Mortgage broker - ask me anything

debtout

K_S said:

debtout said:

Hi I have a question if I may ask please. we are currently at the valuation stage and our date for valuation is Monday the 11th, next week. The property we are buying is a new build and it should be ready sometime in August. My question is that if we do get the mortgage offer, after valuation,  does it mean we can exchange contracts and get all the moneies, deposit etc paid now and the house will formally and legally be ours,  or this will need to wait untill the house is finished being built?

@debtout Once you have the offer, you can exchange contracts at which point both vendor and buyer are contractually obligated to complete on the purchase.

Once the property is close to getting ready to move in to, the solicitors will agree a completion date and your solicitor will request the lender to release funds a day or two before the completion date.

Once completion has taken place, the house is formally and legally yours.

Thanks very much. At what point is my deposit taken from my account? Is it near the completion of the property or at change of contract. I just want that money out of my account 😂. Also after change of contract, I assume the lender will not be able to back down later? And there will be no further checks from the lender before they release funds when property is completed? 

K_S

@debtout There will be a deposit required at exchange of contracts.

The lender has nothing to do with the exchange of contracts, that's between you and the vendor. The lender will only come in at completion when the solicitor's request for release of funds.

The conditions under which a mortgage offer can be pulled will be detailed in the paperwork they sent you. Generally speaking it's only if your circumstances change materially (eg: an applicant loses their job, takes on a significant amount of new debt, etc.) or they suspect fraud.

mj_wl_22

Hi 

I've got what I hope will be an easy question to answer.

I've got AIPs with Natwest and Nationwide currently, I'm trying to get all my documents together before we submit a full application but I still also need to find a house so currently no rush. How many months statements/payslips do I need to get and is the bank statements for the account my salary goes into or do I need to get my bills account information as well (Me and the OH transfer half each to bills each month). 

Thanks 

K_S

@mj_wl_22 The exact packaging requirements may differ across lenders and based on your details and the mortgage requirements. All the below info is with respect to intermediary applications, I don't know if it's any different direct.

Nationwide - the DIP certificate lists the documentation required. More may be asked when the underwriter reviews it. General documentation requirements (not always needed if they can verify income automatically) can be seen here https://www.nationwide-intermediary.co.uk/lending-criteria/income#acceptableIncome

NatWest - https://www.intermediary.natwest.com/content/dam/natwest_com/Intermediary/PDFs/NWIS_Packaging_requirements.pdf

mj_wl_22

@K_S

Thanks for your swift reply, it was very helpful to get an idea  

londonftbhelp

Hello all,

FTB here, just starting to look at a mortgage on a 300k London 1 bed flat. I have what are some probably very basic questions:

My broker is suggesting a NatWest or Halifax mortgage. What is the current view of these two lenders?
Having used MSE's mortgage finder, there are some building societies which offer much lower interest rates. Do these generally only cover a certain area eg can you only use Coventry Building Society if you live in Coventry?
What sort of fixed term are people generally going for? I was thinking a five year fixed term because interest rates are likely going up...

Thanks for any advice

K_S

londonftbhelp said:

Hello all,

FTB here, just starting to look at a mortgage on a 300k London 1 bed flat. I have what are some probably very basic questions:

My broker is suggesting a NatWest or Halifax mortgage. What is the current view of these two lenders?
Having used MSE's mortgage finder, there are some building societies which offer much lower interest rates. Do these generally only cover a certain area eg can you only use Coventry Building Society if you live in Coventry?
What sort of fixed term are people generally going for? I was thinking a five year fixed term because interest rates are likely going up...

Thanks for any advice

@londonftbhelp        

- NatWest is very slow at the moment and are operating dual pricing (different rates direct Vs broker, often cheaper direct) for some products. Halifax is great as always, quick turnarounds and experienced underwriters.

- the cheaper building society products are probably 'discount' products where the rate can move up during the 5 year period. The rates with NatWest/Halifax offered to you are likely to be fixed rates. The larger BSs (Coventry is one) lend across the country, some regional ones might have post code limitations.

- this is not advice but most of my client currently are leaning towards longer fixes due to the rising rates.

londonftbhelp

Thank you!

IlonaRN

I have just started working as a contractor under an umbrella company.  I currently have a 6-month contract, but believe it is likely to be extended.

We would like to move house at some point (within the next few years if/when a suitable house becomes available).

We have a good LTV (~50% on what we will want to move to)

How much are we likely to be able to borrow?

babyblade41

@K_S I know plenty about buying but absolutely nothing about mortgages so thought here might be good place to ask re: our buyer 

We have been waiting for our buyers mortgage offer for 3 weeks now . It is with Santanders underwriters now. They have had to answer 5 lots of questions in this time & keep coming back wanting more information.

The problem seems to be with the wife as she is self employed and about to have a baby , they have 25% deposit .

Firstly is this a normal amount of time to wait for the offer to come through & secondly is Santander particularly stringent on the lending criteria 

This is all we are waiting for now but going into a fourth week of waiting it does seem there could be a problem ..any help would be much appreciated as we are getting to the point where we might have to consider putting the house back up for sale