Mortgage broker - ask me anything

bubby08

Thank you @K_S

22225

Thanks a lot x

piglet2017

I'm about to apply for a mortgage (FTB). I have some credit card debt on 0% offers, it's accounted for in my DIP so not a problem but one offer is due to expire on 18 July so I need to do a transfer. I'm wondering whether if I do my mortgage application this week that will be back in time for me to transfer once I have the mortgage offer, and if it's ok to do it that way? Or if I should do the transfer right now - but then it could be that when the bank look at my balance for the mortgage application the balance might not have been updated and so look higher than it actually is. I'm borrowing quite a bit below my max affordable amount though, so it might not be an issue?

K_S

piglet2017 said:

I'm about to apply for a mortgage (FTB). I have some credit card debt on 0% offers, it's accounted for in my DIP so not a problem but one offer is due to expire on 18 July so I need to do a transfer. I'm wondering whether if I do my mortgage application this week that will be back in time for me to transfer once I have the mortgage offer, and if it's ok to do it that way? Or if I should do the transfer right now - but then it could be that when the bank look at my balance for the mortgage application the balance might not have been updated and so look higher than it actually is. I'm borrowing quite a bit below my max affordable amount though, so it might not be an issue?

@piglet2017 I can't comment on the impact on your specific case (may not have any impact if you're well within affordability, but it depends on the specifics, the rest of the details, how large the amount is in relation to your income, etc.) but generally speaking, it would be best to leave this until post completion.

If that's not an option, then it would be worth considering doing it after you receive the mortgage offer.

As you correctly point out, the potential issue with doing it now is that it may show up on the report for a good few weeks as two balances on two cards and confuse the automated lender system when it 'credit-scores' the application.

piglet2017

Great, thanks, I will leave it until at least after mortgage offer in that case.

scottie555

Hi, I’m currently waiting on mortgage offer from Nationwide- hopefully any day now. It’s a right to acquire property and my contents insurance is due for renewal later this month. I discussed this with my broker and asked what best to do as I’ll need to be arranging buildings and contents soon after my renewal for contents only. 

My broker said might as well let it run out and maybe have a month or so where I’m completely uninsured, then arrange B & C when the time comes. Could I just double check your thoughts on this as it seems risky to me but obviously I’m not an expert on it all. 

Many thanks 

K_S

scottie555 said:

Hi, I’m currently waiting on mortgage offer from Nationwide- hopefully any day now. It’s a right to acquire property and my contents insurance is due for renewal later this month. I discussed this with my broker and asked what best to do as I’ll need to be arranging buildings and contents soon after my renewal for contents only. 

My broker said might as well let it run out and maybe have a month or so where I’m completely uninsured, then arrange B & C when the time comes. Could I just double check your thoughts on this as it seems risky to me but obviously I’m not an expert on it all. 

Many thanks 

@scottie555 Apologies, I don't really have an opinion as it primarily depends on your attitude to risk I guess, along with how valuable your contents are.

scottie555

@scottie555 Apologies, I don't really have an opinion as it primarily depends on your attitude to risk I guess, along with how valuable your contents are.

No probs, I understand. Thanks for your reply 

bubby08

@K_S Hi KS, still not heard anything from the valuation consultant, he told me he would be updating the system that afternoon. Given that, would it be fair to assume there is some kind of issue?

thanks 

K_S

bubby08 said:

@K_S Hi KS, still not heard anything from the valuation consultant, he told me he would be updating the system that afternoon. Given that, would it be fair to assume there is some kind of issue?

thanks 

@bubby08 Sorry I'm not sure what a valuation consultant is.

Usually what happens after a valuation is that the valuer sends a report (usually within 1-3 working days for a basic valuation, longer if the client has asked for a homebuyers report) to the lender.

The lender will then review it (may take another few days depending on the lender) and then take appropriate action depending on whether the report has come back fine, been materially down-valued or property deemed unsuitable.

Generally speaking, I wouldn't make any assumptions based on how long it takes as that can differ depending on how busy the valuer is and the lender service levels.