Mortgage broker - ask me anything

polar400

Thanks for the info @K_S.
We are keeping an eye out on the Santander Mortgage Timeline page too, but it’s a bit more difficult not knowing whereabouts we are in the process. Sounds like a stupid question, but surely they wouldn’t book the valuation if they were going to decline/hadn’t seen the application? Doesn’t seem to make logical sense to me to book the valuation without having looked over the application first. 

Peppermint90

I have a maths question....sorry if it sounds silly, but i got stuck working it out because of the interest involved...
If my purchase price is 455k, 85% mortgage at 2.95% interest, so paying back £1413 monthly, what % ltv will i require to remortgage in 5yrs time? 

K_S

@peppermint90 Just plug your numbers in the MSE calculator here https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/ and it should give you the balance at the end of each year. I made an assumption on your term (37 years), and it looks like your balance will be around 357k at the end of year 5. So assuming your house value remains the same (455k), that gives an LTV of around 78%, so the 80% LTV band. If your house value increases, then the LTv will go down accordingly.

Peppermint90

K_S said:

@peppermint90 Just plug your numbers in the MSE calculator here https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/ and it should give you the balance at the end of each year. I made an assumption on your term (37 years), and it looks like your balance will be around 357k at the end of year 5. So assuming your house value remains the same (455k), that gives an LTV of around 78%, so the 80% LTV band. If your house value increases, then the LTv will go down accordingly.

Thank you so much! 

earlgrey13

Thanks a lot in advance for your help. May I please quickly check something related to ERC (Early Repayment Charge)? We are selling our property and will be subject to ERC upon completion (2 year fixed deal expiring Jan22 with Barclays). However, at the same time, we have just agreed to buy another property (higher price) but the expected completion date may be end of August or September. Is there any chance we can negotiate off the ERC payment on our previous mortgage and either transfer it to our new home or take a new mortgage out with Barclays?

Financially, it makes a ton of sense for Barclays to do it but it may require an exception I understand. Could you please let us know if you have encountered such situation before?

Thanks again for your kind help.

K_S

@earlgrey13 If your current Barclays product allows porting (the original mortgage offer will say) then that is one way to potentially avoid the ERC when moving home.

Borrowers moving home who incur an ERC on sale may have any ERCs refunded as long as they port their existing product, complete at the same time or within 90 days of completion of sale. Effectively your purchase will need to complete within 3 months of your sale.

Based on the limited information in your post, Barclays is unlikely to make an exception to their usual policy and criteria.

Wantabeautifulhouse

Hi. My husband  has a fix salary of 35k. I am newly self employed so won't count towards the mortgage. We will have 50% LTV. My husband is turning 49 this year. Will he be able to get 4.5x his salary or does age count against him? No real pension and he will work until he is 70 we assume (desk job).

Also, will I count as a dependent? I earn my own money through self employment which can't be used for the mortgage (brand new).

No kids. No debt. Good credit. 

K_S

@Wantabeautifulhouse Generally speaking, you'll go on the mortgage as a joint applicant with no income. 

You may struggle to achieve 4.5x because of the limited maximum term of 20 years. If your husband is in a job where is plausible to work beyond 70, and he intends doing so, then there are a few lenders who may consider a longer term.

Based on the limited info in your post, you are likely to max out around 130-140k very roughly speaking. If you will need to maximise borrowing, I would recommend speaking with a mortgage broker to get a realistic picture of your options.

RueMav

Hi All, 
I am doing some research on purchasing a property. 
We earn over £75k household income
I have 3 defaults from 2015/2016 which I'm paying 
I have 3  credits cards that I pay each month. I am working on closing these by the end of year.
Will I be able to get a mortgage with any high Street lenders or nor. Please help me. 

Thank you

K_S

RueMav said:

Hi All, 
I am doing some research on purchasing a property. 
We earn over £75k household income
I have 3 defaults from 2015/2016 which I'm paying 
I have 3  credits cards that I pay each month. I am working on closing these by the end of year.
Will I be able to get a mortgage with any high Street lenders or nor. Please help me. 
Thank you

@ruemav Depends on the details of your credit history and your borrowing requirements. With multiple unsatisfied defaults, the case is unlikely to be placeable with high-street lenders but you may still have access to mainstream-ish rates depending on the details.