Mortgage broker - ask me anything

TIGASH

Hi
FTB have had a mortgage approved just before Christmas  had survey back about house. The survey shows major issues so I have decided to pull out of property. 

I have found a new property within the same price bracket...going to view next week. If I'm successful with offer how hard is it to change mortgage over? 

Is this an easy thing to do? Is it a full application again?

Lender is Nationwide and would like a mortgage for same amount of money which is in 75%ltv bracket as I would put the extra 2-4k in if needed  

Any advice grateful received. 

K_S

TIGASH said:

Hi
FTB have had a mortgage approved just before Christmas  had survey back about house. The survey shows major issues so I have decided to pull out of property. 

I have found a new property within the same price bracket...going to view next week. If I'm successful with offer how hard is it to change mortgage over? 

Is this an easy thing to do? Is it a full application again?

Lender is Nationwide and would like a mortgage for same amount of money which is in 75%ltv bracket as I would put the extra 2-4k in if needed  

Any advice grateful received. 

@tigash The exact process differs from lender to lender and all my comments are with regard to the intermediary process, it may be different when direct.

Off of the top of my head, with Nationwide I need to cancel the existing app and submit a fresh application with the new security property details. 

TIGASH

Thank you for such a quick reply

That's disappointing it took 7 weeks for Nationwide to get the original mortgage offer as they lost the paperwork. 

I hope  it doesn't take as long.  Will the fact I've already been through the process with Nationwide help quicken the process. 

Bluebell1000

K_S said:

Bluebell1000 said:

Slightly different query for a broker. I'm currently employed but thinking about the future. I might be interested in being a mortgage broker in a few years, I've always enjoyed maths, finding solutions, and communicating with different people. Would it be best to look into getting CeMAP qualifications while still in my current role then apply for maybe trainee advisor roles? Any other tips for working in the field? Thanks.

@Bluebell1000 In your place, I'd be thinking on similar lines. Start looking into getting my CeMAP about 5-6 months before applying for a role and then, once I have it, apply for a trainee advisor role.

There are other ways to go about it but the above would be the most straightforward way to do it. Mind you, it may not be easy getting the first job but if you like it and are decent at it, there are plenty of opportunities.

Many thanks 👍

Ftba.d

Hi 

So I live alone . On a wage of 70 plus grand . 4 years ago I was on no such wage so I took a help to buy . 4 years on I have had a rice valuation in and the flat has kept the price it was ‘purchased ‘ for . As I am now on a bigger wage , I have remortgaged so I have now bought out the government loan element and taken over full ownership so to speak .

My current wage at 70 plus made it so I literally just met the threshold to mortgage for the full value .

I can comfortably meet the new mortgage payments and probably still save a grand a month at least . 

I don’t foresee my shifting too much now as I’m at the top of the pay scale in my field . I don’t work in an industry where it could go up anymore nor would there be bonus incentives etc …

The new mortgage I have taken on in taking full ownership of this flat is on a two year term as I am hoping to do one of two things in two years time , a. Sell this place and move elsewhere or keep this flat and let it out ?

I would ideally like to rent  this flat out and save maybe 20 or so grand in the next two years as a deposit elsewhere . However with my wage staying at 70 something grand , already having a mortgage on a flat and being a sole applicant I feel it’s very unlikely that I can get another mortgage on another property even though I cld pretty much guarantee tenants who would rent this current flat I’m in.

Any suggestions  or things I can plan for or change in the next two years to help me in trying to be in a position I can obtain a second property?

Any help will be gratefully received .

Regards 

K_S

@Ftba.d Without going into too much detail, it looks like you're aiming to do what's called a let-to-buy in a few years. Which is essentially remortgaging your flat to a BTL mortgage and simultaneously taking out a new residential mortgage to buy your next home. The 2 mortgages can be with the same lender, though usually it's with 2 different lenders.

Assuming that you'll have at least 20-25% equity in the flat and are looking to put it on a mainstream interest-only BTL mortgage, the impact on your residential affordability should be minimal or none. All it needs is the right lender for each of the mortgages and the estimated rent to more than cover the mortgage plus expenses of running the BTL flat.

I hope that makes sense.

To maximise your options, in the intervening two years you could focus on building equity in the flat, saving up for a deposit, etc.

lantanna

Hi Ks, 

I’ve an AIp from Nationwide for a £150k mortgage on a newbuild with me putting in £30k deposit.  House price £179950 Salary 33k 

The homes haven’t been released yet but to book I’ll have to pay £1500 deposit which I’m happy to do but scared the mortgage won’t go through and I’ll lose that £. 

I meet the criteria that they’ve specified but have a satisfied default (Satsuma 2k at default), was a heavy payday loan user between 2017-2019. 4/5 companies on credit report multiple missed payments on them for those dates. 

Could this scupper my application? 

K_S

lantanna said:

Hi Ks, 

I’ve an AIp from Nationwide for a £150k mortgage on a newbuild with me putting in £30k deposit.  House price £179950 Salary 33k 

The homes haven’t been released yet but to book I’ll have to pay £1500 deposit which I’m happy to do but scared the mortgage won’t go through and I’ll lose that £. 

I meet the criteria that they’ve specified but have a satisfied default (Satsuma 2k at default), was a heavy payday loan user between 2017-2019. 4/5 companies on credit report multiple missed payments on them for those dates. 

Could this scupper my application? 

@lantanna Nationwide doesn't have an explicit yes/no criteria on past pdl usage and defaults. In theory, all that is taken into account during the "credit-scoring" done by the system when you click 'submit' on an AIP application. So with an accepted AIP, that's as much assurance as you can get at this stage.

On occasion, what can happen is that the lender uses credit bureau A (which Satsuma doesn't report to) during the AIP and then credit bureau B (which contains the Satsuma data) during the full application, causing an instant decline due to the recalculated "credit-score" now not meeting the minimum required.

Just to be clear, I'm not saying that this is likely to happen, only setting out a possibility since you asked.

In any case, if your pdl history is more than 2 years old, that *shouldn't* stop you from getting a mortgage, even if it doesn't work out with Nationwide in the end.

Do keep an eye on the Nationwide new-build closed sites list here https://www.nationwide-intermediary.co.uk/-/media/NFI/documents/new-build-closed-sites.pdf?la=en&hash=8E47985D4CB2F82173A6D0E4B593B60898A1C53A Nationwide is currently one of the busiest lenders in the market so their exposure on popular developments gets maxed out pretty quick. Once your development goes on that list, you can no longer use them for the mortgage.

Also do remember that Nationwide new-build offer validity isn't particularly generous, it's 6 months + 45 days extension. Plenty of other lenders do 6+3 months and even 6+6 months.

Hope the Nationwide offer comes through, good luck!

lantanna

Thank you so much, I wasn’t aware of any of that so really useful to know

toria12386

I started another thread before seeing this one, just a quick question.

do you know if Coventry will accept payslips or statement or earning if I can’t get my p60?

I have been on maternity and seem to have lost mine I also can’t get back into work because of COVID to print it out 

thank you