Mortgage broker - ask me anything

pastaUK

Hi

newbie here... we are FTB but not sure if we need to or should use a mortgage broker.

Our case is very straight forward - both have PAYE perm jobs within income 100K+. No debt and other loans, clean credit history. LTV 82%. At this time.. is there any advantage to go direct with highstreet lenders or we would still be better off to use a broker? Appreciate brokers are all different but in general what is the natural choice? Many thanks.

K_S

pastaUK said:

Hi

newbie here... we are FTB but not sure if we need to or should use a mortgage broker.

Our case is very straight forward - both have PAYE perm jobs within income 100K+. No debt and other loans, clean credit history. LTV 82%. At this time.. is there any advantage to go direct with highstreet lenders or we would still be better off to use a broker? Appreciate brokers are all different but in general what is the natural choice? Many thanks.

@pastauk If your circumstances & requirements are straightforward, you know what you want with regard to the product, then you don't need a broker to get the 'best rate' (or close enough to it that it doesn't make a huge difference).

There may be other reasons to still use a broker (plenty of fee-free ones in the market) over going direct, but then I would say that wouldn't I  

James_D

Hi, I'm a FTB and just started the process of getting a DIP with nationwide and their helping hand mortgage over the phone. It was all going fine until the person I was speaking to realised / I was told that the 95% LTV was not available to me because the purchase price of the property was above £500k (I wanted to borrow £569k which is what their income calculator told me was possible at I assume 5.5 x my income), and to borrow more than £500k I needed at least a 15% deposit. I haven't found anything on the website to tell me that this is the case - can anyone verify that it is?? Are there any other lenders out there that lend at 5.5 x income and 95% LTV? Really gutted, was about to put in an offer on somewhere. 

Any help would be much appreciated.

K_S

James_D said:

Hi, I'm a FTB and just started the process of getting a DIP with nationwide and their helping hand mortgage over the phone. It was all going fine until the person I was speaking to realised / I was told that the 95% LTV was not available to me because the purchase price of the property was above £500k (I wanted to borrow £569k which is what their income calculator told me was possible at I assume 5.5 x my income), and to borrow more than £500k I needed at least a 15% deposit. I haven't found anything on the website to tell me that this is the case - can anyone verify that it is?? Are there any other lenders out there that lend at 5.5 x income and 95% LTV? Really gutted, was about to put in an offer on somewhere. 

Any help would be much appreciated.

@james_d That's right, NW don't lend over 500k on their 90/95% LTV HH products. 

5.5x income, 95% LTV, 500k+ loan size, you're probably out of luck off of the top of my head. 

There are a couple of lenders who may consider going slightly outside their published criteria if the applicant profile is strong (high income, professional, large loan, etc.) but it's only an outside chance.

Just to be clear, other than the part about NW, the rest is just my quick opinion based on the limited info in your post, so please don't take it as confirmation either way, do consider getting in touch with a good broker. Good luck!

James_D

K_S said:

James_D said:

Hi, I'm a FTB and just started the process of getting a DIP with nationwide and their helping hand mortgage over the phone. It was all going fine until the person I was speaking to realised / I was told that the 95% LTV was not available to me because the purchase price of the property was above £500k (I wanted to borrow £569k which is what their income calculator told me was possible at I assume 5.5 x my income), and to borrow more than £500k I needed at least a 15% deposit. I haven't found anything on the website to tell me that this is the case - can anyone verify that it is?? Are there any other lenders out there that lend at 5.5 x income and 95% LTV? Really gutted, was about to put in an offer on somewhere. 

Any help would be much appreciated.

@james_d That's right, NW don't lend over 500k on their 90/95% LTV HH products. 

5.5x income, 95% LTV, 500k+ loan size, you're probably out of luck off of the top of my head. 

There are a couple of lenders who may consider going slightly outside their published criteria if the applicant profile is strong (high income, professional, large loan, etc.) but it's only an outside chance.

Just to be clear, other than the part about NW, the rest is just my quick opinion based on the limited info in your post, so please don't take it as confirmation either way, do consider getting in touch with a good broker. Good luck!

Hi there, thanks for getting back to me. I'm trying specialist brokers. I'm a "professional" so perhaps they will be more flexible. If you can think of anything else (or if anyone can) I'm all ears!!

HopefulFTB22

Good morning,

How common is it for mortgage applications to be audited, and is this usually a bad sign?

Thank you (from a nervous FTB!)

K_S

HopefulFTB22 said:

Good morning,

How common is it for mortgage applications to be audited, and is this usually a bad sign?

Thank you (from a nervous FTB!)

@hopefulftb22 I don't really know to be honest. The only time that I or the client would know about an audit is if something went wrong and there was an unusual query or the offer was withdrawn.

Post-offer audits could be triggered for a variety of reasons - client risk profile, adviser risk profile, source of deposit, comments from conveyancer, random sampling, mortgage size/type/characteristics, underwriter comments, etc etc etc. I would assume that the vast majority would go through without incident and a small percentage would lead to further action that comes to the attention of the broker or applicant.

cloud21

Is it ok to spend on a credit card after mortgage approval but before completion?

James_D

K_S said:

James_D said:

Hi, I'm a FTB and just started the process of getting a DIP with nationwide and their helping hand mortgage over the phone. It was all going fine until the person I was speaking to realised / I was told that the 95% LTV was not available to me because the purchase price of the property was above £500k (I wanted to borrow £569k which is what their income calculator told me was possible at I assume 5.5 x my income), and to borrow more than £500k I needed at least a 15% deposit. I haven't found anything on the website to tell me that this is the case - can anyone verify that it is?? Are there any other lenders out there that lend at 5.5 x income and 95% LTV? Really gutted, was about to put in an offer on somewhere. 

Any help would be much appreciated.

@james_d That's right, NW don't lend over 500k on their 90/95% LTV HH products. 

5.5x income, 95% LTV, 500k+ loan size, you're probably out of luck off of the top of my head. 

There are a couple of lenders who may consider going slightly outside their published criteria if the applicant profile is strong (high income, professional, large loan, etc.) but it's only an outside chance.

Just to be clear, other than the part about NW, the rest is just my quick opinion based on the limited info in your post, so please don't take it as confirmation either way, do consider getting in touch with a good broker. Good luck!

A big thank you for your advice. Spoke to a specialist broker yesterday, and today already got a DIP for exactly what I wanted. Result! 

JellyphantCastle

Morning everyone. I am losing my mind slightly with a 95% LTV FTB mortgage with NatWest. Application went in just over 3 weeks ago, I have some loan debt which I always knew would be a bit iffy with affordability, but AIP came back with £40k more than we’d be asking for. Anyway - I’ve lost count of the number of docs they’ve requested and queries they’ve raised, we’re now at the point where their final remaining request was for evidence of loan agreement (I think to confirm the payment amounts and dates). Providing “this is ok”, should move to offer stage next week apparently as everything else is satisfied. It was ticked off on the tracker yesterday and broker confirmed no further queries have come through to them.

Valuation was done early doors and confirmed no issues there at all. So it seems to just be boiling down to my ongoing loan commitments.  

Of course it’s now the weekend and I have convinced myself that on Monday they will say actually no, we can’t lend to you. I guess my question is would NW get this far along the underwriting process without being reasonably sure it would be ok? (Totally neurotic and ridiculous post here, apologies!)