Mortgage broker - ask me anything

Xboxman1

Thanks we will seek advice with mortgage advisor! 

pp556677

Currently in the process of moving home @haras_n0sirrah

Taking a mortgage of 200k and deposit will leave us 200k in savings, and putting 500-1000 a month into the savings

I have an option for a Fixed 2 years offset mortgage interest-only, 1% fee if reedemed in full for the duration of the term. Question:

• Will offsetting the full savings balance / full mortgage mean I do not pay anything monthly?

My idea is to repay in lump sums annually depending on additional income (property rentals / investments)

So to recap

• 200k mortgage interest only, 200k offset

• Have no monthly payments

• Pay 500/1000 into offset savings each month

• Repay 10k, 20k, 50k (any ££ amount as available) each year to extinguish the mortgage in 2-5 years

• Alternatively, repay 200k at end of term using the savings

Can it be done like this?

Adam200

Hi my husband and I are first time buyers. 
We haven’t been saving very long, but wondering whether we would have a good chance of buying now:
combined income 120k 
deposit saved so far 40k 
Looking at properties max of £530K
Husband has excellent credit - nothing adverse, no defaults etc
I have just checked my credit - showing as good.  But I have a few defaults (resulting from me helping my mother (who had bad credit at the time ) get a mobile phone contract - I didn’t realise she defaulted payments a few times with most recent being 2019. 

Can you advise how much this will affect our chances of getting a decent mortgage ? 

Would the rate be very high ? 

Or will it be a complete right off ? 

Apart from those defaults my credit history is excellent. 

We were going to get a mortgage broker anyway but just wanted to get your opinion 

Thank you 

K_S

Adam200 said:

Hi my husband and I are first time buyers. 
We haven’t been saving very long, but wondering whether we would have a good chance of buying now:
combined income 120k 
deposit saved so far 40k 
Looking at properties max of £530K
Husband has excellent credit - nothing adverse, no defaults etc
I have just checked my credit - showing as good.  But I have a few defaults (resulting from me helping my mother (who had bad credit at the time ) get a mobile phone contract - I didn’t realise she defaulted payments a few times with most recent being 2019. 

Can you advise how much this will affect our chances of getting a decent mortgage ? 

Would the rate be very high ? 

Or will it be a complete right off ? 

Apart from those defaults my credit history is excellent. 

We were going to get a mortgage broker anyway but just wanted to get your opinion 

Thank you

@adam200 Are you going to be aiming for a 10% deposit? How many defaults, are they all satisfied, when were they registered

Adam200

K_S said:

Adam200 said:

Hi my husband and I are first time buyers. 
We haven’t been saving very long, but wondering whether we would have a good chance of buying now:
combined income 120k 
deposit saved so far 40k 
Looking at properties max of £530K
Husband has excellent credit - nothing adverse, no defaults etc
I have just checked my credit - showing as good.  But I have a few defaults (resulting from me helping my mother (who had bad credit at the time ) get a mobile phone contract - I didn’t realise she defaulted payments a few times with most recent being 2019. 

Can you advise how much this will affect our chances of getting a decent mortgage ? 

Would the rate be very high ? 

Or will it be a complete right off ? 

Apart from those defaults my credit history is excellent. 

We were going to get a mortgage broker anyway but just wanted to get your opinion 

Thank you

@adam200 Are you going to be aiming for a 10% deposit? How many defaults, are they all satisfied, when were they registered

Yes we are aiming for 10% deposit. 
sorry I used the wrong terminology earlier. I have no defaults they are missed payments. 

5 missed payments in total.  All satisfied. The latest one was June 2019. 

K_S

Adam200 said:

K_S said:

Adam200 said:

Hi my husband and I are first time buyers. 
We haven’t been saving very long, but wondering whether we would have a good chance of buying now:
combined income 120k 
deposit saved so far 40k 
Looking at properties max of £530K
Husband has excellent credit - nothing adverse, no defaults etc
I have just checked my credit - showing as good.  But I have a few defaults (resulting from me helping my mother (who had bad credit at the time ) get a mobile phone contract - I didn’t realise she defaulted payments a few times with most recent being 2019. 

