Mortgage broker - ask me anything

K_S

mancdude said:

Deleted_User said:

mancdude said:

Hello, my existing lender has declined a remortgage (with further advance) via a broker, stating the reason was because we haven't applied directly. What are my options here? 

doesnt sound like a real decline reason.   Who is the lender? 

Hi, it's Santander - they didn't give any other reason and the broker is now querying it as he said he'd never had recommended it had he'd been advised he couldn't apply for us. 

@mancdude If you are with Santander and staying with Santander, that's a product transfer+additional borrowing (same as further advance), and not a remortgage.

If it's just a product transfer with no change in term, amount, etc - a broker can do that

If it's a product transfer along with an increase in the loan amount - Santander doesn't allow brokers to do that, you need to go direct. I guess that's what has happened here.

Your options are to contact Santander and see how to get what you need.

kingstreet

mancdude said:

Deleted_User said:

mancdude said:

Hello, my existing lender has declined a remortgage (with further advance) via a broker, stating the reason was because we haven't applied directly. What are my options here? 

doesnt sound like a real decline reason.   Who is the lender? 

Hi, it's Santander - they didn't give any other reason and the broker is now querying it as he said he'd never had recommended it had he'd been advised he couldn't apply for us. 

You're doing a further advance and customer retention product, not a remortgage.

Further advance criteria;-

Additional borrowing

We offer additional loans up to 85% LTV, unless it is to buy an additional share or interest in a property e.g. shared ownership staircasing or repaying a Help to Buy: equity loan in full, where we can lend up to 90% LTV.

All additional loan applications will be subject to a full affordability assessment and proof of income will be needed. 

Additional loans are offered on an advised or non-advised basis.

Please note we don’t offer additional loans if the customer has a Buy to Let or consent to let mortgage.

If your client wishes to take out an additional loan and they’d like advice, they can visit their local Santander branch or call:

Santander      0800 092 3881

Alliance & Leicester  0800 051 1595

These are customer only telephone numbers.

This confirms further advances are direct-only.

ajbrowc

Are there any mortgage lenders currently providing mortgages on flats under 18m without an EWS1?

K_S

ajbrowc said:

Are there any mortgage lenders currently providing mortgages on flats under 18m without an EWS1?

@ajbrowc The short answer is - Yes.

The long answer has a lot of caveats -

- depends on the type of building, construction, etc. No two low-rise buildings are exactly the same.

- depends on the individual valuer (a third party instructed by the lender) who goes out to look at the property

As a broker, off of the top of my head, the lender (different lenders) has asked for an EWS1 for all but one of the flats I've arranged mortgages for this year.

As far as I can see the new government guidance hasn't made much of a difference. Anecdotally I've heard that of brokers who were able to challenge and overturn a valuer's EWS1 requirement, but don't know what the details were.

Bibou22

Hello,
Firstly, apologies as I'm clueless with these things. My fixed rate with Nationwide is ending in December. I currently have two loans running concurrently -  £81,900 at 1.64% and a further advance of £11,200 at 1.75% which I'm also overpaying on. My LTV is 36%, I pay £700pm and will finish in 13 years.

I've done some searching online and staying with  Nationwide seems to be the best option. In the past I've only ever fixed for two years at any point but now have no need to move and aim to continue to overpay as my salary increases and I'm considering fixing for longer.

Firstly, I have only ever fixed my deals with a Nationwide consultant is there any reason why I shouldn't save time and just apply online for my switch?

Secondly which of these options sounds preferable to me? 

2 year fixed 

Monthly payment £637.82

Initial rate 1.09%

Cost of deal £1,897.64

APRC 2.9%

3 year fixed
Monthly payment £637.82

Initial rate 1.09%

Cost of deal £2,740.35

APRC 2.6%

5 year fixed 

Monthly payment £641.95

Initial rate 1.19%

Cost of deal £4,591.49

APRC 2.1%

Very grateful for any advice you knowledgeable lot can give me.

Lexi30

K_S said:

Lexi30 said:

Hi, l’d be grateful for some advice on getting a first time mortgage at 51 years old.
I work for the NHS (7 years) currently earning £25,665 but I receive a pay step up in November to £27,780. 

I get paid unsocial hours enhancements on top of this for around 50% of my shifts plus I try to do as much overtime as I can.
 My wages for year financial year ending April this year was just over £30,000.
I have saved a deposit of £15,000. 

I am currently renting and really want my own home before it’s too late (circumstances prevented me from doing it before now)
What are my chances? 

Am I wasting my time even thinking about it? 

If there is a possibility how much am I likely to be able to borrow?
I have no ccj’s or Debt.
I have one unused credit card and one unused catalogue account.
Your help would be gratefully received.

@lexi30 Based on the limited info in your post, you should be able to potentially borrow at least in the region of 125k or so, giving you a budget floor of 140k. The variable pay components mentioned may boost that further but it'll depend on the details.

