Mortgage broker - ask me anything

K_S

pinkthink123 said:

Hi. I’m looking to buy with my partner but have poor credit history (a score of 514/1000) and some sizeable debts (totalling £30k) which I’m still clearing. I have 7 defaults, 4 in 2018 and 3 older, but haven’t missed a payment for several years. My income is £41k and I have £1100 a month left over after all bills and spending is taken in to account. Would I be laughed at for enquiring? My partner has good credit history, more than double my salary and a sizeable amount of equity in his current property so we’d have a very good deposit. 

@pinkthink123 With all your defaults being registered more than 3 years ago, a clean credit history for multiple years and a sizeable deposit, you should have access to a good range of lenders. Given the number of defaults, these are very unlikely to be mainstream lenders/rates but you can always look at getting a 2 year fix with a specialist lender and then remortgaging to a mainstream lender at the end of the fix.

You mention that 30k of debt is still being cleared. If that is related to your defaults, the manner in which you are repaying it may also have an impact on your options.

pinkthink123

K_S said:

pinkthink123 said:

Hi. I’m looking to buy with my partner but have poor credit history (a score of 514/1000) and some sizeable debts (totalling £30k) which I’m still clearing. I have 7 defaults, 4 in 2018 and 3 older, but haven’t missed a payment for several years. My income is £41k and I have £1100 a month left over after all bills and spending is taken in to account. Would I be laughed at for enquiring? My partner has good credit history, more than double my salary and a sizeable amount of equity in his current property so we’d have a very good deposit. 

@pinkthink123 With all your defaults being registered more than 3 years ago, a clean credit history for multiple years and a sizeable deposit, you should have access to a good range of lenders. Given the number of defaults, these are very unlikely to be mainstream lenders/rates but you can always look at getting a 2 year fix with a specialist lender and then remortgaging to a mainstream lender at the end of the fix.

You mention that 30k of debt is still being cleared. If that is related to your defaults, the manner in which you are repaying it may also have an impact on your options.

Thank you - it is in relation to the defaults and some is with debt management agencies which I presume will impact then?

K_S

pinkthink123 said:

K_S said:

pinkthink123 said:

Hi. I’m looking to buy with my partner but have poor credit history (a score of 514/1000) and some sizeable debts (totalling £30k) which I’m still clearing. I have 7 defaults, 4 in 2018 and 3 older, but haven’t missed a payment for several years. My income is £41k and I have £1100 a month left over after all bills and spending is taken in to account. Would I be laughed at for enquiring? My partner has good credit history, more than double my salary and a sizeable amount of equity in his current property so we’d have a very good deposit. 

@pinkthink123 With all your defaults being registered more than 3 years ago, a clean credit history for multiple years and a sizeable deposit, you should have access to a good range of lenders. Given the number of defaults, these are very unlikely to be mainstream lenders/rates but you can always look at getting a 2 year fix with a specialist lender and then remortgaging to a mainstream lender at the end of the fix.

You mention that 30k of debt is still being cleared. If that is related to your defaults, the manner in which you are repaying it may also have an impact on your options.

Thank you - it is in relation to the defaults and some is with debt management agencies which I presume will impact then?

@pinkthink123 Perhaps, it'll depend on the details. But as long as they are being serviced properly, you should have options. I would recommend getting in touch with an experienced broker who can give you a realistic sense of your options. Good luck!

adamsvr

How quickly does Santander come back with valuation? Valuation was booked for today, just wondering if it’s within certain timeframe or just random. 

BuckfastLover

How often does new build get downvalued? The valuation on my new build house is booked for Monday and I'm a bit worried that it might get downvalued...

K_S

BuckfastLover said:

How often does new build get downvalued? The valuation on my new build house is booked for Monday and I'm a bit worried that it might get downvalued...

@BuckfastLover In my experience, rarely.

k-hkr

Hi, I am currently pondering whether to remortgage early and pay the early redemption fee of 2% but cannot get my head around working out if it is worthwhile.

