Mortgage broker - ask me anything

K_S

LittleBrownHouse said:

Hi...created separate post, but no one seems to be knowing the answer. Trying my luck here: So I am asking if there is any benefit to capitalise my mortgage overpayment reserve when transferring to new product after fixed rate ends?
To illustrate here is my example - my fixed rate comes to end and I have overpayment reserve of 4k. I am going to move to another fixed term product and wonder if there is any benefit to capitalise my overpayment? Or should I leave it where it is? I am not intending to fall back on the reserve. I cannot find any information on this subject - all articles refer just to simple stuff like benefits of overpayments etc etc.. (Thank you)

@littlebrownhouse Which lender is this please? And by 'capitalise' do you mean taking off the balance in the overpayment reserve from your main balance?

Jim87

Hi there,
 I have a mortgage with NatWest that I will be porting (fixed rate ends July ‘23). I will then be borrowing an additional amount with my gf as we look to sell my flat and buy a house.

We have a healthy deposit (c20-30% depending on house price). I have recently withdrawn £25k from a gambling platform (it’s more like spread betting) which will hit my account in the next few days & I also withdrew £15k on 4th October. The last deposit into the platform was 1st September (£1k, c22.5% of my monthly income) & account is squeaky clean aside from this. Will NatWest look unfavourably on this if I were to theoretically apply for a mortgage in the next few weeks? 

Also, I’m thinking of moving some of the money into a trading ISA (£5k) - again would this go against me or are they not worried about trading ISA’s? 

Thanks,
Jim

K_S

Jim87 said:

Hi there,
 I have a mortgage with NatWest that I will be porting (fixed rate ends July ‘23). I will then be borrowing an additional amount with my gf as we look to sell my flat and buy a house.We have a healthy deposit (c20-30% depending on house price). I have recently withdrawn £25k from a gambling platform (it’s more like spread betting) which will hit my account in the next few days & I also withdrew £15k on 4th October. The last deposit into the platform was 1st September (£1k, c22.5% of my monthly income) & account is squeaky clean aside from this. Will NatWest look unfavourably on this if I were to theoretically apply for a mortgage in the next few weeks? 

Also, I’m thinking of moving some of the money into a trading ISA (£5k) - again would this go against me or are they not worried about trading ISA’s? 

Thanks,
Jim

@Jim87 The Natwest application asks where the deposit has come from - savings, gifted, etc. As far as I can remember they don't ask for any more proof at that point but given how recent it is and that it's coming from a Sportingindex kind of website, it may well be queried in more detail later on - by the lender and/or the conveyancing solicitor. Their published criteria does not mention gambling as a source of deposit specifically so it's hard to say exactly what their view would be. In any case expect to have to share cash statements from the gambling website showing deposits and withdrawals for 3-6 months.

S&S ISAs are not unusual at all as a source of deposit. However, if you are planning to apply in the next couple of weeks/months, generally speaking I would recommend that you don't move around the deposit too much as it'll make it that much more work to collect the documentation to trace it.

LittleBrownHouse

K_S said:

LittleBrownHouse said:

Hi...created separate post, but no one seems to be knowing the answer. Trying my luck here: So I am asking if there is any benefit to capitalise my mortgage overpayment reserve when transferring to new product after fixed rate ends?
To illustrate here is my example - my fixed rate comes to end and I have overpayment reserve of 4k. I am going to move to another fixed term product and wonder if there is any benefit to capitalise my overpayment? Or should I leave it where it is? I am not intending to fall back on the reserve. I cannot find any information on this subject - all articles refer just to simple stuff like benefits of overpayments etc etc.. (Thank you)

@littlebrownhouse Which lender is this please? And by 'capitalise' do you mean taking off the balance in the overpayment reserve from your main balance?

Hi K_S!
My lender is Nationwide. And yes, by ‘capitalise’ I mean my overpayment reserve is taken off my debt. 
My balance already appears with ovepayment minused off (so % are calculated on only outstanding value).
I call it like that as bank calls it that - in order reserve is removed, I had to sing form of an overpayment capitalisation (on prev product transfer).

swtchick87

Can i get some help and support please.
We are in the process of selling to buy another property. The sale is going ahead as planned, we found a property, offer accepted. 
The mortgage is taking forever. We got a broker involved due to self employment for my husband and myself only getting another job in July after redundancy in feb. We also moved from our home to in laws due to covid so addresses were a bit messed up.

