Mortgage broker - ask me anything

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  • K_S said:
    Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
    It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
    Anyone got a question? Ask away
    Hi, I am not sure if this is the right area or thread so apologies in advance if not!
    Do you know if a DiP can be submitted to Aldermore without the broker doing their affordability calculator online first?

    I received news this afternoon that I have a DiP with them, however, I am nervous about my affordability based on their online calculator which I found on the intermediary bit of their website. I am wondering if my broker has bypassed that and done the DiP anyway - or whether he would have to have done the affordability check first and its different because he's the actual broker.

    Any thoughts on the above would be useful, thanks.


    @ihaveaquestionplease If you have an accepted DIP, the affordability check has been passed.
    Ah ok, thank you! And thanks for replying so quickly. I really appreciate these forums, you are all so helpful to everyone.
  • DanRoss
    DanRoss Posts: 5
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    Hi to all the team,
    I need a little advice and hoping you can help.
    My Father passed away in October with Covid 19, not a great time as we had lost my sister in June.
    We have just sold his property for £172,000 shared between 2, £84,000.00 each.
    I have a property with a small mortgage of £70k £500 per month and 12 years remaining.
    I have also got planning permision for a 4 bedroomed house on my garden, this is going to cost £180,000.00 to build.
    All the money we have is £155,000.00
    My dilema is do i pay of my current mortage and borrow the remaing money.
    Keep the mortgage payments and borrow a further £25k.
    Borrow the whole amount for a self build mortgage.

    Please can you help.
    Danny 
  • I’m looking for some guidance in relation to mortgages for staircasing, I’ve scoured the internet and the forums but haven’t found anything that quite fits. 

     I purchased a 50% of a shared ownership property around 7/8 years ago paying for my share outright with savings and inheritance. At that point in time I was flatly refused a mortgage due to honestly not having a clue how to be responsible with credit and as a result having a very poor credit file littered with issues.

     I have continued to live in the property and pay rent to the housing association on the 50% I do not own. I’ve made an enquiry to the HA about staircasing and there’s an incentive available at the moment for cashback and a free valuation so it feels like the right time to do it. House prices are stable in my area and I am unlikely to get into negative equity due to the amount of equity I hold.  I have checked and I will own the leasehold at 100% which is ultimately what I want.

     I’ve now got to the point where my income has increased, I’ve learned to manage my money and stop living beyond my means (budget, budget, budget), my credit score has improved to be high across all three agencies (Experian, Equifax TransUnion) and I have the affordability and job stability to get a mortgage.

     My question is really about deposits and mortgage types. I have not ever had a mortgage so whilst I am not technically a first time buyer, would the equity in my property remove the requirement for a deposit or do I still need to put down 10/15% of the 50% I want to buy? Saving the deposit isn’t an issue but it’s a case of either doing it now without a deposit or waiting 6-8 months to have saved the 10-15%.

     I don’t know if there are specific mortgage types for this scenario - I know I will need to potentially pay for valuation, solicitor, mortgage fee/broker fee but I really don’t know where to start as I know my situation is a bit different to the normal staircasing model.

     Thank you in advance.

  • K_S
    K_S Posts: 6,694
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    Fkhan95 said:
    Hi,

    Would appreciate some clarity on the following:
    HSBC have asked for business/personal bank statement covering last 60 days due to part of my income deriving from self employment(tuition). It’s not a very large amount (6k a year). 

    I’ve got an arrangement where I get paid in cash from my clients and I just save it. Will the bank look at this in a negative light since there won’t be any transactions coming into my account. Would depositing the cash i have or filing my 20/21 accounts be something tangible in the way of proof? I’ve already submitted 17/18 - 19/20 accounts but i understand this is a new requirement due to CV19.

    Thanks
    F
    @fkhan95 The 2 months bank statement is a standard post-covid packaging requirement for HSBC for self-employed applicants. With cash deposits, you would likely have been better off with a lender who didn't ask for these upfront.
    Yes, HSBC is likely to ask about where the income is on the 60 days bank statement and may/may not accept your explanation.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • K_S
    K_S Posts: 6,694
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    Studio150 said:
    Hello

    I wondered if someone could please offer some advice.

