Mortgage broker - ask me anything

K_S

Terrace said:

I am after some advice please.
Late 30s
single applicant with 1 dependant 
FTB
90k salary
very secure job
 no CCJ no default no debts
but 3years+ ago pay day loans taken almost monthly for about 18month - always paid in time. Last one taken mid 2018. 
Any change to get mortgage with 90% LTV mortgage of 250k from high street lender with this history? Or better go to adverse credit lender through broker for 3y fix and then remortgage for better rate when payday loans no longer visible on the credit report?
banking with hsbc for 10 years and savigs are in hsbc account? Any chance going direct with them? 
I am thinking about going to broker anyway but thought will ask what my chances are.
thank you

@terrace Please note that these are very very general thoughts on your scenario based on the very limited info in your post -

- having a 10 year history with HSBC (or any other lender) makes no difference to your chances of a mortgage with them. In any case, HSBC is likely a no go due to the payday loan history.

- unless there's something major in the backgroud, I don't see any obvious need for an adverse lender

- your payday loans *may* mean that you can't apply with certain lenders, but it should not shut you out of mainstream rates

- I would definitely recommend using a broker at 90% LTV in the current lending environment

Jennifer34

Hi
We're going to apply for a mortgage once we have our full deposit saved at the end of April. This week we'rè collecting a puppy that is costing 2.5k. Will withdrawing this cash affect us and/or transferring it from our bank account?
Its not from our savings but will they want to know what it was for if they go back 3 months on statements etc?
Many thanks

Terrace

Also do you have to have full deposit amount when going to broker? Or couple of month before? We will have our 10% deposit saved June/July 2021. When we should approach a broker? 

K_S

Jennifer34 said:

Hi
We're going to apply for a mortgage once we have our full deposit saved at the end of April. This week we'rè collecting a puppy that is costing 2.5k. Will withdrawing this cash affect us and/or transferring it from our bank account?
Its not from our savings but will they want to know what it was for if they go back 3 months on statements etc?
Many thanks

@jennifer34 A one off purchase of £2.5k three months ago should have no significant impact on your mortgage. The lender/broker will be primarily looking for any undeclared monthly commitments, not discretionary expenditure (like buying a pet).

K_S

Terrace said:

Also do you have to have full deposit amount when going to broker? Or couple of month before? We will have our 10% deposit saved June/July 2021. When we should approach a broker? 

@terrace Typically, my purchase clients first come to me when they're ready to start browsing and want to get a realistic idea of what their budget is. At that point the deposit doesn't all need to be there as long as you have a clear idea of what amount you expect to have.

They then do viewings, make offers and once an offer is accepted, then come back to me to put in an application. At that point, ideally you want to be able to evidence the deposit though a small shortfall (to be made up by saving in the time it takes to exchange) may be ok.

When should you be approaching a broker will depend on where you are in the timeline I've described above. I hope that helps.

Terrace

K_S said:

Terrace said:

Also do you have to have full deposit amount when going to broker? Or couple of month before? We will have our 10% deposit saved June/July 2021. When we should approach a broker? 

@terrace Typically, my purchase clients first come to me when they're ready to start browsing and want to get a realistic idea of what their budget is. At that point the deposit doesn't all need to be there as long as you have a clear idea of what amount you expect to have.

They then do viewings, make offers and once an offer is accepted, then come back to me to put in an application. At that point, ideally you want to be able to evidence the deposit though a small shortfall (to be made up by saving in the time it takes to exchange) may be ok.

When should you be approaching a broker will depend on where you are in the timeline I've described above. I hope that helps.

 Thank you very much KS! This is very helpful. 

Debt_free_wannabe

My wife and I were both made bankrupt in 2015 and our 6 years being on our record is up at the end of March. We both had properties that were repossessed in the bankruptcy if this will make a difference.
we have 3 children and are looking to remortgage to build an extension. Currently owe approx £67k, house is worth around 120-125k. Maybe slightly more. Few questions:

Would it be better if we do a joint mortgage app? House currently only in my name.
what do you reckon the max we could take out in the remortgage is and what sort of rates roughly would that leave us with based on we’re both just coming out of bankruptcy’s?
Would I have to use a broker or be better to or am I likely to get highstreet easily? I am a Barclays premier account holder so personal banker is going to call me sometime in April to discuss once bankruptcy is off.
I earn approx 70k and wife around 12k. We live in Scotland incase this makes a difference too.

thanks for any help

K_S

@debt_free_wannabe Based on the limited info in your post, With 70k income and a house price of 125k, there's nothing obvious to be gained from adding your wife to the mortgage.

There are many lenders who won't consider applicants who have been BR, there are also lenders who won't consider applicants who have had a repo. Considering that you need to tick both boxes and do a capital raise, I would recommend using a broker who can run the case past the lender prior to placing the case.

Barclays would not be on go-to list because of the repo, but if their Premier direct criteria is different then definitely worth speaking to them.

Debt_free_wannabe said:

My wife and I were both made bankrupt in 2015 and our 6 years being on our record is up at the end of March. We both had properties that were repossessed in the bankruptcy if this will make a difference.
we have 3 children and are looking to remortgage to build an extension. Currently owe approx £67k, house is worth around 120-125k. Maybe slightly more. Few questions:

Would it be better if we do a joint mortgage app? House currently only in my name.
what do you reckon the max we could take out in the remortgage is and what sort of rates roughly would that leave us with based on we’re both just coming out of bankruptcy’s?
Would I have to use a broker or be better to or am I likely to get highstreet easily? I am a Barclays premier account holder so personal banker is going to call me sometime in April to discuss once bankruptcy is off.
I earn approx 70k and wife around 12k. We live in Scotland incase this makes a difference too.

thanks for any help

Xboxman1

Hello

I am in an iva at the moment and my wife is thinking of applying for a single mortgage. During the application process I don't want any of my finances to be looked at as I'm in an iva . She has a excellent job and excellent credit rating. Will they just look at her money situation and discard my situation? I won't be on the deeds etc so will they just use all the information she has etc?

K_S

Xboxman1 said:

Hello

I am in an iva at the moment and my wife is thinking of applying for a single mortgage. During the application process I don't want any of my finances to be looked at as I'm in an iva . She has a excellent job and excellent credit rating. Will they just look at her money situation and discard my situation? I won't be on the deeds etc so will they just use all the information she has etc?

@Xboxman1 Depends on the lender, the source of deposit and if she has any financial associations on the credit file with you. You need to place the case with a lender who allows an application in single name for someone who is married, who allows non-borrowing occupiers, who allows leaving out the partner for credit history reasons, and (if you are contributing to the deposit) allows a non-borrowing occupier to do so.

Once all the above boxes are ticked, with the right lender the application will be considered on her individual situation. I hope that makes sense. This is definitely one for a broker.