Mortgage broker - ask me anything

mr_stripey

kingstreet said:

It works better if you buy the property from the estate. Your share (plus any cash you want to put in) is your deposit. If it is transferred to the beneficiaries first, several potential lenders won't lend until at least six months later.

Whichever way you do it, you'll still need to borrow £100k so I don't know what point the other broker is trying to make...?

thank you - useful to know.

There doesn't seem to be any issue with affordability for me, so I think obtaining a mortgage should not be a problem - but perhaps transferring it might cause more of an issue.

Would a "normal" conveyancing solicitor be able to handle the transaction do you think? 

kingstreet

Yeah. Just make sure the Estate has legal representation so it's all nice and clean.

bradbrownie

Hello. I ported my mortgage when moving in to my new house last year. The product on larger of the two amounts is due to end on 31/08/22.  My mortgage broker and I considered cancelling the product smaller amount, and combining, but it’s is cheaper to let that runs it’s course until 2024. 

My query comes as I am going to be finishing in my current employment.  We have already decided to simply change on to a new product with my existing lender. TSB. They are offering a very competitive rate so it makes no sense to move. 

I have other employment option lined up, and savings, so basically I will be able to pay my mortgage.  

My question is. Do I legally need to disclose this to TSB and potentially cause issues?  As I am simply switching product, will they even do checks? Also, what will I have to sign/declare with TSB if moving in to a new product. 

I am obviously concerned that my mortgage will be affected, even though if re-employment takes a little longe than expected, I still have other ways to endure I can pay. I have also not disclosed my situation to my mortgage broker until I know the situation. 

Thank you for any advice. 

kingstreet

bradbrownie said:

Hello. I ported my mortgage when moving in to my new house last year. The product on larger of the two amounts is due to end on 31/08/22.  My mortgage broker and I considered cancelling the product smaller amount, and combining, but it’s is cheaper to let that runs it’s course until 2024. 

My query comes as I am going to be finishing in my current employment.  We have already decided to simply change on to a new product with my existing lender. TSB. They are offering a very competitive rate so it makes no sense to move. 

I have other employment option lined up, and savings, so basically I will be able to pay my mortgage.  

My question is. Do I legally need to disclose this to TSB and potentially cause issues?  As I am simply switching product, will they even do checks? Also, what will I have to sign/declare with TSB if moving in to a new product. 

I am obviously concerned that my mortgage will be affected, even though if re-employment takes a little longe than expected, I still have other ways to endure I can pay. I have also not disclosed my situation to my mortgage broker until I know the situation. 

Thank you for any advice. 

No and no.

Probably nothing. At worse, a variation agreement.

LeeLondon_3

I have two mortgage accounts with HSBC:

Mortgage 1: 159.5k. 1.79%. Ends Feb 2023
Mortgage 2: 278k. 1.84%. Ends Sept 2022

I now have a mortgage offer for 2.64% which I got before the last rate rise to remortgage both which is valid until 28th June. 

So I can either accept that and pay the early repayment fees to lock in 2.64% or wait.

From 3rd July I can set up the remortgage on Mortgage 2. This would mean no early repayment charge of £730. but at an interest rate of 2.94%.  I'm thinking that it would be worth paying the early repayment charge of £730 for the lower interest rate as over the 5 years the additional interest would be £4k. 

I'd like to also renew Mortgage 1 at the same time so that they have the same end date. The early repayment charge on mortgage 2 will be £1k but again, give that interest rates may be even higher for February 2023 I'm inclined to also pay this to lock in 2.64% interest for 5 years. This would also mean that both mortgages have a fixed term at 2.64% that ends Oct 2027.

Any thoughts on this much appreciated. Thanks

chloesdad

Hi kingstreet.

Whats the latest you’re seeing with Virgin Money mortgage timelines? I know they’re a nightmare at the moment.

Our buyer’s buyer is doing a FTB mortgage with them. Valuation was undertaken on 31/5 but no word on the offer as yet, so trying to work out how much longer. Rest of the chain all waiting on this!

Charly025

My BF owns his own home outright value around £170k currently renting this out at £800 per month. I have my ome which we are living in mortgage of £102k 20years left. We want to buy a house together. I earn £42k per annum he earns £28k  What would be the best thing to do as we want to buy a property together and rent my current home out. Do we sell his and use as a decent deposit? Or could we remortgage his for a smaller deposit.. What would the mortgage companies look on most favourably? We are looking at properties around £425k at the moment. 

K_S

Charly025 said:

My BF owns his own home outright value around £170k currently renting this out at £800 per month. I have my ome which we are living in mortgage of £102k 20years left. We want to buy a house together. I earn £42k per annum he earns £28k  What would be the best thing to do as we want to buy a property together and rent my current home out. Do we sell his and use as a decent deposit? Or could we remortgage his for a smaller deposit.. What would the mortgage companies look on most favourably? We are looking at properties around £425k at the moment. 

@Charly025 With regard to a mortgage, you can do either - retain one or both of the background properties as rentals and buy, or sell and buy. Very very roughly, you may be able to borrow  315-350k so you'll probably require a deposit of around 75-110k plus around 24k stamp duty, so 100-135k in all.

If your not selling the house, you could take out a 75% LTV BTL mortgage against the partner's house and use that cash as deposit. Or similar with your property to let it out.

What I'm trying to say is that the mortgage part of the equation is fairly straightforward depending on what you decide to do.

obloquy

Hey, wanted some broker advice.  I'm trying to get my ducks in line for when I apply for a single first time buyer mortgage.  I took out a small HP purchase from o2 in September 2021 (£219) and paid it off in full by March 2022.   In March 2022 I took out a new Barclaycard.  

I want to apply for a mortgage in Dec this year/Jan 2023.  I checked my credit report on checkmyfile and Equifax is showing that I made 2 applications in the last 12 months, though the other credit agencies say I don't have any applications made for some reason.  My question is:  Will these 2 applications go against me if I apply for a mortgage?  Do I have to wait 12 months for them to fall off?!  Should you have no applications made whatsoever if you're applying for a mortgage?  I don't want to fail the application because of something I'm not sure about.  Any advice?

K_S

obloquy said:

Hey, wanted some broker advice.  I'm trying to get my ducks in line for when I apply for a single first time buyer mortgage.  I took out a small HP purchase from o2 in September 2021 (£219) and paid it off in full by March 2022.   In March 2022 I took out a new Barclaycard.  

I want to apply for a mortgage in Dec this year/Jan 2023.  I checked my credit report on checkmyfile and Equifax is showing that I made 2 applications in the last 12 months, though the other credit agencies say I don't have any applications made for some reason.  My question is:  Will these 2 applications go against me if I apply for a mortgage?  Do I have to wait 12 months for them to fall off?!  Should you have no applications made whatsoever if you're applying for a mortgage?  I don't want to fail the application because of something I'm not sure about.  Any advice?

@obloquy You'll be happy to know that the hard checks mentioned will have no material impact on your mortgage chances, even if you to apply for a mortgage today. Generally speaking, people vastly overestimate the impact of hard checks and how long their impact lasts.

I often get clients who come to me straight after having been declined for a mortgage (or even two in some cases) and the recent mortgage application hard check on its own has never stopped me from getting a mortgage. I hope that makes sense.