Can you advise how much this will affect our chances of getting a decent mortgage ? 

Would the rate be very high ? 

Or will it be a complete right off ? 

Apart from those defaults my credit history is excellent. 

We were going to get a mortgage broker anyway but just wanted to get your opinion 

Thank you

@adam200 Are you going to be aiming for a 10% deposit? How many defaults, are they all satisfied, when were they registered

Yes we are aiming for 10% deposit. 
sorry I used the wrong terminology earlier. I have no defaults they are missed payments. 

5 missed payments in total.  All satisfied. The latest one was June 2019. 

@adam200 Thanks. There's not enough information to say for sure, but based on the limited info in front of me, you should definitely have options. I would expect that with the right lender you should get a close to mainstream/mainstream-ish rate though that will depend on what exactly is in your credit reports. Whether you can borrow the amount you need will depend on the affordability numbers (income, commitments, debt) stacking up.

Twinkle63

Hi.  First ever time posting on here and hoping people will be polite and kind. Sure you will be.  So my situation is that I will be 64 years in June.  I had to retire from work on ill health grounds in 2014.  I am not going to go into the reasons why I accumulated debts - is my business really - but I did two things post retirement.  Firstly I extended the property I bought in 2015.  It is only a 2 bed ex Local Authority house and the current value is £144000.  I had to do this by raising equity release.  This is with Aviva and the outstanding balance is £39000 with £4200 at present time  to repay the debt.  Bear with me please.   Now because my income dramatically dropped post retirement {state pension due in 2023) I was unable to keep up with debts.  I took advice from a Money Adviser and this was to put the £21000 of debt into the Scottish DAS system.  This was entered into March 2018 and I have to make payments towards it for another 10 years.  So it is my hope when I have my state pension to try to get some sort of retirement lending instead of the equity release.  Now that DAS is going to rattle on forever unless I can find a way to put paid to it prior to trying to seek a mortgage.  I know of some of the companies who do retirement mortgages.  Currently I am thinking the best way forward would be to try to clear the DAS asap and preferably over next 3 years [that will be a struggle].  So really I am 
wondering if I am looking at this in the right way or is there a better way to approach the problem?  Thank you.5

debtfreeohyeah

Hi there,
First time poster, long time reader...

I’m looking to get a mortgage with my partner this year. She currently owns the house that we live in and would be selling that and putting the equity towards a new place - along with a mortgage.

She has excellent credit history with no issues at all. I have used Payday loans on and off over the years but much less in the last few years. The last one was settled just over 12 months ago and prior to that there was none for 7 months. I have no defaults on my account and everything on my credit reports is marked as settled. I had 3 missed payments against a payday loan that was repaid late in 2016, 1 missed payment against a loan in 2017 and 2 missed payments against a loan in 2018. Last missed payment is over 3 years ago. Anything that was missed was always settled. I have no current debt or balances owed and no overdraft. We have a combined income of £115k and currently around £30k saved for a deposit. We can top up the deposit from sale also. Will we get a mortgage with my history?

UK0106

Hi
I'm currently looking at NatWest documentation requirements for a mortgage application but not yet applied. If I have 2 bank accounts; one that my salary goes into and all bills come out of as well as one that I transfer money from the bill account into monthly for daily spending purposes, would I need to provide statements for both accounts or just the one use for my income and regular outgoings? It's not clear from their website.

Thanks.

K_S

UK0106 said:

Hi
I'm currently looking at NatWest documentation requirements for a mortgage application but not yet applied. If I have 2 bank accounts; one that my salary goes into and all bills come out of as well as one that I transfer money from the bill account into monthly for daily spending purposes, would I need to provide statements for both accounts or just the one use for my income and regular outgoings? It's not clear from their website.
Thanks.

@UK106 As a broker, I'd want to see statements that cover - income, bill direct debits and regular outgoings, as the lender may ask for both during underwriting so I wouldn't want any surprises at that stage. The lender may initially be ok with just the income and bills one but may query the monthly outgoing going into account 2 during underwriting. There's no black and white answer unfortunately.