Mortgage broker - ask me anything

1616six

K_S said:

1616six said:

Currently waiting on an offer we applied for with Santander 

Ive been employed where I work now for over 11 years and up until the last few months have never had a single day off sick. Unfortunately I have had what I think is a side effect to the Covid vaccine that gave me terrible Vertigo so have had to take time off sick. Therefore my last 3 payslips have all had sickness deductions.

Will Santander decline us because I’ve had these deductions? My payslip shows that my actual pay before deductions has remained the same, just where my tax/NI deductions are, there have been deductions for sickness too.

Our broker said not to worry too much yet, I gave them 6 months payslips and 2 P60s as well just in case.

Panicking! 

Thanks 

@1616six Assuming that these are bouts of sick leave rather than long term sick, you should be fine. The broker would've made sure that it's good to go before recommending Santander.

Thanks! 

We’re talking 2-3 days out of the month for 3 months in a row. I gave the broker an extra 3 months payslips to show they were clear before that as well as my last 2 P60’s so hopefully if Santander query, she can send those in as backup. 

NorthernKitty

@northernkitty Based on the limited info in your post, you may have options. Both the historic BR and repos will mean that your options would be restricted, but by no means does that mean that you won't be able to buy at all.

To get a realistic idea of your options, I would recommend getting in touch with a good mortgage broker. Good luck!

Thanks! I didn't know whether I was wasting my time dreaming or should concentrate on something else in life! Will continue to save then look up a good Broker. I appreciate your reply.

K_S

K_S said:

luis1988 said:

Just wondering if you have seen any significant changes to rates/products today following the relaxing of the interest rate stress testing?

I guess I'm not expecting anything major to happen but just interested to see if any changes more than usual?

@luis1988 I haven't heard or noticed anything formally yet. Given the demand for high-multiple borrowing (Kensington recently limited their flexi-fix-for-term product LTI to 4.5x due to a flood of applications) I'm assuming a lot of tweaks will be launched softly by simply updating affordability calculators.

@luis1988 Nationwide - 

luis1988

K_S said:

K_S said:

luis1988 said:

Just wondering if you have seen any significant changes to rates/products today following the relaxing of the interest rate stress testing?

I guess I'm not expecting anything major to happen but just interested to see if any changes more than usual?

@luis1988 I haven't heard or noticed anything formally yet. Given the demand for high-multiple borrowing (Kensington recently limited their flexi-fix-for-term product LTI to 4.5x due to a flood of applications) I'm assuming a lot of tweaks will be launched softly by simply updating affordability calculators.

@luis1988 Nationwide - 

Thanks for this, interesting! Just did their calculator and is far higher than they would lend before. I've heard their timelines are pretty awful at the moment?

K_S

luis1988 said:

K_S said:

K_S said:

luis1988 said:

Just wondering if you have seen any significant changes to rates/products today following the relaxing of the interest rate stress testing?

I guess I'm not expecting anything major to happen but just interested to see if any changes more than usual?

@luis1988 I haven't heard or noticed anything formally yet. Given the demand for high-multiple borrowing (Kensington recently limited their flexi-fix-for-term product LTI to 4.5x due to a flood of applications) I'm assuming a lot of tweaks will be launched softly by simply updating affordability calculators.

@luis1988 Nationwide - 

Thanks for this, interesting! Just did their calculator and is far higher than they would lend before. I've heard their timelines are pretty awful at the moment?

@luis1988 Nationwide service levels have been atrocious for a while now, primarily because of the volume of applications they've been getting under the Helping Hand product which has no competition among mainstream lenders. But it looks like they're turning a corner finally and the wait times have been on a downward trend, though they're still quite bad.
https://www.nationwide-intermediary.co.uk/placing-business/service-updates

luis1988

K_S said:

luis1988 said:

K_S said:

K_S said:

luis1988 said:

Just wondering if you have seen any significant changes to rates/products today following the relaxing of the interest rate stress testing?

I guess I'm not expecting anything major to happen but just interested to see if any changes more than usual?

@luis1988 I haven't heard or noticed anything formally yet. Given the demand for high-multiple borrowing (Kensington recently limited their flexi-fix-for-term product LTI to 4.5x due to a flood of applications) I'm assuming a lot of tweaks will be launched softly by simply updating affordability calculators.

@luis1988 Nationwide - 

Thanks for this, interesting! Just did their calculator and is far higher than they would lend before. I've heard their timelines are pretty awful at the moment?

@luis1988 Nationwide service levels have been atrocious for a while now, primarily because of the volume of applications they've been getting under the Helping Hand product which has no competition among mainstream lenders. But it looks like they're turning a corner finally and the wait times have been on a downward trend, though they're still quite bad.
https://www.nationwide-intermediary.co.uk/placing-business/service-updates

Oh I expected the numbers to be worse than that!

Just checked out their 'Maximum Loan / Loan to Income Changes' here - https://www.nationwide-intermediary.co.uk/news/2022/august/large-loans

Do you know if the 90% LTV applies to new builds as well?

Kayleighwhiteley

Hi again. 
I posted a few pages back. Just wondering if anyone knows much about the hard search process. 
So we applied to Co op (platform) on 21/07. We had a hard and soft search on experian on same day. We have our valuation on the house tomorrow. I went on experian and noticed they have done another hard and soft search today!! Is this normal?