Outstanding loan £84500 (but reckon remortgage amount by the time it went through would be nearer 83k as over pay each month)
Current rate 1.94% due to end Aug 2023
Borrowed 105k Aug 2018 paying £680/m and £340 extra/m

This will be last remortgage as will pay off any outstanding at end of 5 years, from now, as plan to retire then (Oct 2026)

Best 'no fee' rate for 5 yr fix is currently 1.69%. Am looking at 8 year term, if do now, and overpay £100/m with approx 30-35k outstanding at end needing paying off. I don't want to get it all paid off as have to live for today a bit too...

The easy bit is working out savings over next 18m versus early redemption fee of £1600-1700, and on that basis I wouldn't remortgage early.
The guesswork then comes into play as to what rates are likely to be when I did remortgage Aug 2023. Everything I read says likely more base rate rises and predictions are possibly another 1% on base rates over next 2 years. On that basis I reckon fixes would be 2.5% plus. I would only need 3 yrs deal by then, with term of say 6 years and overpay again to have around £1000 - 1100/m for cost.

I think it is very evenly balanced and, if so, would probably rather have the security of knowing I have a good rate to see the mortgage out.  Thoughts?

homeless9

Hi, I want to remortgage as I need to borrow more money....

-I have a Help To Buy mortgage. It is 10% which is approx £35,000 of the value of the property.
-I own 56% of the property (deposit + total mortgage payments to date).
-The house value has gone up approx 10% since I bought it, this is ~£35,000 which is the same as the Help To Buy loan I owe.
-My income has not increased.
-My credit rating is amazing.
-I have pretty much maxed out the length of the current lifetime of the mortgage to age 74, I am in my mid 30's now. So I doubt the length could be increased.

Long question short... I think I am basically asking....how much does the increase in a properties value help when trying to borrow more money when remortgaging. And based on all the bullet points that I have listed above - do I have a good likelihood of getting that extra £35,000 that I need to borrow. A negative is that my income will likely not have changed.

This scenario is actually a couple of years away as that's when the mortgage term ends. Although - if possible - I'd potentially remortgage before the term ends.

It's also likely I will have at least £10,000 in cash to throw at the lender at that time, which will be an overpayment on my mortgage.

Lyd00

I'm a FTB so a complete newbie to this. 

My broker submitted all my paperwork to Santander on Friday. Is it too late to cancel? I've been reading awful reviews about Santander and it's made me panic. Slow to process applications, refusing to lend at the 11th hour etc. We were going to submit to platform but my broker thought Santander would be more straight forward. I'm worried they won't be

Thanks 

K_S

homeless9 said:

Hi, I want to remortgage as I need to borrow more money....

-I have a Help To Buy mortgage. It is 10% which is approx £35,000 of the value of the property.
-I own 56% of the property (deposit + total mortgage payments to date).
-The house value has gone up approx 10% since I bought it, this is ~£35,000 which is the same as the Help To Buy loan I owe.
-My income has not increased.
-My credit rating is amazing.
-I have pretty much maxed out the length of the current lifetime of the mortgage to age 74, I am in my mid 30's now. So I doubt the length could be increased.

Long question short... I think I am basically asking....how much does the increase in a properties value help when trying to borrow more money when remortgaging. And based on all the bullet points that I have listed above - do I have a good likelihood of getting that extra £35,000 that I need to borrow. A negative is that my income will likely not have changed.

This scenario is actually a couple of years away as that's when the mortgage term ends. Although - if possible - I'd potentially remortgage before the term ends.

It's also likely I will have at least £10,000 in cash to throw at the lender at that time, which will be an overpayment on my mortgage.

@homeless9 How much one can borrow depends primarily on your "affordability" as the lender calculates it and that depends on your income and outgoings. The maximum 'loan-to-income" that the lender will consider offering can change a bit according to the LTV. For example, for the same lender the maximum LTI at 95% LTV might be 4x, at 85% LTV might be 4.75x and at 75% LTV 5x. I hope that makes sense.

I would recommend playing around with a few lender affordability calculators so you can get a very rough idea of what numbers to expect.
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do#section
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/