Mortgage broker - ask me anything

Bobthebuildercanyoufixit

Hi all,

i am currently using new homes mortgages to take care of finding me a lender for a new build.

i would like to know if anyone has ever used this company and if the brokers are good and reliable?

they seem to have a different process than for instance your 'usual' brokers. We had an 'advisor first take details, then an appointment with a 'senior mortgage broker' who then allocated us an 'administrator to ask any wuestions to- this administrator will be the one who chases the application that was submitted by the senior broker and would also answer any of our queries. Anyway structure seems bizarre.

Any help or insight would be appreciated. 

Thanks,
bob

K_S

csgohan4 said:

LLoyds remortgage deals, how far in advance can you reserve a product. I'm looking at the 5 year 1.66% 60% LTV

@csgohan4 I'm not sure about how Lloyds mortgages work as they're a direct only lender and I've never used them personally either. But if it's anything like its group sibling Halifax then a remo offer should be valid until product expiry. Depending on the timing of the application, a Halifax mortgage offer validity can effectively range from 4.5 - 7 months. 

From what I can see it looks like the Lloyds product you've referred to has a product expiry date (must complete before) of 31/08/2022. 

I might well be completely wrong though as my first paragraph above is mostly based on the assumption that Lloyds follows a similar system to Halifax.

K_S

Bobthebuildercanyoufixit said:

Hi all,

i am currently using new homes mortgages to take care of finding me a lender for a new build.

i would like to know if anyone has ever used this company and if the brokers are good and reliable?

they seem to have a different process than for instance your 'usual' brokers. We had an 'advisor first take details, then an appointment with a 'senior mortgage broker' who then allocated us an 'administrator to ask any wuestions to- this administrator will be the one who chases the application that was submitted by the senior broker and would also answer any of our queries. Anyway structure seems bizarre.

Any help or insight would be appreciated. 

Thanks,
bob

@bobthebuildercanyoufixit What you've described is a variation of a system that a lot of large firms use to minimise the amount of time their most expensive resource (the broker) spends on the case.

For example - an online fact-find to take details, then the broker reviews the fact-find and spends a short while with the applicant (phone, chat, email) and makes a recommendation. It's then passed on to the admin team to key in and submit. Once an application is in then the admin team handles the rest of the process unless there is some particular reason for the broker to step in.

getmore4less

Skint_yet_Again said:

getmore4less said:

Skint_yet_Again said:

I have spoken to my solicitor and he has said it will be a nightmare for my sons solicitor due to money laundering regulations for me to gift £10k and borrow another £10k from my dad. He has said it would be better for me to gift £20k on completion from the equity. I am very new to all this so I will have to be guided by my solicitor. 

That's what is being said don't need the money as cash up front.

Sell for £290k but only take £270 in cash.

 do they have a decent  broker on this to present the case to the lender.

Thanks for your help. I didn’t understand about the deposit gift and thought it had to be cash. Have spoken to my son and they
are going to use a broker recommended by 2 of their friends 

Deposits in cash on exchange(held on account by solicitors) are for the benefit of the seller(you)  in case of failure to complete.

You don't need that and it would be your own money anyway.

The lender only cares that it exists to make up the difference  they like to know where it came from, mainly making sure not another loan or from a source that could claim an interest in the property, gift or gift by concession(you not wanting paying for a bit of your house are fine, lender asks for prove it is a gift and not a loan to be paid back.

Getorfmyhand

Hi

I am applying for mortgage with HSBC, have given my broker my bank statements for last 3 months. I have been in my £700 arranged overdraft frequently. Apart from this my CCs are clear, no missed payments and perfect scores, 85 LTV, Funds from house sale, mortgage payment will be 20% of combined earnings.

Am I likely to be rejected for this? 

K_S

Getorfmyhand said:

Hi

I am applying for mortgage with HSBC, have given my broker my bank statements for last 3 months. I have been in my £700 arranged overdraft frequently. Apart from this my CCs are clear, no missed payments and perfect scores, 85 LTV, Funds from house sale, mortgage payment will be 20% of combined earnings.

Am I likely to be rejected for this? 

@getorfmyhand Based on the limited info in your post, to put it briefly - no, you aren't likely to be declined for the reason stated.

To expand - regular use of an arranged overdraft is by itself not a common reason for mainstream lenders to decline mortgage applications. In combination with factors like high-LTV (eg: 95%), high background debt, low income (in relation to the size of the overdraft), maximised borrowing, etc. it may have an impact, but normally that would show up as a declined DIP/AIP and not get to a full application with that lender. So the broker would just use another lender in that scenario.

Getorfmyhand

K_S said:

Getorfmyhand said:

Hi

I am applying for mortgage with HSBC, have given my broker my bank statements for last 3 months. I have been in my £700 arranged overdraft frequently. Apart from this my CCs are clear, no missed payments and perfect scores, 85 LTV, Funds from house sale, mortgage payment will be 20% of combined earnings.

Am I likely to be rejected for this? 

@getorfmyhand Based on the limited info in your post, to put it briefly - no, you aren't likely to be declined for the reason stated.