Anyway, credit check was done in Nov by barclays, and we are still providing information and have heard nothing in 2 weeks! We might lose the house we want and need. What can i do? I am at my wits end. 

K_S

swtchick87 said:

Can i get some help and support please.
We are in the process of selling to buy another property. The sale is going ahead as planned, we found a property, offer accepted. 
The mortgage is taking forever. We got a broker involved due to self employment for my husband and myself only getting another job in July after redundancy in feb. We also moved from our home to in laws due to covid so addresses were a bit messed up.
Anyway, credit check was done in Nov by barclays, and we are still providing information and have heard nothing in 2 weeks! We might lose the house we want and need. What can i do? I am at my wits end. 

@swtchick87 Unfortunately, Barclays is not the best when it comes to matters that need manual review (even for straightforward apps let alone self employed ones) and every lender is scrutinising self employed apps much more than they used to post covid. Even otherwise, self-employed applications can take a long time to underwrite irrespective of the lender. Are there any complications that you know of, what are they querying?

K_S

LittleBrownHouse said:

K_S said:

LittleBrownHouse said:

Hi...created separate post, but no one seems to be knowing the answer. Trying my luck here: So I am asking if there is any benefit to capitalise my mortgage overpayment reserve when transferring to new product after fixed rate ends?
To illustrate here is my example - my fixed rate comes to end and I have overpayment reserve of 4k. I am going to move to another fixed term product and wonder if there is any benefit to capitalise my overpayment? Or should I leave it where it is? I am not intending to fall back on the reserve. I cannot find any information on this subject - all articles refer just to simple stuff like benefits of overpayments etc etc.. (Thank you)

@littlebrownhouse Which lender is this please? And by 'capitalise' do you mean taking off the balance in the overpayment reserve from your main balance?

Hi K_S!
My lender is Nationwide. And yes, by ‘capitalise’ I mean my overpayment reserve is taken off my debt. 
My balance already appears with ovepayment minused off (so % are calculated on only outstanding value).
I call it like that as bank calls it that - in order reserve is removed, I had to sing form of an overpayment capitalisation (on prev product transfer).

@littlebrownhouse Ah ok, I wasn't aware that that's what it's called. Based on what you've said, if the overpayment reserve is taken into account for LTV when you apply for a product transfer then I don't really see a clear benefit to 'capitalising' the amount. Hopefully I'm not missing something obvious!

JRSKR

Internal credit scoring is unknown to us on the outside but if someone is declined by Nationwide would you then have a “go to” as the next lender to try? Or would it depend on the reason for refusal? 

K_S

JRSKR said:

Internal credit scoring is unknown to us on the outside but if someone is declined by Nationwide would you then have a “go to” as the next lender to try? Or would it depend on the reason for refusal? 

@JRSKR It would depend on the specifics. If it's of any help, the "credit-scoring" done by mainstream lenders is often opaque to us brokers as well When the lender says a client has failed credit scoring, we can't always pinpoint the exact reason.

swtchick87

K_S said:

swtchick87 said:

Can i get some help and support please.
We are in the process of selling to buy another property. The sale is going ahead as planned, we found a property, offer accepted. 
The mortgage is taking forever. We got a broker involved due to self employment for my husband and myself only getting another job in July after redundancy in feb. We also moved from our home to in laws due to covid so addresses were a bit messed up.
Anyway, credit check was done in Nov by barclays, and we are still providing information and have heard nothing in 2 weeks! We might lose the house we want and need. What can i do? I am at my wits end. 

@swtchick87 Unfortunately, Barclays is not the best when it comes to matters that need manual review (even for straightforward apps let alone self employed ones) and every lender is scrutinising self employed apps much more than they used to post covid. Even otherwise, self-employed applications can take a long time to underwrite irrespective of the lender. Are there any complications that you know of, what are they querying?

Thank you for the response. My husband has a fixed income job which is fulltime, the self employed job is around 8k a year. 2 weeks ago, the broker let us know that there was inconsistencies with his tax return. Turned out hmrc forgot to add national insurance to the amount due. Anyway, we provided the correct paperwork after hmrc recalculated. Just don't know why its taking so long! I don't want to lose the house or miss stamp duty exemption date. Shall i go elsewhere?