Mortgage broker - ask me anything

Jen271626

K_S said:

Jen271626 said:

K_S said:

@jen271626 I don't want to second guess your broker as he has all the information needed to place the case. If the post-covid dip in self employed income is very steep, there might well be very few lenders willing to consider. The Barclays broker DIP is a hard check, I'm not sure why he would try that for this case.

But based on the limited information in your posts, it doesn't look like an unproceedable case to me. Hopefully you aren't using one of the mass volume brokers who may be great for straightforward apps but aren't really set up to place cases with a few complications.

Hi, 
I have been having a look and we seem to fit precise and vidas criteria but they seem to be quite slow just now? And also Pepper money which I like the look of and they seem to be fairly quick. Do you have any experience/opinions of these? Thanks. 

@Jen271626 For these lenders, the following criteria *might* create issues - need the applicant to provide their own 15% deposit for concessionary purchases, Pepper doesn't lend in Scotland, LTV limits are based on discounted price (so it may or may not fit your case) and Vida is only in the remo business at present, no purchases.

The issue of declining profits (reason for the Aldermore decline) is the big unknown with any lender. How big is the drop from prior year to this year? Do recent figures show a return to normal? Is there any continuing impact from Covid, etc. While some lenders are better than others in a decline in profits scenario, there's no criteria to say exactly how they'll treat it.

Thanks again for your reply. So I have realised that one of the contractors he does work for, for some reason can't transfer to my husbands account, so transferred his payment to me in February and I transferred it over with the company name as reference. This won't of been included as salary for him and has likely contributed. This months been really good and hes back to normal now as. I reckon hel maybe be down about 15% on last year. Hopefully this coming year will be better. Do you know what date after the end of the tax year that companies will start to ask for 20-21 accounts to start being declared as latest years income? 
I'm thinking of just taking the higher interest rate and going for Bluestone.

Baggies16

Is this advice from my broker today correct.

1, AIP provided from specialist lender at above 5% on 5 year fix. Asked if it can be a 2 year fix and told that they will only accept 5 as I’m clearing debts this month and they have to be factored in as if they will not be paid off.

2, Broker said that although I did my own AIP with RBS that accepted, it means nothing as I have 1 missed payment on my credit file from 2019 and that for high street I need to have no missed payments in the full 6 year history. 

K_S

Jen271626 said:

K_S said:

Jen271626 said:

K_S said:

@jen271626 I don't want to second guess your broker as he has all the information needed to place the case. If the post-covid dip in self employed income is very steep, there might well be very few lenders willing to consider. The Barclays broker DIP is a hard check, I'm not sure why he would try that for this case.

But based on the limited information in your posts, it doesn't look like an unproceedable case to me. Hopefully you aren't using one of the mass volume brokers who may be great for straightforward apps but aren't really set up to place cases with a few complications.

Hi, 
I have been having a look and we seem to fit precise and vidas criteria but they seem to be quite slow just now? And also Pepper money which I like the look of and they seem to be fairly quick. Do you have any experience/opinions of these? Thanks. 

@Jen271626 For these lenders, the following criteria *might* create issues - need the applicant to provide their own 15% deposit for concessionary purchases, Pepper doesn't lend in Scotland, LTV limits are based on discounted price (so it may or may not fit your case) and Vida is only in the remo business at present, no purchases.

The issue of declining profits (reason for the Aldermore decline) is the big unknown with any lender. How big is the drop from prior year to this year? Do recent figures show a return to normal? Is there any continuing impact from Covid, etc. While some lenders are better than others in a decline in profits scenario, there's no criteria to say exactly how they'll treat it.

Thanks again for your reply. So I have realised that one of the contractors he does work for, for some reason can't transfer to my husbands account, so transferred his payment to me in February and I transferred it over with the company name as reference. This won't of been included as salary for him and has likely contributed. This months been really good and hes back to normal now as. I reckon hel maybe be down about 15% on last year. Hopefully this coming year will be better. Do you know what date after the end of the tax year that companies will start to ask for 20-21 accounts to start being declared as latest years income? 
I'm thinking of just taking the higher interest rate and going for Bluestone.

@jen271626 For the lenders you're looking at, the end of the tax year is unlikely to make a huge difference as they will do the necessary digging to assess business in the recent past anyway.

K_S

Baggies16 said:

Is this advice from my broker today correct.

1, AIP provided from specialist lender at above 5% on 5 year fix. Asked if it can be a 2 year fix and told that they will only accept 5 as I’m clearing debts this month and they have to be factored in as if they will not be paid off.

