Mortgage broker - ask me anything

neogeo

Hi,

I've never used a broker before, but think I may for my next renewal.
In April my current deal expires and I will have £103,000 remaining.
On my salary today I can continue with my current payment and clear the mortgage in 5 years.
I have however received a pay rise which will allow me to clear in 4 years, but this will take all my monthly increase up.
My raise is being processed so I hope to see the first payment at the end of February.

Looking online and applying today I can get 1.55% over four years with Coventry BS (for example), but this is taking my pending raise into account.

Q. How should I go about getting the best rate, Should I apply now with a broker who can maybe help get my pending raise taken into account? If I wait until end of Feb to get my raise, it only leaves me two months to renew - rates will possibly have gone up and experience has shown that two months may also be cutting it fine to renew on the exact renewal date.

Any advice appreciated, thank you!

Mortgage_99

K_S said:

Mortgage_99 said:

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

@mortgage_99 Assuming you've told your broker about the past history with Halifax, it should hopefully be fine. Mainstream lender AIPs are fully automated and while you would assume that these things would be picked up, that isn't always the case. Good luck!

We have informed him about the default with Halifax and account being closed. But I don’t recall specifying about her being given 60 days before it was closed.

would other lenders be likely to accept us then if Halifax were to reject because of their internal data. And would Halifax state the reason why if they did. I’m hoping it’ll all be okay but just wary

K_S

neogeo said:

Hi,

I've never used a broker before, but think I may for my next renewal.
In April my current deal expires and I will have £103,000 remaining.
On my salary today I can continue with my current payment and clear the mortgage in 5 years.
I have however received a pay rise which will allow me to clear in 4 years, but this will take all my monthly increase up.
My raise is being processed so I hope to see the first payment at the end of February.

Looking online and applying today I can get 1.55% over four years with Coventry BS (for example), but this is taking my pending raise into account.

Q. How should I go about getting the best rate, Should I apply now with a broker who can maybe help get my pending raise taken into account? If I wait until end of Feb to get my raise, it only leaves me two months to renew - rates will possibly have gone up and experience has shown that two months may also be cutting it fine to renew on the exact renewal date.

Any advice appreciated, thank you!

@neogeo You don't really need a broker to get the best rate. By looking for a 4 year term, you will miss out on a few large lenders who have a minimum term of 5 years for re-mortgages.

K_S

Mortgage_99 said:

K_S said:

Mortgage_99 said:

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

@mortgage_99 Assuming you've told your broker about the past history with Halifax, it should hopefully be fine. Mainstream lender AIPs are fully automated and while you would assume that these things would be picked up, that isn't always the case. Good luck!

We have informed him about the default with Halifax and account being closed. But I don’t recall specifying about her being given 60 days before it was closed.

would other lenders be likely to accept us then if Halifax were to reject because of their internal data. And would Halifax state the reason why if they did. I’m hoping it’ll all be okay but just wary

@mortgage_99 An internal marker at Halifax is unlikely to have any impact on an application with a lender outside the LBG group.

Normally, lenders will not state the reason clearly if the marker is for things like suspicion of inappropriate behaviour etc.

The simplest way to know would have been to do a DSAR (Subject Access Request) to Halifax referencing the closure of the account in 2018. That's what people normally do when they have accounts closed without any reason.

In any case, it's more than 3 years old now (lot of internal markers are time limited), you've got an AIP, and it might not even come up at all so perhaps consider just going with what your broker says and take it from there. Short of avoiding Halifax altogether, nothing more that you can do tbh.

Mortgage_99

K_S said:

Mortgage_99 said:

K_S said:

Mortgage_99 said:

Hello… I have a bit of a weird question hoping someone can answer 

How reliable is a DIP/MIP/AIP from Halifax. Basically me and my girlfriend were  recently given a Agreement in Principle after our broker applied for us through Halifax. They agreed and said they would just need payslips from us. 

My girlfriend has a default from 2018 but our broker put this all through when applying. 

The main problem is that she got her current account closed by Halifax and they gave her a 60 day period stating the account would be closed by the end of that time back in 2018. She didn’t get a Cifas/Hunter marker or anything.

My question is…would the background searchs for example her account being closed previously by Halifax some years ago be accounted for when an Agreement in principle was done…or can they turn around at the full application and can this then come up. From reading other people’s forum’s they seem to say that Halifax barely ever reject at full application after an AIP is passed if everything else is in line. 

I’m thinking that surely this would have flagged up at AIP stage and they wouldn’t have offered us it if this was a problem. We are worried that at full application they will turn us down.

