Mortgage broker - ask me anything

mini_lidi

Biscuit31 said:

My AIP with Santander returned about £70K less than with NatWest. Why would that be? I entered same the exact debt and income with both lenders. My position is I have an existing mortgage with Santander and I want to port / borrow more to buy new property but they say it’s not affordable. NatWest who I bank with and have loan / credit card with are saying they can lend me what I need and more.
Santander will lend a max of £150K
Natwest happy to lend £220K
Income = £53K
Credit cards = £15K
Loan = £9K

Natwest don’t take debt into consideration for lending amount, we were told when we looked at them. 

Biscuit31

@mini_lidi why do you think that would be? Seems strange to me that a lender would not take current debt into consideration before offering a AIP / mortgage.

Biscuit31

@K_S nope, everything completed correctly and even went through with mortgage manager at Santander, they were trying every which way possible to make it work. They said I’d need to clear the loan to borrow what I needed (£180k). Maybe NatWest are keen to get my business or they have different affordability ranges to Santander. Sorry can’t reply by quote for some reason  

K_S

Biscuit31 said:

@K_S nope, everything completed correctly and even went through with mortgage manager at Santander, they were trying every which way possible to make it work. They said I’d need to clear the loan to borrow what I needed (£180k). Maybe NatWest are keen to get my business or they have different affordability ranges to Santander. Sorry can’t reply by quote for some reason  

@Biscuit31 Checkout the Santander lender affordablity calculator and see what it says. Santander and Natwest may have small differences in the way they calculate affordablity but it's unlikely that it would amount to that much of a difference.
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

Biscuit31

@K_SJust done both Santander and NatWest on the intermediary calculators and they are wildly different with the exact same information. £50K+ difference with NatWest able to offer the higher amount.

Relliott6879

Any input on my question, @K_S?

K_S

Biscuit31 said:

@K_SJust done both Santander and NatWest on the intermediary calculators and they are wildly different with the exact same information. £50K+ difference with NatWest able to offer the higher amount.

@biscuit31 Ok, that explains it then. Is 53k PAYE basic income? What's the monthly payment for the 9k loan? Feel free to ignore if you've got your answer

K_S

Relliott6879 said:

I will need to buy my first home at the end of this year, following the end of my service with the Army. I currently have substantial debts and am slowly clearing them with a DMP but, with my retirement lump sum I will clear all debt and have around £30k left over. My Army pension will give me an annual income of around £10k and I intend to take an apprenticeship with a rail company paying £17.5k. My wife also earns around £10k.

With our available deposit, we're hoping to buy a house costing around £175k, is this realistic and, given my cleared but otherwise poor credit record, what kind of interest rate are we likely to be offered on the mortgage?

@Relliott6879 It'll depend on the adverse details in your credit report. If you can get the deposit to 20%, that may make a significant difference to your chances and open up your options a bit. Hopefully by the end of the year the adverse market will look more like it did a year ago.

Biscuit31

@K_S still not letting me quote reply.
£49K basic
£4K bonus paid annually
Natwest loan 1 £386 p/m £8400 remaining
Natwest loan 2 £113 p/m £600 remaining
 Still can’t work out why Santander only offer me £150K when existing customer with unblemished payment record and NatWest can go £205K. Don’t want to leave Santander as will be liable for ERC but looking like my hand is forced. If I get full offer in writing from NatWest and take it to Santander, what are the chances they’ll reconsider seeing as another high street lender can offer me?

K_S

Biscuit31 said:

 If I get full offer in writing from NatWest and take it to Santander, what are the chances they’ll reconsider seeing as another high street lender can offer me?

@biscuit31 There's no chance of that prompting a "higher" borrowing offer, that part is pretty inflexible.