Mortgage broker - ask me anything

K_S

marvelman1985 said:

@K_S So strange, I used your example figures and found the same - no difference no matter where I put the CB.
However, when I changed the LTV to our 53% level, it started exhibiting the ~£3k difference in the offer when attributing it to each applicant in turn.
(Sorry, perhaps I should have mentioned that LTV rate!)
Also, something I just noticed, I’m seeing a much larger offer figure when using 32 years as the term (which is our plan) versus when I left 25 in there, is that to be expected? Changing the term in this way didn’t make any difference at 80% LTV.
I’m guessing low LTV is the culprit, is it just that lenders are more relaxed at this level due to lower risk involved?

@marvelman1985 The longer term increasing max borrowing is normal as that makes the monthly payment more affordable.

The difference <75% LTV is likely a bug more than anything else.

swanseajack91

Does the surveyor doing the house valuation for the mortgage know the asking price/ purchase price?

julicorn

I know some mortgage lenders allow you to borrow more than 4.5x your salary, under the right circumstances (e.g. 4.9x or 5x). Do products that allow this generally have relatively high rates compared to the rest of the market?
Many thanks!

goodwithsaving

@K_S Are you finding bundled TMW (ltb) & Nationwide (residential) applications are taking a long time at the moment? My buyer is 5 weeks in and I'm feeling concerned, but hope the broker wouldn't have said it was possible if it wasn't.

K_S

julicorn said:

I know some mortgage lenders allow you to borrow more than 4.5x your salary, under the right circumstances (e.g. 4.9x or 5x). Do products that allow this generally have relatively high rates compared to the rest of the market?
Many thanks!

@julicorn Most mainstream lenders have criteria which allows up to 5x borrowing under certain circumstances. If you/ your case tick those boxes you get the same products, same rates.

It's the same with specialist lenders, if you/case meet the criteria to qualify for higher multiples, you generally get the same products/rates as someone whose borrowing is capped at a lower multiple.

Then you have professional products which are a different category which even allow 5.5-6x. To the lender they are lower risk because of the profession and earning prospects of the applicant. These are usually a specific set of products with rates usually slightly higher and usually only at high-LTVs.

julicorn

K_S said:

julicorn said:

I know some mortgage lenders allow you to borrow more than 4.5x your salary, under the right circumstances (e.g. 4.9x or 5x). Do products that allow this generally have relatively high rates compared to the rest of the market?
Many thanks!

@julicorn Most mainstream lenders have criteria which allows up to 5x borrowing under certain circumstances. If you/ your case tick those boxes you get the same products, same rates.

It's the same with specialist lenders, if you/case meet the criteria to qualify for higher multiples, you generally get the same products/rates as someone whose borrowing is capped at a lower multiple.

Then you have professional products which are a different category which even allow 5.5-6x. To the lender they are lower risk because of the profession and earning prospects of the applicant. These are usually a specific set of products with rates usually slightly higher and usually only at high-LTVs.

Really helpful, thank you!

K_S

goodwithsaving said:

@K_S Are you finding bundled TMW (ltb) & Nationwide (residential) applications are taking a long time at the moment? My buyer is 5 weeks in and I'm feeling concerned, but hope the broker wouldn't have said it was possible if it wasn't.

@goodwithsaving TMW service levels are a bit pants at the moment. Nationwide's is even worse due to all the super competitive products they have out. 

GeorgianaCavendish

K_S said:

GeorgianaCavendish said:

What is realistic when looking at mortgage terms? Joint mortgage, borrowing between £300-£380K with £75K deposit on joint income of £120K. Both applicants will be 38 years old - is it realistic to ask for a 30 or 35 year term given our ages?

@GeorgianaCavendish For borrowing based on employed income, most lenders will cap the term at 70 years of age, so 31 years in your case.

Some lenders will consider up to 75 if the job are plausible to carry on beyond 70 and the applicants intend to work beynd 70. So in that case you could theoretically go up to a 36 year term.

Thank you!  

Ameba

Hello @K_S,
We're SO FTB, applied for mortgage to Santander (via broker). They have asked for additional docs which we have provided. The valuation is booked for next week. 
My question - are we moving towards approval (provided valuation goes to plan etc.) or can they still ask for additional docs and reject the application? My husband's on fixed term contract at work (has been for the past 3,5 years) but they only asked for last x3 payslips and I am wondering if they 're likely to still ask for proof / forecast of contract extension ... 
Many thanks 

K_S

@ameba I don't know how your broker has keyed in the app or packaged it , but based on the limited info in your post, I would expect Santander to ask for more evidence/queries to establish the longevity of the contract. As long they are asking questions, it's a good sign