Mortgage broker - ask me anything

K_S

jkscordini said:

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.

@jkscordini So about 50% LTV on the current house. If you were to go down the let-to-buy route, you *may* be able to release enough cash for a 15% deposit on the onward purchase of the new house. These are just very rough estimate and the rest of the circumstances and numbers need to stack up. A few more things to keep in mind -

- you will owe an extra 3% stamp duty surcharge if you keep the old house to let. You can apply for it to be refunded if you go on to sell the old house in the next 3 years (assuming England).

- porting might not be possible depending on the lender rules (most require the old house to be sold)

- you will have to get a new mortgage offer as the old product was likely at a much lower LTV than what it would be if you went down the let-to-buy route.

I hope all that makes sense. If you are using a broker, have a chat to them about this if you think it may be a way forward.

jkscordini

K_S said:

jkscordini said:

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.

@jkscordini So about 50% LTV on the current house. If you were to go down the let-to-buy route, you *may* be able to release enough cash for a 15% deposit on the onward purchase of the new house. These are just very rough estimate and the rest of the circumstances and numbers need to stack up. A few more things to keep in mind -

- you will owe an extra 3% stamp duty surcharge if you keep the old house to let. You can apply for it to be refunded if you go on to sell the old house in the next 3 years (assuming England).

- porting might not be possible depending on the lender rules (most require the old house to be sold)

- you will have to get a new mortgage offer as the old product was likely at a much lower LTV than what it would be if you went down the let-to-buy route.

I hope all that makes sense. If you are using a broker, have a chat to them about this if you think it may be a way forward.

That’s great thank you so much 

JamesC3

Hi,
Silly question time. As I have some payday loans and one default on my credit report, If I obtained a mortgage via an adverse broker and took a Mortgage who lent at say 4%, could i re-mortgage - as long as I miss no payments have on anything - say 2 years down the line at a hgh street mortgage rate of say 2%?

K_S

JamesC3 said:

Hi,
Silly question time. As I have some payday loans and one default on my credit report, If I obtained a mortgage via an adverse broker and took a Mortgage who lent at say 4%, could i re-mortgage - as long as I miss no payments have on anything - say 2 years down the line at a hgh street mortgage rate of say 2%?

@jamesc3 Depends on the specifics such as - how old your defaults are at that point 2 years on, the conduct of your accounts from now until then, etc.

JamesC3

K_S said:

JamesC3 said:

Hi,
Silly question time. As I have some payday loans and one default on my credit report, If I obtained a mortgage via an adverse broker and took a Mortgage who lent at say 4%, could i re-mortgage - as long as I miss no payments have on anything - say 2 years down the line at a hgh street mortgage rate of say 2%?

@jamesc3 Depends on the specifics such as - how old your defaults are at that point 2 years on, the conduct of your accounts from now until then, etc.

@K_S. The default is 5 years old this month, so will drop off next year.
Now I/we are in a much better place and haven't used a payday loan since November 2019 and certainly won't be in the future.
I know you can never tell with jobs/COVID etc but if there are no problems there then the conduct of handling accounts would all be very good.

JRSKR

Thanks @K_S

If we’ve said “yes” to the retention are we pretty much there or could we still be declined for some reason? 

Dazzie

Please can I have some advice for my daughter. She is looking to buy her first home later in the year once she has finished Uni.How many months would she need to be in employment before she would be able to apply for a mortgage. 

Many thanks 

K_S

JRSKR said:

Thanks @K_S

If we’ve said “yes” to the retention are we pretty much there or could we still be declined for some reason? 

@jrskr You're almost there, just need the offer to be issued

K_S

Dazzie said:

Please can I have some advice for my daughter. She is looking to buy her first home later in the year once she has finished Uni.How many months would she need to be in employment before she would be able to apply for a mortgage. 

Many thanks 

@dazzie As a fresh graduate, there are lenders who will consider lending with the first payslip.

Dazzie

K_S said:

@dazzie As a fresh graduate, there are lenders who will consider lending with the first payslip.

Thank you, that’s great news. To be able to open up her options for the full market how many would you suggest?