Mortgage broker - ask me anything

slightlyfoxd

Hi, I'm hoping you might be able to shed some light on credit checks between application/offer and completion?

Just before my mortgage application, I had moved a Monzo loan balance onto a credit card for the 0% balance transfer offer. Monzo doesn't show up on credit reports, but the credit card account does.

I declared the outstanding balance during application for the mortgage, and my statements showed regular payments towards it when it was a loan - but my credit report would have showed 'no debt' before it updated with my credit card balance.

I'm worried (perhaps unnecessarily) that the lender (NatWest) will do another credit check in the next month or so before completion, when the balance should have appeared against my credit card account - and it might look like 'new borrowing'.

So I suppose my questions are: will the lender do another credit check before completion? And if so, will this raise any flags or hold up the process at all?

Thank you v much in advance!

charlotteo1988

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Hello, 

we had a valuation for a mortgage on a property yesterday. The valuer has valued it at £0. They said the following “

The Valuer has not provided a 'present condition' valuation and has given an 'after completion / repairs / resolution of outstanding issues' valuation. 

Valuer comments: Instruct a roofing contractor to inspect the flat roof(s) and undertake any necessary repair or renewal.”

The flat roof they are referring to is a 2.2m x 2.69m utility/back porch that has a door from the kitchen into this room which then takes you into the patio area. 

When I rang a few companies regarding the inspection they all have said they wouldn’t do it as it’s such a small roof and job their minimum fee is too excessive to charge considering there is no damp in that particular room.

Is this normal practice for a valuer to flat deny a mortgage unless a inspection is completed for a 6m2 room? I’ve gone back to the mortgage provider and said we are struggling to find a inspector who will do a report? We can get a builder but they don’t do inspection report for mortgage companies? She said it seemed quite of a overreaction for a small room but it’s down to the valuer and not the mortgage company. 

Many Thanks 

K_S

charlotteo1988 said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Is this normal practice for a valuer to flat deny a mortgage unless a inspection is completed for a 6m2 room? I’ve gone back to the mortgage provider and said we are struggling to find a inspector who will do a report? We can get a builder but they don’t do inspection report for mortgage companies? She said it seemed quite of a overreaction for a small room but it’s down to the valuer and not the mortgage company. 

Many Thanks

@cherlotteo1988 Do things like the above happen a lot, no. Do they happen on occasion, yes.

Unfortunately, valuation is quite subjective and dependent on the individual surveyor who comes out to do the valuation. It looks like they felt that the flat roof on the rear extension isn't in good repair. The lender will not overrule the valuer.

Your options at this stage are to

1. Get the inspection done and get the valuer to amend the report.

2. Dispute/appeal the valuation if the lender allows it. This route rarely works.

3. Apply with another lender who uses a different panel of valuers and hope that the surveyor who comes out doesn't have an issue with the flat roof. If you go with a lender that doesn't charge a valuation fee, there's no risk of losing that money.

Based on the limited info in your post, if you were my client, I would most likely recommend that you consider option 3.

K_S

slightlyfoxd said:

Hi, I'm hoping you might be able to shed some light on credit checks between application/offer and completion?

Just before my mortgage application, I had moved a Monzo loan balance onto a credit card for the 0% balance transfer offer. Monzo doesn't show up on credit reports, but the credit card account does.

I declared the outstanding balance during application for the mortgage, and my statements showed regular payments towards it when it was a loan - but my credit report would have showed 'no debt' before it updated with my credit card balance.

I'm worried (perhaps unnecessarily) that the lender (NatWest) will do another credit check in the next month or so before completion, when the balance should have appeared against my credit card account - and it might look like 'new borrowing'.

So I suppose my questions are: will the lender do another credit check before completion? And if so, will this raise any flags or hold up the process at all?

Thank you v much in advance!

@slightyfoxd I wouldn't expect NatWest to do another credit-check between offer and completion and haven't ever had an offer being pulled by NatWest post offer. But that's just based on the relatively small sample size of the NatWest applications that I have submitted.

charlotteo1988

K_S said:

charlotteo1988 said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Is this normal practice for a valuer to flat deny a mortgage unless a inspection is completed for a 6m2 room? I’ve gone back to the mortgage provider and said we are struggling to find a inspector who will do a report? We can get a builder but they don’t do inspection report for mortgage companies? She said it seemed quite of a overreaction for a small room but it’s down to the valuer and not the mortgage company. 

Many Thanks

@cherlotteo1988 Do things like the above happen a lot, no. Do they happen on occasion, yes.

Unfortunately, valuation is quite subjective and dependent on the individual surveyor who comes out to do the valuation. It looks like they felt that the flat roof on the rear extension isn't in good repair. The lender will not overrule the valuer.

Your options at this stage are to

1. Get the inspection done and get the valuer to amend the report.

2. Dispute/appeal the valuation if the lender allows it. This route rarely works.

3. Apply with another lender who uses a different panel of valuers and hope that the surveyor who comes out doesn't have an issue with the flat roof. If you go with a lender that doesn't charge a valuation fee, there's no risk of losing that money.

