Mortgage broker - ask me anything

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  • edited 15 September 2020 at 8:44PM
    haras_n0sirrahharas_n0sirrah Forumite
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    edited 15 September 2020 at 8:44PM
    Toyo_86 said:
    Toyo_86 said:
    I am trying to sell my property while moving to another. I have applied to natwest but they require a consent to let. Barclays has currently rejected my application for the consent to let but I have reapplied.

    Are there lenders that might not require a consent to let but are happy to accept a letter from an estate agent?

    thanks
    Yes there is. I have just got a mortgage approved for someone in this exact scenario. 15% minimum deposit and they will want a letter from an estate agent confirming rentability and amount of rent achievable. The monthly rent offsets the mortgage (as long as it fits the calculation)
    Oh thats good to know. I have a 20% deposit so hopefully that should be ok. The rent will definitely cover the mortgage. 

    If you dont mind, 2 quick further questions

    1. How long was the application for the mortgage you did? It has taken me 2 months to get to the final stage with Natwest only to get to then get denied the consent to let by Barclays. Hoping the lender you refer to (but im guessing you cant provide the name?) would take a much shorter time?

    2. was the interest rate from this lender similar or close enough to the high street lenders or was it a specialist lender With a higher rate?

    thanks for this thread . Been very useful.
    1) mortgage submitted thur 10th sept and approved monday 14th sept
    2) high street lender. Was third cheapest available to the client (but client was under time pressure as he had wasted 2 months with l&c to get declined as the lender they put him with wouldn't accept his deposit as not from uk)
  • edited 15 September 2020 at 8:46PM
    periwinkleperkinsperiwinkleperkins Forumite
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    edited 15 September 2020 at 8:46PM
    Currently buying our first home, the mortgage is with an adverse lender as I was off work with illness 3 years ago and 5 accounts defaulted (All now paid off and zero debt). 
    When I come to remortgage in 2 years do you think I’ll be able to get the rate lower (looking at 4% on current offer) and will I need an adverse lender still or would a high street lender be possible?
    Appreciate there’s no crystal ball but general thoughts on how to move up the ladder etc. 
  • edited 15 September 2020 at 8:50PM
    haras_n0sirrahharas_n0sirrah Forumite
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    edited 15 September 2020 at 8:50PM
    Currently buying our first home, the mortgage is with an adverse lender as I was off work with illness 3 years ago and 5 accounts defaulted (All now paid off and zero debt). 
    When I come to remortgage in 2 years do you think I’ll be able to get the rate lower (looking at 4% on current offer) and will I need an adverse lender still or would a high street lender be possible?
    Appreciate there’s no crystal ball but general thoughts on how to move up the ladder etc. 
    I would have probably done a fixed rate long enough that the defaults had gone when the remortgage time came (so if the defaults are three years old I would have recommended a 3 year fix if available)
    If the defaults are still there you may need to do another two year fix to get truly high street rates as there are 5 defaults. As a broker I would look at the credit report to see if you can get it cheaper at that point in time but with 5 defaults 5 yrs old you may still not quite be back to high street 
  • Gem_M90Gem_M90 Forumite
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    I've had my mortgage approval through from Halifax, however the application was based on me clearing just under £5k I have across credit sources. I had to apply as a single applicant due to a few defaults on my partners credit file from a past relationship, as applying jointly we were looking at nearly 4% interest rates as opposed to the 1.5% I now have on my own. As I had to apply myself, we had to increase our deposit which meant I couldn't clear the credit beforehand. They have accepted it will be clear before completion (which is estimated at late February), which is all fine. However, ploughing over £10k extra into the deposit and still having our rent to pay (which is £100 more/month on a 2 bed flat than the 3 bed house will be!) and clearing the credit will leave us a little short for the larger purchases for the new house. If I clear the credit before completion, can I utilise a small portion of my available credit again just after completion for 1 or 2 of the larger purchases without it having an adverse affect, or will it have to stay clear for a certain amount of time? 
    First Time Buyer 
    Help to Buy (Scotland) + mortgage at 68% LTV
    Application submitted (Halifax)- 13/08
    Referred to underwriters- 18/08
    Discrepancies on application reported- 28/08
    Application resubmitted- 02/09
    Mortgage Offer Approved- 14/09
    Missives Concluded- 22/10
    Completion due- Feb 2021
  • haras_n0sirrahharas_n0sirrah Forumite
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    Gem_M90 said:
