Mortgage broker - ask me anything

Iamnotsure123

Hoping a MA can help, thanks in advance!

I am looking to buy a house and want to use savings from my child's savings account for house deposit (Solely saved by me, by monthly DD since the child was born). It is in Kids Saver account (under my name, but also states child's name). I can access the savings any time (tested by transferring some funds into my current account). The child is 8 now. 

Is this allowed? Or does this depend on the lender? If so - which lenders are likely to allow this?

I am keen to use these savings as this would be investment for my child's future. I am a single parent and have been renting since the child was born, so looking for security and better quality of life for both of us, which buying would allow (new area/garden). We had to move numerous times in the last few years, due to LL's selling. The child would inherit the house obviously. Mortgage payments would be lower than the current rent, so I can refill those savings by the time the child's is of age too (would double the DD). 

bubby08

@k_s Thanks so much

 The DIP has just come in after just under 24 hours of being with the underwriter apparently. So the Mortgage broker is now going to submit the full application now. They haven’t asked for any further information or documentation from me.  So I was wondering what the chances are of something going wrong at this stage. 

K_S

Iamnotsure123 said:

Hoping a MA can help, thanks in advance!

I am looking to buy a house and want to use savings from my child's savings account for house deposit (Solely saved by me, by monthly DD since the child was born). It is in Kids Saver account (under my name, but also states child's name). I can access the savings any time (tested by transferring some funds into my current account). The child is 8 now. 

Is this allowed? Or does this depend on the lender? If so - which lenders are likely to allow this?

I am keen to use these savings as this would be investment for my child's future. I am a single parent and have been renting since the child was born, so looking for security and better quality of life for both of us, which buying would allow (new area/garden). We had to move numerous times in the last few years, due to LL's selling. The child would inherit the house obviously. Mortgage payments would be lower than the current rent, so I can refill those savings by the time the child's is of age too (would double the DD). 

@iamnotsure123 Generally speaking, this could create issues when it comes to the conveyancer verifying the source of the deposit and reporting it to the lender. A lot of lenders will not accept deposit funds originating from the applicant's child’s account/trustee account.

K_S

bubby08 said:

@k_s Thanks so much

 The DIP has just come in after just under 24 hours of being with the underwriter apparently. So the Mortgage broker is now going to submit the full application now. They haven’t asked for any further information or documentation from me.  So I was wondering what the chances are of something going wrong at this stage. 

@bubby08 As I said, if the broker has done their job correctly, then very very low. The only time I've had a Nationwide app decline in recent memory is when a bit of criteria relevant to the applicant was changed by Nationwide in the couple of weeks between me doing the DIP and the full application. So it was my mistake coupled with really bad luck that the change happened in that short window of time.

bubby08

@K_S thanks again I think probably at this point my biggest concern would be around my credit file given its history and I was concerned that the hard search would bring up something the soft search didn’t ?!?! I don’t know how likely that would be. Also do you know currently how decisions are made on whether physical survey are needed as opposed to desktop one?

thanks as always. 

K_S said:

bubby08 said:

@k_s Thanks so much

 The DIP has just come in after just under 24 hours of being with the underwriter apparently. So the Mortgage broker is now going to submit the full application now. They haven’t asked for any further information or documentation from me.  So I was wondering what the chances are of something going wrong at this stage. 

@bubby08 As I said, if the broker has done their job correctly, then very very low. The only time I've had a Nationwide app decline in recent memory is when a bit of criteria relevant to the applicant was changed by Nationwide in the couple of weeks between me doing the DIP and the full application. So it was my mistake coupled with really bad luck that the change happened in that short window of time.

nurse1980

Hi, please can you advise. 

Our buyer is waiting for an ok from their lender on an environmental indemnity insurance for contaminated land.

The lender has had this for a week and still no progress. 

Is this usual? Started to become worrier that there is another issue. 

Apparently it is being chased daily by their solicitors, estate agent and broker. 

Thank you 

K_S

nurse1980 said:

Hi, please can you advise. 

Our buyer is waiting for an ok from their lender on an environmental indemnity insurance for contaminated land.

The lender has had this for a week and still no progress. 

Is this usual? Started to become worrier that there is another issue. 

Apparently it is being chased daily by their solicitors, estate agent and broker. 

Thank you 

@nurse1980 If the solicitor has sent something across to the lender to be looked at/approved, it can often take a good while as it's probably sitting in a queue waiting for someone in an short-staffed team to pick up and respond to.

Needless to say, that's a generalisation that may or may not apply to this particular case but one week is honestly far too early to start stressing about. I'm sure there are other conveyancing matters that can go on in parallel while the solicitor waits for a response on this matter.

Rumana03

I've asked a few brokers about this but no one seems to have the same answer...
My husband is buying a house only in his name and he is a first time buyer. The house is £257k. I already have a buy to let property. How much would we have to pay in tax for the new house? Thanks

nurse1980

K_S said:

nurse1980 said:

Hi, please can you advise. 

Our buyer is waiting for an ok from their lender on an environmental indemnity insurance for contaminated land.

The lender has had this for a week and still no progress. 

Is this usual? Started to become worrier that there is another issue. 

Apparently it is being chased daily by their solicitors, estate agent and broker. 

Thank you 

@nurse1980 If the solicitor has sent something across to the lender to be looked at/approved, it can often take a good while as it's probably sitting in a queue waiting for someone in an short-staffed team to pick up and respond to.

Needless to say, that's a generalisation that may or may not apply to this particular case but one week is honestly far too early to start stressing about. I'm sure there are other conveyancing matters that can go on in parallel while the solicitor waits for a response on this matter.

Hi, this is the final thing we are waiting for and then we can exchange. 

K_S

Rumana03 said:

I've asked a few brokers about this but no one seems to have the same answer...
My husband is buying a house only in his name and he is a first time buyer. The house is £257k. I already have a buy to let property. How much would we have to pay in tax for the new house? Thanks

@rumana03 Brokers (including myself) aren't qualified to give advice on Stamp Duty matters so please take my comments in that vein, I might well be wrong!

However, from what I know, for the purposes of stamp duty calculations, married couples and civil partners are treated as one “unit” so although your husband doesn’t currently own a property, he will be treated as though he does when he buys your new property in his sole name as his wife already owns another property in the background.

Following on from the above, I don't think your husband will be eligible for the FTB stamp duty relief either.

For a 257k property in England, I would expect your SDLT bill to be £10,560.