Mortgage broker - ask me anything

simone82

K_S said:

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

This is very useful thank you I had no idea about needing an address. Will carry on with saving ensuring credit score is good with a view that we will need to wait until at least the end of April. Thanks for the advice

Mahsroh

Hi,

We're hoping to apply for a Mortgage in the coming months (I currently have a rental a property where my tenant is serving notice, once they've gone I need to market and find a buyer, then complete, so we're still several months away (possibly even a year) from being in a position where we have the deposit cash (predominantly funded from the sale of said property) in the bank to look for our own residential house. 

Our credit history is generally sound. I have credit cards but with a low balance (currently less than 5% of my credit limit and that will be cleared prior to applying for a Mortgage). My wife doesn't have much in the way of credit (she has a car on PCP but no credit cards etc.). My credit history is good in that I have a solid history of paying bills on time, no late payments or defaults etc. HOWEVER, my wife has one default on her account from March 2016 (stupid decision which involved her taking out credit in her name to help somebody else who, shock horror, subsequently let her down - but let's not go there - it's done and she's had to live with the consequences!), other than that one indiscretion she has no other history of late payments / defaults etc.  

Is this one default likely to impact either our ability to get a mortgage and / or the rates we're likely to be offered from lenders? If I did complete the sale of the rental property in say November this year, would it be worthwhile holding out to March to apply for mortgages once the 6 year period since her default as lapsed, or is it not likely to make much of a difference?

Thanks in advance. 

Penguin_

My current 5 year fixed with Natwest ends on the 30th June & as per what I can see on my online account, I am eligible to switch 3 & 1/2 months prior to this which would be on or around the 16th March. My question is, if I switch on the 16th to a better deal (which given my current interest rate it will be!!) does it take effect from then or would it be on the first payment after the 30th June?

K_S

Mahsroh said:

HOWEVER, my wife has one default on her account from March 2016 (stupid decision which involved her taking out credit in her name to help somebody else who, shock horror, subsequently let her down - but let's not go there - it's done and she's had to live with the consequences!), other than that one indiscretion she has no other history of late payments / defaults etc.  
Is this one default likely to impact either our ability to get a mortgage and / or the rates we're likely to be offered from lenders? If I did complete the sale of the rental property in say November this year, would it be worthwhile holding out to March to apply for mortgages once the 6 year period since her default as lapsed, or is it not likely to make much of a difference?
Thanks in advance. 

@mahsroh It depends on the specifics - amount of default, is it satisfied, what kind of account, expected LTV for purchase, rest of the picture. But generally speaking, one 5+ years old satisfied default *shouldn't* by itself stop you from getting a mainstream rate.

Mahsroh

K_S said:

Mahsroh said:

HOWEVER, my wife has one default on her account from March 2016 (stupid decision which involved her taking out credit in her name to help somebody else who, shock horror, subsequently let her down - but let's not go there - it's done and she's had to live with the consequences!), other than that one indiscretion she has no other history of late payments / defaults etc.  
Is this one default likely to impact either our ability to get a mortgage and / or the rates we're likely to be offered from lenders? If I did complete the sale of the rental property in say November this year, would it be worthwhile holding out to March to apply for mortgages once the 6 year period since her default as lapsed, or is it not likely to make much of a difference?
Thanks in advance. 

@mahsroh It depends on the specifics - amount of default, is it satisfied, what kind of account, expected LTV for purchase, rest of the picture. But generally speaking, one 5+ years old satisfied default *shouldn't* by itself stop you from getting a mainstream rate.

Hi, thanks for the reply, which is reassuring. In answer to your questions..... The amount of default was circa £300. It was store purchase (electronic goods with a flexible repayment plan) and it has since been paid in full. We'll be at circa 90% LTV.  

K_S

Penguin_ said:

My current 5 year fixed with Natwest ends on the 30th June & as per what I can see on my online account, I am eligible to switch 3 & 1/2 months prior to this which would be on or around the 16th March. My question is, if I switch on the 16th to a better deal (which given my current interest rate it will be!!) does it take effect from then or would it be on the first payment after the 30th June?

@penguin_ Off of the top of my head, Natwest PTs take will effect only when the current deal ends, so from 1st July.

NatWest used to do differential pricing (cheaper switch rates through brokers than direct) so do check that out as well before going ahead https://www.intermediary.natwest.com/content/dam/natwest_com/Intermediary/NWIS_Rates/20210302NWISExistingCustomerSRV01.00.pdf

Most brokers don't charge for carrying out switches and the process is the same as, no affordability checks, credit checks, etc.

Penguin_

Thank you!! Will bear (bare??) that in mind when the time comes.

m344

Will the fact that I move all my disposable income, throughout the month, into savings accounts affect my mortgage application? I'm trying to purchase my first home with the help to buy equity loan. Lenders ask for 6 months current account statements. Looking at those I don't have enough for a meal out but this is only because I keep my money in various savings accounts where they are making a large amount of interest. In some of my savings accounts for example I've never withdrawn but if the bank only looks at current account statements will this impact me negatively?

K_S

m344 said:

Will the fact that I move all my disposable income, throughout the month, into savings accounts affect my mortgage application? I'm trying to purchase my first home with the help to buy equity loan. Lenders ask for 6 months current account statements. Looking at those I don't have enough for a meal out but this is only because I keep my money in various savings accounts where they are making a large amount of interest. In some of my savings accounts for example I've never withdrawn but if the bank only looks at current account statements will this impact me negatively?

@m344 As long as the case is packaged and explained properly, and the statement shows your income going in and money going out to savings, this should have no adverse impact on your application.

Nile_E_Coyote

We are at the very end of the buying process. Solicitor has told lender about unsupported chimney breast and the lender is happy to proceed at the current price being paid. They have referred it to the valuer for comment though. Will this be a standard thing? House was valued 12k above what we sre currently going to pay.