Mortgage broker - ask me anything

K_S

Mr.Generous said:

Are all buy to let mortgages interest only are can they be repayment too?

@mr.generous They can be repayment too but in that case will be assessed based on your income, debt, commitments etc. rather than just the rental income from the property. Having it on capital repayment may also have an impact on how much you can borrow on a residential mortgage, for instance when you move home.

Most of my landlord clients who want to repay capital just take out the mortgage interest-only and then set up a standing order to make penalty-free overpayments. Most lenders will allow up to 10% overpayments annually with no ERCs. This way you get all the advantages of a BTL repayment mortgage with none of the cons.

Mr.Generous

Thanks K_S good to know. I have 4 renters owned outright but feel 1 more would provide enough income for me to be comfortable. I can draw from pension pot but be taxed on it, or borrow - about 50 - 60k short of a suitable property. Income not great as I retired a few years ago and just use the rental income. Not drawing a pension but I have taken max tax  free sum. Got a little over 60k to put towards a house, probably spend about 120k inc stamp duty / fees etc. If I moved home I would have cash to spare, house is too big for us really. I can save a bit every month but my thoughts are roughly speaking a load costing say £250 per month would probably get me a rental income of about £600 per month. (NW prices) whereas my savings are attracting less than that per year.

matyyew

Hi all,
I hope I can ask you for some advise.
It is about JBSP mortage. I want to be a booster on one of my family member mortage. My questions are:
- what are best rates available on the market on that type of product?

-tembomoney does someone got experience with them, their rate is 2.69 fixed on 5 years

- I haven't got a property in the moment, but in future I want to buy a home with a partner on joint mortage. How being a booster would affect affordability? Does the monthly payment is consider as a outgoing similar to loan etc? Does the calculations from mortage affordability calculators including outgoings would be accurate in that case?

Thank you for advance for any help.

K_S

matyyew said:

Hi all,
I hope I can ask you for some advise.
It is about JBSP mortage. I want to be a booster on one of my family member mortage. My questions are:
- what are best rates available on the market on that type of product?

-tembomoney does someone got experience with them, their rate is 2.69 fixed on 5 years

- I haven't got a property in the moment, but in future I want to buy a home with a partner on joint mortage. How being a booster would affect affordability? Does the monthly payment is consider as a outgoing similar to loan etc? Does the calculations from mortage affordability calculators including outgoings would be accurate in that case?

Thank you for advance for any help.

@matyyew Quick comments -

1. Best rates are likely to be one of the mainstream lenders that offer JBSP like Barclays, Skipton, Clydesdale, Newcastle, etc.

2. Being on a JBSP mortgage will show up on your credit report as a mortgage so may limit your borrowing on a future mortgage in your name.

PalomaLiu

Hi, 

I am FTB with a LTV of 60%, being a resident in the UK for 5 years and 11 months so far with a Fair Experian credit score.
My mortgage application was submitted with Santander on the 5th of May. They did a hard search on the same day. My notice of correction on the 9th of May explains the reason why I am not on the voter's roll is that I am not eligible to vote (due to nationality). Then on the 12th of May, the underwriter asked for further information about my deposit and my broker responded to them the same day. On the 1st of June, the broker told me Santander declined the mortgage application as they said 'there are some undisclosed credit and also my credit score'. The broker asked me to download my credit file on Experian and checked I have a clean record and there is no reverse credit shown etc, and appealed the same day. Until now, we have not heard anything back from the underwriter.
Any idea why the underwriter declined my application and what are my chances of success on appeal? Thank you very much! 

K_S

PalomaLiu said:

Hi, 

I am FTB with a LTV of 60%, being a resident in the UK for 5 years and 11 months so far with a Fair Experian credit score.
My mortgage application was submitted with Santander on the 5th of May. They did a hard search on the same day. My notice of correction on the 9th of May explains the reason why I am not on the voter's roll is that I am not eligible to vote (due to nationality). Then on the 12th of May, the underwriter asked for further information about my deposit and my broker responded to them the same day. On the 1st of June, the broker told me Santander declined the mortgage application as they said 'there are some undisclosed credit and also my credit score'. The broker asked me to download my credit file on Experian and checked I have a clean record and there is no reverse credit shown etc, and appealed the same day. Until now, we have not heard anything back from the underwriter.
Any idea why the underwriter declined my application and what are my chances of success on appeal? Thank you very much! 

@palomaliu I can only hazard a guess based on the limited info in your post.

It looks like there may be credit commitments on your Experian report that were not input in the full mortgage application. Additionally the underwriter appears to have made a subjective decision to decline based on what they see in your report and/or other aspects of the application that they aren't comfortable with.

In most cases, I always review the client's Equifax/Experian credit report before recommending a lender so that I can get the exact same view as the lender and identify any potential issues.

Sorry, can't really give a useful opinion on the likelihood of an appeal reversing the decision. Hope it succeeds, good luck!

bubby08

@K_S Hi Ks unfortunately the application was declined based on a company statement using the overdraft however this has been decided before any notes on the valuation have been uploaded is this normal procedure. Also the company statement was the sole trader account of a fellow director not the ltd company account can this be appealed. Also where do I stand now with other applications given I have already had a hard search done by nationwide

thanks in advance. 

K_S

bubby08 said:

@K_S Hi Ks unfortunately the application was declined based on a company statement using the overdraft however this has been decided before any notes on the valuation have been uploaded is this normal procedure. Also the company statement was the sole trader account of a fellow director not the ltd company account can this be appealed. Also where do I stand now with other applications given I have already had a hard search done by nationwide

thanks in advance. 

@bubby08 Sorry to hear that.

- your broker should be able to get the valuation result even if the application has been declined 

- sorry can't really give a useful opinion on the possibility of an appeal as I simply couldn't say based on the limited view of the case

- don't worry too much about the hard search, that by itself should not be a show stopper for the next application

Hopefully your broker is experienced in self-employed apps and will be able to place your case with another lender. Good luck!

bubby08

@k_s thanks KS apparently my broker can’t find any information on the valuation. Which seems odd that a decision has been made prior to the valuation. I know you can’t possibly advise regarding an appeal I was just wondering if you knew if there is a precedent for appealing or if the underwriters decision is always final. I’m just confused how going this far down the road something like a statement at the final hurdle 

K_S

bubby08 said:

@k_s thanks KS apparently my broker can’t find any information on the valuation. Which seems odd that a decision has been made prior to the valuation. I know you can’t possibly advise regarding an appeal I was just wondering if you knew if there is a precedent for appealing or if the underwriters decision is always final. I’m just confused how going this far down the road something like a statement at the final hurdle 

@bubby08 An appeal may be worth it if the decline was unfair or made on incorrect assumptions/interpretation by the underwriter. Doesn't mean it'll succeed, but at least worth a try. The only person who can give a view on that is the broker as they know the entirety of the case and the nuances.