Mortgage broker - ask me anything

jimsleftfoot

K_S said:

jimsleftfoot said:

Hi,
We are looking to re-mortgage/borrow more to fund a 2 storey side extension towards the end the summer and having spoken to our own lender, we need a detailed quote before we can apply, therefore we have to get planning permission sorted which could take up to 4 months. Our fix is up at the end of May and I could switch now on to a 2 year tracker, with no charges if we want to leave when re-mortgaging. This would save about £25 a month, or pay the SVR up to the point of re-mortgage, which would cost over £100 more per month whilst we are on this. What I don't want to do is harm our chances when re-mortgaging as we would like to borrow more. Would there be a problem if a switch now and then apply for a re-mortgage in 3 to 4 months?
Thanks

@jimsleftfoot Nationwide? Generally speaking, a rate-switch with the same lender *should not* have an adverse impact on your chances of a remo in a few months time.

Yes that's right Nationwide. Thanks very much.

Ccrc

So we received our mortgage offer a couple of weeks ago and are just waiting for the searches etc on the the house.  And I have just received a ccj with no other warnings.  I have paid it in full and will dispute it after as there was no warning for it, they said it’ll be removed from my credit file if paid with in the month.  What are the chances of the mortgage lender doing another credit search on me in the time it takes to filter through the systems and be removed?  Will our offer be withdrawn?  

321654987

K_S said:

321654987 said:

Hello, we finished a DMP 4 years ago. I have 2 x defaults on my file, both paid in Oct 2016 and with default dates of April and June 2015 respectively. We are desperate to buy a house and the new 90-95% govt. guarantee would really help us out with getting the type of house we want especially with the hold on SD, however after a quick chat with a mortgage broker he's said we'd really struggle getting even a 90% LTV. Is this really the case? We are completely debt free now and have been for years. We have a joint income of £75k and have a deposit of £25k. I just want some realistic advice as to how long we will have to wait.

@321654987

- 95% LTV, you'll have to wait to see which lenders come into the market. You can expect that underwriting standards will be very strict.

- is there any specific reason why you don't trust what the broker said?

- are you willing to pay higher than high-street rates for 90% LTV?

- did he suggest a way forward at all

It's not that I don't trust him it's just that I feel we're in a better position than others might be, it seems unfair. I don't know how (given how high house prices are) we are supposed to rent and save a big enough deposit for a standard family home at 15 or 20%. You'd need a £40K deposit for a 200K house before you've even taken fees into account. Bonkers!
I think I would pay higher because I know I can - I just can't save a deposit fast enough. He's going to have a look at my credit reports but it seems pointless really if there are going to be such strict standards. Thanks for your response. 

gale35

K_S said:

gale35 said:

K_S said:

gale35 said:

I am newly looking into mortgages.
My partner has CCJs and bad credit score so my mum said she would be happy to come into the application to help us. Is this possible and what are the risks?

@gale35 What is it that you would like the mum to compensate for? Is it a lack of sufficient income to borrow what you need or is it the fact that your partner has CCJs? Does your partner need to be on the mortgage?

A mixture of both. My mother has a better income so we are hoping this would increase the amount we can borrow. My partner has been to the banks and they have advised that until the CCJs and default has been removed from his file they won't be able to lend anything. Having all three would be a good option in terms of income increase but not sure if that's possible. 

@gale35

- You mum on the mortgage should help if you need to borrow more.

- By itself, it is unlikely to help much with the credit-history aspect if your partner needs to be on the mortgage

- When you say "the banks" have said they can't lend, do you mean a few banks or did he actually go to a broker?

Hi 
We are very new to this. He went directly to his bank. We are looking into a mortgage broker but if I am 100% honest. I wouldn't even know how to choose one. Any tips?

Clouds88

Hello. I think the answer is probably that I am advised to wait. But I just wanted to check. I have been in stable employment for 7 years I earn £38,000 a year. My husband is on ESA and PIP. But we have both been insolvent.
My Bankruptcy was mid 2018, husbands DRO was jan 2019. I was thinking about a shared ownership property starting with a 25% share so we can offer a 20% deposit so hypothetically mortgage of £60,000 deposit £15,000. HA owns 75%. Is it even worth registering and enquiring about that? Currently I have one small credit card and we have saved half of the deposit. Or if I wait until May 2024 will we be in a much better financial position as I wont have any defaults or bankruptcy on my file? I will obviously clear my CC by then too and stay away from other credit. 

