Mortgage broker - ask me anything

Lostthegame

I’ve already got a mortgage offer from Barclays for a shared ownership property and everything is ready to exchange but the housing associations solicitors have requested a letter from the mortgage lender asking them to state the amount of the share as they’re not happy with it stating 40% of the full value price of 155,000.
They want it to specify that the 40% is 62,000.

Does anyone know roughly how long this should take as it was almost 2 weeks ago?

K_S

Lostthegame said:

I’ve already got a mortgage offer from Barclays for a shared ownership property and everything is ready to exchange but the housing associations solicitors have requested a letter from the mortgage lender asking them to state the amount of the share as they’re not happy with it stating 40% of the full value price of 155,000.
They want it to specify that the 40% is 62,000.Does anyone know roughly how long this should take as it was almost 2 weeks ago?

@lostthegame It's hard to say with the Barclays back-office, they're often poor at fulfilling very straightforward requests. If you're using a broker, they might be able to get some kind of response from the BDM.

Keliz

Hi,
Just wanted some advice after a few sleepless nights and constant worry, I'm an overthinker anyway and this just isn't helping!

Me and my partner have reserved a newbuild home and have an AIP with Halifax through the recommended mortgage brokers (free service).

We have our interview next Friday and I can't keep going on like this for that long, so I was just wondering if you could let me know the likelihood of the below affecting the application on my behalf?

Deposit saved is 5% - we are doing help to buy and borrowing just 10% off the Government, we are first time buyers.

We have saved the 5% deposit and have proof of this, although it is all in my partners standard saver/ help to buy ISA. I have contributed 20% of the deposit.

I earn 28,800 plus a 4,000 car allowance, I've always been terrible at saving, and spend my wage month to month - it is only in the past couple of months where I have put some money away.

Last 3 bank statements show the following:
First statement - £500 into AGREED overdraft a week before payday, paid off as soon as I got paid.
Second statement - £15 into AGREED overdraft a couple of days before payday, paid off as soon as I got paid.
Third statement - In credit.

I have now cancelled the overdraft.

I have a credit card which I was using religiously the past 2 years, I have a £4500 credit limit and got to £3500. Never missed a payment and always paid more than the minimum, but ended up using the same amount again afterwards. Last few months I've started paying this off better, the balance for this credit card is currently £500 and will be £0 by the time of the interview.

I have a excellent credit score and report with Experian, and soaring high with Clearscore.

Partner is really good with their money.

I know whatever is said, is not for definite but I just want to put my mind at a bit of ease. Will any of the above affect my application?

K_S

@keliz I would assume that your broker would have looked at all this information, placed you with Halifax and keyed in the AIP correctly. Not sure what you mean by "interview" next Friday.

Keliz

K_S said:

@keliz I would assume that your broker would have looked at all this information, placed you with Halifax and keyed in the AIP correctly. Not sure what you mean by "interview" next Friday.

Hi, the interview is with the broker to submit the application.
We were given the AIP off a credit check with an FA, so they haven't saw the bank statements, the overdraft usage is my main concern as they wouldn't have known anything about this.

K_S

Keliz said:

K_S said:

@keliz I would assume that your broker would have looked at all this information, placed you with Halifax and keyed in the AIP correctly. Not sure what you mean by "interview" next Friday.

Hi, the interview is with the broker to submit the application.
We were given the AIP off a credit check with an FA, so they haven't saw the bank statements, the overdraft usage is my main concern as they wouldn't have known anything about this.

@keliz Sorry I'm not following, maybe I'm missing something obvious. I've never heard of a broker making a customer wait for 10+ days to put in an application.

Based on the very limited info in your post, I don't see anything to be particularly worried about. In any case, just make sure you ask the broker about anything you're not clear on. Good luck!

Out of interest, is there any particular reason you're limiting the H2B contribution to 10%?

rennes99

Looking to start the buying process and it's a bit of a minefield out there to say the least!
I wondered if the below was possible?
-We (partner and I) are first time buyers together.
-Looking to buy property around £425-450k in value
-Deposit of (up to) £90k, would prefer to be nearer £80k.
-So looking to borrow about £340-360, with LTV of between 85/80%
-This is on a combined basic income of £80k per year, but has been increased to £95k per year with my annual work bonus over last 3 years. Are there products that will consider bonus income yet/anymore? 
-Recent credit perfect for both
I'm not sure what the current state is for combined income multiplier and whether bonus income is considered or part thereof.
Basically its the difference between a leasehold flat and a freehold house where we are that depends on this!
Many thanks  

K_S

@rennes99 Yes, there are lenders who will consider bonus income to some degree - 30%, 60%, etc. It'll depend on how the consistency of the bonus can be evidenced.

At 80/85% LTV, I don't see anything in your post that suggests that you won't be able to borrow what you're looking for and perhaps more than that depending on the details. Unless there is a back story to what you mean by "recent credit" history being perfect.

rennes99 said:

Looking to start the buying process and it's a bit of a minefield out there to say the least!
I wondered if the below was possible?
-We (partner and I) are first time buyers together.
-Looking to buy property around £425-450k in value
-Deposit of (up to) £90k, would prefer to be nearer £80k.
-So looking to borrow about £340-360, with LTV of between 85/80%
-This is on a combined basic income of £80k per year, but has been increased to £95k per year with my annual work bonus over last 3 years. Are there products that will consider bonus income yet/anymore? 
-Recent credit perfect for both
I'm not sure what the current state is for combined income multiplier and whether bonus income is considered or part thereof.
Basically its the difference between a leasehold flat and a freehold house where we are that depends on this!
Many thanks  

rennes99

Wow thanks for rapid reply K_S .
That sounds like great news. Admittedly we're only about to start the process, and have only really heard snippets in the news of what has been going on in the Mortgage market since Covid, but sounds like things are much more promising for us than feared!
Many thanks

Cvarley78

Hi,
My husband and I are looking to buy a new build later this year. I earn £27k and he earns £19k a year. We should have 15 deposit saved by the time we are ready to get the ball rolling in July. The property we are looking at is likely to be around £215,000 and we will have a deposit of around £32,250. 

I had an IVA that ran from November 2013 and successfully completed in November 2018. In that IVA was a small shortfall with Leeds Building Society (around £3k) from a property that was repossessed in late 2012. My husband also had an IVA from July 2015 which successfully completed in August 2019 and is due to fall off his credit file in July 2021.

We spoke to a specialist broker who advised us that from July, we should in theory be able to get a mortgage at regular high street rates from July up to £206,000. I already have an excellent credit score with completely clean file, a couple of credit cards with low utilisation that are paid in full each month - my husband will have a clean file from July and currently has a credit card which he has had for over a year which he always makes a payment on each month so I envisage he will have an excellent score / clean file from then). The broker has a good history of getting high street rate mortgages for former IVA clients.

I guess therefore, I am looking for some reassurance from someone else that this is unlikely to be a major issue. I know the number of lenders available to us will be less.