Mortgage broker - ask me anything

xssc32x

Hi, looking for advice on incorporating HTB with mortgage.
my 5 year fixed mortgage is up for renewal at the end of June, and also want to incorporate the HTB loan that I took out. 

I am in conversation with a mortgage broker who looks to have secured a deal via Halifax, this is yet to be confirmed but it’s all looking good and the offer is based on a desktop valuation of the property. From my understanding the HTB element requires another independent valuation of the property to determine how much I owe total based on 20% on the properties increase in price. Would like some advice on when I need to get this valuation and relevant forms completed and sent back to HTB ( also appointing a solicitor to oversee paperwork). With new mortgage needed at end of June do I need to wait until start of April to ensure the HTB valuation is within the 3 months prior to new mortgage? Also how long will the new deal mortgage be ‘held’ for awaiting the HTB element to be finalised?
any help/advice/tips would be really appreciated 
cheers
si

housebuyer143

moneyworrier2021 said:

Hi K_S

when a broker is looking for a mortgage of course they look at income. My husband earns with the police but I don’t earn anything.

We do however receive Disability Living Allowance, Carers Allowance and a financial top up each month probably totalling £1,200 a month for our son.

can this money be included as income in an application?

 

@moneyworrier2021

I spent a long time looking for lenders who take DLA for your child (very few will do this if it's not in your name) into account as well as other benefits. Look at Skipton building society. They are your best bet and insanely fast.

crispy99

I’ve got to the stage of getting a valuation booked in with saffron building society, they are paying for the valuation. Should I be hopeful the underwriting and checks have already been done?

We are borrowing less that the deposit amount so would an under valuation still effect us? 

Ogriv

Hi K_S
I initially posted this query in the main space, but it's probably better off here. 
Forgive me. 

Do you know what questions Coventry Building Society use for a Product Transfer?

At the end of this year my fixed-rate deal is ending. 
Since it started four years ago, I'm earning less as my circumstances changed. 
I'm good at thrift, so this isn't necessarily a problem. 

My mortgage was never enormous for me, as even at my initial higher rate of pay, I chose to only borrow 2.9 times my salary. 
But my current earnings really are quite small, and although I can live on them perfectly well, it would perhaps be sensible for me to get a higher-paying job before my deal ends, especially if CBS do ask about earnings with product transfers. 
So I can either do that i.e. get a higher-paid job; or just continue with my low-stress, low-pay current job. 

Therefore I'm wondering what questions are asked with CBS product transfer, as my current earnings do look very small on paper. 
I would go down the online unadvised route for the product transfer. 

I'm also aware that the geopolitical situation might indirectly affect all of this by the end of the year anyway. 

Thanks for your help. 

K_S

crispy99 said:

I’ve got to the stage of getting a valuation booked in with saffron building society, they are paying for the valuation. Should I be hopeful the underwriting and checks have already been done?

We are borrowing less that the deposit amount so would an under valuation still effect us? 

@crispy99 Sorry, I can't remember the sequence for Saffron off of the top of my head. Usually with societies it's initial assessment -> valuation instructed -> full underwriting. But it may well be different with Saffron.

If I remember correctly, Saffron's purchase LTV bands go no lower than 75 or 80% LTV. So, with an initial LTV of less than 50% (given that you are borrowing less than the deposit), the likelihood of a down-valuation impacting your rate is very very small. 

housebuyer143

Ogriv said:

Hi K_S
I initially posted this query in the main space, but it's probably better off here. 
Forgive me. 

Do you know what questions Coventry Building Society use for a Product Transfer?

At the end of this year my fixed-rate deal is ending. 
Since it started four years ago, I'm earning less as my circumstances changed. 
I'm good at thrift, so this isn't necessarily a problem. 

My mortgage was never enormous for me, as even at my initial higher rate of pay, I chose to only borrow 2.9 times my salary. 
But my current earnings really are quite small, and although I can live on them perfectly well, it would perhaps be sensible for me to get a higher-paying job before my deal ends, especially if CBS do ask about earnings with product transfers. 
So I can either do that i.e. get a higher-paid job; or just continue with my low-stress, low-pay current job. 