Based on the limited info in your post, if you were my client, I would most likely recommend that you consider option 3.

Hello 

thank you for a reply. We wanted to stay with the mortgage lender because we were porting the mortgage rather than having to fork out for the ERF. 

I think we will look at a builder to come out as the Lender said that they need a letter on letter headed paper from someone who knows about flat roofs as the valuer isn’t experienced in that and want clarification which confirms either they don’t think any work needs to be done or that it needs work done what needs doing and then confirmation when it’s completed. 

I am hoping no work does need to be done as it’s a old person living in the property currently who has a hard time with people in the house. This was the second time a valuation was booked. The first time they tried to book it she had a wobble and took the property off the market. 

I will keep ringing around to see if I can find anyone who could view the utility room. The lender said that the valuer isn’t saying there definitely is a problem with the roof as they are not experienced or qualified but not sure she is trying to reassure me as I said we would most likely look at another lender. 

James-may

Could someone clarify when to buy buildings insurance, as I thought I knew but am now not sure🙄

I'm exchanging and completing today (supposedly)

I thought it was wise (perhaps unwisely), to get buildings/contents insurance in place beforehand, so purchased a policy yesterday with starting date today ready for when I complete.

However my solicitor said there was a slim chance I could complete yesterday and asked if the policy could be changed with yesterday's date.
So I called the insurer up and was told that no policy would be valid if purchased before exchange, I queried this as I had put the correct date of completion on, but they reaffirmed it back to me that no matter what day I complete the policy would need cancelled.
They basically said once I complete I need to call them back up, they will cancel the policy and refund me, then issue a new policy .
As it turns out solicitors said they couldn't complete yesterday anyway, so that want an issue.

But do I really need to cancel my policy I have starting today, then redo another one?

I realise this might be insurer specific, but it seems a bit strange you can't put an insurance policy in place until you have actually completed.

vixst

James-may said:

Could someone clarify when to buy buildings insurance, as I thought I knew but am now not sure🙄

I'm exchanging and completing today (supposedly)

I thought it was wise (perhaps unwisely), to get buildings/contents insurance in place beforehand, so purchased a policy yesterday with starting date today ready for when I complete.

However my solicitor said there was a slim chance I could complete yesterday and asked if the policy could be changed with yesterday's date.
So I called the insurer up and was told that no policy would be valid if purchased before exchange, I queried this as I had put the correct date of completion on, but they reaffirmed it back to me that no matter what day I complete the policy would need cancelled.
They basically said once I complete I need to call them back up, they will cancel the policy and refund me, then issue a new policy .
As it turns out solicitors said they couldn't complete yesterday anyway, so that want an issue.

But do I really need to cancel my policy I have starting today, then redo another one?

I realise this might be insurer specific, but it seems a bit strange you can't put an insurance policy in place until you have actually completed.

My solicitor told me I had to have buildings insurance in place in order for exchange to happen. I actually had to send my solicitor a copy of the policy before exchange could take place. I put the start date of the policy as the exchange date.

James-may

vixst said:

James-may said:

Could someone clarify when to buy buildings insurance, as I thought I knew but am now not sure🙄

I'm exchanging and completing today (supposedly)

I thought it was wise (perhaps unwisely), to get buildings/contents insurance in place beforehand, so purchased a policy yesterday with starting date today ready for when I complete.

However my solicitor said there was a slim chance I could complete yesterday and asked if the policy could be changed with yesterday's date.
So I called the insurer up and was told that no policy would be valid if purchased before exchange, I queried this as I had put the correct date of completion on, but they reaffirmed it back to me that no matter what day I complete the policy would need cancelled.
They basically said once I complete I need to call them back up, they will cancel the policy and refund me, then issue a new policy .
As it turns out solicitors said they couldn't complete yesterday anyway, so that want an issue.

But do I really need to cancel my policy I have starting today, then redo another one?

I realise this might be insurer specific, but it seems a bit strange you can't put an insurance policy in place until you have actually completed.

My solicitor told me I had to have buildings insurance in place in order for exchange to happen. I actually had to send my solicitor a copy of the policy before exchange could take place. I put the start date of the policy as the exchange date.

That's exactly what happened to me, and I sent a copy over.

Guess what, the insurance company sent me an email an hour ago canceling the policy, obviously because I told them I wasn't exchanging and completing until today.
Madness!!!

So now I need you wait til I complete and scramble around to get another policy.

scoey8

Hi, 

If your remortgage offer is for say 100k but the redemption figure is 98k what happens? Do you get the left over as cash or does just your new lender just adjust it so they only pay what is outstanding to the old lender? Thanks

kingstreet

scoey8 said:

Hi, 

If your remortgage offer is for say 100k but the redemption figure is 98k what happens? Do you get the left over as cash or does just your new lender just adjust it so they only pay what is outstanding to the old lender? Thanks

The surplus will be paid to you by the conveyancer. Most would have asked you how you would like to receive the funds.