Mortgage broker - ask me anything

K_S

claire_deen said:

Hi all. If I'm progressing a mortgage application through a broker (valuation due next month) and I see a better deal with another lender online but have to apply directly without a broker... what do I do?

Do I apply for an approval in principle directly and then let the application progress along with the broker's deal or do I pause after the approval in principle I've applied for on my own and wait for feedback from the other lender's valuation?  I'm a bit confused and don't want to harm my credit score. Any help would be appreciated. Thanks all xx

@claire_deen I can't comment on your credit-score but if you want to secure a rate/product when applying direct, an AIP will not do that, you will need to submit a full application.

ariarnia

K_S said:

ariarnia said:

can i ask three basic questions?

1. can you remortgage part of a mortgage with a new lender when a fix on a sub-account ends or do you have to go with the same lender if you're not moving both products/wait for both fixes to end? 

2. can someone give me ball park fees we should expect if we wanted to fix until Jan 2027? 

3. would those fees still apply if we were to switch to a new fix with our existing lender (halifax) via our online banking account (we can't access that part of the site until 3 months before our deal expires)?


dont know what info you need so i know this is probably too much.

total mortgage 104k
house 'value' according to the bank £169.6k (ltv 61%)
mortgage term (for both accounts) 18 years ish

account 1 fix ending march 2023 balance £87k @ 1.44% 
account 2 fix ending jan 2027 balance £17k @ 1.93%

currently paying £867 per month (£300 overpayment) could comfortably increase this by upto £500 a month but would slow down the remaining renovations so there'd have to be a reason.

no credit history issues for either of us but we do have highish balances on our credit card (8k at 0%) atm because of urgent renovation work and wanting the section 75 protection. should be paid down quite a lot by January. 

thank you. 

@ariarnia

1. No, you'll have to stay with the same lender or remortgage the whole (main + sub-account/s) to a new lender.

2. Which fees are you referring to? If it's the ERC (early repayment charge to get out of a fix) you're talking about, you'll need to check your original mortgage offer to see what it says.

3. If you switch to a new Halifax product within 3 months of the current deal expiring, there should not be any ERC.

thank you. i know the redeption fees but this is our first remortgage and someone was saying you need solicitors and valuations and arrangement fee the same as when we first got the mortgage. it cost about £2k when we purchased but i was thinking that there wouldn't be searches and things this time to it should be less? 

K_S

ariarnia said:

K_S said:

ariarnia said:

can i ask three basic questions?

1. can you remortgage part of a mortgage with a new lender when a fix on a sub-account ends or do you have to go with the same lender if you're not moving both products/wait for both fixes to end? 

2. can someone give me ball park fees we should expect if we wanted to fix until Jan 2027? 

3. would those fees still apply if we were to switch to a new fix with our existing lender (halifax) via our online banking account (we can't access that part of the site until 3 months before our deal expires)?


dont know what info you need so i know this is probably too much.

total mortgage 104k
house 'value' according to the bank £169.6k (ltv 61%)
mortgage term (for both accounts) 18 years ish

account 1 fix ending march 2023 balance £87k @ 1.44% 
account 2 fix ending jan 2027 balance £17k @ 1.93%

currently paying £867 per month (£300 overpayment) could comfortably increase this by upto £500 a month but would slow down the remaining renovations so there'd have to be a reason.

no credit history issues for either of us but we do have highish balances on our credit card (8k at 0%) atm because of urgent renovation work and wanting the section 75 protection. should be paid down quite a lot by January. 

thank you. 

@ariarnia

1. No, you'll have to stay with the same lender or remortgage the whole (main + sub-account/s) to a new lender.

2. Which fees are you referring to? If it's the ERC (early repayment charge to get out of a fix) you're talking about, you'll need to check your original mortgage offer to see what it says.

3. If you switch to a new Halifax product within 3 months of the current deal expiring, there should not be any ERC.

thank you. i know the redeption fees but this is our first remortgage and someone was saying you need solicitors and valuations and arrangement fee the same as when we first got the mortgage. it cost about £2k when we purchased but i was thinking that there wouldn't be searches and things this time to it should be less? 

@ariarnia

Product-switch (staying with the same lender) - no solicitors required, free valuation (usually automated) and lender product fee based on the product. No income/affordability checks, credit checks or underwriting.

Remortgage (changing lenders) - a solicitor will be required but this will either be covered by the free-legals offered by the lender or you'll have the option of taking cashback and instructing your own solicitor. Valuations are usually free. Lender product fee will be based on the product, same as a product switch. This will require a mortgage application from scratch.

IAMIAM

Which lenders allow you to product switch early (3-6 months before end of deal) without a an ERC? 

purplelila-2007

Do underwriters ask for everything they need at once or would you they ask you to provide additional documentation one after the other? Specifically Nationwide. 

K_S

purplelila-2007 said:

Do underwriters ask for everything they need at once or would you they ask you to provide additional documentation one after the other? Specifically Nationwide. 

@purplelila-2007 All lenders will ask for a minimum set of packaging (supporting documentation) at full application. What this comprises of will differ across lenders and across applications.

When the initial assessment and/or underwriting happens, someone at the lender will review these documents and the application and may raise queries (if any) or requests for additional docs (if any). Depending on the response provided there may be follow up queries, etc.

K_S

IAMIAM said:

Which lenders allow you to product switch early (3-6 months before end of deal) without a an ERC? 

@iamiam Do you mean allowing you to reserve a product 3-6 months before end of deal or actually switch to a new deal 3-6 months before expiry?

If it's the latter, I don't remember off of the top of my head as it varies across lenders. If you have a particular lender in mind just Google "<lender name> for intermediaries product switch" and you should be able to tell.

silvercar

We have a mortgage offer from Barclays that expires very soon. We are near the end of a legal problem with the property lease that won’t be sorted until the end of the month. Barclays have initially said that an extension is only possible if exchange happens before the mortgage offer expires, which won’t happen.
do you think there is any chance that Barclays will agree to extend without this requirement?

kingstreet

silvercar said:

We have a mortgage offer from Barclays that expires very soon. We are near the end of a legal problem with the property lease that won’t be sorted until the end of the month. Barclays have initially said that an extension is only possible if exchange happens before the mortgage offer expires, which won’t happen.
do you think there is any chance that Barclays will agree to extend without this requirement?

Barclays criteria;-

"A mortgage offer is valid for a 6-month period from the date the mortgage application is received by our teams.

Any offer that does not complete within this period must be re-submitted as a new application with the exception of ‘New Build Purchase’ applications which can be assessed against current lending standards with a refreshed credit search and re-offered for a further period of 6 months with the existing product or a product from the current range."

jonesjs1989

Hi, 

I have mortgage which is split between 2 products on different rates due to being tied to a fixed rate when we came to purchase a larger home a year ago.

One of my fixed rates finishes at the end of the month and i was potentially looking to fix this again before paying the higher rate but was unsure whether 2 or 5 years would be best with the current economic climate i.e. are rates likely to come back down within 5 years etc. 

On paper id be making a saving of around £70 per month by fixing now against the current variable rate of 4.74% my lender (TSB) provides. I'm just worried about fixing for too long and rates being reduced again and over paying. 

Alternatively the more recent part of my mortgage is fixed until 2023 so i was wondering do i suck it up for a year and wait until both products have ended and look to combine and fix / change the whole mortgage next year? (is this possible?) or continue to fix each part?

My mortgage is currently 70% LTV and in a better position financially should this be a factor if i went for option 2.

So question is do i fix my existing mortgage now, and if so for how long. Or do i wait a year and look to fix the entirety of my mortgage to one product? 

Hope this was clear 

Thanks