Mortgage broker - ask me anything

haras_n0sirrah

nnelly said:

haras_n0sirrah said:

nnelly said:

Hi
Thank you so much for all your time and advice!!! Could I add my question to the list please?
I’ve recently applied for a mortgage with Santander via broker (7/8). I’m self-employed (😖), and as yet haven’t returned to work due to covid (hopefully due to start in oct/nov- but no signed contractor contract as yet). I have received SEIS, have 3 years worth of tax returns, an excellent (Experian) credit score and will have over £50k in savings after purchase (if it goes through).

Hoping to buy a flat from family, so, 
Mortgage 42% LTV, 22% gifted equity, 36% deposit.

I’ve had a physical valuation, but it still has to go to senior underwriters/head office, once it’s been processed. 

Given that the LTV is really low, and I have an excellent credit score and a large amount of savings, what do you think my chances are, given I’ve been impacted by Covid?
THANK YOU!!!

I am going to be brutally honest - if you are not yet back to work you are going to have an uphill struggle. Lenders are now looking at latest 3 months business bank statements so if you are not yet back at work I don't think you are going to be successful until you have returned to work and are earning again
Santander are better than some lenders on self employed cases currently and if you have gone via a broker I would hope they would have gone through the case with their bdm before submitting the application to see what your chances are but I would probably have advised you to wait (especially if buying from family so I am assuming less time pressure) until you are back at work and can demonstrate your income going forward.

Thank you so much for your honesty. It’s wierdly made me feel a lot calmer about the situation. 
Thats my fear, unfortunately though due to family reasons we actually need the sale to go through quite quickly so couldn’t wait. We’ll just have to wait and see. 

I’m sensing from your reply the low LTV and savings won’t help matters?

It seems to have gone through initial document/underwriting stage and we haven’t had any questions about income yet. Is that due to come once it goes to the senior underwriters do you reckon? Sorry for all the questions! 

All self employed are going to senior underwriter and they will make the decision. The initial document check is just checking the docs they need are there not the actual docs themselves (I.e do we have 3 latest months bank statements but not actually reading the statements)

nnelly

haras_n0sirrah said:

nnelly said:

haras_n0sirrah said:

nnelly said:

Hi
Thank you so much for all your time and advice!!! Could I add my question to the list please?
I’ve recently applied for a mortgage with Santander via broker (7/8). I’m self-employed (😖), and as yet haven’t returned to work due to covid (hopefully due to start in oct/nov- but no signed contractor contract as yet). I have received SEIS, have 3 years worth of tax returns, an excellent (Experian) credit score and will have over £50k in savings after purchase (if it goes through).

Hoping to buy a flat from family, so, 
Mortgage 42% LTV, 22% gifted equity, 36% deposit.

I’ve had a physical valuation, but it still has to go to senior underwriters/head office, once it’s been processed. 

Given that the LTV is really low, and I have an excellent credit score and a large amount of savings, what do you think my chances are, given I’ve been impacted by Covid?
THANK YOU!!!

I am going to be brutally honest - if you are not yet back to work you are going to have an uphill struggle. Lenders are now looking at latest 3 months business bank statements so if you are not yet back at work I don't think you are going to be successful until you have returned to work and are earning again
Santander are better than some lenders on self employed cases currently and if you have gone via a broker I would hope they would have gone through the case with their bdm before submitting the application to see what your chances are but I would probably have advised you to wait (especially if buying from family so I am assuming less time pressure) until you are back at work and can demonstrate your income going forward.

Thank you so much for your honesty. It’s wierdly made me feel a lot calmer about the situation. 
Thats my fear, unfortunately though due to family reasons we actually need the sale to go through quite quickly so couldn’t wait. We’ll just have to wait and see. 

I’m sensing from your reply the low LTV and savings won’t help matters?

It seems to have gone through initial document/underwriting stage and we haven’t had any questions about income yet. Is that due to come once it goes to the senior underwriters do you reckon? Sorry for all the questions! 

