Mortgage broker - ask me anything

samson1313

I'm thinking of moving into my partners house and renting my house out, i know i could put my place on a let to buy mortgage and buy another property but if i didnt want to buy another property straight away as i'm considering buying land or some sort of different project can i put my house on a buy to let/let to buy mortgage take 75% of the equity out and just bank the money for the time being while i look at land auction property etc?

K_S

CCF2108 said:

Good morning, 
I have been following this forum closely and thank the MB's for all there advice on it.
Looking for some reassurance really, our MA had sought a AIP from Santander and nationwide both of which were declined. They secured an AIP with Kensington at 75% LTV. However I did apply for an AIP with Yorkshire building society and was successful. My query is really how confident in the AIP with YBS can I be that it will result in a successful offer given they have already ran a soft credit check on myself and my OH?
Any advice or direction would be greatly appreciated. 

@CCF2108 It's hard to say without first understanding why the AIPs from Santander and Nationwide were declined. Santander/Nationwide to Kensington is quite a jump. What was the reason for the declines as per your MA?

K_S

Randomreader said:

hi I would like to ask about possibility of a mortgage.  I need to buy out my ex.  I will put relevant details and hope I cover everything!
56 years old
2 children, one at uni, one starting in Sept
House currently owned as joint tenants with no mortgage
value £165000
need mortgage of £75000
public sector worker salary £21122 pa
pension contributions from salary £971.64 pa
I would like to know if there are interest only
mortgages available as I’m dropping income (loss of CB, CTC & maintenance) so would like a couple of years interest only (while kids at uni) and then move to repayment.  I also co-own a property left when my dad died with proviso my mum live out her life there and I have a lump sum payment due on retirement. 

@randomreader Quick thoughts -

- Standard residential I/O mortgage on your income and house value is very very unlikely

- If you intend to move to the other property or the lump sum due on retirement is sufficiently large (and can be evidenced), there may be I/O or part I/O part capital repayment options

K_S

samson1313 said:

I'm thinking of moving into my partners house and renting my house out, i know i could put my place on a let to buy mortgage and buy another property but if i didnt want to buy another property straight away as i'm considering buying land or some sort of different project can i put my house on a buy to let/let to buy mortgage take 75% of the equity out and just bank the money for the time being while i look at land auction property etc?

@samson1313 Lenders generally don't like the scenario you've outlined and it won't be classed as a let to buy. As a first time landlord, they'll will be especially sceptical of the scenario as outlined. If you are an experienced landlord then it should be much easier.

The option that's likely to be easiest is getting a CTL from your current lender, find a tenant and move out to your partner's. Once you have established a new residence, and have a few months of rental income to evidence on your old house, then consider a capital raise BTL mortgage with a lender who is happy to give the capital raised in cash for the purpose outlined.

Just to be clear, I'm not saying your requirements are impossible to meet but it will be a big ask to place.

CCF2108

K_S said:

CCF2108 said:

Good morning, 
I have been following this forum closely and thank the MB's for all there advice on it.
Looking for some reassurance really, our MA had sought a AIP from Santander and nationwide both of which were declined. They secured an AIP with Kensington at 75% LTV. However I did apply for an AIP with Yorkshire building society and was successful. My query is really how confident in the AIP with YBS can I be that it will result in a successful offer given they have already ran a soft credit check on myself and my OH?
Any advice or direction would be greatly appreciated. 

@CCF2108 It's hard to say without first understanding why the AIPs from Santander and Nationwide were declined. Santander/Nationwide to Kensington is quite a jump. What was the reason for the declines as per your MA?

Hi KS, thanks for the quick reply. 
MA said its down to my credit report, I have two satisfied defaults from July and December 2017 on my file. I have pdl stating I missed payments up to June 2019 (I have contacted the lender who have stated this was incorrect and my last payment was in fact June 2017-they have said on Friday past they emailed equifax to update). My OH has a clean credit history bar one missed payment in February 2019 due to changing banks and not the dd with the credit union but the account is up to date since then. 
I'm in limbo whether to proceed with the Kensington AIP at 75 % or go ahead with the YBS AIP as they can offer 80% LTV (80% LTV allows us to pay off an outstanding loan upon completion of our property) , our credit files by the time we make our application will hopefully show the pdl payment update for myself and my electoral roll is due to be added back on from the 1st April as it was registered at my parents house removed last year. We have also cleared outstanding credit cards which have still not reflected on the report whenever the soft search was completed. Sorry its a bit long winded!
Again appreciate the help and guidance. 

K_S

CCF2108 said:

K_S said:

CCF2108 said:

Good morning, 
I have been following this forum closely and thank the MB's for all there advice on it.
Looking for some reassurance really, our MA had sought a AIP from Santander and nationwide both of which were declined. They secured an AIP with Kensington at 75% LTV. However I did apply for an AIP with Yorkshire building society and was successful. My query is really how confident in the AIP with YBS can I be that it will result in a successful offer given they have already ran a soft credit check on myself and my OH?
Any advice or direction would be greatly appreciated. 

@CCF2108 It's hard to say without first understanding why the AIPs from Santander and Nationwide were declined. Santander/Nationwide to Kensington is quite a jump. What was the reason for the declines as per your MA?