The reason I'm asking about it now is our current 2 bed home is too small for us we really need 3 beds but they cost £300 PM to rent more than our 2 bed so just want to cut the renting period as short as possible. Thank you.

K_S

321654987 said:

K_S said:

321654987 said:

Hello, we finished a DMP 4 years ago. I have 2 x defaults on my file, both paid in Oct 2016 and with default dates of April and June 2015 respectively. We are desperate to buy a house and the new 90-95% govt. guarantee would really help us out with getting the type of house we want especially with the hold on SD, however after a quick chat with a mortgage broker he's said we'd really struggle getting even a 90% LTV. Is this really the case? We are completely debt free now and have been for years. We have a joint income of £75k and have a deposit of £25k. I just want some realistic advice as to how long we will have to wait.

@321654987

- 95% LTV, you'll have to wait to see which lenders come into the market. You can expect that underwriting standards will be very strict.

- is there any specific reason why you don't trust what the broker said?

- are you willing to pay higher than high-street rates for 90% LTV?

- did he suggest a way forward at all

It's not that I don't trust him it's just that I feel we're in a better position than others might be, it seems unfair. I don't know how (given how high house prices are) we are supposed to rent and save a big enough deposit for a standard family home at 15 or 20%. You'd need a £40K deposit for a 200K house before you've even taken fees into account. Bonkers!
I think I would pay higher because I know I can - I just can't save a deposit fast enough. He's going to have a look at my credit reports but it seems pointless really if there are going to be such strict standards. Thanks for your response. 

@321654987 I hear you Unfortunately, as a broker you can only work to the rules lenders set. Plus, from experience, no two cases are ever exactly the same.

Clients don't always appreciate that from a lender's point of view, LTV is king and their primary comfort when deciding whether to lend someone money or not. 90% to 85% LTV might seem like a small jump, but it makes a dramatic impact on your chances as a borrower.

K_S

Clouds88 said:

Hello. I think the answer is probably that I am advised to wait. But I just wanted to check. I have been in stable employment for 7 years I earn £38,000 a year. My husband is on ESA and PIP. But we have both been insolvent.
My Bankruptcy was mid 2018, husbands DRO was jan 2019. I was thinking about a shared ownership property starting with a 25% share so we can offer a 20% deposit so hypothetically mortgage of £60,000 deposit £15,000. HA owns 75%. Is it even worth registering and enquiring about that? Currently I have one small credit card and we have saved half of the deposit. Or if I wait until May 2024 will we be in a much better financial position as I wont have any defaults or bankruptcy on my file? I will obviously clear my CC by then too and stay away from other credit. 

The reason I'm asking about it now is our current 2 bed home is too small for us we really need 3 beds but they cost £300 PM to rent more than our 2 bed so just want to cut the renting period as short as possible. Thank you.

@clouds88 Unfortunately, you need to tick 3 boxes. Ok with BR discharged less than 3 years ago, Ok with DRO discharged less than 3 years ago and a lender who offers SO mortgages. Off of the top of my head, there's only one or two lenders I can think of running this case past and they're the kind that charge usurious interest rates and you'd need a bigger deposit. You would be best advised to wait till the BR and DRO are 3+ years old as that will improve your chances dramatically.

Boo1273

How likely am I to be accepted for a remortgage - have 1 late mortgage payment 4 years ago and a 3 year old default which is not yet settled £1.5k. LTV is 70% with loan value of £100k, salary £55k. No other arrears or debt. 

K_S

Boo1273 said:

How likely am I to be accepted for a remortgage - have 1 late mortgage payment 4 years ago and a 3 year old default which is not yet settled £1.5k. LTV is 70% with loan value of £100k, salary £55k. No other arrears or debt. 

@boo1273 You should have options for a remo but if you're with a mainstream lender, the best option is likely to be a rate switch / product transfer (staying with the same lender) which usually involves no credit checks, income verification, etc. 

Skeptical_John

Hi
I'm hoping to get a 5 times salary mortgage and just wondering if there is a reasonable chance of this. This would be for a single person (teacher) 30k salary and 50k deposit so LTV of 75%. I have no debts/cards etc no dependants.