Mortgage broker - ask me anything

K_S

@pj841 Generally speaking, for mainstream lenders, discretionary spending shouldn't be factored in for affordability.

jazzyja

Tsb mortgage....im awaiting a decision, they asked my broker yesterday what RCN was which is my union and also 3 months of child maintainence payments....which I explained were titled under the name xxxxx on my statements. Now is this stage the under writing stage or am I still on the "initial case review and document processing"? As it was only submitted Friday. Thanks

hprice1099

Hi Guys,

 

I need some advice if you can help, I’m currently 2 years to the end of my fixed rate with a charge of 2k to exit. Basically I’m selling my property and moving to another property, the reason for this is to clear my 20k of debt. I've been told I need to sell and buy at the same time with NatWest to avoid the charge, the issue is I only want to put 10% deposit down but NatWest are saying I need to put 15%. I can't do this with clearing all my debts, legal fees and 10% deposit. So I need to know is there a period between selling and buying where if I stay with NatWest I could claim this back? I could stay with my partner in-between while I’m waiting for my new house to go through.

Thanks

P.s I hope that makes sense lol

James-may

K_S said:

@rennes99 I don't know about how it shows on reports but I can say with certainty that a NatWest AIP would not be issued without a soft-footprint or hard-footprint credit check.

While I don't doubt you know what you are talking about, as you work in this field.
I had an aip from NatWest, once I had an offer accepted I applied properly and was instantly declined, I later that day spoke to someone who resubmitted the application and again was declined, they said they didn't have a specific answer as to why other than the checks for aip were different to the pre checks for mortgage proper.
However looking back at all my credit checks.
No soft it hard checks were done for my aip, but 2 appear for both times I was declined on the same day.
Seems NatWest aren't doing a soft check to give aip, at least nothing appears on my credit report.

K_S

James-may said:

K_S said:

@rennes99 I don't know about how it shows on reports but I can say with certainty that a NatWest AIP would not be issued without a soft-footprint or hard-footprint credit check.

While I don't doubt you know what you are talking about, as you work in this field.
I had an aip from NatWest, once I had an offer accepted I applied properly and was instantly declined, I later that day spoke to someone who resubmitted the application and again was declined, they said they didn't have a specific answer as to why other than the checks for aip were different to the pre checks for mortgage proper.
However looking back at all my credit checks.
No soft it hard checks were done for my aip, but 2 appear for both times I was declined on the same day.
Seems NatWest aren't doing a soft check to give aip, at least nothing appears on my credit report.

@james-may You might well be right about your case and I don't know anything about it. But as you would expect, I do NatWest apps for clients every week (they're very competitive at the moment) and I can assure you that they do do credit-checks (soft-footprint at DIP and hard-footprint at FMA) and specifically mention that prior to clicking the 'Submit' button on the broker portal for both the DIP and the FMA. There is no way for a high-street lender to run a 'credit-score' without that. It could be that footprints did not show in the cases you've mentioned due to a technical error or something I guess.

James-may

K_S said:

James-may said:

K_S said:

@rennes99 I don't know about how it shows on reports but I can say with certainty that a NatWest AIP would not be issued without a soft-footprint or hard-footprint credit check.

While I don't doubt you know what you are talking about, as you work in this field.
I had an aip from NatWest, once I had an offer accepted I applied properly and was instantly declined, I later that day spoke to someone who resubmitted the application and again was declined, they said they didn't have a specific answer as to why other than the checks for aip were different to the pre checks for mortgage proper.
However looking back at all my credit checks.
No soft it hard checks were done for my aip, but 2 appear for both times I was declined on the same day.
Seems NatWest aren't doing a soft check to give aip, at least nothing appears on my credit report.

@james-may You might well be right about your case and I don't know anything about it. But as you would expect, I do NatWest apps for clients every week (they're very competitive at the moment) and I can assure you that they do do credit-checks (soft-footprint at DIP and hard-footprint at FMA) and specifically mention that prior to clicking the 'Submit' button on the broker portal for both the DIP and the FMA. There is no way for a high-street lender to run a 'credit-score' without that. It could be that footprints did not show in the cases you've mentioned due to a technical error or something I guess.

Perhaps it is a technical issue, only 2 searches from NatWest on all 3 report companies I use and both searches were on the same day from when I put the pre application through proper, and both were soft searches.
With Santander they did one soft fir aip, and what looks like a hard search when applying proper, at least that's what my reports say.
As you said it might have been a glitch that the search didn't appear, or could have been a glitch that the system didn't do a search on aip.
Guess I'll never know.

K_S

hprice1099 said:

Hi Guys,

I need some advice if you can help, I’m currently 2 years to the end of my fixed rate with a charge of 2k to exit. Basically I’m selling my property and moving to another property, the reason for this is to clear my 20k of debt. I've been told I need to sell and buy at the same time with NatWest to avoid the charge, the issue is I only want to put 10% deposit down but NatWest are saying I need to put 15%. I can't do this with clearing all my debts, legal fees and 10% deposit. So I need to know is there a period between selling and buying where if I stay with NatWest I could claim this back? I could stay with my partner in-between while I’m waiting for my new house to go through.

Thanks

P.s I hope that makes sense lol

@hprice1099 This is not commenting on your specific case as there may be specific matters that are relevant not shared in your post.

Generally speaking, with NatWest porting, if simultaneous completion isn’t possible, the client has up to 4 months to complete on the new property after redeeming the original mortgage whereby they will refund the ERC. NatWest MUST receive the new application BEFORE you redeem the old mortgage. If you miss out on that step, no ERC will be refunded.

GeorgianaCavendish

I've got a few questions about bank statements - I might be paranoid with some of these but thought it was better to ask and put my mind at ease! 
1. How many months bank statements will a lender ask for? (Joint mortgage application, both of us are employees paid via PAYE/BACS) 
2. How closely do lenders scrutinise the statements? We don't have any gambling transactions or similar, but I use Monzo for my day-to-day spends. I use the "savings pots" feature heavily, transferring money into pots every pay day and then withdrawing from them as and when needed. Just looking at one of my Monzo statements, there are dozens of "transfer from savings pot" transactions in a typical month. 
3. Should we be prepared to show statements for all accounts we own / all the ones that come up on our credit file? Or do lenders typically want to see proof of income, and proof of deposit funds? I have 3 current accounts (HSBC where my salary goes, Monzo for day-to-day spending and Virgin which has a small balance sitting there accruing interest) - will they want to see statements for all of these? 

K_S

@GeorgianaCavendish These are general comments and not specific to your scenario-

1. Depending on the lender and the specific case - 0-3 months for most mainstrean lenders for basic PAYE income cases

2. They are looking to verify income and whether all financial commitments indicated on the statements have been disclosed in the applicaiton.

3. Generally speaking, as a broker I want to see the bank statements showing receipt of income and regular outgoings (such as council tax DDs, etc).

GeorgianaCavendish

Thank you @K_S - very helpful as always