2, Broker said that although I did my own AIP with RBS that accepted, it means nothing as I have 1 missed payment on my credit file from 2019 and that for high street I need to have no missed payments in the full 6 year history. 

@baggies16 I would humbly suggest that there are some crossed wires here as I don't know any broker who would say "for high street I need to have no missed payments in the full 6 year history." without some other context to it.

What LTV? There are mainstream lenders who will adjust accordingly for debt being paid off at completion.

Baggies16

K_S said:

Baggies16 said:

Is this advice from my broker today correct.

1, AIP provided from specialist lender at above 5% on 5 year fix. Asked if it can be a 2 year fix and told that they will only accept 5 as I’m clearing debts this month and they have to be factored in as if they will not be paid off.

2, Broker said that although I did my own AIP with RBS that accepted, it means nothing as I have 1 missed payment on my credit file from 2019 and that for high street I need to have no missed payments in the full 6 year history. 

@baggies16 I would humbly suggest that there are some crossed wires here as I don't know any broker who would say "for high street I need to have no missed payments in the full 6 year history." without some other context to it.

What LTV? There are mainstream lenders who will adjust accordingly for debt being paid off at completion.

@KS thanks for your response, appreciated. I am fairly clued up on the mortgage process and was surprised by the comment. I have a missed payment on a Very account in 2019. Showing 1 month late, was brought up to date however we have had high levels of debt although mostly paid off, the rest will be paid off next week. We did take a short term loan out for 3 months circa 10 months ago, and as we paid it off in one month it’s being classed as a payday loan. Broker went straight to specialist lenders.

surely if I have been approved on a 5 year fix, I can take a 2 year fix with the same lender?
 15% deposit 
thanks again

K_S

@baggies16 Some specialist lenders do make a distinction between affordability on 2 and 5 year fixes so that might be the case here.

Can I ask who the "payday" lender was?

There must be more in the background though. Based on the limited info in your posts I don't see why you'd go straight to 5%+ rate at 85% LTV on a 5 year fix. And I fully understand your desire to fix for 2 years, very sensible.

Baggies16

K_S said:

@baggies16 Some specialist lenders do make a distinction between affordability on 2 and 5 year fixes so that might be the case here.

Can I ask who the "payday" lender was?

There must be more in the background though. Based on the limited info in your posts I don't see why you'd go straight to 5%+ rate at 85% LTV on a 5 year fix. And I fully understand your desire to fix for 2 years, very sensible.

Lending stream, from last august, settled in full in September. Paid off 8 revolving credit accounts now showing settled. Paying another 8 off next week. Been told affordability isn’t the issue. No defaults, or adverse other than that 1 missed payment on Very, that was brought up to date straight Away. Credit score is currently low due to me paying off credit cards and closing them, so the 2 I have left has increased my utilisation. 

marvelman1985

K_S said:

@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.

Many thanks for the reply - to be honest I thought you might say “are you mad?”

 I’ve started conversation with a broker, so we’ll see what happens!

K_S

Baggies16 said:

K_S said:

@baggies16 Some specialist lenders do make a distinction between affordability on 2 and 5 year fixes so that might be the case here.

Can I ask who the "payday" lender was?

There must be more in the background though. Based on the limited info in your posts I don't see why you'd go straight to 5%+ rate at 85% LTV on a 5 year fix. And I fully understand your desire to fix for 2 years, very sensible.

Lending stream, from last august, settled in full in September. Paid off 8 revolving credit accounts now showing settled. Paying another 8 off next week. Been told affordability isn’t the issue. No defaults, or adverse other than that 1 missed payment on Very, that was brought up to date straight Away. Credit score is currently low due to me paying off credit cards and closing them, so the 2 I have left has increased my utilisation. 

@baggies16 LS may be seen as a payday lender due to their high APR but if there's a good reason for it, I could still think of a couple of mainstream lenders I'd try at 85% LTV before a 5 year fix at 5%+. You can safely ignore the credit score and debt utilisation.

george4064

Would it be rude to ask my mortgage broker how they take their commission from my mortgage product? He says he’s a whole of market broker.

Also, what is the best way to ascertain if I am getting value for money with my mortgage broker? I want to approach my lender directly to see what rate I can get by going directly but for some reason I don’t want to go behind my brokers back. (Loyalty I guess!)

Currently I have £176k mortgage with NatWest on a property worth £430k with a few years left on fixed period, both mortgage and property in my sole name.

looking to purchase property for around £650k, which will require me to borrow additional £224k on a two year fix (to align with existing fixed mortgage). As part of the purchase, my partner will be on the deeds and included in the mortgage, so affordability is fine. New property will have an approx LTV of 62%.