Mortgage broker - ask me anything

chatlow

Hi

We had a MIP from L&C on 10th January and have only just now found a house we love and had our offer accepted. The offer we initially found has since long gone so we now need to look again and actually finding better deals through comparison sites which ended up linking me to trussle.

I've also been given details from my father for an independent mortgage broker he has always used and trusts (to an extent) My question is - whether it's worth paying this broker (a reduced fee of £200) to see what other offers he has links to (and other services he might offer during the process) or is it easy enough to go at this with an online broker to completion

We've been asked to get the MIP and solicitors details over soon. Would the original MIP which is still valid, be good enough to send them (as it's within 90 days) or does it make more sense to provide a new MIP / DIP from a broker we've seen a recent deal with?

Also need to find a solicitor or conveyancer. I presume we should start looking for one immediately rather than waiting for the mortgage process to start

Sorry for all the questions - first time purchase for us

K_S

@chatlow

- an MIP issued by a broker may not be accepted by an EA for qualifying an offer. It isn't the same as a DIP/AIP if that makes sense. But no harm in offering that.

- Whether it's Trussle or your father's broker (assuming whole of market), they'll both have access to largely the same lenders, products and rates. 

- If you case is straightforward (PAYE, don't need max borrowing, 85% LTV or below, clean credit history, freehold house, no major debt/commitments), an online broker is fine.

- Once you have a property and lender in mind, you can get a solicitor quote and instruct when you've had an offer accepted.

Amateurretiree

K_S said:

Amateurretiree said:

K_S said:

Amateurretiree said:

Amateurretiree said:

K_S said:

Amateurretiree said:

My son and his partner are looking to move from their flat which has very little equity. They are going to save like mad for a couple of years. The flat is in her name, he has never had a mortgage. Could he save into a LISA then use it for a deposit in joint names?

Thanks in advance.

@Amateurretiree An FTB with a LISA can still buy a property jointly (with a non-FTB buyer), using the LISA savings and 25% bonus in the account.

Wow! Thank you so much for your prompt reply! 

Another question, if they put 4000 in before the end of the tax year will they get the bonus for this year then another bonus next tax year if they do the same? ( thanks in advance!)

@Amateurretiree As I understand it, that is correct.

Wow that’s amazing thank you so much! He is opening one today so hopefully we can do that.
Thanks again .

@Amateurretiree Do keep in mind that 12 months need to elapse from the new LISA opening date to be able to use the bonus. So mid March 2022 at the earliest.

Thanks I think it will be at least two years .

lpscrl

Hello,

We have our current mortgage with Nationwide so we will be looking to port our current mortgage over to eliminate any Early Repayment Charges. With this in mind, we obtained a Decision in Principle (albeit deferred) for our requested amount £261,000.00, based on a combined income of £69k.

All seems fairly straight forward at the minute but my concern and worry comes from the fact my partner had significant debt across a loan and credit cards (c.£17k) and I have paid over £10k off these over the past week to reduce the debt ready for the mortgage application, as I included within the Decision in Principle. (the first DIP was rejected with current levels of debt).

I understand when applying for a mortgage application, Nationwide look at the maximum debt in the past 4 weeks and what the debt will be when the mortgage starts but I can’t help but worry it is all too late in terms of clearing the debt etc.

Any help would be appreciated.

Thanks.

Carolinezako

The flat I am looking to buy has an EWS1 B2 rating, which means it needs remedial work.

Currently, the management company is contesting a lot of findings in the report as they are not aligned with what has been shared by the developer at completion. Especially, considering a recent fire safety risk assessment did not highlight any significant issues.

Is there a lender who will accept a mortgage application with the EWS1 form with a B2 rating? 

ZSC

Hoping for a little bit of advice! 

Our mortgage offer with Barclays is due to expire on the 28th March, but Barclays won’t consider extending until we have exchanged. Our seller isn’t having their mortgage valuation on the property they are buying till the 19th March. Everything else has been done I’m led to believe. 

What do you think the chances are of us exchanging before the 26th (which is the Friday) 

If we can’t we will have to fully reapply, which will cause even more delays and the rates offered are more expensive than what we had originally. 

