Mortgage broker - ask me anything

K_S

mwcraddock said:

Hi

We have just got an offer accepted on a new house. We are putting down 85% LTV to unlock money to do renovations. It's a bit daunting as the monthly payments are slightly higher than we wanted. What would you recommend is the best way of funding things such as kitchen extensions when buying a house? We're concerned the money we keep aside won't be enough to do the entire property in one go...

@mwcraddock Responded on your main thread.

K_S

Susanmorris said:

Hi, Im tied in to a fixed interest rate mortgage, I did this due to Brexit, then COVID struck and interest rates dropped. Im now stuck with a high interst rate mortgage for another 3 years, is it worth paying the penalty and shop around for a better deal?

@susanmorris It's hard to say without sight of the numbers. For a very rough idea, might be worth checking out what the MSE ditch your fix calculator says https://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator/

ajharding1980

K_S said:

ajharding1980 said:

K_S said:

ajharding1980 said:

K_S said:

ajharding1980 said:

My application has been with Barclays since last Wednesday (10 days).   They carried out a credit search on Monday and the valuation on Wednesday gone.  I'm still waiting to hear.  Do you think underwriting would of happened prior to the valuation?  I have applied via a broker and I'm self employed (Ltd company).

@ajharding1980 As an SE applicantion, I would expect that it'll be subject to manual underwriting/review and it's probably sitting in a queue waiting to be looked at. 

Do you think I'd of already had any underwriting during the credit check and valuation stage?  Surely Barclays wouldnt carry out a valuation prior to affordability checks?  What are the final underwriter manual checks?

@ajharding1980 It's highly unlikely that underwriting on a self-employed application would be completed within 3-4 working days of application. 

Its been longer than that ...
17 Feb Application Submitted
18 Feb DIP Issued
22 Feb Hard Credit Search
24 Feb Desktop Valuation

@ajharding1980 A full mortgage application would have been submitted only after a DIP accept. I haven't done any Barclays SE apps recently so can't comment on current service levels first-hand but your timelines don't seem excessively long at all for a Barclays SE application in general. Good luck!

Thank you!  My MA says Barclays asked for my full business accounts on Friday, with a 3 day upload and 48 hr review period. Seems I'm gonna have to wait a few more days yet.  Eek!  I'm hoping they see that the 2020 year isnt massively different to 2019. However, the business did take the 50k bounce back loan and it depends how this is looked at?  It now shows bank loans of £50k (which is sizeable in comparison) on the reports and I suppose they could decide this is what helped survive the Covid year ... Hmm!

Bio23

Good morning.

 I hope you can help with me with your advice. Myself and my partner have a deposit of £75,000. However, I have a 2 bedroom flat in mortgage in my name. Initially the flat was shared ownership. But I have now bought the rest of the property in Feb 2021 Now I owns 100% of the flat which will make it possible for me to rent out. My partner and I now want to get a mortgage of 3 bedroom house.  What is the chance of us getting a joint mortgage. Our Joint income is 69 per annum before tax

Thanks

 

simone82

Morning all, I hope someone can help
Both me and my partner were made redundant last year, me end of July he end of November. We have both luckily secured new roles I have a fixed term contract until May 2022 (started in Nov) as a Civil Servant and he starts next Monday.

My question is how long do we have to wait before applying for mortgages if he starts next week and will be paid weekly? 

Will the fact that he has just started and the fact my job is a FTC have any impact on our eligibility?

We will be using a broker as I have old adverse history (all paid off and settled now) but as we are so nervous about it all would like to apply for a mortgage first before making an offer on a property. Is this something we can do and will the mortgage offer be valid for say a period of 6 months to give us a time period?
What I don't want to do is find a house put in an offer then find there is an issue with us getting a mortgage because of the above. We would really like to take advantage of the new 95% mortgages asap and have a £30k deposit between us. Thank you

K_S

Bio23 said:

Good morning.

 I hope you can help with me with your advice. Myself and my partner have a deposit of £75,000. However, I have a 2 bedroom flat in mortgage in my name. Initially the flat was shared ownership. But I have now bought the rest of the property in Feb 2021 Now I owns 100% of the flat which will make it possible for me to rent out. My partner and I now want to get a mortgage of 3 bedroom house.  What is the chance of us getting a joint mortgage. Our Joint income is 69 per annum before tax

Thanks

@bio23 If I understand correctly, you want to rent out the flat that you currently live in, and buy a new house to live in. As you can imagine this is quite a common scenario and generically known as let-to-buy. This typically involves remortgaging your current flat into a BTL interest-only mortgage and using your deposit plus any funds released for your onward purchase.

Theoretically, assuming the numbers stack up, there's nothing in what you've said which indicates that you won't be able to get a mortgage. How much you can potentially borrow will depend on the specific numbers and your individual circumstances.

