Mortgage broker - ask me anything

Redwino222

K_S said:

@redwino22 Nationwide is quite swamped at the moment. I don't see anything overly unusual in what you have described.

Thank you.  It’s incredibly frustrating! Not the buyers fault but I was hoping to beat the stamp duty cut off and hadn’t anticipated their mortgage taking this long.  Hopefully will get some news next week

HistoryGirl_3

I'm looking to buy 150k flat I'll have a deposit of 20k part of which is in a Help To Buy ISA. I had a DIP from L&C and Moneybox for £128k. Would it be worth perhaps checking with my bank first as they know me or should I just go to through someone like L&C? Does it affect my score if I have multiple DIPs?

K_S

HistoryGirl_3 said:

I'm looking to buy 150k flat I'll have a deposit of 20k part of which is in a Help To Buy ISA. I had a DIP from L&C and Moneybox for £128k. Would it be worth perhaps checking with my bank first as they know me or should I just go to through someone like L&C? Does it affect my score if I have multiple DIPs?

@HistoryGirl_3 For standard residential mortgages, your bank knowing you matters not one jot. It might mean the difference between submitting a bank statement or not, but that's pretty much it. So if the choice is between going to you bank or L&C, imho L&C would be far better.

Soft-footprint DIPs shouldn't have any adverse impact on your credit history. But there's no need to do DIPs willy-nilly.

HistoryGirl_3

K_S said:

HistoryGirl_3 said:

I'm looking to buy 150k flat I'll have a deposit of 20k part of which is in a Help To Buy ISA. I had a DIP from L&C and Moneybox for £128k. Would it be worth perhaps checking with my bank first as they know me or should I just go to through someone like L&C? Does it affect my score if I have multiple DIPs?

@HistoryGirl_3 For standard residential mortgages, your bank knowing you matters not one jot. It might mean the difference between submitting a bank statement or not, but that's pretty much it. So if the choice is between going to you bank or L&C, imho L&C would be far better.

Soft-footprint DIPs shouldn't have any adverse impact on your credit history. But there's no need to do DIPs willy-nilly.

Ok noted thanks for the reply.

mortgage_noob

K_S said:

mortgage_noob said:

Hi, I'm a FTB looking to out down a 20% deposit. Is 2 or 5 years recommended at the moment?  The difference in payment per month seems pretty negligible (£60 more for 5 year) but I'm wondering if it's a good idea to remortgage after 2 years to  get a better LTV as we'll have paid some of the mortgage off and there's a good chance the house will be worth more? 

@mortgage_noob There's no black and white answer to that as it depends partly on the numbers and more so on your attitude and what you think about interest rates rising/falling in the coming years.

Generally speaking, 80% LTV rates are pretty competitive so if you are the kind of person who doesn't mind long contracts, would rather not have to think about the mortgage for a while and is unlikely to move in the interim, you may want to go for a 5 year fix.

Otoh, if you expect to make significant overpayments, think rates will go down further, might need to move in a few years or simply don't like signing up to long contracts, it might be worth considering a 2 year fix/discount/tracker product.

Lots of different permutations and combinations of the above.

Thanks! I'm erring towards the 5 year seeing as the rates for 80% are competitive 

emmalou2645

K_S said:

emmalou2645 said:

FTB who have gone to mortgage broker. Husband is SE and I am full time employed £34,000. We are looking for just under 90LTV and have AIP for £200,000 with both Santander and Barclays. Barclays have actually registered a hard search on me which I wasn’t expecting. Can I assume this is a good sign and will they have to do further credit checks? I am surprised at Santander confining AIP as I thought SE required min 25% deposit. We are viewing a property tomorrow which is ideal for us and would be around £180,000 my question is Given we are looking for less than top end AIP and the fact they have done hard credit check, or could underwriting still be difficult for us with self employment. 

@emmalou2645 75% LTV max for SE at Santander is what I thought as well. Perhaps criteria has changed in the last few days and I missed the memo. I've been avoiding Santander as much as I can for SE clients, they've been an absolute nightmare since Covid, a law unto themselves.

Assuming both are broker DIPs, there's no inference to be drawn from whether it's a hard check vs soft check.

I don't know your case specifics so can't really comment on whether underwriting will be difficult or not. All high LTV SE cases will be looked at closely by most lenders. Good luck!

Thanks for this, I’m a little confused by broker suggestion of Santander, but I guess I have to trust the information she is providing. I submitted the my credit file report for both me and husband complete with earnings, so she has everything to work with so no surprises. Barclays hard check for AIP was unexpected, so hopefully it has no impact on future applications. Thank you for getting back to me. 

Madeinireland101

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

Madeinireland101

Madeinireland101 said:

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

I should add that I’m also happy to partake in a Joint Borrower Sole Propriator mortgage with her if that helps but being an old person of 60 it means the term of the mortgage is likely to be limited I think which might make her payments a bit high.

greenpanda

We are coming up to 6 weeks waiting on our mortgage with Santander and are getting close to the point where we will have to go into rental rather than our new home. Not self employed. Is there anything we can do to hurry things up? We have a broker, who I really like, is there anything we can do except politely asking them to chase it?

K_S

greenpanda said:

We are coming up to 6 weeks waiting on our mortgage with Santander and are getting close to the point where we will have to go into rental rather than our new home. Not self employed. Is there anything we can do to hurry things up? We have a broker, who I really like, is there anything we can do except politely asking them to chase it?

@greenpanda If the delay isn't due to the broker waiting for documents/information from you or Santander waiting for documents/information from the broker, there isn't really a lot that can be done to hurry it up.

6 weeks for a standard PAYE application is a bit unusual for Santander, when did the valuation happen? Anything non-standard about the case at all - variable income, furlough, unusual property, interest-only, etc?