To expand - regular use of an arranged overdraft is by itself not a common reason for mainstream lenders to decline mortgage applications. In combination with factors like high-LTV (eg: 95%), high background debt, low income (in relation to the size of the overdraft), maximised borrowing, etc. it may have an impact, but normally that would show up as a declined DIP/AIP and not get to a full application with that lender. So the broker would just use another lender in that scenario.

Thanks for the swift reply, forgot to add both regular PAYE combined salary £47k (£52k with bonus) and only debt is £2500 on a car loan. Borrowing 228 and 41 deposit, didn’t know overdraft was checked at AIP stage, thought that was passed over to underwriting on application? Thanks again

Intel1982

Hi there, after waiting 8 stressful weeks we finally got a mortgage offer accepted from 'The Mortgage Lender' (we have some old credit issues, 3 years ago now). As I was getting so hopeless that I wouldn't get approved, I went to my credit union and applied with them - they approved me the same day! 

A hard search was carried out 15th December by The Mortgage Lender and I've been told a hard search will be carried out by the credit union on Monday while they get everything finalised. 

At this point I had decided to go with credit union, as they require less deposit off me than The Mortgage Lender, leaving me with more savings to decorate etc.

My mortgage advisor has now got back to me to say that since I put the original application in back in December, more options have become available and he said that Santander would now be willing to lend to me, and it would save me over £115 a month and with the same amount of deposit as the credit union.

We are due to move in 25th March..if we apply for the Santander one, will we potentially get turned down due to the two other mortgage offers received? I'm also worried that if we do apply with them it would be another long, drawn out process and I don't want to risk the sellers pulling out as they've already become anxious (they won't be told until next week that we have a mortgage offer but they have been contacting our solicitors looking for progression).

Just looking for some advice really on how best to proceed, we don't want to lose the house as there are very little houses coming up for sale where we live at the moment and we are living with family, desperate for our own space now. 

Thanks! 

K_S

Intel1982 said:

Hi there, after waiting 8 stressful weeks we finally got a mortgage offer accepted from 'The Mortgage Lender' (we have some old credit issues, 3 years ago now). As I was getting so hopeless that I wouldn't get approved, I went to my credit union and applied with them - they approved me the same day! 

A hard search was carried out 15th December by The Mortgage Lender and I've been told a hard search will be carried out by the credit union on Monday while they get everything finalised. 

At this point I had decided to go with credit union, as they require less deposit off me than The Mortgage Lender, leaving me with more savings to decorate etc.

My mortgage advisor has now got back to me to say that since I put the original application in back in December, more options have become available and he said that Santander would now be willing to lend to me, and it would save me over £115 a month and with the same amount of deposit as the credit union.

We are due to move in 25th March..if we apply for the Santander one, will we potentially get turned down due to the two other mortgage offers received? I'm also worried that if we do apply with them it would be another long, drawn out process and I don't want to risk the sellers pulling out as they've already become anxious (they won't be told until next week that we have a mortgage offer but they have been contacting our solicitors looking for progression).

Just looking for some advice really on how best to proceed, we don't want to lose the house as there are very little houses coming up for sale where we live at the moment and we are living with family, desperate for our own space now. 

Thanks! 

@intel1982 Just to be clear, I can't advise you on what to do but essentially if you're asking whether you will be declined by Santander purely because of 2 recent hard-checks, that is unlikely. However, in combination with a relatively poor credit history, it could tip the application over from an accept to a decline. Off of the top of my head (I might be wrong!) I think Santander do ask about other in-flight (in progress) mortgage applications but I've never answered 'yes' to that question so not sure what impact that may have.

On the positive side, an adverse impact from the two hard-checks *should* show up at the Santander DIP (Decision In Principle) which is a soft-footprint credit check.

Whether you want to try Santander or not is down to your personal preferences and attitude. You have already been through a stressful mortgage application process and might be willing to take the higher cost of the credit-union mortgage for a few years in exchange for not having to apply again (the Santander process may or may not be drawn out, that depends on the entirety of the case, what your credit report looks like and the individual at Santander that assesses the case).

Otoh, you might place sufficient value on the saving and the advantages of being with a mainstream lender to give it a shot with Santander.

Sorry I couldn't suggest a clear way forward.

CatBlack123

Hi. 
I am just after a bit of advice.
Our plan is to apply for mortgage in April.
My partner is self employed and took Grants. Business is now back to normal and including grand income would be around 30k. 
I am working part time and get about 14k a year.
Deposit around 30k 

My partner has very good credit rating and history.  We have a joint account which is managed very well. 
My credit rating is fair but because I wasn't on electoral register , now registered so should move to good.
I have  account where my salary is paid but the statements up to December and not looking  good . Little lottery spending, going into arranged overdraft for couple of days for around £50 basically not well managed (stupid me ) . I have a saving account with good amount of money saved there  . No missed payments ever , no CCJ nothing like that . No debts or any money owing.
What is our best course of action to make sure mortgage doesn't get declined due to my statements. 
Is waiting 3 months enough  to make sure my bank statements are looking good and to minimise any risks ?
If lender asks for 6 months statements but only recent 3 are looking good will this be automatic decline ?

Many thanks for any advice.