Mortgage broker - ask me anything

ukri

Edi81 said:

Athanasia said:

felinefancy said:

Hello,

My husband and I are in 57 and 55 respectively and we're looking for a mortgage as FTBs.  Currently we're in London paying £1200 per month rent and, with a transfer to Sheffield on 3rd October, we're looking to purchase a house in the very near future.   We'll most likely have to go up north and rent first (for 6 months, or until we find a house).   We've got £100k deposit and husband only wants a 5-8 year mortgage.  We've got AIPs from L&C and Mojo online mortgages, based on scenarios of either one salary or two (depending if I'm working or not), so either AIPs of £25k min up to £90k.  We would be looking to purchase in either case, max £140k so we're not overstretching ourselves.

Firstly,
i)  would it be advisable to check out other mortgage brokers, instead of free online brokers
ii)  What sort of mortgage would suit us - fixed term ones?
iii)  Could we start enquiring with other mortgage brokers now (we haven't even started looking at houses yet..) and getting quotes for conveyancers (I understand these are cheaper than solicitors?)
iii)  Anything else you would advise in our situation?

Many thanks in advance.. much appreciated.

I was very disappointed by both L&C and Mojo; they said that I would be declined by the lenders, but here I am now with a mortgage offer from Santander.  I actually lodged a formal complaint with both, Mojo just gave me a pat on the back saying good luck, but L&C took it seriously, albeit too late, as I had already gone directly.I would either do my own research or go with a recommended mortgage advisor. I had spoken to two mortgage advisors in my area who both gave me wrong information and discouraged me from applying, probably because they had not done their homework, or just don't get high commission from the lender of my choice. 

You aren’t borrowing enough for them to make enough commission from you. It was their way of saying they didn’t want your business. 

Yeah. I don'tthink people realise that mortgage brokers often reject customers when they make an assessment that it won’t be profitable or it’s too much hassle. If OP has spoken to 4 brokers none of whom wanted to help a requirement that could be fulfilled by a high street bank, clearly they didn’t want her business. Of course they can’t say that in so many words.

Bank advisors on the other hand don’t really care.

desperatelytryingtoimprove

Really looking for some reassurance as I'm losing the will. I have a small default of 100 pounds from March 2019 ( it's been settled since May 2020 as I only found out about it then) long story short I had this brought to the ombudsman who initially ruled in my favour but then has changed their mind.....im not stuck with the default and I'm looking to put a mortgage application in in November/ December

I do have an AIP in place with nationwide  I also have a 15 percent deposit and very high credit rating even though I know its worthless 

I have no other late payments but I do have the presence of a few amigo loans from 2017

I'm worried with the default not being three years old until March that my mortgage will decline in December....have you had any success with this?? my broker seems to think it will be fine but I'm not sure if she is just trying to reassure me 

jon0108

Hi, I am buying a home which is going to make need me to get a mortgage where my loan to value is 75.5% I have put everything in that I can and wondered if there are any tips or tricks for getting below the magical 75% figure. Other than borrowing somewhere to put in. The difference in repayment is around 100 per month if I could put something in to get me under.

Just wondered if any brokers out there know of a way to get around this. Thanks J

K_S

jon0108 said:

Hi, I am buying a home which is going to make need me to get a mortgage where my loan to value is 75.5% I have put everything in that I can and wondered if there are any tips or tricks for getting below the magical 75% figure. Other than borrowing somewhere to put in. The difference in repayment is around 100 per month if I could put something in to get me under.

Just wondered if any brokers out there know of a way to get around this. Thanks J

@jpn0108 No tips or tricks that I know of unfortunately. No way of saving up the extra 0.5% in the months between now and completion? 

jon0108

K_S said:

jon0108 said:

Hi, I am buying a home which is going to make need me to get a mortgage where my loan to value is 75.5% I have put everything in that I can and wondered if there are any tips or tricks for getting below the magical 75% figure. Other than borrowing somewhere to put in. The difference in repayment is around 100 per month if I could put something in to get me under.

Just wondered if any brokers out there know of a way to get around this. Thanks J

@jpn0108 No tips or tricks that I know of unfortunately. No way of saving up the extra 0.5% in the months between now and completion? 

Thanks for prompt response. Should be able to get there to be honest, thanks.