Therefore I'm wondering what questions are asked with CBS product transfer, as my current earnings do look very small on paper. 
I would go down the online unadvised route for the product transfer. 

I'm also aware that the geopolitical situation might indirectly affect all of this by the end of the year anyway. 

Thanks for your help. 

As I understand it must lenders do no checks for a product transfer. They make sure you have been paying, you choose a new product and then you sign a piece of paper and it's done 👍

K_S

Ogriv said:

Hi K_S
I initially posted this query in the main space, but it's probably better off here. 
Forgive me. 

Do you know what questions Coventry Building Society use for a Product Transfer?

At the end of this year my fixed-rate deal is ending. 
Since it started four years ago, I'm earning less as my circumstances changed. 
I'm good at thrift, so this isn't necessarily a problem. 

My mortgage was never enormous for me, as even at my initial higher rate of pay, I chose to only borrow 2.9 times my salary. 
But my current earnings really are quite small, and although I can live on them perfectly well, it would perhaps be sensible for me to get a higher-paying job before my deal ends, especially if CBS do ask about earnings with product transfers. 
So I can either do that i.e. get a higher-paid job; or just continue with my low-stress, low-pay current job. 

Therefore I'm wondering what questions are asked with CBS product transfer, as my current earnings do look very small on paper. 
I would go down the online unadvised route for the product transfer. 

I'm also aware that the geopolitical situation might indirectly affect all of this by the end of the year anyway. 

Thanks for your help. 

@ogriv For the intermediary route, as long as there is no change in loan size or term, there is no underwriting for PTs. The process is to get an illustration, get the client's go-ahead and book the switch. That's it.

Sorry, I have no idea what exact questions they ask for a direct online PT but I would be very surprised if they did ask anything about your current income, outgoings, etc.

simon_or

Hi KS. Thank you for taking the time to answer questions. Believe it or not, it's extremely difficult to get these kind of clear answers from brokers that I spoke to.

My current mortgage fix is ending in about 6 months. I need to remortgage and release 50k cash. We (spouses) have multiple income sources - employment, rental income, limited company income (salary and dividends) and were wondering if there are banks who will take everything into account when deciding how much they will lend. Given that the tax year end is upon us, is there anything I can do to prepare?

K_S

simon_or said:

Hi KS. Thank you for taking the time to answer questions. Believe it or not, it's extremely difficult to get these kind of clear answers from brokers that I spoke to.

My current mortgage fix is ending in about 6 months. I need to remortgage and release 50k cash. We (spouses) have multiple income sources - employment, rental income, limited company income (salary and dividends) and were wondering if there are banks who will take everything into account when deciding how much they will lend. Given that the tax year end is upon us, is there anything I can do to prepare?

@simon_or The short answer is yes, there are mainstream lenders who will consider PAYE+rental+ltd.co income at 100% for the purpose of affordability.

The long answer is that the pool of potential lenders will vary based on the specifics, such as (not an exhaustive list, just mere examples) - whether the rental property has a mortgage (and whether it's capital repayment or interest only), track record/trend of your ltd co income, whether you have an accountant or not, reason for releasing cash, LTV, etc. etc. etc. Whether or not you can borrow what you need will depend on the numbers involved.

For the ltd co income, at the very minimum, you will need 2 years of SA302s (HMRC Tax calculations) and Tax Year Overviews. For the rental income, ideally 2 years of SA302s showing property income. If you did have your 2021-22 SA302s to hand when applying for the remo, that might make the underwriting process simpler.

Jessks

Hi I am just wondering if you have noticed mortgages have higher interest rates at different points of the year? I have been closely looking at mortgage rates for the last year to see if I can get a better rate last April time they were still around what I am paying now but towards the end of the year they dropped which may have been due to omicron perhaps 🤔 I should have locked in at the low rate last year with my current provider but when I contacted the lady made it sound like a very complicated process which I have now found out it isn’t. I am due to remortgage ay the end of November should I remortgage now with rates increasing? My current rate is 2.1% I could lock in with my current provider for the same rate but 10years. I am aware of lower rates but by the time I pay fees it wouldn’t be much difference.