Mortgage broker - ask me anything

edmor

Remortgaging - are we liable for any costs of terminating an application?

To cut a long story short we have had a nightmare remortgage process with an online broker working with TSB and they’re now quibbling over the wording of an EWS1 (cladding) form over the most picky point.

As our rate expires end of month I’m getting tired of this all and considering just returning to our existing lender and doing a rate switch, which is virtually as good as the TSB mortgage we’d applied for anyway.

Would we be liable for valuation fees or so on if we choose to terminate an application?

K_S

edmor said:

Remortgaging - are we liable for any costs of terminating an application?

To cut a long story short we have had a nightmare remortgage process with an online broker working with TSB and they’re now quibbling over the wording of an EWS1 (cladding) form over the most picky point.

As our rate expires end of month I’m getting tired of this all and considering just returning to our existing lender and doing a rate switch, which is virtually as good as the TSB mortgage we’d applied for anyway.

Would we be liable for valuation fees or so on if we choose to terminate an application?

@edmor Generally speaking, if you haven't paid any money upfront yet, you should be fine. It's almost certainly a free valuation product.

SonicDad777

Advice on possible remortgaging please - or enlarging the mortgage.
We are in a house worth roughly £500K, mortgage currently £190K and would like to raise funds for house improvements - maybe around £60K.
A loan of £3K will be paid off next September. Our 5 year fixed deal (1.75%) ends in 1 year. No other debts. We took the 3 month mortgage break last year due to covid but otherwise my self employed work has been ok and my wife continues in her teaching role.
Is there likely to be an issue with asking for a bigger mortgage?
Many thanks in advance.

Scorpiogal13

Hi, me and my partner are thinking of buying a Flat for a Buy to Let.

We will be first time landlords, so i wanted to know-

1) what the average deposit (as a %) a lender would need from us (25%, 30%, 40%) Our combined income is roughly £45,000 pa, the property is £125,000 and we have around £40,000 for a deposit, no debt, both with good credit scores.

2) at 55 years old, is there a mortgage term limit with a BTL mortgage (as with a residential mortgage i think my maximum is 14 or 15 years)

3) i'm self employed (my partner is part time Employed), how many years worth of accounts will i need to show

Thank you in advance.

K_S

SonicDad777 said:

Advice on possible remortgaging please - or enlarging the mortgage.
We are in a house worth roughly £500K, mortgage currently £190K and would like to raise funds for house improvements - maybe around £60K.
A loan of £3K will be paid off next September. Our 5 year fixed deal (1.75%) ends in 1 year. No other debts. We took the 3 month mortgage break last year due to covid but otherwise my self employed work has been ok and my wife continues in her teaching role.
Is there likely to be an issue with asking for a bigger mortgage?
Many thanks in advance.

@sonicdad777 Based on the limited info in your post, as long as your income (and committed outgoings) supports borrowing of 250k as per lender calculations, it should be fine. Of course this is assuming that there are no other complications in the background.

Limited to the affordability part of the equation, you could try playing around with a few lender affordability calcs. Good luck!

https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

https://nationwide-intermediary.co.uk/calculators/affordability-calculator

K_S

Scorpiogal13 said:

Hi, me and my partner are thinking of buying a Flat for a Buy to Let.

We will be first time landlords, so i wanted to know-

1) what the average deposit (as a %) a lender would need from us (25%, 30%, 40%) Our combined income is roughly £45,000 pa, the property is £125,000 and we have around £40,000 for a deposit, no debt, both with good credit scores.

2) at 55 years old, is there a mortgage term limit with a BTL mortgage (as with a residential mortgage i think my maximum is 14 or 15 years)

3) i'm self employed (my partner is part time Employed), how many years worth of accounts will i need to show

Thank you in advance.

@scorpiogal13 Very very generally speaking -    

1. 25%. If the rental yield on the property is relatively low, the minimum deposit required may go up a bit.

2. With most mainstream lenders, you can go to 75-80 for interest only BTL mortgages where affordability is based solely on rent. There are lenders who will go beyond that as well.

3. Generally speaking, you'll need to be self employed for 2 years. It's not very common to ask for accounts though for BTL mortgages, a copy of the SA302 and Tax Year Overview should suffice. The personal income is usually just a qualifier (eg: applicants should have earned income of at least 20k, etc which differs from lender to lender) as most lenders will require that the stress tests are met based on the rent alone.

beckstas-money

Assisting a family member with their application via a broker.

1. full time permanent employed 3+ months
2. has a second CIS job. Multiple agencies over a few years

applying for a mortgage based on income from job one however, still works job 2 occasionally and is paid via business account in which he received a bounce back loan.

Does this need to be declared on broker application? 

Asking as we have seen cases that have been declined due to having loan. All other credit factors are up to date and affordability for the mortgage is more than realistic.

Stvo8

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

Hi, Sorry this is a little long winded but I didn't know how often you check the thread and didn't want to leave anything out.

I am currently awaiting a consultation with a Solicitor but I would be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit.

Do I;

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house for myself use my half of the equity as a ‘deposit’/collateral on my new house that will still form part of the equity towards my Exs home home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

K_S

Stvo8 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

Hi, Sorry this is a little long winded but I didn't know how often you check the thread and didn't want to leave anything out.

I am currently awaiting a consultation with a Solicitor but I would be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit.

Do I;

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house for myself use my half of the equity as a ‘deposit’/collateral on my new house that will still form part of the equity towards my Exs home home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

@stvo8 I hope I haven't misunderstood your question. You will not be able to use your equity in House 1 as a deposit to purchase House 2.

Generally speaking, your income will need to be able to support (as per the lender calculations) two mortgages which is usually the stumbling block in these cases.

Stvo8

K_S said:

Stvo8 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

Hi, Sorry this is a little long winded but I didn't know how often you check the thread and didn't want to leave anything out.

I am currently awaiting a consultation with a Solicitor but I would be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit.

Do I;

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house for myself use my half of the equity as a ‘deposit’/collateral on my new house that will still form part of the equity towards my Exs home home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

@stvo8 I hope I haven't misunderstood your question. You will not be able to use your equity in House 1 as a deposit to purchase House 2.

Generally speaking, your income will need to be able to support (as per the lender calculations) two mortgages which is usually the stumbling block in these cases.

Thanks for the response, so I will need to release equity from my current home/borrow more against it to use as a deposit for my own home?