Mortgage broker - ask me anything

K_S

Deedee23 said:

@K_S thsnk you.
You were right I was just worrying. We got the offer this morning on condition I clear my CC  debt before completion. 

@deedee23 Amazing, very happy to hear that!

Nath4n

Hello,

I have a rather niche question I'm hoping you can help me with.

My partner and I are looking to sell both our flats and take out a combined mortgage together to buy a house. We're hoping we can stretch to a 5.5x mortgage as we hit many lenders min income + max LTV limits for 5.5x mortgage. We have no children and are generally frugal so outgoings are conservative. We're going to engage a broker shortly.

My question is: Our individual credit card balances are relatively low (sub £1000) each month, and are paid off in full. I however do some financial dealings using one of my high-limit credit cards. This is essentially purchasing and selling 0 risk financial products to make very small slivers of profit. These transactions are paid off immediately and the balance never carries over from month to month. 

This means that my monthly statement balances reported to the CRAs are low (and accurately reflect my regular actual spending) HOWEVER if you dig into the detail in the credit reports you can see that 'payments' on the credit card are also recorded and are much higher (in the thousands) each month due to these cyclical transactions.

Is this level of detail ever taken into account during loan applications? I did a deep dive into some lender criteria's and debt to income calculations etc generally work based on outstanding CC balances reported to CRA's rather than monthly 'payments' on the account... but obviously I'd like to be sure, but also very open to being told I'm making a mountain out of a molehill. I could certainly provide evidence (inc cc statements) that these are simply 'cyclical' transactions by myself, but wouldn't want to complicate anything or jeapordise an application if it was misunderstood - and I'd prefer to pause and hold off anything for a while.

My bank account statements are entirely normal and show my income going in, and bills / direct debits / savings going out. My CRA scores are very high (however I know these are more or less meaningless).

Thank you in advance!

K_S

@nath4n Very very generally speaking, based on the limited info in your post and confining myself to this one matter (high monthly transaction levels on your cc), I wouldn't expect this to be an issue.

GMortgageadvice

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

I have submitted my tax credits on my statements to show as income and proof, so why are Barclays still requesting the awards letter- I haven’t received it yet. Can’t the statements showing the income be accepted?

ajtrout

K_S said:

ajtrout said:

I'm looking to move home this year and my current mortgage is with Nationwide (expires 31 March 2023). If I apply for a mortgage via a broker with Nationwide on my new home and complete circa Jan 23, will that avoid ERCs?

@ajtrout Not sure I understand your question properly but if you're locked into a fix and want to move and avoid ERCs, you could look at porting your mortgage with Nationwide.
https://www.nationwide-intermediary.co.uk/products/porting

I don't want to port as were unlikely to complete any time soon and i'm conscious about what rates may look like in March 2023. If I apply for a new mortgage with Nationwide and we complete within 3 months of the end of my other product with Nationwide, will I avoid ERCs?

Thanks for all your help on this board! So valuable. 

snowqueen555

I have spoken to 5 brokers and four of them took all my info and never got back to me, my impression of them isn't great. I'm guessing they think my situation isn't worth looking into?

There is one paid broker who is making an effort, would they be able to get me  abetter rate realistically? They are charging as well, £600.

kingstreet

GMortgageadvice said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

I have submitted my tax credits on my statements to show as income and proof, so why are Barclays still requesting the awards letter- I haven’t received it yet. Can’t the statements showing the income be accepted?

Barclays requirement;-

HMRC tax credit award letter (all pages) and latest bank statement clearly identifying the source of the income as being an acceptable benefit

This will be required to prove the income used for the benefit claim matches the income on the application and possibly to identify the credit concerned.

baggins_22

We are looking at buying our first property towards the end of the year. I wondered if there was any benefit to opening an account with a potential lender now?

For instance I saw that HSBC premier customers get mortgage benefits so I wondered if having an account and history in a 'high earner' type account may be of benefit for approval ?

I should add that I currently bank with NatWest and will not be considering them for a mortgage as I worked for them and found out recently that the pension I had ecrud' with  them has been reclaimed by them after me leaving the company. 

GMortgageadvice

kingstreet said:

GMortgageadvice said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

I have submitted my tax credits on my statements to show as income and proof, so why are Barclays still requesting the awards letter- I haven’t received it yet. Can’t the statements showing the income be accepted?

Barclays requirement;-

HMRC tax credit award letter (all pages) and latest bank statement clearly identifying the source of the income as being an acceptable benefit

This will be required to prove the income used for the benefit claim matches the income on the application and possibly to identify the credit concerned.

I have had a look and it states on Barclays:

• HMRC tax credit award letter (all pages)

or if award letter not available then;

• 3 months bank statements (identifying the source of income as an acceptable benefit)

KFTB

Hello

I'm just wondering if anyone has any experience buying houses that are currently used as HMOs, to be used as residential.

We're looking to buy a house that is currently a HMO but the tenants have been given notice to be out by the end of July. We just want a buy it as a residential house. There's nothing particularly HMO about it, it's just a standard Victorian terrace, but they've got bedrooms in the living room and dining room. 

Would there be any impacts on mortgages? We're looking at apply through Santander