Mortgage broker - ask me anything

SwipernoSwiping

K_S said

@swipernoswiping Quick thoughts -

- Regarding how much you can borrow using the SE income, it depends on whether the last 2-3 months of trading shows that you are trading at/close to normal levels.

- There is no easy way to leverage the two unencumbered properties currently occupied by parents for the purpose of buying a residential property to live in. If you had paying non-family tenants in or at least vacant properties, there might be options.

Thank you K_S for the clear, no mess answer on this. It's really appreciated and you've enabled decisive progress.

Rjh123

Hi, I would be very grateful if I could get some advice. I brought my house from the council in 2018- I have 2 years until the 5 years period is up. I recently remortgaged and had the mortgage + deeds into my sole name. I am now looking to carry out some home improvements. My mortgage lender has approved the advance on my mortgage. Would I have to get the councils approval or even inform them regarding the advance or prove to them what I will be spending the money on? I am aware in terms of building requirements I will need planning permission + inspection.
Many thanks 

marvelman1985

@K_S Just in case you’re interested, or if it may be helpful to you or anyone here in any way, I managed to chat with the NatWest intermediary team about the odd calculator issue - they said that the reason for the offer difference when adding the CB as income to applicant 1 rather than applicant 2, is that with no income recorded at all, applicant 2 “will be looked at as a dependant, the so lend will reduce”.

However, the agent didn’t have an explanation as to why there wasn’t any change to the offer when this was done for LTVs above 76% - she has flagged this with the technical team as a possible bug.

I also asked about the large difference between the DIP tool offer and the intermediary calculator offer, she said they essentially use the same calculator for both, so was equally flummoxed and advised calling the mortgage team too!

K_S

marvelman1985 said:

@K_S Just in case you’re interested, or if it may be helpful to you or anyone here in any way, I managed to chat with the NatWest intermediary team about the odd calculator issue - they said that the reason for the offer difference when adding the CB as income to applicant 1 rather than applicant 2, is that with no income recorded at all, applicant 2 “will be looked at as a dependant, the so lend will reduce”.
However, the agent didn’t have an explanation as to why there wasn’t any change to the offer when this was done for LTVs above 76% - she has flagged this with the technical team as a possible bug.
I also asked about the large difference between the DIP tool offer and the intermediary calculator offer, she said they essentially use the same calculator for both, so was equally flummoxed and advised calling the mortgage team too!

@marvelman1985 Thanks for the update, that is really useful! Please do feedback when/if you get to the bottom of the discrepancy between direct DIP/affordability vs intermediary affordability calcs. I would be shocked if it were possible that a client could borrow more by going direct than they would through a broker if all the case information and numbers were the same.

marvelman1985

@K_S No problem, yep I’ll be sure to let you know - even though I’ve triple checked all the figures/info, I’m sure the cause is probably something very basic that I’m missing! 🥴

Rafared83

Seeking some advice please.
My new build is scheduled to be built 3-4 weeks after my rent lease expires. The plan is to live with family for this gap period between rent and house completion.
Question: do I have to tell the solicitor / mortgage company of this temporary address or should I just have post re directed. 

Debs757

Hi
Our mortgage valuation was done yesterday so waiting to hear. The property we are purchasing was a deceased property and 3 months ago was purchased by a builder and being completely done up. Everything new you can think of.
I'm worried the valuation will look at the property now when there's still 5 weeks left of work to do and under value it. Do you have any experience of valuations being done on properties where work is still due to be completed?
Thanks 

K_S

Debs757 said:

Hi
Our mortgage valuation was done yesterday so waiting to hear. The property we are purchasing was a deceased property and 3 months ago was purchased by a builder and being completely done up. Everything new you can think of.
I'm worried the valuation will look at the property now when there's still 5 weeks left of work to do and under value it. Do you have any experience of valuations being done on properties where work is still due to be completed?
Thanks 

@debs757 Depends on what kind of work is outstanding and whether the house is habitable. If it's just cosmetic it should be fine. If the kitchen/bathroom are ripped up and unusable, or the rear extension is half built, etc then it may cause issues. There's no black and white answer to your question unfortunately as it's the valuer's subjective opinion on what he/she sees at the property on the day.

Do make sure that the lender is one that is fine with a purchase from a vendor who has owned the property for less than 6 months as not all are.

Unicorn2809

Hi question about Scottish mortgage application. Is the process speed up in any way with the fact a home report has already been carried out? 
Thank you 😊

desperatelytryingtoimprove

Hoping for some reassurance. I am a first time buyer on my own im buying a house at 160,000 and have a 15 percent deposit. I have a great experian score of 985 out of 999. I have no loans however I do have one default on my file from a mail order. it was for 100 and it defaulted in march 2019 and it was paid may 2020. I need to go for my mortgage in November as the house will be ready in April. I have had 4 DIP - nationwide,Halifax, barclays and HSBC however I'm doubting whether these are reliable. my question is should I be worried the default isn't three years old.....should I rely on the decision in principles or have I a hope of getting this mortgage through??? any help would be fab!