Mortgage broker - ask me anything

[Deleted User]

What happens if a rate rises during an application for a mortgage?

K_S

[Deleted User] said:

What happens if a rate rises during an application for a mortgage?

@[Deleted User] Generally speaking, if the full app has been submitted, a specific product has been secured so it doesn't matter if that product gets withdrawn and rates rise after that point.

Rc0105

My broker submitted an application which got declined another broker told me it should have never been submitted due to gambling being on the statements and I told the broker before was submitted but he just seems like he’s not bothered at times is it right that it shouldn’t have been submitted in the first place?

K_S

Rc0105 said:

My broker submitted an application which got declined another broker told me it should have never been submitted due to gambling being on the statements and I told the broker before was submitted but he just seems like he’s not bothered at times is it right that it shouldn’t have been submitted in the first place?

@rc0105 It would be inappropriate for me to comment one way or the other as I literally know nothing about the case.

Generally speaking, a few betting transactions on the statement is not necessarily an issue. If it's consistently large amounts then that could be a red flag, both for the broker and the lender. It all depends on the details.

I hope it works out in the end, good luck!

Rebeccacoveney1990

I am buying a property off of my parents. I don't have a deposit in cash and they said they will give me money off the purchase to act as my deposit - how does this work? 

K_S

Rebeccacoveney1990 said:

I am buying a property off of my parents. I don't have a deposit in cash and they said they will give me money off the purchase to act as my deposit - how does this work? 

@Rebeccacoveney1990 It's quite common and called a concessionary purchase. This thread covers most of the important points https://forums.moneysavingexpert.com/discussion/5234782/concessionary-purchase-from-family

doningtonphil

Hello.
My fixed rate deal with Virgin comes to an end in April.  The ERC remains level throughtout so would be a hefty charge to leave early.  How soon should I start applying for re-mortgages elsewhere?

K_S

doningtonphil said:

Hello.
My fixed rate deal with Virgin comes to an end in April.  The ERC remains level throughtout so would be a hefty charge to leave early.  How soon should I start applying for re-mortgages elsewhere?

@doningtonphil Most remortgage (changing to a new lender) offers are valid for 6 months so now is probably a good time to start the process.

Also do check out what product-switch/product-transfer/rate-switch (staying with Virgin) options you have with Virgin. As long as you aren't looking to borrow more or change the term, staying with your current lender will normally involve no credit-checks, income verification, underwriting, etc. 

doningtonphil

Thanks K_S, I assumed they woudlnt offer me another 'introductory' deal, but I will give them a call.

I would like to shorten the term remaining, would that mean new Credit checks or is it just extending that would do that.  I suppose I could keep the term the same and overpay.

Thanks for your prompt response

K_S

doningtonphil said:

Thanks K_S, I assumed they woudlnt offer me another 'introductory' deal, but I will give them a call.

I would like to shorten the term remaining, would that mean new Credit checks or is it just extending that would do that.  I suppose I could keep the term the same and overpay.

Thanks for your prompt response

@doningtonphil To get a decent idea of rates, you can see the intermediary PT rates offered here. Just select 'Product Transfer - Residential' in the Buyer Type dropdown. The direct rates may or may not be slightly different, can't remember how it is for Virgin. 
https://intermediaries.virginmoney.com/find/find-a-mortgage

If you shorten the term, it will almost certainly trigger a full affordability assessment, so if you're staying with Virgin, it might just be easier to achieve the same outcome by overpaying.