Mortgage broker - ask me anything

K_S

swtchick87 said:

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?

@swtchick87 Ok, that makes sense. Even if you go elsewhere, with a self-employed application there will be manual review and given the extent to which lenders are backed up with volumes, you can assume it'll take a few weeks to go to offer, more if there are follow up queries. Generally speaking, it's taking long because each time new information is provided it goes into a queue for someone to look at.

swtchick87

I see. The agent involved is contacting us everyday for updates. The pressure to get an offer regardless of backlog, covid and lockdown doesn't seem to be considered by them. Thank you for your info.  

Keano24

We are building a two storey side and rear extension on our house. We have already put plenty of our own savings into it and have the shell built with all windows, doors, roof, guttering and facia done. We are at a point now where we will have to now save to complete the rest of it, taking it on a room by room basis which we are content with.

Part of our mortgage is up for renewal now and the other option would be to get the house revalued and borrow additional onto the mortgage as it means we can get it done and finished ASAP.

Regardless of expectations of increases in value, is it possible to get a mortgage and revaluation on a house with a half built extension? And if not, at what point and what position would the house need to be in in order for it to be able to get a revaluation and mortgage on it?

JRSKR

This may be pushing my luck help-wise but if we went ahead with option 1 would we need to pay the seller the shortfall upfront and then pay for the work? 

Email received today:
We have received the valuation report for the application. The property has been valued at £143,000 with a recommendation of £3,500 for the following:
“Remedial damp and timber treatment works required.”
The retention is calculated and applied. If the customers wish to proceed with the retention in place as a condition of the offer, we would release £128,700 on completion and retain £3,150 pending receipt of proof that the relevant works have been completed. If the customers wish to proceed by providing the proof prior to an offer being issued we would need to see proof that the works are carried out to then refer back to the valuer for reconsideration.   

K_S

JRSKR said:

This may be pushing my luck help-wise but if we went ahead with option 1 would we need to pay the seller the shortfall upfront and then pay for the work? 

Email received today:
We have received the valuation report for the application. The property has been valued at £143,000 with a recommendation of £3,500 for the following:
“Remedial damp and timber treatment works required.”
The retention is calculated and applied. If the customers wish to proceed with the retention in place as a condition of the offer, we would release £128,700 on completion and retain £3,150 pending receipt of proof that the relevant works have been completed. If the customers wish to proceed by providing the proof prior to an offer being issued we would need to see proof that the works are carried out to then refer back to the valuer for reconsideration.   

@jrskr You can make up the difference on your own (the bank will lend you £128,700 now which is 90% of the valuation arrived at by the bank) and once it's completed, you can get the work done and ask the bank to release the retained amount of £3,150. You don't pay the seller anything directly.

JRSKR

@K_S Would we pay by adding it to the deposit? 

jkscordini

This is a bit of a long shot, but I’m not sure where or if it would be possible.
im in the process of selling my house and purchasing another- my buyer may have to pull out.  Would it be possible to have my house as buy to let then still purchase my onward house? I was porting my current rate over to new property and using the equity and top up mortgage to fund this? Where would I start if it’s even possible? Thank you in advance  

K_S

JRSKR said:

@K_S Would we pay by adding it to the deposit? 

@jrskr Yes, either that or negotiate the purchase price down accordingly.

K_S

jkscordini said:

This is a bit of a long shot, but I’m not sure where or if it would be possible.
im in the process of selling my house and purchasing another- my buyer may have to pull out.  Would it be possible to have my house as buy to let then still purchase my onward house? I was porting my current rate over to new property and using the equity and top up mortgage to fund this? Where would I start if it’s even possible? Thank you in advance  

@jkscordini It may be possible but depends on how much equity you have in the current property and how much you need for the onward purchase. It's called a 'Let-to-buy' transaction and it's a fairly common scenario. Basically you convert your existing residential mortgage into a BTL one (releasing equity in most cases) and then make an onward purchase of a house to live in. All this to happen simultaneously.

To do this, it would be best to speak to a broker. However, I can give you general thoughts on how realistic it is if you can post about -

- current house value and outstanding mortgage

- new house value and how much deposit you have

jkscordini

My house was sold 280,000. Outstanding mortgage is 141,500. New house 315,000. I was using all of my equity to fund the new house, so I’m thinking I won’t be able to stretch it.