Mortgage broker - ask me anything

lf93

Hi, would appreciate a bit of clarity about timeline of mortgage application. 

Filled out application docs with broker before Christmas and attached all statements, payslips etc. 

Mortgage valuation 9 days ago and confirmation from mortgage company of value. 

Today broker says is submitting paperwork - is this normal? I had assumed all paperwork was submitted when we had applied before Christmas! Or does it now go to the underwriter and we wait a while for a decision? Thanks. 

adamditz

Hi, wonder if you could clarify something in my worrying mind.
want to borrow 410k, joint application wages 50 and 30k (working to 5x salary) don’t quite cover it, but I have payslips all the way from April with well over £1000 overtime per month on, sometimes in to £2000, including these amounts more than covers the requirement...

application went in, and the underwriters have requested last years p60 - problem being, last year I was doing a different role with less overtime and the total pay on that one is only 54k 

what will happen with that considering they have requested it, but it’s outdated info?:

thanks

K_S

lf93 said:

Hi, would appreciate a bit of clarity about timeline of mortgage application. 

Filled out application docs with broker before Christmas and attached all statements, payslips etc. 

Mortgage valuation 9 days ago and confirmation from mortgage company of value. 

Today broker says is submitting paperwork - is this normal? I had assumed all paperwork was submitted when we had applied before Christmas! Or does it now go to the underwriter and we wait a while for a decision? Thanks. 

@lf93 It depends on the lender but it's not unusual.

K_S

adamditz said:

Hi, wonder if you could clarify something in my worrying mind.
want to borrow 410k, joint application wages 50 and 30k (working to 5x salary) don’t quite cover it, but I have payslips all the way from April with well over £1000 overtime per month on, sometimes in to £2000, including these amounts more than covers the requirement...
application went in, and the underwriters have requested last years p60 - problem being, last year I was doing a different role with less overtime and the total pay on that one is only 54k 
what will happen with that considering they have requested it, but it’s outdated info?:
thanks

@adamditz Generally speaking, lenders ask for P60s to assess how "consistent" the overtime (or any other form of variable pay) is. For it to be taken at 100%, they usually will expect the last P60 to reflect the overtime you are earning now.

If it doesn't, they may say they'll consider it at a smaller percentage or decline to use it altogether. Depends on the particular lender policy and the subjectvity exhibited by the underwriter.

If you are using a broker, I would have assumed that they considered all this before selecting this lender and submitting an application.

Cris872

I'm planning to apply for a mortgage in around 1-2 years time. I'll also like to make a product purchase using paypal credit, which will give me the possibility of repaying the loan in either 12 or 24 fixed monthly payments with 0% APR. My question is if this kind of credit will affect my mortgage application in any way, as i know that sometimes BNPL schemes are being flagged in people's mortgage applications. Thank you

annetheman

What mortgage rates are you seeing with Shared Ownership products e.g. 3.0 to 5%?

K_S

annetheman said:

What mortgage rates are you seeing with Shared Ownership products e.g. 3.0 to 5%?

@annetheman I've only done 2 SO mortgages in the past couple of months - with Halifax and Skipton, both were 85% LTV 2 year fixes with rates around 3.4-3.5%. From memory when I did the sourcing there weren't a lot of potential lenders or a huge range of rates so it was more a matter of matching the customer to an appropriate lender rather than the best rate.

K_S

Cris872 said:

I'm planning to apply for a mortgage in around 1-2 years time. I'll also like to make a product purchase using paypal credit, which will give me the possibility of repaying the loan in either 12 or 24 fixed monthly payments with 0% APR. My question is if this kind of credit will affect my mortgage application in any way, as i know that sometimes BNPL schemes are being flagged in people's mortgage applications. Thank you

@chris872 I can't recall ever having come across Paypal credit on my clients' bank statements or credit reports so can't comment on that specifically. Hopefully someone else who has will comment.

[Deleted User]

Hi.  We are currently looking at purchasing a re-possessed house.  We plan to live in it whilst getting plans drawn up and contractors onboard and then spend on extending/renovating it.

We sold our property last year, and have available a mortgage to port of (depending on what value of house is around 52-58% LTV if we do it by end March.  We currently have cash making up the remainder to 100% and I am in process of hopefully selling another property which will give us some further cash but this might not be done in time and also, we are not looking at using all that cash for the property but putting most of it in investments/pensions and possibly using around a third of it if needed for renovations etc just as a contingency).  I am discounting the under offer property from these calcs for the moment.

DH has come up with an idea to a) get things through quickly (our current rental expires end March) and b) claw back our early repayment fee from last sale (3272) and I wanted to know if this sounded feasible.  He wonders whether (should we have an offer accepted), we port our old mortgage and then use cash to pay the remaining balance/SD/legals etc.  We are not in UK so no additional SD for second home and we can do it in time where we are.

We would then, once our old mortgage expires, apply for a new mortgage, and seek to borrow 72-75% of the value , thereby freeing up the rest in cash for renovations.  We understand from enquiries with the bank we could borrow at that level.

This would also give us lower monthly repayments (circa 500 per month) for a few months which would help us whilst I am on unpaid maternity leave.

My questions are as follows:

1. Originally, our old fixed mortgage was due to expire August 2021.  Would this still be the case or, because we have only ported it six months later, would this be extended to Feb 2022?

2. If we were to go down this route, do you think the bank would be happy to allow a re-mortgage (obviously subject to valuation etc) for us to be able to extend/renovate on usual terms or would it have to be a specific home improvements mortgage?  There would still be circa 25% equity in the property at that stage as a comfort for the bank.

Personally, I think it would be better for us just to go for a whole new mortgage now, even though that means discounting the early repayment fee.  I think it's less hassle, more certain and the rates are actually better now anyway (we could get 0.4-0.45% less than we were paying on the old mortgage on a 5 year fix - which again, would give us certainty until we have finished renovations and both children would be in school by then so there would be no nursery fees by that point - they are not going to private school).

Thank you in advance!

angelkay

Hi
My husband and have a joint income of £61k, he has £350 on a credit card with a 2k limit, and 10k loan with a 5 year term that has just under 4 years left to run, i have no loans and a credit card with a limit of 4k with £2,600 on it to pay. We have no other loans or credit  no bad credit history of late or unpaid bills. 

Neither of us have been affected by furlough as we are both health n social care workers. We have 3 children. 2 live with us as their dad pays maintenence of £600 per month and step son stays with his mum and child maintenece paid out  is £240

We have found a house we love at £160k and have saved over a 10% deposit (currently we have saved 20k)  Is it likely we can get a 90% mortgage on the above? We could save more to get a 15% deposit but this would take appox 3/4 months more (making sure we will have enough to also cover solicitors fees and movung costs) but we are worried that the house will have been sold by then and my huband will then have turned 46 (im 42) 

I just dont want to get too excited if its not a possibility right now. And we know to save for an extra few months crossing everything that the house will still be on the market 
I know you cant give me a definate yes/no but it would deffo give me an idea if the stress or applying  is going to be worth it if a mortgage is a possibility  

Many thanks in advance for any replies