Mortgage broker - ask me anything

sofa_searcher

I'm in the process of a mortgage application and it's currently stuck at the EWS1 validation stage.
TSB has said that they have sent the EWS1 form to a third party validator that they are not allowed to chase. The operator I spoke to thinks it's a central validator that all lenders use.
So my question is, is it true that this 3rd party validator is a central entity that all lenders use?
Also how long should it take? Mine was sent late feb and it has been 3 weeks so far with no progress

simone82

K_S said:

simone82 said:

I seem to have confused myself can anyone advise......
Can me and my partner buy a new build using HTB costing £450k of our combined salary is £61k?
A 5% deposit means we only need to put down £22.5k but we have a deposit of £40k.  The only way we can afford to buy at the moment is by HTB however these are the prices we are looking at because of where we live (south east)
Any advice appreciated

@simone82 Very very roughly speaking. House price of 450k, equity loan of 90k (20%), deposit of 40k - that leaves a mortgage requirement of 320k which is about 5.2 times income which exceeds the 4.5x cap which is prescribed in the H2B equity loan guidance. I hope that makes sense. Next time you want to crunch some more accurate H2B numbers it might help to check out a lender calculator and/or the official H2B one

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/842374/Published_Outside_Lond_HTB_Equity_Loan_Calc_20_UPLOAD.xlsm

Makes total sense @K_S thank you so much. As always you guys are amazing I follow this thread religiously!!

Willnoo

Hi 😊

I have a couple of payments left on my DMP and our 2 year Fixed term with Precise ended in November 2020. They don't have any products for us to switch to so we are currently just on the variable rate which wasn't too different to our fixed term. All my defaults have now dropped off and no CCJs etc. 

When could I start looking at remortgaging with a high street lender?

Thanks in advance 

K_S

Willnoo said:

Hi 😊
I have a couple of payments left on my DMP and our 2 year Fixed term with Precise ended in November 2020. They don't have any products for us to switch to so we are currently just on the variable rate which wasn't too different to our fixed term. All my defaults have now dropped off and no CCJs etc. 
When could I start looking at remortgaging with a high street lender?
Thanks in advance 

@willnoo

- When you say no product transfers are available for you, I presume you've checked through a broker? Did they recommend any alternatives?

- No two customers on DMPs have the same scenario so unfortunately any opinion I give on "how soon you may be able to get high street rates" is not particularly useful

- I think Precise's variable rate is currently 5%? If you haven't already, I would recommend getting in touch with a broker who can look at your circumstances and give you a better idea of what options you have right now or will have once the DMP ends.

Chichaldo

Hi, just have a couple of questions.

Q1) First-time buyer using a help to buy ISA, I might have to move for work in the near future (2-3 years time) and just wondered what the implications/costs are to changing the mortgage to a buy-to-let? 

Q2) I have a 30k for a deposit, would having a parent use their home as security for my property be of any benefit (or does it just increase the chance of being accepted)?

Q3) Who can I call for a free analysis/eligibility call? Tried to call Barclays but the number seemed to be for existing mortgages. I have not got a job yet but want to ask on the premise that I am earning 20k p/a in three months time when I apply for a mortgage.

Many thanks in advance.

Willnoo

Yes it was through the broker we got our Precise mortgage with and they contacted us to discuss remortgaging and said there was no options available (I spoke to Precise directly also).

We have just had a letter today saying it's moved to 4.70%. Think its time to track down a specialist broker.

Thanks for your help 😊

leypt1

Hi,
We're thinking of putting in an offer on a house of non-standard construction (1970s timber framed, ex council). Just how hard is it to get a mortgage, and will we be looking at a higher interest rate? We have a 15% deposit.

Thanks so much for your help

K_S

leypt1 said:

Hi,
We're thinking of putting in an offer on a house of non-standard construction (1970s timber framed, ex council). Just how hard is it to get a mortgage, and will we be looking at a higher interest rate? We have a 15% deposit.
Thanks so much for your help

@leypt1 Very generally speaking, from experience, post 1970 timber framed houses are usually mortgageable with the right lender as long as they have a traditional (brick, stone, etc.) outer skin.

The 15% deposit may be a limiting factor as some lenders have lower LTV caps for ex-council houses. It's hard to comment on the rates but assuming the property is acceptable to lenders that lend on timber-framed properties, the rates should be mainstream-ish at least. Based on the limited info in your post, likely one for a broker.

leypt1

K_S said:

leypt1 said:

Hi,
We're thinking of putting in an offer on a house of non-standard construction (1970s timber framed, ex council). Just how hard is it to get a mortgage, and will we be looking at a higher interest rate? We have a 15% deposit.
Thanks so much for your help

@leypt1 Very generally speaking, from experience, post 1970 timber framed houses are usually mortgageable with the right lender as long as they have a traditional (brick, stone, etc.) outer skin.

The 15% deposit may be a limiting factor as some lenders have lower LTV caps for ex-council houses. It's hard to comment on the rates but assuming the property is acceptable to lenders that lend on timber-framed properties, the rates should be mainstream-ish at least. Based on the limited info in your post, likely one for a broker.

Thank you! Hard to say whether there are brick walls - they feel solid, and there is a visible brick end wall on the end terrace. 

I do have another question. We've found ourselves living in Air BnBs for the last few weeks while waiting for our purchase to finish. The sale has now fallen through (hence why we're offering on a new property) - will our lack of a fixed address be an issue when applying for a mortgage? Do we need to find a longer-term rental ASAP?

K_S

leypt1 said:

K_S said:

leypt1 said:

Hi,
We're thinking of putting in an offer on a house of non-standard construction (1970s timber framed, ex council). Just how hard is it to get a mortgage, and will we be looking at a higher interest rate? We have a 15% deposit.
Thanks so much for your help

@leypt1 Very generally speaking, from experience, post 1970 timber framed houses are usually mortgageable with the right lender as long as they have a traditional (brick, stone, etc.) outer skin.

The 15% deposit may be a limiting factor as some lenders have lower LTV caps for ex-council houses. It's hard to comment on the rates but assuming the property is acceptable to lenders that lend on timber-framed properties, the rates should be mainstream-ish at least. Based on the limited info in your post, likely one for a broker.

Thank you! Hard to say whether there are brick walls - they feel solid, and there is a visible brick end wall on the end terrace. 

I do have another question. We've found ourselves living in Air BnBs for the last few weeks while waiting for our purchase to finish. The sale has now fallen through (hence why we're offering on a new property) - will our lack of a fixed address be an issue when applying for a mortgage? Do we need to find a longer-term rental ASAP?

@leypt1 What are you doing now with respect to address on bank accounts etc?