Mortgage broker - ask me anything

emm12345

Hi, I have a few more questions if that’s ok:

1.) We are buying a new built flat using London help to buy that will be completed in Nov 2022. Our reservation states that developer wants to exchange contracts on 3 June. Developer is rushing us to apply for mortgage and PIF - i am very conscious that it will expire after a certain period of time. When is a good time to apply for mortgage and PIF to ensure we are ready to exchange for 3 June? We would like to have extra time in case first application doesn’t go through etc.
2.) I will be in a new job (i start next week) and have 3 late payments (paypal dec 2020, very in 2019, amex 2018).  we will be making a joint application and have DIPs from Santander and Barclays. We meet criteria for both i think (barclays will need payslip from my new job) - who from your experience is a more lenient/relaxed lender out of these 2 providers? 

3.) Our combined salary is 168k, property value 509k. We have 5% deposit and unsure whether it will make a huge difference if we apply for 20% or 40% equity loan? We would prefer a smaller equity loan but are willing to go for 40% if that will make a difference between being accepted or rejected for a mortgage..

K_S

emm12345 said:

Hi, I have a few more questions if that’s ok:

1.) We are buying a new built flat using London help to buy that will be completed in Nov 2022. Our reservation states that developer wants to exchange contracts on 3 June. Developer is rushing us to apply for mortgage and PIF - i am very conscious that it will expire after a certain period of time. When is a good time to apply for mortgage and PIF to ensure we are ready to exchange for 3 June? We would like to have extra time in case first application doesn’t go through etc.
2.) I will be in a new job (i start next week) and have 3 late payments (paypal dec 2020, very in 2019, amex 2018).  we will be making a joint application and have DIPs from Santander and Barclays. We meet criteria for both i think (barclays will need payslip from my new job) - who from your experience is a more lenient/relaxed lender out of these 2 providers? 

3.) Our combined salary is 168k, property value 509k. We have 5% deposit and unsure whether it will make a huge difference if we apply for 20% or 40% equity loan? We would prefer a smaller equity loan but are willing to go for 40% if that will make a difference between being accepted or rejected for a mortgage..

@emm12345 Quick comments -

1. Imho 8 weeks prior though the offer can come through much quicker if it's very straightforward.

2. Six of one, half a dozen of the other. Off of the top of my head, Barclays new-build offer policy (6 months plus 6 months extension without a full resub) is better than Santander's.

3. As far as the lender is concerned it's either a 75% LTV mortgage or a 55% LTV mortgage. It's only likely to make a difference between accept/reject if there are other issues in the background. On its own, it's unlikely to make much of a diff. 

emm12345

Thanks a lot. Do you think given that i’m starting a new job and have a couple of late payments, we are better off with applying for 40% equity to increase our chances of being accepted? 

bubby08

bubby08 said:

Hello,

I undertake some freelance work along side my main income, but it’s freelance so it’s nature is inconsistent. I only plan to apply for a mortgage based on my current salary would any other income become a problem for my application?

thank you in advance 

Hi my question is still valid,

thanks in advance 

K_S

bubby08 said:

Hello,

I undertake some freelance work along side my main income, but it’s freelance so it’s nature is inconsistent. I only plan to apply for a mortgage based on my current salary would any other income become a problem for my application?

thank you in advance 

@bubby08 It *should not* raise any overly onerous queries unless there are incoming payments that are large and/or frequent or there are other relevant matters in the background not covered in your post. To avoid unnecessary queries/to-and-fro, it may be worth considering using a separate bank account for income from your freelance work.

bubby08

Thanks it is for a re-mortgage so hopefully won’t cause any issues, but I think you are right, I will take advice into account. Thank you.

kokolino23

Hello,
How far in advance can we remortgage, please?
Our fixed rate term will end at the end of September, I'm keen to get a new deal as soon as possible. I've read something about 3-4 months, other places says 6-7 months?!
Thank you

getmore4less

kokolino23 said:

Hello,
How far in advance can we remortgage, please?
Our fixed rate term will end at the end of September, I'm keen to get a new deal as soon as possible. I've read something about 3-4 months, other places says 6-7 months?!
Thank you

Depends on the lender.

K_S

kokolino23 said:

Hello,
How far in advance can we remortgage, please?
Our fixed rate term will end at the end of September, I'm keen to get a new deal as soon as possible. I've read something about 3-4 months, other places says 6-7 months?!
Thank you

@kokolino23 Are you referring to a remortgage (changing to a new lender) or a rate-switch/product-switch/product-transfer (choosing a new fixed term with the current lender)?

If a product transfer, then it's usually between 3-6 months before the fix ends but if you Google 'lender-name rate switch' that should give you an accurate answer for your lender.

If a remortgage, then with mainstream lenders a remo offer is usually valid for around 6 months. For some lenders, the offer validity is until the expiry of the specific product, so that could in practice mean a validity of 4-7 months depending on the timing of the application.

kokolino23

@K_S most probably a remortgage (changing to a new lender), as this will increase our chances to find a better deal. A bit tricky because we'll increase our savings by the end of September so I don't know exactly the amount of money involved for remortgage. We can pay a lump sum at the end of our current fix term.