Hi KS, thanks for the quick reply. 
MA said its down to my credit report, I have two satisfied defaults from July and December 2017 on my file. I have pdl stating I missed payments up to June 2019 (I have contacted the lender who have stated this was incorrect and my last payment was in fact June 2017-they have said on Friday past they emailed equifax to update). My OH has a clean credit history bar one missed payment in February 2019 due to changing banks and not the dd with the credit union but the account is up to date since then. 
I'm in limbo whether to proceed with the Kensington AIP at 75 % or go ahead with the YBS AIP as they can offer 80% LTV (80% LTV allows us to pay off an outstanding loan upon completion of our property) , our credit files by the time we make our application will hopefully show the pdl payment update for myself and my electoral roll is due to be added back on from the 1st April as it was registered at my parents house removed last year. We have also cleared outstanding credit cards which have still not reflected on the report whenever the soft search was completed. Sorry its a bit long winded!
Again appreciate the help and guidance. 

@ccf2108 I just want to be clear that I can't tell you what to do, but here are my thoughts -

- YBS is a direct only lender so I don't know their polic@CCF2108 the approach they may take. As per their published criteria, their sister lender Accord (broker only and owned by YBS) does not accept defaults registered in the last 6 years. YBS' policy may or may not be the same. It might be worth giving them a call and checking before you go in for a full application. These things aren't always picked up at the DIP stage.

- I don't know your case so can't comment specifically on Kensington. However, based on the limited info in your post I would have expected at least a couple of mainstream-ish options between Santander/Nationwide and Kensington at 75-80% LTV.

Randomreader

K_S said:

@randomreader Quick thoughts -

- Standard residential I/O mortgage on your income and house value is very very unlikely

- If you intend to move to the other property or the lump sum due on retirement is sufficiently large (and can be evidenced), there may be I/O or part I/O part capital repayment options

Thanks very much for replying.

I don’t intend to move as it’s 100 miles from my current home, it will be sold down the line and money split with siblings. The lump sum could be evidenced but only £27000 so I will rule out trying to find interest only. 

At least that has removed it from the equation so I can focus on looking at repayment mortgage or selling and moving to smaller property. 

Thanks again for your speedy response. 
I’m very grateful 🙂

CCF2108

K_S said:

CCF2108 said:

K_S said:

CCF2108 said:

Good morning, 
I have been following this forum closely and thank the MB's for all there advice on it.
Looking for some reassurance really, our MA had sought a AIP from Santander and nationwide both of which were declined. They secured an AIP with Kensington at 75% LTV. However I did apply for an AIP with Yorkshire building society and was successful. My query is really how confident in the AIP with YBS can I be that it will result in a successful offer given they have already ran a soft credit check on myself and my OH?
Any advice or direction would be greatly appreciated. 

@CCF2108 It's hard to say without first understanding why the AIPs from Santander and Nationwide were declined. Santander/Nationwide to Kensington is quite a jump. What was the reason for the declines as per your MA?

Hi KS, thanks for the quick reply. 
MA said its down to my credit report, I have two satisfied defaults from July and December 2017 on my file. I have pdl stating I missed payments up to June 2019 (I have contacted the lender who have stated this was incorrect and my last payment was in fact June 2017-they have said on Friday past they emailed equifax to update). My OH has a clean credit history bar one missed payment in February 2019 due to changing banks and not the dd with the credit union but the account is up to date since then. 
I'm in limbo whether to proceed with the Kensington AIP at 75 % or go ahead with the YBS AIP as they can offer 80% LTV (80% LTV allows us to pay off an outstanding loan upon completion of our property) , our credit files by the time we make our application will hopefully show the pdl payment update for myself and my electoral roll is due to be added back on from the 1st April as it was registered at my parents house removed last year. We have also cleared outstanding credit cards which have still not reflected on the report whenever the soft search was completed. Sorry its a bit long winded!
Again appreciate the help and guidance. 

@ccf2108 I just want to be clear that I can't tell you what to do, but here are my thoughts -

- YBS is a direct only lender so I don't know their polic@CCF2108 the approach they may take. As per their published criteria, their sister lender Accord (broker only and owned by YBS) does not accept defaults registered in the last 6 years. YBS' policy may or may not be the same. It might be worth giving them a call and checking before you go in for a full application. These things aren't always picked up at the DIP stage.

- I don't know your case so can't comment specifically on Kensington. However, based on the limited info in your post I would have expected at least a couple of mainstream-ish options between Santander/Nationwide and Kensington at 75-80% LTV.

Thanks again KS, I will ring YSB pre application and ask the question because I can't find anything on the website. I just would have thought at soft search stage it would have flagged up for them, possibly it has. 
Our options are limited in the adverse credit market as we are purchasing a property in Northern Ireland. 
Thanks. 

rb931

How big a turnoff for mortgage applications are a history of payday loans?

K_S

rb931 said:

How big a turnoff for mortgage applications are a history of payday loans?

@rb931 Depends on the lender, the specifics of the history and the rest of the application. Some will decline, some will consider, some will not care as long as there's no adverse related to the PDLs, etc. Very generally speaking, mainstream lenders don't like seeing recent payday/high-interest loan use on your credit history.