Thanks. 

P0ppy89

Hi All,

Longtime lurker but new poster here. Myself and my partner are looking at moving house and have seen a new build we'd like, we plan to sell our current home, move into rented and then complete on the new build when it would be ready next Spring.

We will have £95k equity from our current sale, this will settle EA fees, Solicitors and our ERC - leaving us £85k to put down on the new home.
We have some savings ready to go circa £8k

We plan (all being well) to use our current savings on reservation fees, optional extras and moving into rented costs. We will then save for the next 9-10months to pay for stamp duty and any other fees due on completion. 

Our joint income is £121k per annum, my partner does around £14k of o/time each year and I have an annual bonus of £12k

We have some debts (Loan, Car finance and Furniture finance) amounting to £1600 pcm.

The property is £595k and we'd be getting a mortgage for 30 years

A few questions:
1. If we move into rented what happens to the £85k - does this all go to the developer for the new house? or should we chose a percentage to exchange at and keep the rest to the side before completion?
2. Is it ok that we haven't saved for stamp duty etc at this stage or should we have everything ready to go?
3. We have also been saving with reduction of the monthly debt payment in mind, but should we consider improving our LTV instead?
4. Due to it being a new build, at what point can we actually apply for a mortgage? I'd like to apply asap to fix a rate if possible

Sorry if these are simple questions, it's quite new to me.

Thanks in Advance

K_S

luis1988 said:

K_S said:

luis1988 said:

K_S said:

K_S said:

luis1988 said:

Just wondering if you have seen any significant changes to rates/products today following the relaxing of the interest rate stress testing?

I guess I'm not expecting anything major to happen but just interested to see if any changes more than usual?

@luis1988 I haven't heard or noticed anything formally yet. Given the demand for high-multiple borrowing (Kensington recently limited their flexi-fix-for-term product LTI to 4.5x due to a flood of applications) I'm assuming a lot of tweaks will be launched softly by simply updating affordability calculators.

@luis1988 Nationwide - 

Thanks for this, interesting! Just did their calculator and is far higher than they would lend before. I've heard their timelines are pretty awful at the moment?

@luis1988 Nationwide service levels have been atrocious for a while now, primarily because of the volume of applications they've been getting under the Helping Hand product which has no competition among mainstream lenders. But it looks like they're turning a corner finally and the wait times have been on a downward trend, though they're still quite bad.
https://www.nationwide-intermediary.co.uk/placing-business/service-updates

Oh I expected the numbers to be worse than that!

Just checked out their 'Maximum Loan / Loan to Income Changes' here - https://www.nationwide-intermediary.co.uk/news/2022/august/large-loans

Do you know if the 90% LTV applies to new builds as well?

@luis1988 Afaik, I haven't heard of any changes to Nationwide's LTV caps on new-builds, they are as below -

K_S

P0ppy89 said:

Hi All,

Longtime lurker but new poster here. Myself and my partner are looking at moving house and have seen a new build we'd like, we plan to sell our current home, move into rented and then complete on the new build when it would be ready next Spring.

We will have £95k equity from our current sale, this will settle EA fees, Solicitors and our ERC - leaving us £85k to put down on the new home.
We have some savings ready to go circa £8k

We plan (all being well) to use our current savings on reservation fees, optional extras and moving into rented costs. We will then save for the next 9-10months to pay for stamp duty and any other fees due on completion. 

Our joint income is £121k per annum, my partner does around £14k of o/time each year and I have an annual bonus of £12k

We have some debts (Loan, Car finance and Furniture finance) amounting to £1600 pcm.

The property is £595k and we'd be getting a mortgage for 30 years

A few questions:
1. If we move into rented what happens to the £85k - does this all go to the developer for the new house? or should we chose a percentage to exchange at and keep the rest to the side before completion?
2. Is it ok that we haven't saved for stamp duty etc at this stage or should we have everything ready to go?
3. We have also been saving with reduction of the monthly debt payment in mind, but should we consider improving our LTV instead?
4. Due to it being a new build, at what point can we actually apply for a mortgage? I'd like to apply asap to fix a rate if possible

Sorry if these are simple questions, it's quite new to me.

Thanks in Advance

@p0ppy89 Quick comments -

1. Usually it'll a percentage (5% or 10%) that you need to pay at exchange.

2. There aren't any hard and fast rules. As long as you have a plan to get the cash needed for the SDLT by completion, that should be fine.

3. Whether or not there are any pros/cons to using savings to pay off debt vs increase deposit will probably depend on the mortgage options.

4. Usually, the reservation agreement will have an exchange deadline and you will need to have a mortgage offer in hand before exchange. So you'll need to put in an application at least a few weeks before the exchange deadline. Given that new builds usually take longer than 6 months to complete, your broker (or you if direct) need to make sure that the lender you pick has new-build offer-extension policies that meet your requirements. For example, if you do not expect to complete earlier than 9-10 months from now, then there's no point getting a great rate with a lender that only offers a 6 month + 45 days new-build offer, or a 6+3 month offer, etc. This differs across lenders.