Mortgage broker - ask me anything

22225

Hi, I hope you dont mind but I just did stared a thread asking for advice on whether I should go for a 5 or 10 year fix on our next home. It is meant to be a long term home. Would u mind giving me ur opinions please brokers.  My broker was v negative about the 10 year one but I cant stop worrying about interest rates going up... thank you. Sorry for double post...

K_S

22225 said:

Hi, I hope you dont mind but I just did stared a thread asking for advice on whether I should go for a 5 or 10 year fix on our next home. It is meant to be a long term home. Would u mind giving me ur opinions please brokers.  My broker was v negative about the 10 year one but I cant stop worrying about interest rates going up... thank you. Sorry for double post...

@22225 I can't comment on your specific case or guess the direction that interest rates will take in the coming years. Your guess is as good as mine.

But generally speaking if you're extremely worried about interest rates rising, don't see any reason that you may need to move home, and are happy to accept potentially hefty ERCs and a higher interest rate at the outset, then a 10 year (or even a flexible lifetime fix which waives ERCs in certain scenarios) might be something to look at.

22225

Thank you very much

Sister_Sister

Hi
All advice welcome my husband and I purchased a house through the help to buy scheme. 

We are now looking to redeem the help to buy part through extending our mortgage. The house is now worth about £180k so that would be £36k to add to the existing mortgage of £96k totalling £132k depending on the valuation.
Our mortgage is currently with Woolwich the fixed period ends in April. We have a RISC approved valuer booked for February.
I think we’d usually qualify however my husband starts a new job next week salary £32k whilst I’ve been in my job for 9 years salary £26k. We have no other debts.
Based on the above is it likely that we will be accepted to extend our mortgage to redeem the help to buy? All wisdom welcome it seems rather complicated and the fees involved for the valuation and solicitations costs are not inexpensive so I’d like to get it right first time. 

K_S

Sister_Sister said:

Hi
All advice welcome my husband and I purchased a house through the help to buy scheme. 

We are now looking to redeem the help to buy part through extending our mortgage. The house is now worth about £180k so that would be £36k to add to the existing mortgage of £96k totalling £132k of pending.
Our mortgage so currently with Woolwich the fixed period ends in April. We have a RISC approved valuer booked for February.
I think we’d usually qualify however my husband starts a new job next week salary £32k whilst I’ve been in my job for 9 years salary £26k.
Based on the above is it likely that we will be accepted to extend our mortgage to redeem the help to buy? All wisdom welcome it seems rather complicated and the fees involved for the valuation and solicitations costs are not inexpensive so I’d like to get it right first time. 

@sister_sister Based on the limited info in your post, you're looking to do a further advance / additional-borrowing to increase the loan to a total of 132k at less than 75% LTV with a combined income of 58k. Based on just that, it seems fairly straightforward.

With most mainstream lenders, a new job is not an issue as long as he has been continuously employed. However, that will depend on your specific lender's criteria.

Assuming that you are paying off all of the H2B loan, the H2B aspect isn't a particularly relevant factor for the mortgage.

I'm assuming you are currently in a fixed period. If not, it might be prudent to check the whole of market for your options. Good luck!

Sister_Sister

K_S said:

Sister_Sister said:

Hi
All advice welcome my husband and I purchased a house through the help to buy scheme. 

We are now looking to redeem the help to buy part through extending our mortgage. The house is now worth about £180k so that would be £36k to add to the existing mortgage of £96k totalling £132k of pending.
Our mortgage so currently with Woolwich the fixed period ends in April. We have a RISC approved valuer booked for February.
I think we’d usually qualify however my husband starts a new job next week salary £32k whilst I’ve been in my job for 9 years salary £26k.
Based on the above is it likely that we will be accepted to extend our mortgage to redeem the help to buy? All wisdom welcome it seems rather complicated and the fees involved for the valuation and solicitations costs are not inexpensive so I’d like to get it right first time. 

@sister_sister Based on the limited info in your post, you're looking to do a further advance / additional-borrowing to increase the loan to a total of 132k at less than 75% LTV with a combined income of 58k. Based on just that, it seems fairly straightforward.

With most mainstream lenders, a new job is not an issue as long as he has been continuously employed. However, that will depend on your specific lender's criteria.

Assuming that you are paying off all of the H2B loan, the H2B aspect isn't a particularly relevant factor for the mortgage.

I'm assuming you are currently in a fixed period. If not, it might be prudent to check the whole of market for your options. Good luck!

Yes that’s exactly right a further advance, he leaves his current job on the 9th Jan and moves to the new one on the 12th Jan.

All of the H2B is going to be paid off we will be out of the fixed period of our current mortgage in April but I thought remaining with our current lender would keep costs down.

When we first took out our mortgage there were all sorts of costs and fees whereas they don’t seem to apply when you stay with a new lender

I don’t know much or anything about mortgages in general so don’t know where to go to get good advice. We bought a new build and so last time they arranged everything and we just paid the fees.

K_S

@sister_sister If your fix is up in April, I would definitely recommend speaking to a mortgage adviser. The MSE guide will help you in that https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

What you are looking to do is a capital-raise remortgage for the purpose of paying off the H2B equity loan.

I would think it unlikely, but it may well be that staying with your current lender is the best option on an overall cost basis, but the adviser will take that into consideration as well when making a recommendation. There are plenty of fee-free advisers as well if you want to keep costs low and your case is relatively straightforward.

goldstar88

Hi there,

I'm an Aussie in the UK with 1.5 years left on my Tier 2. I can apply for my ILR in June 2023. 

I'm looking to buy in London as a place to live in. I earn £73,000 gross salary and have £80,000 in cash saved.

A broker told me last year only two banks lend to expats and the multiple I could get was 4.75 with a 20% deposit. Is this still the case?

K_S

goldstar88 said:

Hi there,

I'm an Aussie in the UK with 1.5 years left on my Tier 2. I can apply for my ILR in June 2023. 

I'm looking to buy in London as a place to live in. I earn £73,000 gross salary and have £80,000 in cash saved.

A broker told me last year only two banks lend to expats and the multiple I could get was 4.75 with a 20% deposit. Is this still the case?

@goldstar88 How long have you lived in the UK? This can be on any visa/s - working holidaymaker, student, tier 1, tier 2, etc.

A 25% deposit is the sweet spot for folk on a visa. Below that it depends on the specifics.

goldstar88

K_S said:

goldstar88 said:

Hi there,

I'm an Aussie in the UK with 1.5 years left on my Tier 2. I can apply for my ILR in June 2023. 

I'm looking to buy in London as a place to live in. I earn £73,000 gross salary and have £80,000 in cash saved.

A broker told me last year only two banks lend to expats and the multiple I could get was 4.75 with a 20% deposit. Is this still the case?

@goldstar88 How long have you lived in the UK? This can be on any visa/s - working holidaymaker, student, tier 1, tier 2, etc.

A 25% deposit is the sweet spot for folk on a visa. Below that it depends on the specifics.

I’ve been here a total of 6 years. First 2 years were on the T5 and then I got onto a T2.