Mortgage broker - ask me anything

K_S

movnik894 said:

 Hello - thank you for this thread. Really helpful and useful.

I have two questions (hope that is ok) 

1 - As a Mortgage Advisor; what is your opinion on 95% LTV mortgages?

2 – My OH and I are FTB. He is self employed. Combined earnings are around 95k. Deposit saved is around 30k (ever growing whilst still WFH). We are looking for a house around 400k. Credit score: me – good, him – working on it (no big debts) Could you give your opinion on how likely we are to get a 95% LTV mortgage (based on this very limited info)?

 Haven't approached a broker yet. Still building our pot but doing research in meantime

@movnik894 It's a bit difficult to give useful answers to your questions but here goes -

1. As a buyer, it's a means to an end if you only have access a small deposit. As a broker, my job is to get the buyer the finance they need to buy the house they want at a cost that they can stomach, that's it. Whether it's a 95% LTV mortgage or a 60% LTV one, the objective is the same. 95% LTV mortgages involve a lot more work for me than a lower LTV mortgage as there are a lot of uncertainities in the application process due to the different "credit-scoring" (not to be confused with the Experian/Clearscore/CreditKarma/CheckMyFile scores) requirements that lenders have.

2. I can't give an opinion on your chances (because there isn't close to enough info) but happy to give main pros and cons.

Pros - looking to borrow less than 4x income, low debt, buying a house and not a flat.

Cons - applicant being self-employed will eliminate a few lenders at 95%, whatever it is that's wrong with his credit report may have an impact.

innis

Can you recommend the lenders for buy-to-let above commercial units. Previously had NatWest, RBS and HSBC but now when I looked to remortgage suddenly the valuation for NatWest came back as not saleable (even though they were first ones to mortgage this when i bought the property).
I'm currently with HSBC so hoping they will be better with existing client changing the product but still worried that they will reject the remortgage from residential to buy-to-let due to valuation too..
Thank you!

Peppermint90

What do these Halifax mortgage rate brackets mean? 
80% to 85%
85% to 90% 
If my deposit is exactly 85%, which bracket should I fall into?
Apologies if its a silly basic question! 

K_S

Peppermint90 said:

What do these Halifax mortgage rate brackets mean? 
80% to 85%
85% to 90% 
If my deposit is exactly 85%, which bracket should I fall into?
Apologies if its a silly basic question! 

@peppermint90 If your deposit is exactly 15%, you fall in the 80-85% bracket, basically 85% LTV products.

Debs757

Hi 

Is it worth appealing a mortgage decline with santander?

How often do u see success after a decline with another lender?

Thanks 

K_S

Debs757 said:

Hi 
Is it worth appealing a mortgage decline with santander?
How often do u see success after a decline with another lender?
Thanks 

@debs757 I don't know how it works direct, but as a broker it depends on the reason (given and the real one, not always the same) for the decline.

In most cases it's just quicker and simpler to apply with another lender.

SG0999

Hi,

I have sold my property and my buyers have had their valuation completed. (Getting to this stage has taken 2 months). My question is, they are now saying that the bank are asking for more paperwork (in regards to not sure).

does this sound right? As I thought all paperwork would have been submitted on the original application.

thank you

K_S

SG0999 said:

Hi,

I have sold my property and my buyers have had their valuation completed. (Getting to this stage has taken 2 months). My question is, they are now saying that the bank are asking for more paperwork (in regards to not sure).

does this sound right? As I thought all paperwork would have been submitted on the original application.

thank you

@sg0999 Nothing unusual in what you've described. There's minimum packaging that goes in with an application. Upon initial review or at full underwriting, the lender may have follow up questions/documentation-requests.

There might even be follow-up to that follow-up  

It all depends on the specific scenario and lender.

Ameba

Hi,
Just a quick one - would be grateful if you could advise please.
We have appointed a mortgage broker who informed he will find the best deal for us. Should we expect to be given options to choose from or would it just be the one product he finds most suitable?
Many thanks

K_S

Ameba said:

Hi,
Just a quick one - would be grateful if you could advise please.
We have appointed a mortgage broker who informed he will find the best deal for us. Should we expect to be given options to choose from or would it just be the one product he finds most suitable?
Many thanks

@ameba Generally speaking, there'll be one product that is the most cost-effective one available to you and matching your requirements/preferences. In some cases you might be undecided about some aspects (eg: about a 2 yrs vs 5 yr fix, or offset vs standard, etc) so might ask for both options.

In many cases (for example when the client comes to after a decline or is a slightly complex self employed case) I will often recommend a slightly more expensive product which from my experience is more likely to go to offer and with less trouble/to and fro, but the client always has the option to insist on the very cheapest one for which they meet criteria.