Mortgage broker - ask me anything

K_S

debtfreeian said:

What are your guys thoughts on the end of the stamp duty holiday? Do you envisage collapses of chains? Is it best to rip the band-aid off straight or help homebuyers in the process?

@debtfreeian

FWIW (very little), I think it'll be extended.

It's probably more hope than anything, coupled with a bit of faith in the influence that the property industry has in the governing party. If it doesn't get extended, some of my pipeline mortgages in the south will fall through as a direct result and some more due to the indirect impact of chains breaking.

There are clients in my pipeline who simply do not have the cash to stump up in case of a shortfall in SDLT. I'm sure that's not very uncommon.

AmmDram

If a person is furloughed, but has savings equating to more than their yearly salary, do you know if there are any lenders that would lend on that basis? (Taking into account the savings rather than salary)?

K_S

AmmDram said:

If a person is furloughed, but has savings equating to more than their yearly salary, do you know if there are any lenders that would lend on that basis? (Taking into account the savings rather than salary)?

@ammdram Unfortunately, lenders will not substitute savings for income.

However, depending on your LTV is appropriately low, there may be options even if you are currently on furlough.

Vasquez65

How strict are Nationwide for 90% buyers at the moment?  My daughter + partner have a DiP for £360k and have just had an offer on a house accepted at £268k.
They earn £85k evenly between them,  both have cars on finance £600ish a month in total, he pays CM at £350/ month, she pays student loans of @£40k .  One child under two,  no nursery fees as GP’s look after him. 
We are gifting them £15k of the deposit. 

Are they likely to be accepted without issue?

K_S

Vasquez65 said:

How strict are Nationwide for 90% buyers at the moment?  My daughter + partner have a DiP for £360k and have just had an offer on a house accepted at £268k.
They earn £85k evenly between them,  both have cars on finance £600ish a month in total, he pays CM at £350/ month, she pays student loans of @£40k .  One child under two,  no nursery fees as GP’s look after him. 
We are gifting them £15k of the deposit. 

Are they likely to be accepted without issue?

@Vasquez65 If they have a DIP for £360k and all details were input correctly then I assume affordability isn't an issue. From today Nationwide accept fully gifted deposits so that's not an issue either. Nationwide are applying enhanced standards to underwriting 90% LTV cases but assuming that they're both salaried and their credit history is clean, I don't see any particular issues highlighted in your post.

Vasquez65

Thank you for the quick reply.
Yes, both salaried, she’s a Teacher - head of Dept.  He’s been in the same managerial role for over 10 years.

She’s stressing a bit because they’ve made use of a £250 overdraft on their joint account but never regularly.  

She has £10k in a LISA,  he’s not a FTB ( sold his house on divorce 4/5 years ago) so they will have to pay SD if it’s not extended.

K_S

Vasquez65 said:

Thank you for the quick reply.
Yes, both salaried, she’s a Teacher - head of Dept.  He’s been in the same managerial role for over 10 years.

She’s stressing a bit because they’ve made use of a £250 overdraft on their joint account but never regularly.  

She has £10k in a LISA,  he’s not a FTB ( sold his house on divorce 4/5 years ago) so they will have to pay SD if it’s not extended.

@Vasquez65 At 90% LTV, reliance on overdraft is something the underwriter will look at, but one-off occurences with <£250 OD is unlikely to be an issue.

Purplestars89

Hi 
When lenders check credit report do they see only the type of credit i.e. unsecured loan, credit card, current account etc or do they actually see the name of the lender/creditor aswell ?

Berger15

HI, I was made redundant from my role as a Data Syatems Manager in November, and I'm looking at getting back into being a Mortgage broker, having been out of the industry for 10 (and working in it for 10 years before that). Obviously CeMap is still valid, but I would not have CAS - If I want to go back in, how would I go about getting CAS without working for a network? Is it even possible? I've always kept my eye in the business, but this is something that I never had to worry about, since the network continually monitored and tested my competency (L&G). Thanks

JRSKR

I’d just like to thank you @k_s for your recent advice. We got our offer this afternoon! Cheers.