Mortgage broker - ask me anything

tracy_l

kingstreet said:

tracy_l said:

MB got a message pop up from accord mortgage, ‘loan amount query’, what does it mean?

Your broker told you this without first establishing the issue and how to resolve it? That's helpful...

His colleague saw the note on their system, I hopefully get an answer from broker tomorrow. So stressed 

polar400

We have had our mortgage agreed by Santander pending valuation. We are FTB with HTB and after a farcical chain of events with the valuation booking that delayed it by 3 weeks, it has now been returned and the house has been valued at £20,000 under asking price. As we are buying a new build and due to complete in less than 3 weeks, the MB has advised us to appeal the valuation outcome and instruct a second valuation on the property. The MB has also said that should this come back lower than asking price, we would be in a good position (due to the short timeframe and year end) to negotiate the asking price with the developers. Does anyone have any experience of being successful in these matters or advice about how to go about this should we need to?

sassyboop89

My broker submitted my application last week, they asked for a gifted deposit letter today (it is concessionary purchase). Is this a good sign or just part of the information collecting for the application?

eclenic

Any alternatives available for guarantor-style mortgages other than JBSP at the moment?

Current mortgage broker (who for a variety of reasons I've totally lost faith in) has previously advised that this is the only option, however due to age of guarantor the mortgage is only 12 years and payments are unaffordable. 

Purchase price £230k, up to 20% deposit available, both guarantors higher-rate tax payers, I (sole applicant) am currently on a 15k per year tax free stipend with a minimum earning potential of ~40k in ~3 years time. Guarantors are willing to put up cash or charge on their property, but it needs to be a standard length mortgage to be viable. Any pointers greatly appreciated!

Jack_Sparrow123

TLDR Q:
Should I max out my BTL (interest only) mortgage borrowing and reduce my residential capital repayment mortgage borrowing?

Scenario:

1. I own 2 x BTLs, both on my personal name

2. BTL1 (value: £280k) has an interest only mortgage. BTL2 (value £300k) is mortgage free

3. I'm to buy a residential house to live in (value £320k. To buy the house I will be taking a residential capital repayment mortgage on the house and will be taking an interest only mortgage on BTL2. BTL1 is to stay unaffected.

4. if I take out no more than 60% LTV residential capital repayment mortgage I get better mortgage rates than if I go for a higher LTV mortgage. This means I would need to take out more borrowing on the interest only BTL2 mortgage to account for the reduced borrowing on the residential mortgage. As the borrowing on BTL2 is interest only the monthly payments are lower than would be on a residential capital repayment mortgage

Long Version Q:

I am worried that by taking out more borrowing on the interest only BTL2 mortgage, I'll be keeping myself in debt longer as I wont be paying off the loan amount. I'll essentially be kicking the can down the road, which is not what people do when buying a house. I appreciate however that my monthly payments will be less meaning I can save more money. I also appreciate that I could make up to 10% over payments every year on the BTL2 mortgage. Does anyone see anything I've not thought of here? Anyone got any perspectives on what I should do?

Uraf

I and my siblings have inherited a house that was never registered, I am moving into the property and wanting a mortgage to buy out my siblings. My solicitor is saying land registry is taking a very long time at present, and advice they are getting is that some may not be back before the end of the year, can I get a mortgage before the registration is complete ? 

K_S

eclenic said:

Any alternatives available for guarantor-style mortgages other than JBSP at the moment?
Current mortgage broker (who for a variety of reasons I've totally lost faith in) has previously advised that this is the only option, however due to age of guarantor the mortgage is only 12 years and payments are unaffordable. 
Purchase price £230k, up to 20% deposit available, both guarantors higher-rate tax payers, I (sole applicant) am currently on a 15k per year tax free stipend with a minimum earning potential of ~40k in ~3 years time. Guarantors are willing to put up cash or charge on their property, but it needs to be a standard length mortgage to be viable. Any pointers greatly appreciated!

@eclenic There are different variants of JBSP mortgages but the base requirement will require the borrowers' income to meet affordability over the whole of the term. The exact product that works (if any) depends on the specific scenario and numbers so my guess wouldn't be very useful.

If you don't trust that your broker has explored all the potential optoins, all I can recommend is to get a second opinion from an experienced broker.

K_S

Uraf said:

I and my siblings have inherited a house that was never registered, I am moving into the property and wanting a mortgage to buy out my siblings. My solicitor is saying land registry is taking a very long time at present, and advice they are getting is that some may not be back before the end of the year, can I get a mortgage before the registration is complete ? 

@uraf You may be able to get a mortgage offer before the land registry formalities but for completion the peoperty will need to be registered.

sheffield_soldier

Hi,
I am looking to get a mortgage with my wife later this year. About 12 years ago I owned a house with ex and finished up bankrupt. The bankruptcy is off my credit file and my report is looking excellent. Scores are all excellent and I cannot find a bad mark on any. We don't have any debt other than a couple of credit cards, but they're low (<500) or paid up. I have been regular employed and earn quite a lot. We have about 10/15% deposit saved.

I bank with First Direct and I wonder if it would be best to try and get a mortgage with them as they know my full history. Would you say this is a good idea in my situation or would you say to go through a broker (honestly and not thinking of getting business)? 

K_S

sheffield_soldier said:

Hi,
I am looking to get a mortgage with my wife later this year. About 12 years ago I owned a house with ex and finished up bankrupt. The bankruptcy is off my credit file and my report is looking excellent. Scores are all excellent and I cannot find a bad mark on any. We don't have any debt other than a couple of credit cards, but they're low (<500) or paid up. I have been regular employed and earn quite a lot. We have about 10/15% deposit saved.

I bank with First Direct and I wonder if it would be best to try and get a mortgage with them as they know my full history. Would you say this is a good idea in my situation or would you say to go through a broker (honestly and not thinking of getting business)? 

@sheffield_soldier There's no harm in checking with FD if you want to do so. Being a customer of a particular bank does not (in my experience) make a difference but I don't know about FD as they are a direct-only lender.

With a 12 year old repo and BR, and a clean credit-history, I don't see anything in your post which suggests that you won't get mainstream rates. A few lenders will not lend to applicants who have ever been BR or had a property repo'd so as long as you check with them before applying, you should be fine. Good luck!