There are also specific products which may allow enhanced borrowing figures based on your FTB status or your profession subject to qualifying criteria.

Overall, there's nothing in your post which indicates that you won't get a mortgage. How big a mortgage you can potentially get will depend on the specifics.

Thanks again for your help, where do I start looking for a broker? Should I use a  local one?

K_S

Lexi30 said:

K_S said:

Lexi30 said:

Hi, l’d be grateful for some advice on getting a first time mortgage at 51 years old.
I work for the NHS (7 years) currently earning £25,665 but I receive a pay step up in November to £27,780. 

I get paid unsocial hours enhancements on top of this for around 50% of my shifts plus I try to do as much overtime as I can.
 My wages for year financial year ending April this year was just over £30,000.
I have saved a deposit of £15,000. 

I am currently renting and really want my own home before it’s too late (circumstances prevented me from doing it before now)
What are my chances? 

Am I wasting my time even thinking about it? 

If there is a possibility how much am I likely to be able to borrow?
I have no ccj’s or Debt.
I have one unused credit card and one unused catalogue account.
Your help would be gratefully received.

@lexi30 Based on the limited info in your post, you should be able to potentially borrow at least in the region of 125k or so, giving you a budget floor of 140k. The variable pay components mentioned may boost that further but it'll depend on the details.

There are also specific products which may allow enhanced borrowing figures based on your FTB status or your profession subject to qualifying criteria.

Overall, there's nothing in your post which indicates that you won't get a mortgage. How big a mortgage you can potentially get will depend on the specifics.

Thanks again for your help, where do I start looking for a broker? Should I use a  local one?

@lexi30 I would recommend going through the MSE guide here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Unless you want face-to-face advice sitting across the table from an adviser, from a mortgage point of view there isn't any significant advantage to using a local broker. Of course, there might other considerations (supporting local businesses for example), in which case the MSE guide tells you how to go about finding a local broker. Good luck!

mancdude

kingstreet said:

mancdude said:

Deleted_User said:

mancdude said:

Hello, my existing lender has declined a remortgage (with further advance) via a broker, stating the reason was because we haven't applied directly. What are my options here? 

doesnt sound like a real decline reason.   Who is the lender? 

Hi, it's Santander - they didn't give any other reason and the broker is now querying it as he said he'd never had recommended it had he'd been advised he couldn't apply for us. 

You're doing a further advance and customer retention product, not a remortgage.

Further advance criteria;-

Additional borrowing

We offer additional loans up to 85% LTV, unless it is to buy an additional share or interest in a property e.g. shared ownership staircasing or repaying a Help to Buy: equity loan in full, where we can lend up to 90% LTV.

All additional loan applications will be subject to a full affordability assessment and proof of income will be needed. 

Additional loans are offered on an advised or non-advised basis.

Please note we don’t offer additional loans if the customer has a Buy to Let or consent to let mortgage.

If your client wishes to take out an additional loan and they’d like advice, they can visit their local Santander branch or call:

Santander      0800 092 3881

Alliance & Leicester  0800 051 1595

These are customer only telephone numbers.

This confirms further advances are direct-only.

Thanks for clarifying. I'm a little perturbed that the broker didn't know this, despite it being so clear on the intermediary site. We've now gone to Nationwide and submitted an application via the MA. In hindsight I should've waited and gone down the further advance route - it's all new to us so wasn't aware. Thanks again though, appreciate it. 

manc

Bit of a niche situation but here goes...

A couple of years ago I moved in with my partner, and started renting my leasehold flat with Permission To Let from my provider as a short term fix before deciding what to do with the flat.
Within three months my complex was dragged into the Fire Safety scandal before I had a chance to do anything.

Soon after that my two year fixed deal ended, but with the property valued at £0, and with a tenant occupying the property, I was unable to switch to a new deal or to a buy to let mortgage.
The only option was to wait for my tenant to leave, and try to switch then but that's not yet happened and I wasn't going to go down the route of an eviction during a pandemic!
So I decided to take the hit on a tracker mortgage for the time being whilst I awaited my building issues to be resolved.
  
But two years on, we're still waiting to hear back from the government about the Building Safety Fund and with the prospect of interest rate rises I wondered if anyone had any suggestions of what could be done so I'm not paying full whack? I spoke to Halifax and they have said not, but it seemed like a stock answer and I wondered if anyone knew of any options I might have?

Any help gratefully received!

lantanna

Hi, 

Hoping to buy spring next year. 

What are my chances of a half decent mortgage ? 

Deposit £26,000. (£16k of that is gifted) 

Salary £32855 

£2500 k debt on 0% credit card

Payday loans Yes but not in last 2 years

one default 5 years old 

missed payments yes but not in last 2 years

Are reasonable rates going to be applicable to me and how much am I likely to be able to borrow