@mortgage_99 Assuming you've told your broker about the past history with Halifax, it should hopefully be fine. Mainstream lender AIPs are fully automated and while you would assume that these things would be picked up, that isn't always the case. Good luck!

We have informed him about the default with Halifax and account being closed. But I don’t recall specifying about her being given 60 days before it was closed.

would other lenders be likely to accept us then if Halifax were to reject because of their internal data. And would Halifax state the reason why if they did. I’m hoping it’ll all be okay but just wary

@mortgage_99 An internal marker at Halifax is unlikely to have any impact on an application with a lender outside the LBG group.

Normally, lenders will not state the reason clearly if the marker is for things like suspicion of inappropriate behaviour etc.

The simplest way to know would have been to do a DSAR (Subject Access Request) to Halifax referencing the closure of the account in 2018. That's what people normally do when they have accounts closed without any reason.

In any case, it's more than 3 years old now (lot of internal markers are time limited), you've got an AIP, and it might not even come up at all so perhaps consider just going with what your broker says and take it from there. Short of avoiding Halifax altogether, nothing more that you can do tbh.

Do you recommend just going ahead with the application as normal then? Without requesting a DSAR from Halifax as it might then flag something up. 

Also if it was to get rejected by Halifax would we be able to apply again straight away or would the hard credit search from them prevent us being accepted elsewhere.

Thank you for your help 

neogeo

K_S said:

neogeo said:

Hi,

I've never used a broker before, but think I may for my next renewal.
In April my current deal expires and I will have £103,000 remaining.
On my salary today I can continue with my current payment and clear the mortgage in 5 years.
I have however received a pay rise which will allow me to clear in 4 years, but this will take all my monthly increase up.
My raise is being processed so I hope to see the first payment at the end of February.

Looking online and applying today I can get 1.55% over four years with Coventry BS (for example), but this is taking my pending raise into account.

Q. How should I go about getting the best rate, Should I apply now with a broker who can maybe help get my pending raise taken into account? If I wait until end of Feb to get my raise, it only leaves me two months to renew - rates will possibly have gone up and experience has shown that two months may also be cutting it fine to renew on the exact renewal date.

Any advice appreciated, thank you!

@neogeo You don't really need a broker to get the best rate. By looking for a 4 year term, you will miss out on a few large lenders who have a minimum term of 5 years for re-mortgages.

Thanks for the response.

My concern is that I would like to pay the mortgage off in four years, but to do this I need to take my pending salary increase into account - I'm thinking a broker would be better placed to find a lender who can take this into account, or at least might know who will/won't accept a letter from my company as evidence of pending salary increase before I start applying and getting turned down?
If I wait until my first pay cheque showing this increase, it will be the end of February and rates may have gone up and I am only 5 weeks from needing to renew.

Do you know if pending salary increases are generally accepted or not?

K_S

neogeo said:

K_S said:

neogeo said:

Hi,

I've never used a broker before, but think I may for my next renewal.
In April my current deal expires and I will have £103,000 remaining.
On my salary today I can continue with my current payment and clear the mortgage in 5 years.
I have however received a pay rise which will allow me to clear in 4 years, but this will take all my monthly increase up.
My raise is being processed so I hope to see the first payment at the end of February.

Looking online and applying today I can get 1.55% over four years with Coventry BS (for example), but this is taking my pending raise into account.

Q. How should I go about getting the best rate, Should I apply now with a broker who can maybe help get my pending raise taken into account? If I wait until end of Feb to get my raise, it only leaves me two months to renew - rates will possibly have gone up and experience has shown that two months may also be cutting it fine to renew on the exact renewal date.

Any advice appreciated, thank you!

@neogeo You don't really need a broker to get the best rate. By looking for a 4 year term, you will miss out on a few large lenders who have a minimum term of 5 years for re-mortgages.

Thanks for the response.

My concern is that I would like to pay the mortgage off in four years, but to do this I need to take my pending salary increase into account - I'm thinking a broker would be better placed to find a lender who can take this into account, or at least might know who will/won't accept a letter from my company as evidence of pending salary increase before I start applying and getting turned down?
If I wait until my first pay cheque showing this increase, it will be the end of February and rates may have gone up and I am only 5 weeks from needing to renew.

Do you know if pending salary increases are generally accepted or not?

@neogeo Depends on the specific lender. Generally speaking the policy will fall into one of the following buckets -
1. Ok to consider pay-rise coming up in the next 3 months (some lenders limit it to 1 month). Usually needs letter from employer and/or contract.
2. Will not consider until there's one payslip.
3. Will not consider until there are 3 payslips.
4. Variations of the above.
4. In almost all of the above policies, lenders will do a sense check so if the pay rise is exceptionally large, they might query or decline to use it until there's a payslip.