All self employed are going to senior underwriter and they will make the decision. The initial document check is just checking the docs they need are there not the actual docs themselves (I.e do we have 3 latest months bank statements but not actually reading the statements)

Ah ok! Thanks for your quick response!

Robwill87

Hi do you know much about accord mortgages and how they process your application? My wife and myself applied through our broker on the 7th for our full application. Our valuation was done a few days ago on the 17th. But we haven't heard anything from anyone. Our broker did say on the 15th that they can see on their system that it's in a qué for the underwriters. Does this mean we have jumped some hurdles or we haven't got anywhere? At what stage are you most likely to get turned down?  Many thanks

haras_n0sirrah

Robwill87 said:

Hi do you know much about accord mortgages and how they process your application? My wife and myself applied through our broker on the 7th for our full application. Our valuation was done a few days ago on the 17th. But we haven't heard anything from anyone. Our broker did say on the 15th that they can see on their system that it's in a qué for the underwriters. Does this mean we have jumped some hurdles or we haven't got anywhere? At what stage are you most likely to get turned down?  Many thanks

The last one I did with accord was in june. Most lenders are about 3 weeks behind and I wouldn't be surprised if accord were with them 

RauHughes

We recently received our offer from Halifax and will complete on the 2nd October. On the mortgage offer summary, it states the first payment will be £1,025 and subsequent payment £665. I am aware payment is taken the month following completion and interest from completion to month end will be added to the first payment.

My question is are Halifax assuming a full month's addition interest on the first payment for the offer illustration or will out first payment be £1,025 plus interest from completion to month end? If the latter, is this normal practise and why?

Thanks!

climbthatwallseegar

haras_n0sirrah said:

climbthatwallseegar said:

Hello,

I am looking for a broker who is knowledgeable about Shared Ownership mortgages, specifically additional lending when staircasing to 100%. I would like to move from my existing lender (Nationwide). Would you have any advice re. the best place to find one? I've Googled a few and am researching online but if you have any insider tips on good ones please share:) 

Many thanks,

Sonia

I am the mse resident shared ownership mortgage specialist and have been on housing associations broker panels for 14 years - we posters who post here are not allowed to approach posters however we are able to respond to pm's asking for help.

Thanks, have sent a PM.

mpw93

Hello, what salary multiplier are you experiencing is currently the highest for how much you can borrow? I am a single, first time buyer with decent amount saved up for a deposit and job is secure (not been furloughed). I would be looking to buy over the next 12 months. Thanks in advance

LouB90

Hello, do you see 10% deposit mortgages coming back anytime Soon? Thanks

haras_n0sirrah

RauHughes said:

We recently received our offer from Halifax and will complete on the 2nd October. On the mortgage offer summary, it states the first payment will be £1,025 and subsequent payment £665. I am aware payment is taken the month following completion and interest from completion to month end will be added to the first payment.

My question is are Halifax assuming a full month's addition interest on the first payment for the offer illustration or will out first payment be £1,025 plus interest from completion to month end? If the latter, is this normal practise and why?

Thanks!

Halifax are assuming you complete on the 1st so are giving a worst case assumptive figure. You will get a letter after completion confirming how much your first payment will be and when it will be taken but prepare for anything up to that amount (the completion date will determine the figure)

haras_n0sirrah

mpw93 said:

Hello, what salary multiplier are you experiencing is currently the highest for how much you can borrow? I am a single, first time buyer with decent amount saved up for a deposit and job is secure (not been furloughed). I would be looking to buy over the next 12 months. Thanks in advance

The most generous at the moment will depend on if using overtime, commission, bonuses or just basic income. Some lenders are about 4.75x, most are 4.49x, some will lend more on a 5 year fix. It really depends and as a broker I have a nifty calculator which we can plug details into a single calculator and if compares against all lenders to find the most generous for that client which is useful. Generally to get higher income multiples you need an income of +30k