Mortgage broker - ask me anything

K_S

Runningmad said:

First time buyer here.
We are using help to buy equity loan, and when first enquiring we were told we'd need a 10% deposit. We now have increased earnings and the broker said we only need 5% deposit. Am I right in thinking as we have 10% deposit, use it and have less mortgage? He was saying to save the other 5% to go towards paying off the equity loan although that would be no where near enough.
Should we stick with 10%
Thanks for any replies at this stressful time. 

@runningmad Can't tell you exactly how much deposit to use, but your logic is correct. If you have no alternate use for the spare cash then it may make sense to use it to reduce the size of the mortgage you need.

SpeedSouth

Currently we have our home and missus has a BTL property.  The BTL is still historically a guarantor mortgage.  She's had it for years.

home Value £310K - Mortgage £47K @ 1.49 above base
BTL Value £200K - Mortgage £117K @ 2.00 above base

Looking to remortgage for a better deal, especially on the BTL.

We are thinking about potentially combining mortgages to see if we can get a better deal on the home, and effectively clearing the BTL.

Earnings are
Me £53K - but salary sacrifice down to £18K
Missus £13K

Would we have difficulties with my assumed salary? Both have excellent credit, and no problems getting mortgages previously without brokers at HSBC and NW.

The sticking point to re-mortgaging the BTL I think will be the fact the house is currently only in her name.  Can I go on the mortgage but not the deeds, so as to avoid any tax implications for additional earnings?
Thanks

kingstreet

K_S said:

Runningmad said:

First time buyer here.
We are using help to buy equity loan, and when first enquiring we were told we'd need a 10% deposit. We now have increased earnings and the broker said we only need 5% deposit. Am I right in thinking as we have 10% deposit, use it and have less mortgage? He was saying to save the other 5% to go towards paying off the equity loan although that would be no where near enough.
Should we stick with 10%
Thanks for any replies at this stressful time. 

@runningmad Can't tell you exactly how much deposit to use, but your logic is correct. If you have no alternate use for the spare cash then it may make sense to use it to reduce the size of the mortgage you need.

Perhaps leave the mortgage the same and reduce the HTB equity loan?

scottie21

K_S said:

scottie21 said:

If our solicitor has requested our redemption statement, and we are due to complete on the 30th, do we still make our mortgage payment due on the 28th? 

@scottie21 Afaik, you continue to make all scheduled payments until completion. Might be worth confirming that with your current lender.

Thank you, I think I need to ring them anyway. Our mortgage redemption amount is a lot higher than our mortgage balance also, so need to clarify. 

mcmillk

We have agreed completion for 27/09 (Monday) and our solicitor advised she had requested funds from Santander to be released on 24/09 (Friday) and we were waiting for confirmation that funds would be released so that we could exchange today........  except she didn't, she put 26/09 (Sunday) on the certificate of title.

An amendment has gone in to Santander today - is this just a simple thing to get around so that we can exchange tomorrow - or will we need to revise the completion date?  Solicitor should have called back this evening with confirmation one way or the other but hasn't :-(

muswellblue

Good afternoon. If I purchase my brothers share of an inherited house with a mortgage will I have to pay stamp duty?

biscan25

Hi, I have 8 months left on my fix. Will remorgaging be a problem as I as the almost sole breadwinner have moved from permanant to contractor status since taking out my mortgage? I'm earning double but obviously have no security of employment.
Thanks!

K_S

biscan25 said:

Hi, I have 8 months left on my fix. Will remorgaging be a problem as I as the almost sole breadwinner have moved from permanant to contractor status since taking out my mortgage? I'm earning double but obviously have no security of employment.
Thanks!

@biscan25 3-4 months before the end of the fix you will likely have two options -

1. Product Switch: Switch to a new fixed rate with your current lender. As long as you are not borrowing more or changing the term, your contractor status should have no impact on this option and it normally involves no credit checks, income verification, etc.

2. Remortgage (changing to a different lender): Depending on how much of a track record you have as a contractor, and how you are paid, your options will be somewhat reduced compared a to standard PAYE employee. But you should still have mainstream options available.

biscan25

Thanks! Does it make a difference if I am employed via umbrella (inside IR35)?

hopefulbeard

K_S said:

hopefulbeard said:

Hi, can you settle some nerves please. Both my wife and I are first time buyers, we have had an offer accepted on a property for £243k

We have a deposit off £16,700 (11k savings account and 5.7k in a ISA). I earn £51,500 a year the wife £41,000. 

Both have a excellent credit rating with no missed payments. Both have loans with hsbc and one credit card with £1k balance.

we have a DIP from HSBC, and are going to continue are application. Are we in a good position for the application to be approved?

are 95% LTV mortgages straightforward at the moment or should we be prepared for disappointment?

@hopefulbeard I don't see anything of concern in your post and given that you have a DIP, that's as much assurance as you will get at this stage. With most lenders, 95% LTV mortgages are well on their way to how they were prior to covid. Good luck!

Thank you, we got offered the mortgage and your reply settled the nerves