Mortgage broker - ask me anything

pinkcloud17

Sorry another question from me - if a mortgage offer gets retracted (due to furlough), is that basically the end of the road for that property because your credit score will be affected and you have a declined mortgage on your file? Or is it possible to try to apply for something else straight away?

K_S

pinkcloud17 said:

Sorry another question from me - if a mortgage offer gets retracted (due to furlough), is that basically the end of the road for that property because your credit score will be affected and you have a declined mortgage on your file? Or is it possible to try to apply for something else straight away?

@pinkcloud17 Just because you've had an application declined does not mean the end of the road on its own. Not at all.

If the case is one that can be placed with another lender, then the Barclays decline is unlikely to be a showstopper.

Haunted124

I have just been informed the bank has done a 2nd hard search,  is this standard to do 2hard searches or they're not happy with something.  They initially did a soft search for ATP.

hippocrates1

lf93 said:

@hippocrates1 thanks. To be fair we're not taking out any of Wesleyan's insurance policies (although they have tried very hard at selling us eye-wateringly expensive income protection & life insurance policies), and they don't take a fee for mortgage brokerage, just commission, so we've not lost out in that sense. A friend recommended them and until now I was very happy with our broker, just this stumbling block! 

What was your LTV did they consider none of your banding?

IAMIAM

Hi, Just a quick question about relatives mortgage.
Currently has a property on CTL, Mortgage Payment £490, Rental £775. 75-80% LTV.
Wants to buy another property to live in.
What lenders will ignore the above and take into account current salary and deposit vs lenders who will lend significantly less because of the above. Is it any different by moving the existing property to a BTL or no difference. Any recommendations on best lenders for this scenario?
Thanks.

lf93

hippocrates1 said:

What was your LTV did they consider none of your banding?

@hippocrates1 LTV 80%. It seems they have offered my broker a lower lending amount (15k short so not a small amount we could just stretch to). Like you, my banding adds 12-13k onto my salary. We were asking to borrow 4x our combined salary (inc banding). Wednesday broker said 'we await a response within 48h'. 
The difficulty is we are bound by stamp duty holiday and honestly we thought searches would be the rate limiting factor, they are all back. We didn't envisage mortgage problems. We may need to reapply today but need to take into account 1) the interest rates and fees for application and another valuation and 2) the turnaround time of lenders at the moment. 

Maybe @K_S / other brokers can advise on which lenders are currently processing quicker than others? Thanks.

K_S

IAMIAM said:

Hi, Just a quick question about relatives mortgage.
Currently has a property on CTL, Mortgage Payment £490, Rental £775. 75-80% LTV.
Wants to buy another property to live in.
What lenders will ignore the above and take into account current salary and deposit vs lenders who will lend significantly less because of the above. Is it any different by moving the existing property to a BTL or no difference. Any recommendations on best lenders for this scenario?
Thanks.

@iamiam Based on the numbers you've put, generally speaking the property is likely to be seen as 'self-financing' by plenty of lenders. Just play around with a few affordability calculators to see for yourself. If it was converted to a BTL I/o mortgage you might be able to use some of the rental profit as income. Sorry can't name any specific lenders as that could be construed as advice based on little/no information.

pinkcloud17

K_S said:

pinkcloud17 said:

Sorry another question from me - if a mortgage offer gets retracted (due to furlough), is that basically the end of the road for that property because your credit score will be affected and you have a declined mortgage on your file? Or is it possible to try to apply for something else straight away?

@pinkcloud17 Just because you've had an application declined does not mean the end of the road on its own. Not at all.

If the case is one that can be placed with another lender, then the Barclays decline is unlikely to be a showstopper.

Thank you. I'm hoping they won't withdraw it, but if they do it's good to know I may still have other options if I can find another lender who will accept furlough. Also makes me think I need to tell them sooner rather than later. My mortgage advisor seemed to suggest that would be the end if they withdraw it. 

K_S

pinkcloud17 said:

K_S said:

pinkcloud17 said:

Sorry another question from me - if a mortgage offer gets retracted (due to furlough), is that basically the end of the road for that property because your credit score will be affected and you have a declined mortgage on your file? Or is it possible to try to apply for something else straight away?

@pinkcloud17 Just because you've had an application declined does not mean the end of the road on its own. Not at all.

If the case is one that can be placed with another lender, then the Barclays decline is unlikely to be a showstopper.

Thank you. I'm hoping they won't withdraw it, but if they do it's good to know I may still have other options if I can find another lender who will accept furlough. Also makes me think I need to tell them sooner rather than later. My mortgage advisor seemed to suggest that would be the end if they withdraw it. 

@pinkcloud17 Just to be clear, it's not just about finding a lender who accepts furlough income, there are a lot of other factors that come into play - borrowing required, LTV, what kind of industry, etc etc.

Presumably your broker's assessment is that this is the only option out there and they know the whole scenario.

anxioussquirrel

I have a few questions - I'm on furlough at the moment, I'm currently applying with my partner (employed full time) for a joint mortgage. It's been a loooooong ride due to some issues with the paperwork of the building (developer's negligence). It is getting sorted now and he was using surveyors approved by the lender so we are hoping the valuation would be OK. 

I'm on flexible furlough and work a little bit from home too so it's not been an issue to provide letters from my employer or payslips or anything, and I don't intend to change jobs. However, in the free time I started a business last summer more as a hobby but I'm not turning over £1000 so I have put off registering with HMRC. However, I've been advised that if I don't do it this year, and still declare next year that I started taking money in in 2020, I could get fined. So I was strongly recommended to do it in April.

If I do it now, would it be somehow found out by the lender (Santander?) And would it affect the application? There is another thread where the same lender withdrew their FORMAL offer after a head office audit, once they were about to exchange. I'm absolutely terrified of this happening and I'd be devastated if we couldn't move - we've held onto it since middle of last summer and our current flat is in a messy state - I cry about it all the time and I don't think I can think rationally about this anymore lol that's why I'm hoping for an answer. 

For further information, it's a second property for my partner (he's not putting his current one on the market yet but we want to once we've done some work to it.) We are applying in Scotland for 75% LTV on a property that's worth 3.6x my partner's full-time income (2.6x our combined income if you count with mine being on 80%). So the mortgage amount is a little less than twice our combined income. Neither of us have any other debt, never had car finance, loans, mobile contracts, overdrafts, nothing. I'm from the EU but I have a permanent residency document and I've been living my partner at his place for many years. However, I think I was put on the electoral roll only in 2019, I'm not sure why! 

Can we expect issues / can someone give us any hope?