The policy is the same whether you use a broker or go direct but yes it's easier for a broker to find a compatible lender.

neogeo

K_S said:

neogeo said:

K_S said:

neogeo said:

Hi,

I've never used a broker before, but think I may for my next renewal.
In April my current deal expires and I will have £103,000 remaining.
On my salary today I can continue with my current payment and clear the mortgage in 5 years.
I have however received a pay rise which will allow me to clear in 4 years, but this will take all my monthly increase up.
My raise is being processed so I hope to see the first payment at the end of February.

Looking online and applying today I can get 1.55% over four years with Coventry BS (for example), but this is taking my pending raise into account.

Q. How should I go about getting the best rate, Should I apply now with a broker who can maybe help get my pending raise taken into account? If I wait until end of Feb to get my raise, it only leaves me two months to renew - rates will possibly have gone up and experience has shown that two months may also be cutting it fine to renew on the exact renewal date.

Any advice appreciated, thank you!

@neogeo You don't really need a broker to get the best rate. By looking for a 4 year term, you will miss out on a few large lenders who have a minimum term of 5 years for re-mortgages.

Thanks for the response.

My concern is that I would like to pay the mortgage off in four years, but to do this I need to take my pending salary increase into account - I'm thinking a broker would be better placed to find a lender who can take this into account, or at least might know who will/won't accept a letter from my company as evidence of pending salary increase before I start applying and getting turned down?
If I wait until my first pay cheque showing this increase, it will be the end of February and rates may have gone up and I am only 5 weeks from needing to renew.

Do you know if pending salary increases are generally accepted or not?

@neogeo Depends on the specific lender. Generally speaking the policy will fall into one of the following buckets -
1. Ok to consider pay-rise coming up in the next 3 months (some lenders limit it to 1 month). Usually needs letter from employer and/or contract.
2. Will not consider until there's one payslip.
3. Will not consider until there are 3 payslips.
4. Variations of the above.
4. In almost all of the above policies, lenders will do a sense check so if the pay rise is exceptionally large, they might query or decline to use it until there's a payslip.

The policy is the same whether you use a broker or go direct but yes it's easier for a broker to find a compatible lender.

Thanks K_S, I'll give it some thought.

barngirl

Hello 👋 I’d love some thoughts on our position & whether we’re living in dream land with what we’re hoping to achieve, based on our circumstances. We’re wanting to make use of the government scheme backing 95% LTVs that’s due to end this year.

Income 

1:  90k permanent employed - increased from 60k in December 

2:  50k permanent employed since 01/01/22 but freelancing for same company from June 21

Experian score

1: 999

2: 989

Mortgage 

Joint HTB Halifax mortgage for 99k - will sell this property & use equity for deposit 

Credit cards 

1: available bal of £19k - 0% utilisation

2: N/A

Loans

1:  7500 pcp (195pm)

     13000 loan (350pm)

     1200 furniture loan (70pm)

     1000 not showing on credit report PayPal credit (min is 50pm but bank statements will show paying off 300-500 pm)

2:  18500 loan (650pm)

      1600 loan (125pm)

      2400 phones/ iPads (105pm)

      800 directory account (min is 40pm but bank statements will show paying off 300-500 pm)

Extra info

1: no late payments/ adverse events etc on credit report. BUT was utilising up to 100% of 3 different credit cards (£19k combined) up until July 2021 before no. 2 got a new job. Min payments were kept to every month. These are now fully paid off as of Dec 2021. 

2: no late payments/ adverse events etc on credit report. Applied for (& was granted) a £20k loan in December 2021.

No savings as we have been paying off debt/ reducing credit & enjoying the extra income

New house 

Hoping for a budget of up to £580k with an LTV of 95% - 34 years (up to retirement age)

In receipt of AIP from Halifax for £595k 95% LTV - was advised they could potentially lend up to £630k

K_S

@barngirl If you have a correctly keyed-in AIP from Halifax for 595k at 95% LTV and you only need a 580k house price budget , then you should be fine.

Couple of points to note. One that Halifax (and a lot of the other lenders) only goes up to 570k max loan size at 95% LTV. Which should be fine for what you need. And the Halifax 95% LTV product is not an HTB mortgage guarantee product, just a normal 95% LTV product. Plenty of mainstream lenders offer 95% LTV products without using the HTB mortgage guarantee.