BakingC

Hi,

Basically looking at buying a house at some point in next 12 months based of current saving projections might end up with a deposit of 16-17% (hopefully for a forever home and don't particularly want to wait longer due to house prices rocketing) 

My barclaycard I also consistently everymonth get offers for money transfer at 0% for around 18 months with around a 2-3% fee. 

Question is do you think lenders would view a deposit at that level more favourable than e.g. Using a money transfer offer to get the additional 3% at 0% interest so I would have cc debt at 0% but at the next band and hopefully a much lower interest rate providing bigger savings.

If it matters household almost 6 figure income (maybe exceeds depending on bonus) mortgage would be around 400k mark (looking for plots with sizeable garden)

Many thanks

K_S

BakingC said:

Hi,

Basically looking at buying a house at some point in next 12 months based of current saving projections might end up with a deposit of 16-17% (hopefully for a forever home and don't particularly want to wait longer due to house prices rocketing) 

My barclaycard I also consistently everymonth get offers for money transfer at 0% for around 18 months with around a 2-3% fee. 

Question is do you think lenders would view a deposit at that level more favourable than e.g. Using a money transfer offer to get the additional 3% at 0% interest so I would have cc debt at 0% but at the next band and hopefully a much lower interest rate providing bigger savings.

If it matters household almost 6 figure income (maybe exceeds depending on bonus) mortgage would be around 400k mark (looking for plots with sizeable garden)

Many thanks

@bakingc Generally speaking - lenders will not permit the deposit to directly come from borrowing on a credit card. So using a MT offer to borrow a lumpsum amount and then using it for the deposit may be an issue.

However, if the same cc debt were accumulated over time (say by funneling all your expenses to a 0% cc card over a year and using your income to build your deposit) they are fine with that. Whether your card is at 0% or 30% makes no material difference to how the lender will view the debt. It'll be seen as a financial commitment equating to a monthly outgoing of about 3-4% of the outstanding balance.

Which of these scenarios (lower deposit and debt or higher deposit and debt) will depend on the rest of your financial circumstances and mortgage requirements.

RenegadeKal

Hi,

First time posting. Just looking for some clarification/direction.

My husband and I are hoping to buy soon as FTB. Our annual income is 64k in total. We currently have 15k deposit and managing to put away 1k per month in a LISA. We are looking at a mortgage at approx 270k

My husbands credit file is excellent however mine not so much.

I have 3 default and 1 late payment all occured in 2016 and due to fall off in September 2022. I have settled all defaults through DMP which have now been just over a year ago. The defaults were around £700 each. *my credit score is showing as fair - for what it's worth.

Would we be able to get a mortgage now or is it best to continue saving and wait until next year when my credit file is in a better place?

K_S

RenegadeKal said:

Hi,

First time posting. Just looking for some clarification/direction.

My husband and I are hoping to buy soon as FTB. Our annual income is 64k in total. We currently have 15k deposit and managing to put away 1k per month in a LISA. We are looking at a mortgage at approx 270k

My husbands credit file is excellent however mine not so much.

I have 3 default and 1 late payment all occured in 2016 and due to fall off in September 2022. I have settled all defaults through DMP which have now been just over a year ago. The defaults were around £700 each. *my credit score is showing as fair - for what it's worth.

Would we be able to get a mortgage now or is it best to continue saving and wait until next year when my credit file is in a better place?

@renegadekal The adverse (3 defaults that are almost 5 years old) is not likely to stop you on it's own but, along with the 5% deposit it might.

It's hard to say without going into the details but if you can wait till you have a 10% deposit, you should have options to borrow what you need. I would recommend getting in touch with a mortgage adviser who can look at the whole picture and give you a realistic idea of your chances and at what stage you can indeed hope to borrow what you need.

BuckfastLover

Hi, just looking for some clarifications around Klarna/Buy Now Pay Later/Finance Plan.

I'm a FTB with 25% deposit, will be borrowing about 3.5x my salary, will apply for mortgage in the next 2 to 3 months.

I'm looking to buy a TV at the moment and am thinking of using 0% finance plan to spread the cost over 6 months, would this affect my mortgage application? I have read recent news about people being declined mortgage due to having Klarna etc. so a bit worried.