Mortgage broker - ask me anything

K_S

@jd87 Very roughly speaking, carrying a 4k credit card debt will have the same effect as a £100-125/month committed outgoing. 

Whether or not that will have any material impact on your max borrowing depends on things like your age, income, other outgoings, etc.

To get a general idea, try playing around with a couple of lender affordability calculators to see how the different scenarios work out.
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

https://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

coronacaution

Hi everyone, looking for some help as worried we may have been given some poor advice. We added the cost of stamp duty to our mortgage (advised to take it from the equity of sale of our house and in turn meaning we need to lend more). I understand that by doing this means we're paying interest on the SDLT on the life time of mortgage, which isn't great, but we plan to make an instant overpayment if stamp duty gets extended. Will this make financial sense? Or will we still have paid interest on it? Or is it better to add value to the house to help recoup it in future should we sell on? Advice appreciated as we are due to get the full mortgage overview this week and want to be in a position to make an informed decision to proceed. 

Elwyn

I am wondering how often a mortgage that meets a lenders lending criteria but sill gets rejected? I know that is a bit like asking how long is a piece of string so I'll add some context.
We sent our application this week to Kensington via our broker. I have some adverse in the past but certainly meet their criteria on this. We both have well paid secure NHS jobs and are looking to borrow just under 3x our combined annual income at 75% LTV. We've supplied all documentation they may ask up front and can't see any problems. Our broker has said he wouldn't waste everyone's time if he thought he couldn't place it. 
But I am such a terrible worrier and I just can't help but think there's no way they're going to approve us, even though there's no reason for them not to on paper! Their recent reviews indicating a current lengthy timescale for new applications hasn't helped either. 

Alvin5

Hi! May I know if I can apply two mortgage applications at the same time with two different properties? Currently I am stuck with Santander with back and forth queries lasting more than two months and vendor is considering selling to others if no progress by end of this month. I have to look for other properties. If I found a property, can I submit application to another lender just in case the vendor decides to sell to others? Many thanks for your help in advance.

K_S

Alvin5 said:

Hi! May I know if I can apply two mortgage applications at the same time with two different properties? Currently I am stuck with Santander with back and forth queries lasting more than two months and vendor is considering selling to others if no progress by end of this month. I have to look for other properties. If I found a property, can I submit application to another lender just in case the vendor decides to sell to others? Many thanks for your help in advance.

@Alvin5 There's nothing stopping you from doing that. 

However, if a client came to me with your scenario I wouldn't be able to help with what you've asked. I would consider applying for the same property with a more appropriate lender than Santander but not a different lender for a different property. With a BTL purchase, you could *potentially* have an offer in a week or two with the right lender.

K_S

Elwyn said:

I am wondering how often a mortgage that meets a lenders lending criteria but sill gets rejected? I know that is a bit like asking how long is a piece of string so I'll add some context.
We sent our application this week to Kensington via our broker. I have some adverse in the past but certainly meet their criteria on this. We both have well paid secure NHS jobs and are looking to borrow just under 3x our combined annual income at 75% LTV. We've supplied all documentation they may ask up front and can't see any problems. Our broker has said he wouldn't waste everyone's time if he thought he couldn't place it. 
But I am such a terrible worrier and I just can't help but think there's no way they're going to approve us, even though there's no reason for them not to on paper! Their recent reviews indicating a current lengthy timescale for new applications hasn't helped either. 

@elwyn Not very often. There's nothing in your post that indicates a reason to worry.

YRazor

Wanted to ask a generic question about the current situation in regards to lending but to make things easier to answer I've managed to narrow it to this: are 4x(+) Income Mortgages at 90% LTV currently being offered, achievable or atall realistic.
Joint application, first time buyers, 8k (5 & 3) credit card debt between us.

K_S

coronacaution said:

Hi everyone, looking for some help as worried we may have been given some poor advice. We added the cost of stamp duty to our mortgage (advised to take it from the equity of sale of our house and in turn meaning we need to lend more). I understand that by doing this means we're paying interest on the SDLT on the life time of mortgage, which isn't great, but we plan to make an instant overpayment if stamp duty gets extended. Will this make financial sense? Or will we still have paid interest on it? Or is it better to add value to the house to help recoup it in future should we sell on? Advice appreciated as we are due to get the full mortgage overview this week and want to be in a position to make an informed decision to proceed. 

@coronacaution If you complete today and overpay tomorrow, you would pay 1-2 day's interest at most. Do make sure that the overpayment of the size you want to make will not trigger any penalty.

K_S

YRazor said:

Wanted to ask a generic question about the current situation in regards to lending but to make things easier to answer I've managed to narrow it to this: are 4x(+) Income Mortgages at 90% LTV currently being offered, achievable or atall realistic.
Joint application, first time buyers, 8k (5 & 3) credit card debt between us.

@Yrazor There are a lot of dependencies as to what the maximum loan-to-income multiple a lender may offer you, but generally speaking, 4.5x  at 90% LTV is pretty common.

A_Random_Man

Hi first of all thanks for taking the time to answer everyones question I am nearly in the position to make a mortgage application within the short term (6-12 months), my question is slightly different but I hope you can help, I should preface this by saying I work in mortgages for a well known bank won't say who, apart from somebody handling the case for me rather than me going direct, is there any benefit for myself using a broker given that I work in the industry, can brokers get access to better rates than what the high street banks offer, unfortunately we don't deal with brokers directly where I work as they have a separate team that deal with them and we don't interact with their cases at all. Thanks