Mortgage broker - ask me anything

K_S

MummyDN said:

Hi. Thanks for the thread. Do you have any recent experience with Together Money? Our broker submitted our full mortgage application just over a week ago. Valuation is booked for 10th Feb. Do you know if Together tend to book valuations after they have checked initial affordability? Feeling very anxious as we do not have a lot of options at the moment. Thanks. 

@mummydn I think you should be fine. With Together, I only ever submit apps through their preferred packager and a Together underwriter will usually look at the whole case in detail before confirming whether they will consider. So usually, there aren't any surprises after the app goes in. Good luck!

MummyDN

K_S said:

MummyDN said:

Hi. Thanks for the thread. Do you have any recent experience with Together Money? Our broker submitted our full mortgage application just over a week ago. Valuation is booked for 10th Feb. Do you know if Together tend to book valuations after they have checked initial affordability? Feeling very anxious as we do not have a lot of options at the moment. Thanks. 

@mummydn I think you should be fine. With Together, I only ever submit apps through their preferred packager and a Together underwriter will usually look at the whole case in detail before confirming whether they will consider. So usually, there aren't any surprises after the app goes in. Good luck!

K_S said:

MummyDN said:

Hi. Thanks for the thread. Do you have any recent experience with Together Money? Our broker submitted our full mortgage application just over a week ago. Valuation is booked for 10th Feb. Do you know if Together tend to book valuations after they have checked initial affordability? Feeling very anxious as we do not have a lot of options at the moment. Thanks. 

@mummydn I think you should be fine. With Together, I only ever submit apps through their preferred packager and a Together underwriter will usually look at the whole case in detail before confirming whether they will consider. So usually, there aren't any surprises after the app goes in. Good luck!

Thank you! That is reassuring to know. 

esubbs

K_S said:

@esubbs Based on the limited info in your post and focusing only on the employment aspect of the case, you should have mainstream options as of today as long as husband has a new employment contract to show. If you can wait till you get your full Feb payslip, that may make things a bit smoother if you need your income to be considered.

If you only need to borrow 2.4 times at 40% LTV, perhaps it might be an option to have both of you on the application but only consider husband's salary.

Thanks so much. Very reassuring that we have options. We lean towards Santander as that's who we bank with and previously held our mortgage but I think it will be best to get a broker who knows which lender is likely to be favourable. Any advice on where/how to look for a good one? 

K_S

esubbs said:

K_S said:

@esubbs Based on the limited info in your post and focusing only on the employment aspect of the case, you should have mainstream options as of today as long as husband has a new employment contract to show. If you can wait till you get your full Feb payslip, that may make things a bit smoother if you need your income to be considered.

If you only need to borrow 2.4 times at 40% LTV, perhaps it might be an option to have both of you on the application but only consider husband's salary.

Thanks so much. Very reassuring that we have options. We lean towards Santander as that's who we bank with and previously held our mortgage but I think it will be best to get a broker who knows which lender is likely to be favourable. Any advice on where/how to look for a good one? 

@esubbs Perhaps start off with the MSE recommended brokers and then settle on one that you feel comfortable with. https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Or else ask for recommendations from friends/family/colleagues that you trust.

Rc0105

K_S said:

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!

Do some brokers not check bank statements before submission though? Just as I’m getting conflicting advise from brokers

K_S

Rc0105 said:

K_S said:

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!

Do some brokers not check bank statements before submission though? Just as I’m getting conflicting advise from brokers

@rc0105 I check 3 months worth of bank statements for every residential client and 1 month for every BTL client. I personally don't know any brokers who would put through a residential app without even a cursory review of the applicant's bank statement.

TheMightyShowerHead

Been lurking a while and everyone seems great and really helpful so I'm hoping to get the views of people far more knowledgeable than I.

So currently I'm in the RAF but looking to leave in the next year or so and I'm trying to get all my ducks in a row, as it were.

I have two properties with mortgages. 
Property 1 I've had since 2016 it's worth (According to Zoopla) between £274-£303k. The mortgage is currently at £41000 fixed @1.59% until Feb 23.

Property 2 one had since 2019 and again Zoopla says £186-£206k. The mortgage is at £60500 fixed @2% until Jun 24.

Property 1 rents for £950 before fees and taxes. 

I'm hoping to leave the RAF around Jul 23. And I would have enough money saved by then too pay both mortgages off and be mortgage free. However neither house is in the location I would want to live when I leave. 

I would be reluctant to sell the houses as they are a nice source of income and part of my plan to retire early. 

So my question would be, after paying both mortgages off I would have around 10k left. Not much of a deposit. However, I will have around £440k of equity and hopefully a new job earning around £38k. A slight increase on my RAF wages. 

What would be my best way forward to finance a house in the area I want to live in at around £300k+? 

Any thoughts would be welcome. 

K_S

@TheMightyShowerHead Quick thoughts -

1. By itself, the equity tied up in a rental property will not help you borrow more in your residential property or make up for the lack of a deposit.

2. As the market stands today, you will need a minimum 5% cash deposit for a residential mortgage. So at least 15k for a 300k property.

3. With regard to borrowing, you could potentially go up to an amount supported by your main salary + net mortgage-free rental income. Very crudely, if that was 38k + 20k, with a 5% deposit you may potentially be able to borrow up to 290k (4.5 times).

4. Alternatively, you could release equity from your rental properties and then get a low LTV residential mortgage or buy it for cash.

TheMightyShowerHead

@K_S Thanks, I really appreciate your thoughts. 

1&2 were pretty much what I was expecting. 

3. I am currently living in property 2 so won't be able to evidence any income from this property. Would it being mortgage free remove this need?

4. Releasing equity I assume means remortgaging? Would that be on a BTL mortgage or a residential mortgage because I'm using the funds to buy a residential house. (I suspect BTL but if you don't ask...)

If I were to do a mix of 3 and 4. Say pay off one entirety then release equity while retaining a mortgage on another affordability wise would it be better keeping the mortgage where I can evidence income for or would it not make a difference because income is income?

getmore4less

@TheMightyShowerHead Quick thoughts -

You have £110k in cash (pay off mortgages 10k left.)

£38k x  4.5 £171.  that's £280 

P1.  £950pm on say £275k 4% gross yield.

if you re did that @£50LTV(£137.5k) enough left  to pay off the P.2 and free up £35k

P.1 self sufficient P2 mortgage free £315 in the pot
or
keep P2 mortgage to rent rental and have up to £375k to play with(smaller res mortgage)

SDLT will need a chunk, may need to take a bit more out 

overall it looks feasible it going to be a juggle the numbers on the rentals to get where you need to be