Mortgage broker - ask me anything

K_S

MoneyLady94 said:

My husband and I are planning on starting a family in the next year or two, but what worries me, is that our fixed rate mortgage is due  to end Feb 2025, and I would likely be on maternity (statutory) leave when we look to remortgage! 
So my bank statements/ pay slips would be vastly different on maternity leave, in comparison to what they typically would be working full time. 
Would this effect our remortgage? or would my pre-maternity pay slips/ bank statements be taken into account? 

@moneylady94 As long as you intend to return to work full time (and your employer can confirm this if needed), and your future childcare costs/arrangements are factored in, most mainstream lenders will be happy to take your return to work income into account for the purposes of the mortgage.

Even if the above doesn't work out, you should still have the fall back options of a product-transfer/product-switch/rate-switch with your existing lender. As long as you aren't looking to borrow more or change term, this should involve no income checks, no credit checks and no underwriting.  

Rhonasaurus

I have two years left on a 5 year fixed mortgage with Halifax. I was with Tesco bank but they got out of mortgages and Halifax took it over. I knew that in two years the likelihood is interest rates were going to be higher but watching the debate last night has terrified me. I wasn't planning to break my deal and go elsewhere as I would have to pay a fee of £3000 which made taking advantage of the recent low rates not worthwhile but if Truss is the next PM and interest rates are set to rise significantly because of the tax cuts I'm wondering if I should re-evaluate?

In those circumstances should I be thinking about paying the early fee and doing a new fixed deal? Would Halifax waive that fee if I stayed with them but on another deal?

K_S

Rhonasaurus said:

I have two years left on a 5 year fixed mortgage with Halifax. I was with Tesco bank but they got out of mortgages and Halifax took it over. I knew that in two years the likelihood is interest rates were going to be higher but watching the debate last night has terrified me. I wasn't planning to break my deal and go elsewhere as I would have to pay a fee of £3000 which made taking advantage of the recent low rates not worthwhile but if Truss is the next PM and interest rates are set to rise significantly because of the tax cuts I'm wondering if I should re-evaluate?

In those circumstances should I be thinking about paying the early fee and doing a new fixed deal? Would Halifax waive that fee if I stayed with them but on another deal?

@rhonasaurus I can't really comment on future interest-rates as my opinion is no more valid than the next person. I doubt that the interest-rate situation will be any different be it Truss or Sunak, but again that's just a personal opinion.

However, I can confirm that Halifax will not waive the ERC even if you switched to a different Halifax product.

Bar2020

Hi, 
Ive recently built a house and don’t want to move into it. So have decided to rent out instead so would be looking for a btl mortgage.

As usual things have cost more than expected and I have used my credit cards and a loan to get it finished. Is this going to cause problems for obtaining a btl? I would be capital raising to pay off all debts and also deposit for another btl.

I would be looking to borrow less than 50% ltv and monthly rental is very good. Also, I have a tenant looking to move in mid September. Is this another hurdle as it’s a new build and never been rented? There would be an AST in place. I have no other problems with credit file apart from the credit card usage.

Hopefully I haven’t got myself into a catch22 situation! Your thoughts please. Thanks in advance 

chezzzer

Hello,

My current fixed mortgage rate is 2.14% which ends on 30/11/22 nationwide are offering me fixed 3.24% with a £999 product fee.

Just wondering if this is a good rate to accept and should I opt for 2, 3 or 5 yr.

I normally chose 5 yr for fixed payment stability with my finances. I have 11 yr left on my mortgage.

Any advice is much appreciated, Thank you, xx

ashok.198311

How Quickly you can signup for a new mortgage? I have my deal ending this time next year, given the Interest rate raises I am thinking to signup as soon as I can... 

ashok.198311

From the Leeds Building Society Page it says 

after 2 years changing to the Society's Standard Variable Rate (SVR) less a discount of 1.25%, which would currently give a rate payable of

4.29%
Up to and inc. 30/09/2027

Then changing to the Society's SVR, which is currently
5.54%
For the remaining term of the mortgage

does it means it is 4.29% till 2027 regardless of whatever the rate that time?

K_S

ashok.198311 said:

How Quickly you can signup for a new mortgage? I have my deal ending this time next year, given the Interest rate raises I am thinking to signup as soon as I can... 

@ashok.198311

Remortgage (changing to a new lender) offers are generally valid for 6 months. 

Product-switch (staying with the current lender) can usually be done 3, 4 or 6 months early depending on the specific lender.

K_S

ashok.198311 said:

From the Leeds Building Society Page it says 

after 2 years changing to the Society's Standard Variable Rate (SVR) less a discount of 1.25%, which would currently give a rate payable of

4.29%
Up to and inc. 30/09/2027

Then changing to the Society's SVR, which is currently
5.54%
For the remaining term of the mortgage

does it means it is 4.29% till 2027 regardless of whatever the rate that time?

@ashol.198311 Sounds like a fixed rate for 2 years, followed by a discount rate (SVR minus 1.25%) for 3 years and then SVR. The SVR is variable so the 4.29% is not a fixed rate.

ashok.198311

Thanks, I am just thinking is it a good idea to remortgage at the moment by paying off the ERC of £6500? if the interest rates are to go up by 2 points this time next year I may end up in saving the 6000 in a year itslef? any ideas? am I thinking crazy in this?