Mortgage broker - ask me anything

Redwino222

I have put my mortgage application through today, but live in a very heated property market and I am worried the banks will not value my house, or the house I am buying, at the agreed price.

bith houses have been dib up well over asking price.  However, the estate agents are also putting things on too low to encourage large amounts of bidders.

do values take into account the price the estate agent marketed it at.  I am a bit annoyed that the estate agents could be casing this issue with their pricing strategy,.

Capri84

Where do mortgage companies stand with Shielding? 

I have been paid in full for the shielding period, and return to work in April. Will they want to see 3 payslips with no shielding/sickness pay on them? Or as I’ve been paid 100% and would be back at work when mortgage application is filed... is there the chance of any lenders not being put off by this?

K_S

Capri84 said:

Where do mortgage companies stand with Shielding? 

I have been paid in full for the shielding period, and return to work in April. Will they want to see 3 payslips with no shielding/sickness pay on them? Or as I’ve been paid 100% and would be back at work when mortgage application is filed... is there the chance of any lenders not being put off by this?

@capri84 Based on the limited info in your posts, there should be a decent number of mainstream lenders who will be happy with one full normal payslip.

K_S

Redwino222 said:

I have put my mortgage application through today, but live in a very heated property market and I am worried the banks will not value my house, or the house I am buying, at the agreed price.
bith houses have been dib up well over asking price.  However, the estate agents are also putting things on too low to encourage large amounts of bidders.
do values take into account the price the estate agent marketed it at.  I am a bit annoyed that the estate agents could be casing this issue with their pricing strategy,.

@redwino222 As I'm sure you know, valuation is an inexact science. Very generally speaking, the biggest weightage for comparables is given to actual sold prices (which are of course a few months late). Afaik, there is also some mechanism that valuers use to incorporate SSTC prices (don't ask me how, I've no idea). But I'm pretty confident asking prices don't play a significant part in any of this.

Barry627

Hi k_s

wr have recently submitted our mortgage application with Barclays. So far we have 

DIP/hard/affordability search 15/3
application submitted 22/3
valuation booked 23/3
declaration requested/returned 24/3

Is this a good sign the application is processing well? Affordability wise we have no debts or loans only phone contracts and Barclays have put our maximum affordable payment at £1983 a month and the mortgage we requires comes in at £690 a month. My only concern is a have a default from 4 years ago (settled 1 month after default). We have 10% deposit. Anyone that has similar experience or knowledge would be greatly appreciated. 

Thanks. 

tommyt-saver

Hi all, 

Me and my girlfriend are first time buyers, and currently looking for properties. 

I used L+C’s online tool to get an idea, and i’ve also just spoken with Countrywide after an estate agent suggested it. I know they are selective on their lenders, so I’m curious how people find their mortgage brokers? I’ve received a MIP from Halifax to get me going, but we are are a mix of employed and self employed... and i’d prefer to go with a whole market broker who could help us along the way. We’ve taken SEISS too in the past year, as well as using LISA for deposit, so those would need to be taken into consideration by an expert. 
We live in East London, so would you suggest going with someone local? Neither of us are from here, so dont have any local knowledge or recommendations. 
Be great to get any experience here! 

Thanks
Tom 

_AandL_

Jen271626 said:

Hi,
I posted on here last week after getting declined by Aldermore and told to reapply in 6 months due to my self employed husbands statements (Dec to February)not reflecting last years income

This is the background. Husband has 5 year old default for 100 for bt. He had 3 late payments to very last year I had two as we couldn't log on our accounts and no one was answering the phones. He has took the last three seiss grants but won't be taking this one and this months and next months statements are set to be really good as he is so busy. Its also a concessionary purchase for 75%ltv (110k, 82500kpurchase). We earn 40k between us 42500 if child benefits accepted.

Broker said last week he'd need to match us to somewhere else but would take him time. All main lenders hed tried hadnt accepted the aip. Havent heard anything else from him since last Thursday Morning. I'm thinking we are likely too complicated and more hassle than we are worth.

I decided to try an aip with my bank rbs today and it was approved. Wouldnt apply till beginning of May so we have Aprils statement.

Does anyone know if its even worth our while with RBS going by the above? Will they say no because of the seiss? Adverse on our files? 
Thanks so much for any advice. 

Edited to add, my dads friend suggested we'd maybe have better luck with interest only for two years then remortgage, is this correct? Thanks

We’ve just had the same but with different lenders. No one will touch us because of the Seiss 

K_S

tommyt-saver said:

Hi all, 

Me and my girlfriend are first time buyers, and currently looking for properties. 

I used L+C’s online tool to get an idea, and i’ve also just spoken with Countrywide after an estate agent suggested it. I know they are selective on their lenders, so I’m curious how people find their mortgage brokers? I’ve received a MIP from Halifax to get me going, but we are are a mix of employed and self employed... and i’d prefer to go with a whole market broker who could help us along the way. We’ve taken SEISS too in the past year, as well as using LISA for deposit, so those would need to be taken into consideration by an expert. 
We live in East London, so would you suggest going with someone local? Neither of us are from here, so dont have any local knowledge or recommendations. 
Be great to get any experience here! 

Thanks
Tom 

@tommyt-saver Imho, whether a broker is local or not makes no difference at all. Everything is done over the phone and online anyway. What's important is that the broker is whole of market, someone you're comfortable with and (in your scenario) can afford to take the time needed to place your case with an appropriate lender.

Online tools are notoriously over optimistic on how much you can borrow. The Halifax AIP (if filled in correctly) is definitely a much better indication. To get a realistic idea of how much you may be able to borrow, I would recommend getting in touch with a broker who can look at the whole scenario and give you a number. Good luck!

PS: I have very fond memories of life in Leytonstone during younger and more carefree times  

sk101

Hi 
Would love some advice please. Combined income of 60,000. No loans or credit cards. Aged 47 and 44. House Price 610,000. Deposit 370,000. Borrowing of 240,000 over 20 years ideally on a lifetime tracker (First Direct)? Would this amount be agreed? How much could we realistically borrow based on these terms?  How long would an application/mortgage take to sort? Would we be best off going with a broker (whole of market) to push the process along? I would be very grateful for your advice and expertise. Thanks

K_S

sk101 said:

Hi 
Would love some advice please. Combined income of 60,000. No loans or credit cards. Aged 47 and 44. House Price 610,000. Deposit 370,000. Borrowing of 240,000 over 20 years ideally on a lifetime tracker (First Direct)? Would this amount be agreed? How much could we realistically borrow based on these terms?  How long would an application/mortgage take to sort? Would we be best off going with a broker (whole of market) to push the process along? I would be very grateful for your advice and expertise. Thanks

@sk101 Can't speak for FD as they're a direct only lender. Based on the limited info in your post and assuming the 60k is basic PAYE income

- borrowing of 240-300k should be achievable at mainstream rates

- timelines depend on the specific lender. But assuming a straightforward scenario, with PAYE income most of my cases are coming through inside 2 weeks from app to offer for properties that need physical valuations.

- if you're set on FD, you'll need to go direct as they don't offer intermediary products. But if you're not tied to FD and want a quick turnaround, I'd recommend using a whole of market broker.