Mortgage broker - ask me anything

K_S

Smifthy1234 said:

K_S said:

@smifthy1234

1) There might be specialist lenders (in the UK or Spain) to release equity from the Spanish property but its likely to be a costly endavour.

2) Afaik, you are no longer an FTB as per the government definition as it's "an individual who has never owned an interest in a residential property in the UKingdom or anywhere else in the world" so you probably aren't eligible for schemes such as Help2Buy, etc. and liable to pay the 3% (assuming England) stamp duty surcharge.

Going by the limited info in your post and the numbers you've shared, you *should* be able to borrow in the region of 100-110k. But with a 10% deposit, at present the choice of lenders/products will be limited.

Great info - thank you! Again I know I've given you limited info so understand you cannot say for certain but .... do you feel it would be better to try and free up say £30k from the property in Spain? If had that much equity I hope I would have better mortgage options and lenders would see me more favourably? Sorry if thats an obvs question / answer!! 
Thanks again for your help.

@Smifthy1234 In the current market, getting to a 15%+ deposit should significantly open up your options as compared to a 10% one.

K_S

greenpanda said:

What do you think of Aldershot? Our buyers are using them and it's coming up to 2 months and they still don't have their mortgage. 

If they do get approval, are funds released in a timely manner?

@greenpanda Aldermore? Their service levels were pretty decent the last I used them in November. But that was a straightforward (for Aldermore) case. Their service levels on the website also say that they're taking on average 5 days for underwriting. 

greenpanda

@K_S thank you! And yes it's Aldermore, not Aldershot! 

IAMIAM

If I have a direct to lender Nationwide offer for completion May 30th 2021, and a better rate comes out between now and then, how late can I request to change deal - based on the fact I originally added the fee to the loan/rate...

K_S

IAMIAM said:

If I have a direct to lender Nationwide offer for completion May 30th 2021, and a better rate comes out between now and then, how late can I request to change deal - based on the fact I originally added the fee to the loan/rate...

@iamiam I don't know how it is for direct but I can tell you how it works for me as a broker in the case of a remo offer for a client. I can choose to amend the case (afaik anytime before completion) for a product change. If this doesn't trigger any new document/info requests from Nationwide, this happens fairly quickly.

IAMIAM

K_S said:

IAMIAM said:

If I have a direct to lender Nationwide offer for completion May 30th 2021, and a better rate comes out between now and then, how late can I request to change deal - based on the fact I originally added the fee to the loan/rate...

@iamiam I don't know how it is for direct but I can tell you how it works for me as a broker in the case of a remo offer for a client. I can choose to amend the case (afaik anytime before completion) for a product change. If this doesn't trigger any new document/info requests from Nationwide, this happens fairly quickly.

Does it usually trigger a new credit check and documents? Especially with offer some 4 months before completion.
Also, do they contact the bank and get a redemption figure and pay this off and deposit the additional into my bank account?
Its a Remo with additional for home improvement

pinkcloud17

Does the amount a customer borrows from a lender affect the commission a broker receives from the lender?

IAMIAM

pinkcloud17 said:

Does the amount a customer borrows from a lender affect the commission a broker receives from the lender?

Yes, some do fixed commission, some do 0%-1/2% and same for additional borrowing/rate switch

K_S

pinkcloud17 said:

Does the amount a customer borrows from a lender affect the commission a broker receives from the lender?

@pinkcloud17 Yes. A broker's main income is what's called a "procuration fee" from the lender which (for most mainstream lenders) is around 0.3-0.35% of the loan amount. So about £300-350 for every £100,000. 

The exact % differs from lender to lender and generally speaking you get less for product transfers/switches.

You can see the proc fee paid by most lenders here for one of the largest mortgage clubs https://www.legalandgeneral.com/adviser/mortgage-club/lenders/procuration-fees/

Some brokers will also charge a fee to the client, some won't.

K_S

IAMIAM said:

K_S said:

IAMIAM said:

If I have a direct to lender Nationwide offer for completion May 30th 2021, and a better rate comes out between now and then, how late can I request to change deal - based on the fact I originally added the fee to the loan/rate...

@iamiam I don't know how it is for direct but I can tell you how it works for me as a broker in the case of a remo offer for a client. I can choose to amend the case (afaik anytime before completion) for a product change. If this doesn't trigger any new document/info requests from Nationwide, this happens fairly quickly.

Does it usually trigger a new credit check and documents? Especially with offer some 4 months before completion.
Also, do they contact the bank and get a redemption figure and pay this off and deposit the additional into my bank account?
Its a Remo with additional for home improvement

@iamiam Usually, no. But there's no guarantee of that.

The solicitor does what's needed to redeem the old mortgage and pay the client any capital raised as part of the remortgage.