Mortgage broker - ask me anything

K_S

@Rachylou1981 The 152k sale in 2019 is going to be the base that a valuer starts with. The divorce sale doesn't come into the picture, new kitchen won't come into the picture, the garage conversion might well be a net zero given you've lost storage space. So when you look at it that way 160k seems about logical.

 From my experience, the only time a valuation appeal works is when you have clear comparables which the valuer has ignored. But of course there's no harm in sending the RICS valuation and seeing what Santander's valuers say.

If you were my client and you wanted to proceed with this purchase, the only thing I would be able to recommend is that we find a lender who doesn't have the same surveyor on their panel and give it a shot. But based on the limited info in your post, 198k seems a stretch tbh.

Rachylou1981

K_S said:

@Rachylou1981 The 152k sale in 2019 is going to be the base that a valuer starts with. The divorce sale doesn't come into the picture, new kitchen won't come into the picture, the garage conversion might well be a net zero given you've lost storage space. So when you look at it that way 160k seems about logical.

 From my experience, the only time a valuation appeal works is when you have clear comparables which the valuer has ignored. But of course there's no harm in sending the RICS valuation and seeing what Santander's valuers say.

If you were my client and you wanted to proceed with this purchase, the only thing I would be able to recommend is that we find a lender who doesn't have the same surveyor on their panel and give it a shot. But based on the limited info in your post, 198k seems a stretch tbh.

Yeah I think we are now second guessing. We live on same estate so know the houses well as we have always wanted to buy bigger on same estate & are always checking out the ones for sale. This is a 5 bed terraced townhouse (5th bedroom due to conversion) & a 4 bed semi-detached with garage is closer to 250K & out of our budget (a few sold in past year but no data as to actual sold price). Our 3 bed semi, no garage is 120K so it feels this property is worth it for the extra 2 bedrooms & more space & it's actually affordable compared to most of the others suitable for our needs which are too expensive. A similar townhouse but with garage is on sale for 195K but they are not taking viewings or offers. All so confusing really

artermissy

Hi- question about credit card balances as we’re hoping to apply for a mortgage soon. Is there a percentage of the credit availability that they prefer you to stay under? 

I have a balance of £1200 over two cards with a total credit availability of £5.8k and my husband £700 on a card with £1100 limit. Thanks for your help!

K_S

artermissy said:

Hi- question about credit card balances as we’re hoping to apply for a mortgage soon. Is there a percentage of the credit availability that they prefer you to stay under? 

I have a balance of £1200 over two cards with a total credit availability of £5.8k and my husband £700 on a card with £1100 limit. Thanks for your help!

@artermissy My 2c

K_S said:

- credit utilisation, available credit etc may play a small part in a lender's opaque "credit scoring" along with a million other things. But generally speaking, from experience, those aspects rarely make a material difference to the strength of an application for mainstream lenders and almost never play a part in the advice I give.

IAMIAM

When you do additional borrowing with HSBC and if you are on 70% LTV and want to take it to 80% LTV, Can you have some of the borrowing at 75% Rate and the Rest at the 80% Rate? Or does it have to all be on the 80% LTV Rate?
What if you apply for borrowing up to 75% rate, drawdown and then apply for more borrowing at 80% rate....

K_S

IAMIAM said:

When you do additional borrowing with HSBC and if you are on 70% LTV and want to take it to 80% LTV, Can you have some of the borrowing at 75% Rate and the Rest at the 80% Rate? Or does it have to all be on the 80% LTV Rate?
What if you apply for borrowing up to 75% rate, drawdown and then apply for more borrowing at 80% rate....

@IAMIAM

- all on 80% LTV

- you can do that, subject to eligibility criteria such as minimum duration after last drawdown, minimum additional borrowing size, limit to number of parts, etc

SophMa1

Looking for our best options to get on the property ladder with adverse credit history. 
Looking at a new build house on the market for £265k. So far we have 15k deposit and the developer is offering a 13500 deposit contribution (5%) with x2 CCJs % x2 defaults from 2018-19 and a joint income of 82k plus overtime. 
I am aware we will be looking at higher rates but is this out of reach with such small deposit? will it be best to keep saving? the NHS contribution offer is due to finish soon

K_S

SophMa1 said:

Looking for our best options to get on the property ladder with adverse credit history. 
Looking at a new build house on the market for £265k. So far we have 15k deposit and the developer is offering a 13500 deposit contribution (5%) with x2 CCJs % x2 defaults from 2018-19 and a joint income of 82k plus overtime. 
I am aware we will be looking at higher rates but is this out of reach with such small deposit? will it be best to keep saving? the NHS contribution offer is due to finish soon

@sophma1 It's impossible to say whether you will get a mortgage or not but there are a lot of boxes to tick lender and product wise -

- Ok with the credit issues, CCJs and defaults that are only 2 years old

- size of applicants own deposit

- needs to be ok with builder gifted deposit

Are both applicants and the property eligible for H2B at all?

Have you spoken to a broker at all to see what they say?

Dave2_2

Hi there,

My wife and I have just had an offer accepted on a property having sold ours earlier this week.  We currently have a mortgage with Barclays so have looked to them first for a new mortgage because we could port it and avoid early repayment charges.

Barclays' website gives us an Agreement in Principle amount of £310k but we need to borrow £327k.  We know that this is perfectly affordable because we have been overpaying our mortgage for years by the equivalent amount.  Is there any point going through a detailed application with Barclays to see if they will lend the amount we require or will they automatically say no?  We can borrow the amount with other providers, such as Santander, so that is our backup plan.

Thanks,

Dave

K_S

Dave2_2 said:

Hi there,
My wife and I have just had an offer accepted on a property having sold ours earlier this week.  We currently have a mortgage with Barclays so have looked to them first for a new mortgage because we could port it and avoid early repayment charges.
Barclays' website gives us an Agreement in Principle amount of £310k but we need to borrow £327k.  We know that this is perfectly affordable because we have been overpaying our mortgage for years by the equivalent amount.  Is there any point going through a detailed application with Barclays to see if they will lend the amount we require or will they automatically say no?  We can borrow the amount with other providers, such as Santander, so that is our backup plan.
Thanks,
Dave

@dave2_2 Lender affordability is usually black and white. I don't know whether or not you keyed in the DIP form correctly so it's hard to say whether the £310k is indeed the maximum or not. This is the Barclays affordability calc https://resources.barclays.co.uk/mortgage-calculators/residential-affordability have a nosey and see what it returns.