Mortgage broker - ask me anything

K_S

PositiveOutlook1 said:

Hi there,

Would you be able to recommend a good mortgage broker that would be able to help people with complicated / adverse credit histories, please?

Many thanks.

@PositiveOutlook1 As a mortgage adviser, the forum rules prohibit me from recommending a specific broker but if you put a post in the main forum I'm sure someone will recommend one.

'Adverse' covers a very wide range of circumstances and from experience a lot of clients tend to overestimate how bad the situation is, especially those with a 15%+ deposit. I would recommend first speaking to one or two brokers mentioned on the MSE list here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3 

If they can't help then it might be worth approaching the ones that advertise as adverse brokers. If at all possible try to find one that charges only on issue of mortgage offer, good luck!

K_S

Floopy2009 said:

Specifics as in examples would be good ??

@floopy2009 How much you're looking to borrow, your income, commitments, what your credit report looks like, the size of outstanding debt, monthly payments being made, etc etc etc.

Floopy2009

@K_S , 52000 per year, dmp debt is still 12,000 left. With, bills, food, and dmp I still have enough surplus of my wage left over 40%. Would be looking for 170,000 to 200,000 with a 10-15 deposit 

SuseOrm

One quick question more if I may please,  my mortgage advisor has submitted my application and then because I absolutely insisted on seeing it, sent me a copy of the application it’s an absolute shambles in terms of accuracy,  marital status is incorrect,  income is incorrect the name of my company is wrong,  the typos on my job title the type of  company is incorrect.  I would be absolutely crucified if I put in that kind of information on somebody’s compliance documents is there anything I can do should I contact the mortgage company directly and point out all these errors,  obviously I’ve alerted the mortgage broker to the mistakes but I just don’t want the mortgage company think in this was me ! 

K_S

SuseOrm said:

One quick question more if I may please,  my mortgage advisor has submitted my application and then because I absolutely insisted on seeing it, sent me a copy of the application it’s an absolute shambles in terms of accuracy,  marital status is incorrect,  income is incorrect the name of my company is wrong,  the typos on my job title the type of  company is incorrect.  I would be absolutely crucified if I put in that kind of information on somebody’s compliance documents is there anything I can do should I contact the mortgage company directly and point out all these errors,  obviously I’ve alerted the mortgage broker to the mistakes but I just don’t want the mortgage company think in this was me ! 

@suseorm I'm sorry to see this, it's poor of the adviser (or if it's a large firm, the admin person who keyed in the application).

I personally would not recommend contacting the lender directly as that might confuse matters. Name of employer, job title, type of industry etc. isn't material in most cases but the marital status and income details should be entered correctly.

For the income, if the error is that variable components of pay haven't been entered, that could be because you're well within affordability on your basic and don't need additional variable components (which will trigger additional documentation requirements). I sometimes do that as well and just make a note to the underwriter on the application.

For the marital status, lender systems can sometimes be a bit difficult. For example some lenders don't have any option to select co-habiting or living with partner so you end up having to pick 'single' even though that's not accurate.

SuseOrm

No shes entered a completely incorrect amount that wont correspond with the bank statements which has really annoyed me. 

Im divorced and theyve put me down as separated,  its as though they are just making it up.  

Ive written to the manager.  

AilieG01

Hi, 
Does anyone know how often underwriters can come back and ask for documents? I.e do they look at the whole application and pick out what extra documents are needed and ask for the whole lot at once or do they get to a bit they need more information and ask for it and the whole application process stops til you hand that in and then they can go to and fro several times until they are happy. 

We were asked for more documents for my self employed business and as I’m on maternity leave, when I’m returning to work etc so not sure whether that’s all they want or will they be back again. 

Skint_yet_Again

I am hoping to sell my property to my son and his girlfriend at market value but it is a little complicated. 

I am gifting my son a deposit of £20000 of which £10000 is savings and £10000 from an interest free loan from my dad to me, to be paid back in full by me once the sale goes through. Will the lender want proof of where I got the money from and will me borrowing £10k from my dad be a problem? I am writing my son a letter to give to the lender confirming the £20k is a gift from me towards his first house purchase and does not need to be repaid. 

Also the property does not have final buildings regs on the extension built over 20 years ago before I bought it. I have an indemnity policy which I understand can be transferred to them. Do we need to tell their lender this at mortgage application stage or via solicitor later and is it likely to cause a problem? 

K_S

AilieG01 said:

Hi, 
Does anyone know how often underwriters can come back and ask for documents? I.e do they look at the whole application and pick out what extra documents are needed and ask for the whole lot at once or do they get to a bit they need more information and ask for it and the whole application process stops til you hand that in and then they can go to and fro several times until they are happy. 

We were asked for more documents for my self employed business and as I’m on maternity leave, when I’m returning to work etc so not sure whether that’s all they want or will they be back again. 

@ailieg01 There's no firm answer to your question I'm afraid as there's a lot of subjectivity involved in raising queries or requests for more documentation and it can (to some extent) also depend on the individual underwriter, how well the case was packaged, whether it meets criteria, how well a response is crafted, etc.

But generally speaking, the lender can query and follow up any number of times until the matter is resolved one way or the other. In most cases, the application process does indeed happen in a linear manner, for example -> initial assessment -> queries -> response to queries -> follow up queries -> response, etc etc and so on until a decision is made. If the case is straightforward then it could just go straight to offer with no queries as well.

I hope it comes through quick, good luck!

K_S

Skint_yet_Again said:

I am hoping to sell my property to my son and his girlfriend at market value but it is a little complicated. 

I am gifting my son a deposit of £20000 of which £10000 is savings and £10000 from an interest free loan from my dad to me, to be paid back in full by me once the sale goes through. Will the lender want proof of where I got the money from and will me borrowing £10k from my dad be a problem? I am writing my son a letter to give to the lender confirming the £20k is a gift from me towards his first house purchase and does not need to be repaid. 

Also the property does not have final buildings regs on the extension built over 20 years ago before I bought it. I have an indemnity policy which I understand can be transferred to them. Do we need to tell their lender this at mortgage application stage or via solicitor later and is it likely to cause a problem? 

@skint_yet_again The solicitor may trace back the source of gifted funds (for anti money laundering checks) but with respect to the lender, normally they won't mind if the giftor's funds arose from a loan. 

Even at market value, given that the purchase is from a related party, some lenders will have additional criteria so do make sure to run this (and the source of deposit) past them before applying.

I can't comment on the indemnity policy but the extension situation described is very common and rarely causes an issue unless the buyer objects, which is not an issue in this case or the extension has structural issues that will be picked up by the valuer.

The scenario described by you is uncommon as normally, in this situation most parents just opt for a 'concessionary sale' and gift equity in the property to be used as a deposit by their child but I'm sure you have your reasons for not doing so.