Mortgage broker - ask me anything

Soudle_Noop

K_S said:

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.

Thanks. The springboard mortgage doesn't require a deposit, it works by a relative putting money into a dedicated account which they then get back after 5 years. So we could get a springboard mortgage now, and miss out on any bonus towards a deposit, or wait. I take your point about it being impossible to know what prices will be like in future.

K_S

RoyalDad said:

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.

@royaldad Generally speaking -
- if you have an new employment contract that is due to start in the next 3 months, and no more than a few weeks between the two jobs, there are mainstream lenders who will consider.
- if you don't have a new job lined up, lenders will not normally consider income from a job where you have given your resignation or have a firm end date
- if you're tied to Barclays due to the need to port, afaik they will not rely on any element of future income so you would have to depend on your current job for the application. However, for porting lenders can often apply more lenient criteria so might be worth asking anyways.
- if you do use your current job, whether commuting once a week between York and Glasgow is seen as plausible or not will depend on a subjective assessment by the Barclays underwriter who picks up your application.

K_S

Soudle_Noop said:

K_S said:

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.

Thanks. The springboard mortgage doesn't require a deposit, it works by a relative putting money into a dedicated account which they then get back after 5 years. So we could get a springboard mortgage now, and miss out on any bonus towards a deposit, or wait. I take your point about it being impossible to know what prices will be like in future.

@soudle_noop The 100% product doesn't require a deposit, but afaik, you can still put in a deposit and reduce the mortgage size, even if its only by £5,000. So you get to use whatever LISA bonus you've earned until now.
 

Ozzpala

We’ve had an application with Leeds building society in for just under 2 weeks now.

Documents submitted that were accepted and valuation instructed this past Thursday. With Leeds is it an indication of they’ve instructed a valuation is that a good sign ?

LateNightHunter

My partner and I live in a council property, but we are looking to use her RTB to purchase our current place. How likely is it that lenders will accept her discount as a deposit? Is it common or is there more hoops needed?

K_S

LateNightHunter said:

My partner and I live in a council property, but we are looking to use her RTB to purchase our current place. How likely is it that lenders will accept her discount as a deposit? Is it common or is there more hoops needed?

@LateNightHunter It is not universal but plenty of mainstream lenders will use the discount as a deposit for RTB mortgages without requiring the applicant to add any cash of their own.

K_S

Ozzpala said:

We’ve had an application with Leeds building society in for just under 2 weeks now.

Documents submitted that were accepted and valuation instructed this past Thursday. With Leeds is it an indication of they’ve instructed a valuation is that a good sign ?

@ozzpala Off of the top of my head, Leeds instruct the valuation when they confirm that a fully packaged application has been submitted. Underwriting (if required, as not all applications will require full-underwriting) is the next stage.

Kirsten_R

I have had an application in with HSBC via broker for the last two weeks. Only one update to ask for my P60 on Thursday. But heard nothing since.

Should I take it as a good sign we haven't outright been rejected as of yet?

Thank you! 

K_S

Kirsten_R said:

I have had an application in with HSBC via broker for the last two weeks. Only one update to ask for my P60 on Thursday. But heard nothing since.

Should I take it as a good sign we haven't outright been rejected as of yet?

Thank you! 

@kirsten_r As long as they're still asking questions, it's all good. HSBC underwriting is one of the more predictable ones at the moment (compared to the likes of NatWest and Santander at least), so I wouldn't stress too much.

They're only taking about 2-3 working days to pick up responses to queries so hopefully you'll have an update soon. Good luck!

becky_rtw

Quick question. 

We own our building outright. Its a flat and part commercial. Value has been done by a chartered surveyor at £700k. Could we get a mortgage to buy a second place of £500k? Or does that only apply on the flat? Its freehold. 

We could do 20% deposit, possibly more. 

Ultimate aim is to sell the commercial business + property and buy, but this process is slow (possibly another year) so I'd be happy to pay a mortgage for this time + fees for paying off the mortgage early. Bridging loans seem too short a period for our purposes. 

Just exploring options at this stage.