Mortgage broker - ask me anything

Kiyonari

K_S said:

@kiyonari Well, first-off the account is still showing as active, so if you haven't already, it may be advisable to pay off the balance so that Yorkshire updates it to satisfied and closed. That'll draw a line under that. At the same time, if there is any mistake at all by Yorkshire water, it may be worth putting in a formal complaint asking them to remove the late markers. I've had clients in the past who have been able to get the utility co to change the late payment markers to 'Q' (query) which is a neutral marker.

Given that it's only on Experian and Transunion, it also could be an option to use a lender that only used Equifax at DIP or app stage AND does not ask about arrears on the app form so that there is no risk of making a false declaration.

If none of the above work, you still have the fall-back option of using lenders that don't 'credit-score'. The rates will not be as good as HSBC, Barclays but won't be too far off either.

I'm sure the L&C adviser will find an alternate lender, good luck!

Thank you for the advice.  I logged into Yorkshire water but the account shows as closed on their, which was the same when I called them.  They have evidence I phoned them twice in the week prior to the account closing, I know I did as the solicitor asked me to do so to check RE a soakaway.  They are going to listen back to the call to see if I told them i was moving, though I'd say me asking for information from them to support the house sale was pretty close if I didn't.  Never had anything bad on my file ever this is so frustrating!  Hopefully the L&C guy can come up with something! 

D123456789

Hello, any assistance appreciated with a remortgage question for a buy to let. 

I earn half as much as I did last time I remortgaged, will this affect a remortgage application decision or will it go through on rental income calculations?

 I don’t really want to end up on the higher  standard variable rate if I can remortgage to another fixed. I am currently paying interest only.

K_S

D123456789 said:

Hello, any assistance appreciated with a remortgage question for a buy to let. 

I earn half as much as I did last time I remortgaged, will this affect a remortgage application decision or will it go through on rental income calculations?

 I don’t really want to end up on the higher  standard variable rate if I can remortgage to another fixed. I am currently paying interest only.

@D123456789 With most BTL lenders the lending will be based on rental-income but there'll still be a minimum applicant income requirement which differs across lenders but usually anywhere from 18k-30k.

If you're with a mainstream lender and don't need to borrow more you may have product-transfer/product-switch/rate-switch options.

D123456789

I am with Nat west at the moment. I got in touch with them today to ask about changing to repayment as I have to pay the mortgage off at some point. I didn’t get to speak to anyone just instant messaging but she said that I would need to go through a new application to assess affordability and so I decided to wait until my fixed rate finishes in 12 months time but now I am wondering if I would need to up my income. I earn approx 27k 

K_S

D123456789 said:

I am with Nat west at the moment. I got in touch with them today to ask about changing to repayment as I have to pay the mortgage off at some point. I didn’t get to speak to anyone just instant messaging but she said that I would need to go through a new application to assess affordability and so I decided to wait until my fixed rate finishes in 12 months time but now I am wondering if I would need to up my income. I earn approx 27k 

@D123456789 Changing to repayment will need an affordability assessment (unless your mortgage is tiny and rent is high).

Is there any reason you want to change to repayment? If you're with NatWest, you should be able to make up to 10% penalty-free overpayments anyway so you could start paying it off now.

D123456789

@K_S  I am making 10 % overpayments.  Last time I remortgaged I was on maternity leave so I went for interest only as childcare is a huge expense. Now LO has started school I thought it’s a good time to go  back to repayment.  I can check with Nat west I think 3 months before fixed rate ends and see what they can offer me. Thanks so much for your replies 😊

n15h

Hi, not sure if this is the right forum to post this, but just wanted to get some help.

My fixed rate mortgage (1.29%, £406 per month) finishes at the end of April 2022 and my mortgage provider has contacted me to look at rates for renewing my mortgage with them. The mortgage balance (as of today) is £139K with a term of 35years 7months. I also overpay every month so currently paying £500 each month (£94 on top of £406).

I've had a look at the renewal rates from the lender and also on MSE's Best Buys to get an idea of the rates available out in the market. At the moment, the renewal rates seems to be better:

• Renewal Rate A: 1.24% with £999 product fee, £402 (with PF paid upfront) or £405 (with PF added to mortgage);
• Renewal Rate B: 1.44% with no product fee, £415.

There are some very low rates (e.g. with Progressive BS and Furness BS - however, I am not eligible for their products as some of them are exclusive to certain customers).

The lender informs that if i choose a renewal mortgage rate that's lower than my current rate, it will move my mortgage to the renewal rate immediately. However, if the renewal rate is higher, it will move to that rate when the current rate ends.

My question is which option should I go for, or is there anything else I should consider? Any help would be much appreciated.

K_S

@n15h As a regulated mortgage adviser, it's difficult for me to answer these sort of questions as they involve making a definite choice and it could be seen as advice based on very limited info

I would recommend either using the MSE calculator here https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates/ or put a post in the main thread where helpful posters like @getmore4less provide super detailed analysis.

n15h

K_S said:

@n15h As a regulated mortgage adviser, it's difficult for me to answer these sort of questions as they involve making a definite choice and it could be seen as advice based on very limited info

I would recommend either using the MSE calculator here https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates/ or put a post in the main thread where helpful posters like @getmore4less provide super detailed analysis.

You're right - Apologies, didn't mean to put you in that position and I'll post on the main thread. 

I've had a look at the calculators which calculates that the overall balance at the end of Year 2 would be lower on Renewal Rate A even though it has the £999 product fee.

I just wanted to make sure my calculations using the MSE calculators were correct. I couldn't get the same monthly amount as the lender's renewal info as I think the calculator only lets whole numbers to be used for the mortgage term, but this is what I got when I compared the 2 rates:

• Rate A: 1.24% fixed for 2 years, £409 (£999 upfront) / £412 (£999 added), total cost for 2 years: £9806 / £9877
• Rate B: 1.44% fixed for 2 years, £422, total cost for 2 years: £10125

I'll post this on the main thread and take it from there

Kiyonari

L&C guy just rang me.  Advised cannot get a mortgage as the missed payment was in the last 6 months...  brilliant