Mortgage broker - ask me anything

Capri84

Evening K_S (I think we should set up a wine/beer gofundme for you, you’re an absolute gem)

My MB is on holiday, but has messaged me to
let me know that Coventry have ok’d me and my wife for DIP for a 95% mortgage. 

Just need to find a house now! 

Coventry ran a hard check on both of us before issuing the DIP - in your experience what is the likelyhood of that DIP resulting in a full agreed mortgage? Or what’s the likelyhood/percentage of cases where the full application fails after a hard check/dip is given? 

Bobthebuildercanyoufixit

Hi,

Do Natwest consider mortgage applications even if you have areanged overdraft?? 

Mine is a student interest free overdraft and im in the overdraft almost always.
my wifes is also a student overdraft but she started paying interest recently. 

Many thanks,

Capri84

Also - the way he phrased it was ‘The lender would be happy to consider an application from you’

how much of the hard work is done with the DIP? Is that not them considering a mortgage? 

‘I’ll consider considering lending you’ is a strange concept... but obviously a long used one! 

K_S

Capri84 said:

Also - the way he phrased it was ‘The lender would be happy to consider an application from you’

how much of the hard work is done with the DIP? Is that not them considering a mortgage? 

‘I’ll consider considering lending you’ is a strange concept... but obviously a long used one! 

Capri84 said:

Coventry ran a hard check on both of us before issuing the DIP - in your experience what is the likelyhood of that DIP resulting in a full agreed mortgage? Or what’s the likelyhood/percentage of cases where the full application fails after a hard check/dip is given? 

@capri84 A referred DIP usually means that an actual person has had a quick look at things like affordability, credit commitments, credit history etc so as long as you are able to evidence everything entered in the DIP, and the property meets Coventry criteria, there's no particular reason to worry about a decline here on.

"Consider", "may" and "potential" are words which I use a lot as well as the last thing you want to do as a lender or broker is give your client the impression that your application is 100% certain to go through. Unfortunately, neither the broker nor lender can guarantee that an application will go to offer.

K_S

Bobthebuildercanyoufixit said:

Hi,

Do Natwest consider mortgage applications even if you have areanged overdraft?? 

Mine is a student interest free overdraft and im in the overdraft almost always.
my wifes is also a student overdraft but she started paying interest recently. 

Many thanks,

@Bobthebuildercanyoufixit There's no black and white answer to your question. But I can say that use of an OD is quite common among applicants. Whether or not the usage is considered problematic by the lender depends on specifics and the whole scenario.

K_S

DumplingfromDevonshire said:

K_S said:

DumplingfromDevonshire said:

Hello everyone

Could anyone tell us how to find a broker who can help getting a shared ownership mortgage please. It seems to be a niche area and I understand not all brokers deal with this type of mortgage so any help would be very appreciated.

Many thanks

@dumplingfromdevonshire It's not really a niche area anymore. The reason why a lot of brokers do not do it is because the loan sizes are very small, which means that a broker fee needs to be charged to make it viable and customers are often unwilling to pay.

For example, I charge £250 upon offer for non-adverse SO mortgages over 100k. And £500 below 100k. Other than the free brokers listed on the MSE page, I don't know of any brokers who do SO mortgages for free.

Thank you for the quick reply, that explains why it has been difficult and quite understand that people need to be paid for their time and that seems fair, so does that mean the fee would be paid upon the successful offer of a mortgage. Just a bit wary about paying perhaps £500 and having nothing to show at the end, difficult balance to attain.

@dumplingfromdevonshire I can't say that every broker does it this way (some charge on application, some in a staged manner, etc), but plenty of brokers do it like I do, charging the fee only when/if you get the client a mortgage offer. To most brokers and clients, that's a fair and happy medium.

That way the broker has some skin in the game, and the applicant has some reassurance they won't have to pay unless there's a concrete result. Once an offer is issued, 99% of the broker's role is done, and there on it's just being on standby for support if needed.

Capri84

K_S said:

Capri84 said:

Also - the way he phrased it was ‘The lender would be happy to consider an application from you’

how much of the hard work is done with the DIP? Is that not them considering a mortgage? 

‘I’ll consider considering lending you’ is a strange concept... but obviously a long used one! 

Capri84 said:

Coventry ran a hard check on both of us before issuing the DIP - in your experience what is the likelyhood of that DIP resulting in a full agreed mortgage? Or what’s the likelyhood/percentage of cases where the full application fails after a hard check/dip is given? 

@capri84 A referred DIP usually means that an actual person has had a quick look at things like affordability, credit commitments, credit history etc so as long as you are able to evidence everything entered in the DIP, and the property meets Coventry criteria, there's no particular reason to worry about a decline here on.

"Consider", "may" and "potential" are words which I use a lot as well as the last thing you want to do as a lender or broker is give your client the impression that your application is 100% certain to go through. Unfortunately, neither the broker nor lender can guarantee that an application will go to offer.

Cheers for that. 

Just noticed coventrys DIP only lasts for 28 days... seems a bit short. The property that caused us to have it run has now sold... if we go past that 28 days, how harmful is the hard check they’ve placed on each of our files to further Dips. Would be worried about using Coventry again if the dip is going to run out so quickly. Doesn’t give much time for house hunting! 

Rebecca01

Capri84 said:

Evening K_S (I think we should set up a wine/beer gofundme for you, you’re an absolute gem)

My MB is on holiday, but has messaged me to
let me know that Coventry have ok’d me and my wife for DIP for a 95% mortgage. 

Just need to find a house now! 

Coventry ran a hard check on both of us before issuing the DIP - in your experience what is the likelyhood of that DIP resulting in a full agreed mortgage? Or what’s the likelyhood/percentage of cases where the full application fails after a hard check/dip is given? 

Absolutely K S thanks so much for your input. 

mjane93

Rebecca01 said:

Capri84 said:

Evening K_S (I think we should set up a wine/beer gofundme for you, you’re an absolute gem)

My MB is on holiday, but has messaged me to
let me know that Coventry have ok’d me and my wife for DIP for a 95% mortgage. 

Just need to find a house now! 

Coventry ran a hard check on both of us before issuing the DIP - in your experience what is the likelyhood of that DIP resulting in a full agreed mortgage? Or what’s the likelyhood/percentage of cases where the full application fails after a hard check/dip is given? 

Absolutely K S thanks so much for your input. 

Yes a million thanks! 👏🏽👏🏽👏🏽

Bobthebuildercanyoufixit

Does anyone know how long it takes Natwest to come back with an offer? So how long the process takes from submittion of application to offer approximately please...

Thanks