K_S

simone82 said:

Morning all, I hope someone can help
Both me and my partner were made redundant last year, me end of July he end of November. We have both luckily secured new roles I have a fixed term contract until May 2022 (started in Nov) as a Civil Servant and he starts next Monday.
My question is how long do we have to wait before applying for mortgages if he starts next week and will be paid weekly? 
Will the fact that he has just started and the fact my job is a FTC have any impact on our eligibility?
We will be using a broker as I have old adverse history (all paid off and settled now) but as we are so nervous about it all would like to apply for a mortgage first before making an offer on a property. Is this something we can do and will the mortgage offer be valid for say a period of 6 months to give us a time period?
What I don't want to do is find a house put in an offer then find there is an issue with us getting a mortgage because of the above. We would really like to take advantage of the new 95% mortgages asap and have a £30k deposit between us. Thank you

@simone82

- You should have mainstream/mainstream-ish options once your partner has one payslip but you aren't likely to have access to the whole of the market.

- You need a property address to apply for a mortgage so you can't apply for one in advance of an offer being accepted

- The 95% LTV mortgages aren't out yet (I would expect it'll at least be end April) but the credit-scoring requirements for mainstream lenders are likely to be quite stringent

Bio23

K_S said:

Bio23 said:

Good morning.

 I hope you can help with me with your advice. Myself and my partner have a deposit of £75,000. However, I have a 2 bedroom flat in mortgage in my name. Initially the flat was shared ownership. But I have now bought the rest of the property in Feb 2021 Now I owns 100% of the flat which will make it possible for me to rent out. My partner and I now want to get a mortgage of 3 bedroom house.  What is the chance of us getting a joint mortgage. Our Joint income is 69 per annum before tax

Thanks

@bio23 If I understand correctly, you want to rent out the flat that you currently live in, and buy a new house to live in. As you can imagine this is quite a common scenario and generically known as let-to-buy. This typically involves remortgaging your current flat into a BTL interest-only mortgage and using your deposit plus any funds released for your onward purchase.

Theoretically, assuming the numbers stack up, there's nothing in what you've said which indicates that you won't be able to get a mortgage. How much you can potentially borrow will depend on the specific numbers and your individual circumstances.

Thank you so much for your reply. Yes I am planning to rent out the flat . I staircase from 50% to 100% in Feb 2021. Will it be possible to change the mortgage on my current flat to BTL interest only ASAP ?

K_S

Bio23 said:

K_S said:

Bio23 said:

Good morning.

 I hope you can help with me with your advice. Myself and my partner have a deposit of £75,000. However, I have a 2 bedroom flat in mortgage in my name. Initially the flat was shared ownership. But I have now bought the rest of the property in Feb 2021 Now I owns 100% of the flat which will make it possible for me to rent out. My partner and I now want to get a mortgage of 3 bedroom house.  What is the chance of us getting a joint mortgage. Our Joint income is 69 per annum before tax

Thanks

@bio23 If I understand correctly, you want to rent out the flat that you currently live in, and buy a new house to live in. As you can imagine this is quite a common scenario and generically known as let-to-buy. This typically involves remortgaging your current flat into a BTL interest-only mortgage and using your deposit plus any funds released for your onward purchase.

Theoretically, assuming the numbers stack up, there's nothing in what you've said which indicates that you won't be able to get a mortgage. How much you can potentially borrow will depend on the specific numbers and your individual circumstances.

Thank you so much for your reply. Yes I am planning to rent out the flat . I staircase from 50% to 100% in Feb 2021. Will it be possible to change the mortgage on my current flat to BTL interest only ASAP ?

@bio23 You'll need to check with your HA to be sure, but usually, owners staircasing to 100% can use any mortgage product they wish and the HA do not require sight of the terms, so remortgaging straight to BTL should be possible.

When it's time, do consider using a good broker. Let to buy is often messed up if you don't take care of the details and use the right lenders/products. 

Bio23

K_S said:

Bio23 said:

K_S said:

Bio23 said:

Good morning.

 I hope you can help with me with your advice. Myself and my partner have a deposit of £75,000. However, I have a 2 bedroom flat in mortgage in my name. Initially the flat was shared ownership. But I have now bought the rest of the property in Feb 2021 Now I owns 100% of the flat which will make it possible for me to rent out. My partner and I now want to get a mortgage of 3 bedroom house.  What is the chance of us getting a joint mortgage. Our Joint income is 69 per annum before tax

Thanks

@bio23 If I understand correctly, you want to rent out the flat that you currently live in, and buy a new house to live in. As you can imagine this is quite a common scenario and generically known as let-to-buy. This typically involves remortgaging your current flat into a BTL interest-only mortgage and using your deposit plus any funds released for your onward purchase.

Theoretically, assuming the numbers stack up, there's nothing in what you've said which indicates that you won't be able to get a mortgage. How much you can potentially borrow will depend on the specific numbers and your individual circumstances.

Thank you so much for your reply. Yes I am planning to rent out the flat . I staircase from 50% to 100% in Feb 2021. Will it be possible to change the mortgage on my current flat to BTL interest only ASAP ?

@bio23 You'll need to check with your HA to be sure, but usually, owners staircasing to 100% can use any mortgage product they wish and the HA do not require sight of the terms, so remortgaging straight to BTL should be possible.

When it's time, do consider using a good broker. Let to buy is often messed up if you don't take care of the details and use the right lenders/products. 

Hello
Thank you so much for your reply. I appreciate.