Mortgage broker - ask me anything

K_S

A_Random_Man said:

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 

@a_random_man You can see all the rates out there on the MSE mortgage finder, including direct-only and broker-only, and compare for yourself. You don't really need a broker to find the best-rate to be honest.

There are a few "exclusives" that are limited to certain brokers/networks/packagers but otherwise for those lenders that do do direct business, it's not very different.

smipsy

How hard it is to get 4.5x, 5X mortgages or higher?

When I'm ready to buy I will have a decent deposit, about 40k, but my salary is only going to be about £27030 basic (around 31k with overtime and shift work bonuses), which limits the range of properties I can look at that. I have guaranteed pay increases every year and cannot be made redundant (Police Constable). A colleague of mine was able to get a 5X mortgage based on a similar salary and with a smaller deposit than mine. However, this was pre-covid.

Obviously, I would like to get as much as I can get out of my mortgage so it gives me more options, so if anyone knows how likely that is based on the above (and a flawless credit history and no other loans).

Any other questions, or hints and tricks, do let me know! Thanks

K_S

smipsy said:

How hard it is to get 4.5x, 5X mortgages or higher?

When I'm ready to buy I will have a decent deposit, about 40k, but my salary is only going to be about £27030 basic (around 31k with overtime and shift work bonuses), which limits the range of properties I can look at that. I have guaranteed pay increases every year and cannot be made redundant (Police Constable). A colleague of mine was able to get a 5X mortgage based on a similar salary and with a smaller deposit than mine. However, this was pre-covid.

Obviously, I would like to get as much as I can get out of my mortgage so it gives me more options, so if anyone knows how likely that is based on the above (and a flawless credit history and no other loans).

Any other questions, or hints and tricks, do let me know! Thanks

@smipsy Assuming you have no dependents or debt, at a low LTV, there are lenders that may offer 5x. For higher LTVs you're probably looking at a 4.5-4.75x cap.

moneyworrier2021

K_S said:

moneyworrier2021 said:

I have a question please.

Took out a mortgage with Precise last March with a 5% interest rate fixed for 2 years. Reason being that i have a default on my credit file and at time, we were a single income household. If by next March the default is 'satisfied' with a Full & Final settlement plus our Household income, has over doubled with over 6 months of bank statements to prove, am i likely to get a better rate, either with Precise or going elsewhere? 

I cant think of what else is worth trying to sort beforehand to try and increase my chances

@moneyworrier2021 Will depend on a lot of factors - when was the default registered, how much, what account, state of the rest of your credit history, current LTV, etc.

Originally £15K which defaulted and moved onto a Debt management plan June 2017. Kept regular payments since. Still £8K outstanding which im looking to F&F for 60% max of that. Rest of credit file is squeaky clean. Probably still classed as an 80% mortgage as 20% was help to buy and after the intial fixed 2 year next to nothing has probably been paid off

col81

Looking for re mortgage in May. Owe £118k worth £150k. Earning £40k. I have 2 debts and this is the only debt I have. I checked my statutory credit report with experian one debt will drop away next week the other end of May. My question is on a remortgage what rate am I likely to achieve with £0 debt. Its took me a long time to get here so I am gathering facts. Also when should I approach a broker? Any recommendations? All help is great

K_S

@col81Assuming your fix ends 31 May, I would recommend getting in touch with a broker at least 3 months before that just to give enough time to place the case and for conveyancing work.

Assuming no issues in the credit history (defaults, arrears, etc), with 40k income and looking to borrow 118k at 78% LTV, you *should* have access to the top currently available rates for 80% LTV remortgages.

col81

Brilliant. I have had defaults and arrears but 6 years ago. These are the final things to drop off. Then I will gave a mortgage/current account/tesco cc with £500 balance all 100% up to date and that's it. Much appreciated 

col81

I am on a variable rate I have been for 15 years so no tie in or end issus

EliMwale

This might have been answered else where but I have searched  and can only find half the answer so please forgive me. For the full mortgage application in addition to the 3-6 months statements of my current account, do I also need to provide 3-6 months statements of my savings account to show proof of funds or will this just be a month to show the funds are there?

K_S

EliMwale said:

This might have been answered else where but I have searched  and can only find half the answer so please forgive me. For the full mortgage application in addition to the 3-6 months statements of my current account, do I also need to provide 3-6 months statements of my savings account to show proof of funds or will this just be a month to show the funds are there?

@EliMwale There's no hard and fast rule unfortunately. It may start off with showing proof of funds but they could ask for proof of build-up as well.