Mortgage broker - ask me anything

Mum2Boys_2

I am seeking an IVA, ideally a lump sum IVA, I have been told by stepchange this would cost me around 30k (halving my debt owed) 
I have a property and have a secured loan on it which would be covered by the IVA.
My current equity is £80-100k. 

My sister has offered to come on my mortgage so I can free up the cash for the IVA, meaning my mortgage will go from £120k to £150k. 

Is this something some lenders would consider? 

Brucema07

What usually happens first, the valuation or underwriting? I've had a hard search by Aldermore done 1 day after we submitted the application and has been told a valuation will happen in the next few days. Thanks! 

teaandcakeordeath

I was wondering if any mortgage brokers could either advise or point me in the right direction of who to speak to? I had a house solely signed over to me when I was a teenager by a relative. They still live in it but are coming to the age where they are talking about their will. They have decided they wish for three people to benefit from the value of the property including myself. They also don't want the property to be sold in the event of their death as one of the beneficiaries lives in the property and wants to stay in it (not me though I would gladly have the house if it were an option, sadly it isn't).... Is there a way of releasing equity to one or two of the parties and allowing the third to stay in the property/ avoid selling? I don't even know where to start with it all. It seems so complicated. Thank you. 

marvelman1985

Hi there guys, fascinating and incredibly useful thread, I’ve learnt so much already - really appreciate all your time and efforts 

My question: 
Think I know the answer to this, but an FAQ on the Nationwide Intermediary site has sent me down a rabbit hole...

I currently have a Nationwide mortgage and I’m looking to move, not looking to borrow any more than current owed amount (£190k) but household income has reduced a fair amount since we took out the mortgage - down to £32k total.

We’ve been paying the current mortgage at this income level with some room to spare for over a year, but I understand that’s irrelevant as any remortgage/new application/port would involve an affordability check, which we’d fail as £190k is more than 4.5x income.

However,  the aforementioned FAQ seems to refer to an option to ‘suppress’ income proof for customers who fail an affordability test, IF they are an existing customer not looking to borrow more (seems to use the terminology of ‘on a like-for-like basis’??).

So, in short, would this scenario cover someone like me? Or have I totally and spectacularly misunderstood? (Very likely!)

Many thanks in advance.

K_S

@marvelman1985 Nationwide will indeed consider what you have outlined above. I would definitely recommend doing the port through a broker to make sure it's packaged properly, they run it past their BDM in advance to iron out anything that's unclear. Porting is fiddly at the best of times, let alone in the current lending environment.

jkkneast

K_S said:

jkkneast said:

I have been incredibly dozy with one of my cards and messed up a payment on the back of a card holiday. This means I have 2 months in arrears during the credit card payment holiday. Showing as 2 on my credit file. 

I have paid the card off and have no other late or arrears payment history. I appreciate this will be frowned upon by many companies (including my existing lender Barclays) but with a 12-15% deposit, am I completely out the mortgage game?

@jkkneast Completely out of the mortgage game due to this one issue mentioned in your post? No.

Thank you, L&C had me pretty much convinced I was doomed

Penguin_

I know it's early to be thinking about this & I know I have asked for advice previously but I'm being proactive & thinking ahead. I have 6 defaults, all 3 years old or so that I am repaying through a DMP. From June my mortgage will be £120 a month cheaper as I have moved onto a better rate (Woo Hoo!) so I will be trying to chuck the extra money at the DMP. I know the defaults will drop off in 2024 & the DMP is, at present, due to finish 2026 but obviously this will reduce with the extra amount each month.

But if me & my OH (not linked financially yet) were to look to buy a house together with a decent deposit before the defaults drop off, say in late 2022/early 2023 is it realistic to think we could get a mortgage? Would it be easier if the DMP was paid off?

cheshire2021

Hi - we're in the process of applying for a mortgage and my wife's payslips for last month are in a bit of a mess.
Her employer underpaid her originally and then "corrected" her pay by paying it directly in to her bank account, then sent another payslip which "deducted" this correction.
Her total pay was £1100, payslip #1 shows net pay of £700 but payslip #2 show's the missing £400 as a "advance deduction" due to it being paid in advance of the corrected payslip.
She's got a letter explaining that this was an administration error from the compant, do you foresee any issues with a lender accepting this? Other than this we both have excellent credit, no/very-low debt, ~25% deposit etc. no red flags bar this "documentation".

K_S

Penguin_ said:

I know it's early to be thinking about this & I know I have asked for advice previously but I'm being proactive & thinking ahead. I have 6 defaults, all 3 years old or so that I am repaying through a DMP. From June my mortgage will be £120 a month cheaper as I have moved onto a better rate (Woo Hoo!) so I will be trying to chuck the extra money at the DMP. I know the defaults will drop off in 2024 & the DMP is, at present, due to finish 2026 but obviously this will reduce with the extra amount each month.
But if me & my OH (not linked financially yet) were to look to buy a house together with a decent deposit before the defaults drop off, say in late 2022/early 2023 is it realistic to think we could get a mortgage? Would it be easier if the DMP was paid off?

@penguin_ No two people on a DMP are the same and it always rides on the specifics in the background and your credit history. But generally speaking, an applicant with an active DMP would rule out a lot more lenders than one with a DMP that had been paid off. I hope that makes sense. To state the obvious, the longer the DMP has been behind you, the better it is.

K_S

cheshire2021 said:

Hi - we're in the process of applying for a mortgage and my wife's payslips for last month are in a bit of a mess.
Her employer underpaid her originally and then "corrected" her pay by paying it directly in to her bank account, then sent another payslip which "deducted" this correction.
Her total pay was £1100, payslip #1 shows net pay of £700 but payslip #2 show's the missing £400 as a "advance deduction" due to it being paid in advance of the corrected payslip.
She's got a letter explaining that this was an administration error from the compant, do you foresee any issues with a lender accepting this? Other than this we both have excellent credit, no/very-low debt, ~25% deposit etc. no red flags bar this "documentation".

@cheshire2021 I can't predict what'll happen exactly as I'd had to see what the payslip looks like, what the letter says, and your wife's employment circumstances, etc.

But if I were handling this case, I'd run this past the lender BDM in advance before doing a DIP or app to check and see what's needed (if anything). If you're using a broker, just make sure you highlight this to them if you haven't already. Based on the very limited info in your post, I don't see this being a showstopper. Good luck!