    We have just received a DIP from Natwest (via a broker) and are now at the stage of progressing to a full application.  The Experian report we have provided shows one negative result relating to me not being registered on the electoral roll.  I have spoken to the council who confirmed that this was done shortly after I moved in December 2020.  They have agreed to send a confirmation email though he seemed a little vague as to what information he was able to share in it.
    My question is, will Natwest conduct their own search and be able to verify that I am registered on the roll, or will they go off the Experian report which is inaccurate?  Prior to this, I was last listed on the electoral register up until June 2019 - from that point onwards (June 2019-Nov 2020) I was lodging with a family friend. Will this have an impact on mortgage edibility?

    Thank you
    @studio150 I wouldn't worry too much for two reasons - you have had a DIP accepted and afaik they use Equifax.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • K_S
    K_S Posts: 6,694
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    edited 12 April 2021 at 5:14PM
    Beako12 said:

    I’m looking for some guidance in relation to mortgages for staircasing, I’ve scoured the internet and the forums but haven’t found anything that quite fits. 

     I purchased a 50% of a shared ownership property around 7/8 years ago paying for my share outright with savings and inheritance. At that point in time I was flatly refused a mortgage due to honestly not having a clue how to be responsible with credit and as a result having a very poor credit file littered with issues.

     I have continued to live in the property and pay rent to the housing association on the 50% I do not own. I’ve made an enquiry to the HA about staircasing and there’s an incentive available at the moment for cashback and a free valuation so it feels like the right time to do it. House prices are stable in my area and I am unlikely to get into negative equity due to the amount of equity I hold.  I have checked and I will own the leasehold at 100% which is ultimately what I want.

     I’ve now got to the point where my income has increased, I’ve learned to manage my money and stop living beyond my means (budget, budget, budget), my credit score has improved to be high across all three agencies (Experian, Equifax TransUnion) and I have the affordability and job stability to get a mortgage.

     My question is really about deposits and mortgage types. I have not ever had a mortgage so whilst I am not technically a first time buyer, would the equity in my property remove the requirement for a deposit or do I still need to put down 10/15% of the 50% I want to buy? Saving the deposit isn’t an issue but it’s a case of either doing it now without a deposit or waiting 6-8 months to have saved the 10-15%.

     I don’t know if there are specific mortgage types for this scenario - I know I will need to potentially pay for valuation, solicitor, mortgage fee/broker fee but I really don’t know where to start as I know my situation is a bit different to the normal staircasing model.

     Thank you in advance.

    @beako12 As you own 50% of the property mortgage-free, that can be used as your deposit. So all you're essentially looking for is a 50% LTV mortgage and you need a lender who will accept this scenario without your having to add any more cash. It isn't too non-standard, an experienced broker should be able to place you, assuming the affordability numbers stack up.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Many thanks for your reply. Does the DIP not just look at affordability?  That side of things is fine as far as I understand, I am just concerned about the gap in the address history. Would Equifax not run the same checks? 
  • K_S
    K_S Posts: 6,694
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    Studio150 said:
    Many thanks for your reply. Does the DIP not just look at affordability?  That side of things is fine as far as I understand, I am just concerned about the gap in the address history. Would Equifax not run the same checks? 
    @studio150 I would recommend asking your broker. My comments on these aspects in isolation from the rest of your scenario could well be misleading. Good luck!

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • indie63
    indie63 Posts: 38
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    my wife and i are probably looking to move home soon, property we are in is mortgage free and valued about 75-80k, i have also 50k in a bank acount to put to this, we will probably looking at a property value no more than 170k to purchase.
    as i am about 20 years older than my wife, im 58, would she be better applying for a mortgage on her own where she will get a longer repayment term rather than a joint with me as i doubt a lender would not give me more than 10 years at most
  • K_S
    K_S Posts: 6,694
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    edited 13 April 2021 at 12:56PM
    indie63 said:
    my wife and i are probably looking to move home soon, property we are in is mortgage free and valued about 75-80k, i have also 50k in a bank acount to put to this, we will probably looking at a property value no more than 170k to purchase.
    as i am about 20 years older than my wife, im 58, would she be better applying for a mortgage on her own where she will get a longer repayment term rather than a joint with me as i doubt a lender would not give me more than 10 years at most
    @indie63 It looks like you only need to borrow 45k. Even if you were to go for a 11-year term, at an interest rate of 2% that equates to about £380 monthly mortgage payment.
    If that isn't comfortable for you, then yes you could consider getting a mortgage on your wife's sole income.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

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