfortunately. I sense that you feel that they may have placed you with a lender of last resort when there may have been less expensive options available. 

Which of Bluestone's 5 credit categories does your product fall under?

We were offered a DiP with the AAA category, which isn't horrendous to be honest.