Mortgage broker - ask me anything

K_S

silvercar said:

Looking at a two borrower, one owner mortgage and our broker is progressing this with Barclays. They now require independent legal advice for the second borrower. There isn’t the option to sign away the fact the second borrower has been advised to get legal advice. 

Can this be from a different solicitor within the same practice? Any idea how much it should cost? Second borrower is an accountant, so understands the implications of being on the mortgage. 

@silvercar Off of the top of my head (I might be misremembering!) -
- it needs to be from a different firm
- from what I can remember, the cost is around £150-200 from one of the online panels that do conveyor-belt ILAs and £300+ for a brick and mortar solicitor.

junglist_matty

junglist_matty said:

If you switch your existing mortage whilst still within a fixed deal period (which has an early repayment charge), exactly when is the ERC due?

1. Before the mortgage is transferred (i.e. lender makes contact to request the ERC payment "up front"; maybe on the morning of the transfer)
2. After the mortgage has been transferred (i.e. they will send an invoice requesting the ERC)

I need to know when I need my funds to be available in my bank to cover an ERC; if it makes any difference, my current lender is HSBC.

Any ideas?

K_S

junglist_matty said:

If you switch your existing mortage whilst still within a fixed deal period (which has an early repayment charge), exactly when is the ERC due?

1. Before the mortgage is transferred (i.e. lender makes contact to request the ERC payment "up front"; maybe on the morning of the transfer)
2. After the mortgage has been transferred (i.e. they will send an invoice requesting the ERC)
3. Conditionally during the transfer process (i.e. your mortgage can't be transferred until you pay the ERC for your existing mortgage on the date of the transfer)
4. Some other time (how, or what happens?)

I need to know when I need my funds to be available in my bank to cover an ERC; if it makes any difference, my current lender is HSBC.

@junglist_matty Assuming you are staying with HSBC and switching to a new product, what happens (unless the process has changed recently) is that the ERC is collected within 2 weeks of the switch date. After the switch has taken place, HSBC drops me a message to ask the client to call them and when they do, HSBC takes the payment by card over the phone.

I don't know how it works direct, perhaps just give them a call and check.

greenbox23

Question about deposits.
I am applying for a mortgage, but the lender requests the deposit comes from my family, or my partners would need to go on the mortgage application. The money is actually coming from my partners parent, but my partner cannot go on the mortgage application, as requested by the lender. So as a solution, could my grandparent gift the money for a deposit, and they then get reimbursed from my partners parent?
Are there any inheritance tax ramifications there too?

K_S

greenbox23 said:

Question about deposits.
I am applying for a mortgage, but the lender requests the deposit comes from my family, or my partners would need to go on the mortgage application. The money is actually coming from my partners parent, but my partner cannot go on the mortgage application, as requested by the lender. So as a solution, could my grandparent gift the money for a deposit, and they then get reimbursed from my partners parent?
Are there any inheritance tax ramifications there too?

@greenbox23 Can't really comment on the Inheritance Tax part or the question about circumventing lender criteria. Perhaps posting in the main forum will give you some answers on those.

Unless you are severely restricted on lenders for whatever reason, it may be simpler to just use a lender who is ok with non-family deposits and keeping partner off the application. Good luck!

chrmc

K_S said:

chrmc said:

We have an application in with NatWest at the moment and the Underwriters have came back with a few queries, they want to see evidence of my bonus which is fair enough but they've also asked us to explain some transactions on our bank statements such as Amazon Prime £7.99 p/m, a payment to River Island £80 (which was a christmas present) and a car parking charge (I pre-pay £50 of parking for work every other month).

It seems very picky to me and getting us a bit nervous, is this a bad sign?

@chrmc Can't really give an opinion on whether or not it's a bad sign. But yes, asking about a fashion purchase of £80 and an Amazon Prime sub is unusual, at least for intermediary applications.

It could just be a trainee underwriter or a newly outsourced one still learning the ropes.

The £25/month commute parking is the only outgoing that I'd expect them to factor into affordability but unless you're absolutely on the limit on borrowing, that shouldn't have a material impact.

I just want to say a huge thank you to both @k_s and @acg they’ve been incredibly helpful with providing guidance and answering questions for me which has helped with stress and worry. Got excellent news today that our mortgage is approved subject to valuation. 

msaverpenny93

I had a £2645 36 month loan from lendable. I have paid this off in full early.  Looking to hopefully buy a house next year. Would this paid loan raise any issues for mortgage lenders? 

radio_2

Basic question but for the purposes of applying for a mortgage in principle when it asks if we intend to use a government scheme to buy; examples given being Help to Buy or Shared Ownership; does the LISA deposit count as as such or should I just tick no?

K_S

msaverpenny93 said:

I had a £2645 36 month loan from lendable. I have paid this off in full early.  Looking to hopefully buy a house next year. Would this paid loan raise any issues for mortgage lenders? 

@msaverpenny93 From my experience, never had an issue with clients whose credit reports showed old paid-off Lendable loans. In any case, 36m term loans are unlikely to be seen as problematic short-term lending if that's what you are worried about. 

K_S

radio_2 said:

Basic question but for the purposes of applying for a mortgage in principle when it asks if we intend to use a government scheme to buy; examples given being Help to Buy or Shared Ownership; does the LISA deposit count as as such or should I just tick no?

@radio_2 Use of a LISA would not fall into that category.