Mortgage broker - ask me anything

K_S

jkcool said:

K_S said:

jkcool said:

The mortgage rates in the illustration provided by my fee paid mortgage advisor is much higher than the rates offered by Natwest on the website.  Can I ask my mortage broker to go back to Natwest and change the rates ? 

Rates on Natwest website is 2.06% for 15% down. The quote from the broker is 2.26%.  Why is it so ?

@jkcool You should definitely ask. But there's no reason to offer you a lower rate than what you (and the property you are buying) are eligible for, and nothing for the broker to gain from doing that.

It's either a mistake on their part or (more likely) you aren't comparing like for like. For example, I can see that NatWest offers a 2.05% 85% LTV 5-year fix, but it's a 'Green' product, so only available if the property has an A or B rating on the EPC.

Hope it gets sorted out, good luck!

Thank you for the reply. When I checked the website, Natwest offers 2.06% for a 5 year fixed for an 85% LTV on non-green product. The requirement on this rate does not say that the property should be A or B.  Hope my mortgage broker should be able to correct it. 

Is there any case where lenders will bump up the rates ?

@jkcool The 2.06% £995 fee 5-year 85% LTV fix was indeed available until cob 11th March for intermediaries (brokers). It was then replaced by the 2.26% product. All lenders have been bumping up rates over the past weeks.

So either the NatWest direct website hasn't been updated with the new products, or they are still offering the old rate to direct customers (in which case you should consider grabbing it while it's there!). In either case, your broker is unlikely to be able to get you the 2.06% rate as (as far as I can tell!) as it doesn't show on the broker product list.

BuckfastLover

Does RBS/NatWest do another credit & employment check before releasing the fund?

I've received a mortgage offer from them however I will be starting a new job in April/May and the completion date is end of May, I wonder how will this impact the offer?

k_bro93

Currently going through the help to buy process with agent 3. When applying for ATE (Authority to exchange) the service charge was updated and increased by £51. This pushed my loan to income ratio to above 45%. 

I receive a monthly wfh allowance which when added to my salary brings me back under the 45%. I have updated my income on the help to buy portal. Will amending my income mid application cause any issues? does the help to buy agent require any proof of income like payslips etc?

Thanks

Lori2288

Hello,

I am splitting with my partner - we have a house in joint names and a flat that is in my name. Both are due a remortgage. We have agreed to put the house mortgage in my name and I give him the flat equity with the small mortgage that remains on it. I have applied for a remortgage on house and that seems fine. My question is, with the flat, is it best to remortgage in my name as it is and then transfer equity or start a new mortgage in his name. If that is the case is it classed as a new buy as he doesn't have a deposit to put down other than the equity?

Thanks

K_S

stek2008 said:

K_S said:

@stek2008 Yes, it should get closed at some point, either when the broker cancels the app or the lender timelines for a response elapse. If the applicant called, I'm pretty sure the lender will cancel it at their request.

If your valuation happened on Thursday, Santander should have the report back by now sitting in a queue to be picked up. However (unlike a lot of other lenders) they're usually happy to tell you whether it came back at the purchase price or not without any further details. Good luck, hope it comes back fine!

Not helped this evening by my gf having read an article saying that Santander is restricting LTV to 75% for self-employed people. If they class me as self-employed (I have some PAYE income from a second job, but the majority as dividend/salary as a Ltd co. director) then we're in trouble. 

@stek2008 Maybe I'm missing something obvious but that doesn't make sense. As far as I know, Santander is still limiting ALL self-employed applications to 75% LTV (or at least for intermediary applications), whether covid affected or not. It's been that way for a very long time now. So if your affordability is based on your self-employed income as a ltd. co. director, I'm a bit confused as to how you got to this stage with them.

K_S

BuckfastLover said:

Does RBS/NatWest do another credit & employment check before releasing the fund?

I've received a mortgage offer from them however I will be starting a new job in April/May and the completion date is end of May, I wonder how will this impact the offer?

@buckfastlover With regard to the new job - NatWest will expect that the broker make them aware of any change to the client's employment and employer between offer and completion. This would usually trigger a re-assessment by an underwriter. The underwriters may ask for the first month's payslip before they re-offer, though they can also use their discretion and do it based on a copy of the contract.

BuckfastLover

K_S said:

BuckfastLover said:

Does RBS/NatWest do another credit & employment check before releasing the fund?

I've received a mortgage offer from them however I will be starting a new job in April/May and the completion date is end of May, I wonder how will this impact the offer?

@buckfastlover With regard to the new job - NatWest will expect that the broker make them aware of any change to the client's employment and employer between offer and completion. This would usually trigger a re-assessment by an underwriter. The underwriters may ask for the first month's payslip before they re-offer, though they can also use their discretion and do it based on a copy of the contract.

Thanks!!
I did the mortgage application myself so will need to inform the lender myself.

Regarding the re-assessment, would this impact the interest rate? I submitted the mortgage application just before BoE raised the base interest rate and got a good deal, the interest rate on the same product has since gone up quite a bit, would my interest rate also go up due to the re-assessment?

Let's say hypothetically that I 'forgot' to inform the lender of change to the employment, would this have any consequences?

stek2008

@stek2008 Maybe I'm missing something obvious but that doesn't make sense. As far as I know, Santander is still limiting ALL self-employed applications to 75% LTV (or at least for intermediary applications), whether covid affected or not. It's been that way for a very long time now. So if your affordability is based on your self-employed income as a ltd. co. director, I'm a bit confused as to how you got to this stage with them.

I best call the new broker and ask the question. 
Given we've got a DIP and they've arranged a valuation I'm guessing either something has changed or their automated bits of the system doesn't check for the 75% LTV and it's all going to crumble when the underwriters take a look...

suejb2

Hi.need to remortgage (May). Have a balance of less £27000 with three sub accounts. 1,2 3. 1&2 are lifetime trackers 1.09% and 3 is fixed (May) 2.19%. 

House has an approximate value of £150000.
With  9 years left on the mortgage should I commit to a long term or do a 2 or 3 year? 

Thank you.

lantanna

I spoke to NatWest this morning who advised me all applications from N.I now have to go through a Broker. Just posting as this may be relevant to anybody reading. Seems strange to me as the rest of the UK can apply directly.