    I've had my mortgage approval through from Halifax, however the application was based on me clearing just under £5k I have across credit sources. I had to apply as a single applicant due to a few defaults on my partners credit file from a past relationship, as applying jointly we were looking at nearly 4% interest rates as opposed to the 1.5% I now have on my own. As I had to apply myself, we had to increase our deposit which meant I couldn't clear the credit beforehand. They have accepted it will be clear before completion (which is estimated at late February), which is all fine. However, ploughing over £10k extra into the deposit and still having our rent to pay (which is £100 more/month on a 2 bed flat than the 3 bed house will be!) and clearing the credit will leave us a little short for the larger purchases for the new house. If I clear the credit before completion, can I utilise a small portion of my available credit again just after completion for 1 or 2 of the larger purchases without it having an adverse affect, or will it have to stay clear for a certain amount of time? 
    Honestly the solicitor may want to see evidence you have sufficient savings to clear what you have promised to clear by completion (so they may want to see you have enough for deposit plus fees plus debt repayment available) and the lender reserves the right to check that you have done it.
    If at a later date you increase your balances again then there isnt much they can do 
  • Gem_M90Gem_M90 Forumite
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    Gem_M90 said:
    I've had my mortgage approval through from Halifax, however the application was based on me clearing just under £5k I have across credit sources. I had to apply as a single applicant due to a few defaults on my partners credit file from a past relationship, as applying jointly we were looking at nearly 4% interest rates as opposed to the 1.5% I now have on my own. As I had to apply myself, we had to increase our deposit which meant I couldn't clear the credit beforehand. They have accepted it will be clear before completion (which is estimated at late February), which is all fine. However, ploughing over £10k extra into the deposit and still having our rent to pay (which is £100 more/month on a 2 bed flat than the 3 bed house will be!) and clearing the credit will leave us a little short for the larger purchases for the new house. If I clear the credit before completion, can I utilise a small portion of my available credit again just after completion for 1 or 2 of the larger purchases without it having an adverse affect, or will it have to stay clear for a certain amount of time? 
    Honestly the solicitor may want to see evidence you have sufficient savings to clear what you have promised to clear by completion (so they may want to see you have enough for deposit plus fees plus debt repayment available) and the lender reserves the right to check that you have done it.
    If at a later date you increase your balances again then there isnt much they can do 
    Thanks for that. That's all fine, we can get all the extra together to clear it and the solicitors fee is there anyway (I've been house hunting for over a year and have used the same solicitor so I knew their fee a long time ago). Just we'll have to keep hold of the part of the savings we had to use for furnishings etc now so I wondered what my options would be after completion. I wasn't sure if it had to stay clear or if there isn't much they could do about it basically. 
    First Time Buyer 
    Help to Buy (Scotland) + mortgage at 68% LTV
    Application submitted (Halifax)- 13/08
    Referred to underwriters- 18/08
    Discrepancies on application reported- 28/08
    Application resubmitted- 02/09
    Mortgage Offer Approved- 14/09
    Missives Concluded- 22/10
    Completion due- Feb 2021
  • DensolDensol Forumite
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    My friend is divorced. Still on mortgage with his ex. The final consent order says “she must pay the mortgage” 
    Is this treated by any mortgage companies like a house that is let so he doesnt have the mortgage expense against his affordability ? 
  • haras_n0sirrahharas_n0sirrah Forumite
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    Densol said:
    My friend is divorced. Still on mortgage with his ex. The final consent order says “she must pay the mortgage” 
    Is this treated by any mortgage companies like a house that is let so he doesnt have the mortgage expense against his affordability ? 
    If he is on the mortgage then it will be treated as an outgoing as if she doesn't pay he is liable.
    Some lenders take the balance as a commitment, some take the payment. I would always look for a lender who takes the monthly payment as an outgoing 
  • riotladyriotlady Forumite
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    How do you go about finding a decent mortgage broker? The only people we know who've bought recently had a terrible time with theirs so don't think we'd have much luck on word of mouth! 
  • JR27721988JR27721988 Forumite
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    Looking to buy but have around 12k debt in credit card and 4K left on a loan. I will be clearing these all fully within the next month, how soon should I wait before applying for a mortgage? 

    Also what is the likelihood of being approved with a 10% deposit at the moment? Was hoping to use help to buy but the builder isn’t accepting at the moment due to the scheme changing 
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