Mortgage broker - ask me anything

K_S

JellyphantCastle said:

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!)

@JellyphantCastle NatWest underwriting is an absolute p-i-t-a at the moment. They're swamped with cases, taking ridiculously long to process cases and raising far too many pointless and redundant queries. As long as the queries have been responded to adequately and there's not a lot of subjectivity involved, there's no reason for them to decline so hopefully it'll come through soon. Good luck!

JellyphantCastle

K_S said

@JellyphantCastle NatWest underwriting is an absolute p-i-t-a at the moment. They're swamped with cases, taking ridiculously long to process cases and raising far too many pointless and redundant queries. As long as the queries have been responded to adequately and there's not a lot of subjectivity involved, there's no reason for them to decline so hopefully it'll come through soon. Good luck!

Thanks K S, that’s really helpful to know. I feel like I’ve laid my soul bare and jumped through a zillion hoops! I’ll try and stay patient and hopefully it’ll come through early next week. 

IAMIAM

Ie. You now want to move into one of your BTL properties and rent out your current residential property if mortgages are already in place? 

Or is it easier the other way round, ie moving out of your residential property and changing the residential mortgage to BTL and moving into a new residential mortgage property.

Just toying with ideas and understanding which scenario lenders prefer.....or is there nothing in it....both properties will have around 75%to 80% LTV

K_S

IAMIAM said:

Ie. You now want to move into one of your BTL properties and rent out your current residential property if mortgages are already in place? 

Or is it easier the other way round, ie moving out of your residential property and changing the residential mortgage to BTL and moving into a new residential mortgage property.

Just toying with ideas and understanding which scenario lenders prefer.....or is there nothing in it....both properties will have around 75%to 80% LTV

@iamiam I'm not entirely sure what you're asking but I'll try to answer one part of the question - converting your current residence into a BTL.

Unless it's part of a let-to-buy transaction, the BTL lender will normally require at a minimum that you no longer live in the house and your credit report + account addresses show your new address.

PETRA798

Hi sorry for the complicated question but I’m really not sure what to do. I have been trying to sell our home for over a year - now getting to the stage where it looks like it’s finally happening. Marital split, joint DMP due to his business debts & he used my credit cards to keep the business going so total debt currently just under £60k. Separate Mortgage brokers placed us both with the Kensington for separate purchases. Got my mortgage offer last week & it has a condition on it that I have to pay off the entire DMP. His mortgage offer stated he has to pay off just his debts. The ones in my name total £24k. 

My mortgage broker is now ghosting me again and I’m panicking. Should I contact the Kensington myself or not rattle their cage? I can’t pay all of the debts off myself but I could negotiate with the DCAs on his behalf I guess and hope he is willing to pay his off. Please help!

K_S

PETRA798 said:

Hi sorry for the complicated question but I’m really not sure what to do. I have been trying to sell our home for over a year - now getting to the stage where it looks like it’s finally happening. Marital split, joint DMP due to his business debts & he used my credit cards to keep the business going so total debt currently just under £60k. Separate Mortgage brokers placed us both with the Kensington for separate purchases. Got my mortgage offer last week & it has a condition on it that I have to pay off the entire DMP. His mortgage offer stated he has to pay off just his debts. The ones in my name total £24k. 

My mortgage broker is now ghosting me again and I’m panicking. Should I contact the Kensington myself or not rattle their cage? I can’t pay all of the debts off myself but I could negotiate with the DCAs on his behalf I guess and hope he is willing to pay his off. Please help!

@petra798 If I understand it correctly, you have a joint DMP with a total o/s debt of 60k. Of that 24k is yours and 36k is his. From what you have said, I am assuming that none of the debt is in joint names. If any of it is in joint names, it's important to remember that you are both jointly liable to repay 100% of these and you will not normally be allowed to just pay your half.

His mortgage offer has the condition that his debt should be fully paid off, and your offer has the condition that you "have to pay off the entire DMP". In the first instance your broker needs to explain what that means. This is working off very little information, for on the face of it I would assume it to mean that your 24k debt needs to cleared.

Again, I'll stress here that your broker would be the person best placed to explain what the condition means in your case. Most intermediary-only lenders will point you back to the broker in case of any queries. In any case, they will not be willing to 'negotiate' anything important directly with the applicant.

PETRA798

@K_S you are correct in that none of the debts are in joint names and he owes around £36k, do I am at a loss to why my mortgage offer says I’ve got to pay off the whole £60k within 28 days of completion. As I said my broker is not replying to my emails or phone calls

Soudle_Noop

Hi all, I have a question. My family have generously offered to assist me and my partner with a springboard mortgage. We started saving for our own deposit a year ago but will still take around 3 years for us to get enough to buy ourselves. If we use a springboard mortgage we can't make use of our LISA 25% bonus towards a deposit (which at maximum would be £5000).

In general, is better to get a springboard mortgage earlier or wait to buy using your own deposit and 25% government bonus?

RoyalDad

I have a question - Husband and I both leaving our jobs and moving to Glasgow from York at the end of July, he is an Assistant Head and I work in HR for a University. Our house is sold STC and we will have £300k in equity and will be looking for a small mortgage of £50k when buying in Glasgow. Need advice on how to play it with the mortgage application. Basically my job allows me to WFH 4 days a week and only go in to the office one day a week. I had thought about applying for the mortgage on my own whilst still working in my current role. Once its all agreed and we move into new house I would then leave and start new role (hopefully will find something). I could travel down once a week for a month whilst I work my notice. I then wondered if we could still get a mortgage even if I was leaving my current job and hopefully have a start date for a new job. Considering our large LTV I was hoping they would be more flexible. We currently have a mortgage with Barclays and are hoping to port that with us. Been with them 12 years and have perfect payment record and both have 999 credit ratings. Does anyone have similar experience or advice. Huge thanks.

K_S

Soudle_Noop said:

Hi all, I have a question. My family have generously offered to assist me and my partner with a springboard mortgage. We started saving for our own deposit a year ago but will still take around 3 years for us to get enough to buy ourselves. If we use a springboard mortgage we can't make use of our LISA 25% bonus towards a deposit (which at maximum would be £5000).

In general, is better to get a springboard mortgage earlier or wait to buy using your own deposit and 25% government bonus?

@Soudle_Noop In what way? If you are talking about the cost of buying now vs waiting until 2025, it's impossible to say what might work out cheaper overall as there are lots of unknowns that could determine the result -  interest rates, house prices going up/down, your cost of housing in the interim period, etc. etc. I hope that makes sense.

With regard to your current savings in the LISA, unless I'm missing something obvious, you could still put it towards the deposit when you buy using the springboard product.