Mortgage broker - ask me anything

Aspiration

Hi, looking at remortgaging in a October once cleared all debt. 

House value is £580k mortgage £245k, we want to take out as much as possible to buy a second property. 

If we wanted to take money out and remortgage what’s the most do you think we can take out? 

Are we likely to be able to mortgage to 90% or are there more restrictions if we want to take money out for a second property?

K_S

Aspiration said:

Hi, looking at remortgaging in a October once cleared all debt. 

House value is £580k mortgage £245k, we want to take out as much as possible to buy a second property. 

If we wanted to take money out and remortgage what’s the most do you think we can take out? 

Are we likely to be able to mortgage to 90% or are there more restrictions if we want to take money out for a second property?

@aspiration What's the second property going to be used for?

At 90% you will be limited to a couple of lenders and strict affordablity calcs.

At 85% the field gets a bit wider.

At 80% you'll have a wide pool of potential lenders.

Criteria and how affordablity is calculated differs from lender to lender and your specific circumstances so it's hard to give a general picture.

James-may

While waiting for a broker to get back to me about which lenders would suit me best, I did a bit of googling, and tried for an agreement in principle with NatWest, and was approved.
I have some payday loans from 2 years ago that were all paid off on time.
Will these have shown up when the aip decision was reached?
Or is this in principle offer likely to be torn up as soon as an actual person looks at my credit history and sees payday loans?
Thanks☺️

K_S

James-may said:

While waiting for a broker to get back to me about which lenders would suit me best, I did a bit of googling, and tried for an agreement in principle with NatWest, and was approved.
I have some payday loans from 2 years ago that were all paid off on time.
Will these have shown up when the aip decision was reached?
Or is this in principle offer likely to be torn up as soon as an actual person looks at my credit history and sees payday loans?
Thanks☺️

@james-may NatWest don't have a yes/no criteria to historic payday loan use. They say it's subject to underwriter discretion and credit-scoring. So if you've had a correctly keyed in DIP pass, your credit scoring part is largely ok.

James-may

K_S said:

James-may said:

While waiting for a broker to get back to me about which lenders would suit me best, I did a bit of googling, and tried for an agreement in principle with NatWest, and was approved.
I have some payday loans from 2 years ago that were all paid off on time.
Will these have shown up when the aip decision was reached?
Or is this in principle offer likely to be torn up as soon as an actual person looks at my credit history and sees payday loans?
Thanks☺️

@james-may NatWest don't have a yes/no criteria to historic payday loan use. They say it's subject to underwriter discretion and credit-scoring. So if you've had a correctly keyed in DIP pass, your credit scoring part is largely ok.

Oh, that's promising.
I'll see what the brokers comes back with, as if I can get a mortgage direct easily, I don't see the point paying someone £400 to do it for me.
If it goes pear shaped, or the broker comes back with a far better offer, I'll maybe go with the broker.

Aspiration

K_S said:

Aspiration said:

Hi, looking at remortgaging in a October once cleared all debt. 

House value is £580k mortgage £245k, we want to take out as much as possible to buy a second property. 

If we wanted to take money out and remortgage what’s the most do you think we can take out? 

Are we likely to be able to mortgage to 90% or are there more restrictions if we want to take money out for a second property?

@aspiration What's the second property going to be used for?

At 90% you will be limited to a couple of lenders and strict affordablity calcs.

At 85% the field gets a bit wider.

At 80% you'll have a wide pool of potential lenders.

Criteria and how affordablity is calculated differs from lender to lender and your specific circumstances so it's hard to give a general picture.

Fantastic thanks v helpful. 

LaurenceH

Hi there, 
I have a question. 
Our Experian score is 981 so in the Excellent band (although I know the number doesn't really mean much).
We have no missed payments in the last 12 months, HOWEVER, up until April 2020 we had arrears on the Unsecured part of our Landmark Together loan. These were caused after a !!!!!! up from Step Change when we were in a DMP back in 2016 (closed in 2018), but repaid in full in April 2020. 
We're looking to buy a property for £290,000. 
Affordability is great in terms of monthly repayments for a mortgage. 
My question is... is there ANYONE likely to take us at 90% LTV right now? 
We've been offered 85% but that additional 5% is the difference maker at the mo. 
And...based on no missed payments in 12 months, how long am I likely going to need to wait to get back into the 90% LTV band? I know that may be an impossible question as things can change rapidly. 

K_S

LaurenceH said:

Hi there, 
I have a question. 
Our Experian score is 981 so in the Excellent band (although I know the number doesn't really mean much).
We have no missed payments in the last 12 months, HOWEVER, up until April 2020 we had arrears on the Unsecured part of our Landmark Together loan. These were caused after a !!!!!! up from Step Change when we were in a DMP back in 2016 (closed in 2018), but repaid in full in April 2020. 
We're looking to buy a property for £290,000. 
Affordability is great in terms of monthly repayments for a mortgage. 
My question is... is there ANYONE likely to take us at 90% LTV right now? 
We've been offered 85% but that additional 5% is the difference maker at the mo. 
And...based on no missed payments in 12 months, how long am I likely going to need to wait to get back into the 90% LTV band? I know that may be an impossible question as things can change rapidly. 

@laurenceh Is it showing as a series of '6's on your credit history until April 2020? And was the loan delinked at some point from the secured part of the loan?

LaurenceH

Hi @K_S. On Experian it shows "6 months late" when you go into the account, but on the "dashboard" on the account it says, "No issues in the account history which will affect your score." 
And the loan hasn't been delinked yet as we're still in the same "mortgage," It's annoying as at the start of the DMP I told Stepchange we had to pay the full amount of the unsecured loan as I didn't want it to affect credit. I had asked for it not to be part of the DMP but they said it had to, but that it would be OK as my credit file would show they'd allowed it.

Of course I know now that Landmark do show it as arrears.  At that point in 2016 I was just desperate to get rid of debt and took them at their word

K_S

LaurenceH said:

Hi @K_S. On Experian it shows "6 months late" when you go into the account, but on the "dashboard" on the account it says, "No issues in the account history which will affect your score." 
And the loan hasn't been delinked yet as we're still in the same "mortgage," It's annoying as at the start of the DMP I told Stepchange we had to pay the full amount of the unsecured loan as I didn't want it to affect credit. I had asked for it not to be part of the DMP but they said it had to, but that it would be OK as my credit file would show they'd allowed it.
Of course I know now that Landmark do show it as arrears.  At that point in 2016 I was just desperate to get rid of debt and took them at their word

@laurenceH It's hard to say without the full details but 85% sounds quite good based on the limited info in your posts. I hope you are using a broker so it's placed appropriately. Good luck!