Thanks! 

K_S

lpscrl said:

Hello,

We have our current mortgage with Nationwide so we will be looking to port our current mortgage over to eliminate any Early Repayment Charges. With this in mind, we obtained a Decision in Principle (albeit deferred) for our requested amount £261,000.00, based on a combined income of £69k.

All seems fairly straight forward at the minute but my concern and worry comes from the fact my partner had significant debt across a loan and credit cards (c.£17k) and I have paid over £10k off these over the past week to reduce the debt ready for the mortgage application, as I included within the Decision in Principle. (the first DIP was rejected with current levels of debt).

I understand when applying for a mortgage application, Nationwide look at the maximum debt in the past 4 weeks and what the debt will be when the mortgage starts but I can’t help but worry it is all too late in terms of clearing the debt etc.

Any help would be appreciated.

Thanks.

@lpscrl What was the DIP referred for? And what did Nationwide ask for before they gave you an Accept on the DIP?

K_S

ZSC said:

Hoping for a little bit of advice! 

Our mortgage offer with Barclays is due to expire on the 28th March, but Barclays won’t consider extending until we have exchanged. Our seller isn’t having their mortgage valuation on the property they are buying till the 19th March. Everything else has been done I’m led to believe. 

What do you think the chances are of us exchanging before the 26th (which is the Friday) 
If we can’t we will have to fully reapply, which will cause even more delays and the rates offered are more expensive than what we had originally. 

Thanks! 

@ZSC If the seller's mortgage offer is only pending valuation, if there's a positive valuation on 19th, it could go to offer the next day. IF the rest of the conveyancing (title, searches, etc) has all been done, then potentially you may be able to exchange in the timelines given, though given most solicitors' current workload, it's never a certainity.

With regard to the Barclays offer, I'm a bit surprised that you says rates are higher now than (I'm assuming) Sep/Oct when you got the offer.

ZSC

K_S said:

ZSC said:

Hoping for a little bit of advice! 

Our mortgage offer with Barclays is due to expire on the 28th March, but Barclays won’t consider extending until we have exchanged. Our seller isn’t having their mortgage valuation on the property they are buying till the 19th March. Everything else has been done I’m led to believe. 

What do you think the chances are of us exchanging before the 26th (which is the Friday) 
If we can’t we will have to fully reapply, which will cause even more delays and the rates offered are more expensive than what we had originally. 

Thanks! 

@ZSC If the seller's mortgage offer is only pending valuation, if there's a positive valuation on 19th, it could go to offer the next day. IF the rest of the conveyancing (title, searches, etc) has all been done, then potentially you may be able to exchange in the timelines given, though given most solicitors' current workload, it's never a certainity.

With regard to the Barclays offer, I'm a bit surprised that you says rates are higher now than (I'm assuming) Sep/Oct when you got the offer.

I’ll keep my fingers and all toes crossed that it goes to plan then - either way I’m going to be in limbo until at least the 22nd which is not ideal, but I guess the chain will have to wait. We have been so patient that it’s going to be the only option for them. 

It was in October - the same product now is over .8% more, so very annoying as you can imagine as we have held out for this property!

K_S

Carolinezako said:

The flat I am looking to buy has an EWS1 B2 rating, which means it needs remedial work.

Currently, the management company is contesting a lot of findings in the report as they are not aligned with what has been shared by the developer at completion. Especially, considering a recent fire safety risk assessment did not highlight any significant issues.

Is there a lender who will accept a mortgage application with the EWS1 form with a B2 rating? 

@carolinezako There's no definitive answer to your question. Depends on a lot of factors - lender, LTV, height of bldg, no. of floors, what the issues are, what kind of cladding is present (if any), what rates you're willing to swallow, etc etc.

Generally speaking, if it's A3 or B2, the lender may decline straightaway or request for confirmation about the remedial work required and who’ll be liable for the cost of these works (it can't be the leaseholder). Given what you've said, it doesn't look like there's much prospect of getting such a confirmation.