Mortgage broker - ask me anything

K_S

Liyana89 said:

Hi
I have very recently secured a permanent full time job, and saved up enough for a sizable deposit. In the past, I’ve worked 1 full time job, which I then had to quit due to my relative becoming unwell. Since caring for my relative, I’ve worked for agencies whenever I’ve been able to. 

As I’ve now got a permanent full time job, which I intend to stay in (as I’m not caring for relative any longer) will I be asked about my Past employment history when applying for mortgage? Or do they only focus on the present situation?

I’d be very grateful for help! Thanks a lot  

@liyana89 Different lenders will see it differently. Some lenders will need a minimum x months employment in the same role, some will need a minimum period of continous employment, some will need neither or it may be subject to discretion.

Generally speaking, as you have a permenant contract, once you get your first month's payslip you should have mainstream options assuming there are no other major issues in the background and you are only relying on your guaranteed basic pay.

I hope that makes sense!

IAMIAM

K_S said:

IAMIAM said:

Nationwide specific, I am due an offer from them.
Can I just clarify - they state that the maximum age for the term is 70 but then they say it can be 75 on their website - how does this work?
Lastly, I have gone for a tracker with a view to transferring to an existing customer fixed rate a month after completion, will this be allowed as there is a near 1% rate difference and I do not want to be stuck on the tracker....I rang and they said it would be fine, I just do it online, but I'm not convinced!

@IAMIAM If want to take it past 70, you will need to prove post-70 income (pension projections, etc) to meet the affordability requirements. And then they will consider it.

Without commenting on your specific situation, I'd take Nationwide at their word, what else can you do. If they say it's not ok when you try to do it, complain citing what they told you.

Thanks. Lastly, if you are already with Nationwide residential, can you explain what Let to Buy applications mean vs Buy to Let applications with their The Mortgage Works arm.

K_S

IAMIAM said:

K_S said:

IAMIAM said:

Nationwide specific, I am due an offer from them.
Can I just clarify - they state that the maximum age for the term is 70 but then they say it can be 75 on their website - how does this work?
Lastly, I have gone for a tracker with a view to transferring to an existing customer fixed rate a month after completion, will this be allowed as there is a near 1% rate difference and I do not want to be stuck on the tracker....I rang and they said it would be fine, I just do it online, but I'm not convinced!

@IAMIAM If want to take it past 70, you will need to prove post-70 income (pension projections, etc) to meet the affordability requirements. And then they will consider it.

Without commenting on your specific situation, I'd take Nationwide at their word, what else can you do. If they say it's not ok when you try to do it, complain citing what they told you.

Thanks. Lastly, if you are already with Nationwide residential, can you explain what Let to Buy applications mean vs Buy to Let applications with their The Mortgage Works arm.

@iamiam I'm not full clear on your question. But the most common let-to-buy scenario is where the home-mover client remortgages his current residence to a BTL mortgage (for instance to TMW), releases some cash and uses it towards the deposit for the purchase of the new home using a residential mortgage (eg Nationwide). All this typically happens simultaenously.

pinkcloud17

I have been told not to take out further credit before completion in case of any further credit checks. Will taking out buildings and contents insurance for the new house impact this at all? Also car insurance needs renewed and I would like to look for a cheaper policy but wondered if taking out new car insurance could affect my credit score also? Sorry I've asked a few questions on here recently! Thank you.

K_S

pinkcloud17 said:

I have been told not to take out further credit before completion in case of any further credit checks. Will taking out buildings and contents insurance for the new house impact this at all? Also car insurance needs renewed and I would like to look for a cheaper policy but wondered if taking out new car insurance could affect my credit score also? Sorry I've asked a few questions on here recently! Thank you.

@pinkcloud17 As long as you're not signing up to any kind of credit agreement as part of taking out the insurance, it'll have no negative impact on your credit history.

Peppermint90

Hi...a different thread has got me worrying....
I haven't set an exchange date yet, I have a mortgage offer from Halifax, if Halifax change their lending criteria before I get round to exchanging, could my offer get pulled or changed?

Thank you in advance

K_S

Peppermint90 said:

Hi...a different thread has got me worrying....
I haven't set an exchange date yet, I have a mortgage offer from Halifax, if Halifax change their lending criteria before I get round to exchanging, could my offer get pulled or changed?

Thank you in advance

@peppermint90 I've never had (or heard of) a lender pulling an offer based on a retrospective change of criteria.

Lenders can and do change criteria (eg Halifax reducing income multiples for <30k income recently) but usually if your application has gone in before the new criteria is in place, they will judge it as per the existing criteria at that time.

sh856531

Hi all
We are planning to exchange on a New Build property this week for a home that won't be built for another 6 months approximately. It seems to me that this leaves us massively exposed because we will use  all of our life savings as the deposit and anything could happen between now and then. Although I have no reason to think it would - my partner could be furloughed for example and we would lose everything - our savings and the home.
Is there anything I can do to mitigate this? I can't imagine that Miller Homes would agree to change their contract terms despite how one sided they are and the bank obviously won't care. Is there any insurance product I can buy that would protect us or anything our solicitor can do to make the situation less lopsided in the House Builder's favour?
Thanks in advance

K_S

sh856531 said:

Hi all
We are planning to exchange on a New Build property this week for a home that won't be built for another 6 months approximately. It seems to me that this leaves us massively exposed because we will use  all of our life savings as the deposit and anything could happen between now and then. Although I have no reason to think it would - my partner could be furloughed for example and we would lose everything - our savings and the home.
Is there anything I can do to mitigate this? I can't imagine that Miller Homes would agree to change their contract terms despite how one sided they are and the bank obviously won't care. Is there any insurance product I can buy that would protect us or anything our solicitor can do to make the situation less lopsided in the House Builder's favour?
Thanks in advance

@sh856531 Other than a covid-clause in the contract, I myself can't think of any other safeguards. Your worries are entirely valid. 6 months is a long time, especially in the current situation we see around us. If there is an insurance product that protects against this, your solicitor would be the person most likely to know about it.

sh856531

K_S said:

@sh856531 Other than a covid-clause in the contract, I myself can't think of any other safeguards. Your worries are entirely valid. 6 months is a long time, especially in the current situation we see around us. If there is an insurance product that protects against this, your solicitor would be the person most likely to know about it.

Yeah - I'm drawing a blank as well. It seems very unfair and the basis of a future PPI style scenario but that will be cold comfort to anyone it happens to.
Part of me hopes a large house builder wouldn't be so vindictive as to keep both the home and the deposit, ruining a prospective future customer in the process. Of course when it comes to such large amounts of money this isn't something we should need to leave to an act of compassion from a billion pound organisation