Mortgage broker - ask me anything

fizzgog

Hi, After being declined by Halifax on a £100k mortgage, I've gone to a Broker who's put an application with Clydesdale Bank for a £95K mortgage (80% LTV)
Clydesdale done a Hard Search on the 11th December with Experian, CreditKarma on the 17th Dec and one today on the 6th Jan.
Received an email from the brokers tonight saying:
'I just wanted to let you know that I have heard from the lender and they have said that they should produce the mortgage offer within 5 working days.'

Does this sound promising do you think? 

K_S

Gareth1985 said:

Hi, could you advise how far back lenders take into consideration adverse credit? I'm aware it remains on file for 6 years, but some lenders criteria mention things like "no missed payments within the past 12 / 24 months", etc.
One file has only ever had 2 missed payments in the past 15 years (both 2018), whereas the other has a default accout (£335 settled Dec 2018) and various arrears and missed payments before that.
There has been no adverse credit throughout 2019 and 2020, and there will be none throughout 2021!
Will we still struggle to find a lender with this history when we apply for our first mortgage late this year / early next year?

@gareth1985 There are as many adverse products as there are scenarios, with rates proportionate to the level of adverse. Lenders that are ok with defaults in the past year, others need them to be 2+ or 3+ years old, some ignore telecom defaults, some are ok with defaults up to £500, etc. I hope that makes sense.

It will come down to the specifics, but based on the limited information in your post (one satisfied default, <500, no adverse since 2019) if the credit history has been clean for 2+ years and assuming 15-20% deposit, you should have options. When the time comes, do get in touch with a broker.

[Deleted User]

Hi there,
We would like to get a buy to let mortgage with my friend.We already own our houses and have 25% deposit. However our combine income is £25k pa(she earns 15k and I earn10k).Are we able to get a buy mortgage based on that income?Many thanks 

K_S

tapir19 said:

Hi there,
We would like to get a buy to let mortgage with my friend.We already own our houses and have 25% deposit. However our combine income is £25k pa(she earns 15k and I earn10k).Are we able to get a buy mortgage based on that income?Many thanks 

@tapir19 A combined earned income of £25k should not be a barrier to getting a BTL mortgage on its own though you may not get the best rates in the market. How much you can borrow and whether you can get a 75% LTV mortgage will depend on the estimated rent and house price.

Suseka97

fizzgog said:

Hi, After being declined by Halifax on a £100k mortgage, I've gone to a Broker who's put an application with Clydesdale Bank for a £95K mortgage (80% LTV)
Clydesdale done a Hard Search on the 11th December with Experian, CreditKarma on the 17th Dec and one today on the 6th Jan.
Received an email from the brokers tonight saying:
'I just wanted to let you know that I have heard from the lender and they have said that they should produce the mortgage offer within 5 working days.'

Does this sound promising do you think? 

I think that's pretty much confirming it.  Your broker wouldn't have said this if they were not confident of the outcome and you'l find that good brokers do their homework before submitting applications, so have a good idea of the outcome (assuming what they've been told by their client is accurate).

Cuddlybearman

Hi there - thanks for the thread. Couple of questions - as a broker (as long as the buyer is 100% honest) to you generally expect your applications to be successful with banks? And second questions - whats your expectations on Satander BTL mortgages timelines from Applications to Offer? Says 25 days online but is that realistic?

K_S

Cuddlybearman said:

Hi there - thanks for the thread. Couple of questions - as a broker (as long as the buyer is 100% honest) to you generally expect your applications to be successful with banks? And second questions - whats your expectations on Satander BTL mortgages timelines from Applications to Offer? Says 25 days online but is that realistic?

@Cuddlybearman Not sure how to answer your first question, but in all cases, generally speaking I expect the applications to go through to offer. At all the good broking firms that I've worked for, the app to offer rate has been 90%+. There are always a few 50-50 cases that depend on the lender's "credit scoring" or manual review that you put through (after setting expectations with the client) and hope they pass, but that's an exception.

Sorry, I haven't done any Santander BTL apps recently so can't comment from experience. I don't come across a lot of new purchase clients buying in their own name nowadays. A few of my BTL clients are in the market but struggling to find properties at the right price as they're getting outbid by owner occupiers. The 25 days is probably an average figure so it is realistic but could include extremes on either end.

kingstreet

Our last Santander BTL purchase app was submitted on 29/09/2020 and offered on 04/11/2020.

Cuddlybearman

Thanks guys - its actually a question for me to get a better idea about what my buyer is playing at. He tried to do a BTL when I first accepted his offer and went to Nationwide directly - but once they subbed it off to the Mortgage Works basically the person at Nationwide told him 75% LTV was ok and actually its not. But that took a month to find out. 

So he pulled it and went to a broker and submitted to Satander around the 28th Nov and I'm still waiting to find out if he has an offer yet. I'm assuming and hoping (as you suggested) his broker would have done everything right and hopefully the waiting is just due to workload and not an issue (he's a self employed taxi driver but from what I understand earning is not so much the issue with a BTL). All the solicitors are a week away from getting the paperwork sorted and his mortgage offer is the last (and most important) piece of the puzzle.

Driving me nuts - not really his fault - but we're all in limbo and if he doesn't get it sorted then effectively we've all just wasted 2 months for nothing!

K_S

@Cuddlybearman Santander's BTL borrower income requirements are fairly standard, minimum 25k and a good credit history. I'd assume the broker wouldn't submit an app if that wasn't the case.

If it was only submitted on 28th Nov, given the holiday season in between, it'll perhaps take a bit longer than expected.