Mortgage broker - ask me anything

K_S

MummyDN said:

Hi. Currently going through a mortgage application with Skipton. Full application was submitted by the broker on 18Aug. Valuation has been done but on the tracker it says information required. Just got a notification from my bank saying Skipton has set up a direct debit. Is this normal? And is it a sign that a mortgage offer is imminent (crossing fingers here)? Thank you in advance. 

@mummydn Sorry I don't really know as I wouldn't get the DD notification myself. Skipton are pretty quick at present and a genuinely good lender, so I wouldn't worry too much.

If you are still concerned, your broker should be able to give you an update if asked.

Sarahf

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

Hi, My current situation is I am looking to remortgage to get additional borrowing to clear debts of around £25k, existing mortgage is just under £60k. I tried additional borrowing with my current lender (halifax) and was declined. The current value of property is around £260k so I don't understand when we have £200k equity in the house they said no. My question is if I go to a different lender, I.e. Nationwide, could I take out a brand new mortgage for £85k. Only ever missed 2 payments, Jan and Feb 21 due to lockdown but paid these when hubby got Swiss grant. For info, I work ft, secure job £29k a year, hubby is a driving instructor, profits Apr 21 £8k but April 22 £15k as things have got back to pre covid. Sorry for the long post i have 2 dependant children aswell. 

@sarahf Yes, you could move to a different lender (it would be a debt-consolidation remortgage) though you may need to pay ERC to Halifax if you're currently in a fixed period.

If you are looking at moving lenders, I would recommend getting in touch with a broker who can look at the whole scenario and advise you accordingly. The MSE guide here can help you find one, including fee-free options.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

When they look at affordability etc, say I wanted to take out over 10 years if they said no to that would they then say but if you did it over 12 that would be ok?  

@sarahf The short answer to your question is yes. Their job is to get you what you need and if a longer term will make that possible, then that's what they will suggest. And tbh you can always take out a longer term and then overpay to achieve the same interest savings as a shorter term.
https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

So update, Nationwide said no even though both mine & hubby's credit rating is good and only looking for 35% ltv. Am waiting on L & C broker to come back to me but am worried that they won't be able to help either...Will a broker be able to help find a suitable mortgage 

@sarahf You need to understand what the reason is for Nationwide declining you at low LTV. What is the reason that they gave? Have you looked at your Experian and Equifax credit reports (ignore the credit score number).

If the missed payments in Jan-21 and Feb-21 were for your Halifax mortgage account, then that could be the reason as lenders can take missed payments on mortgages much more seriously than if it were on a credit card. If you haven't already, make sure your broker knows about it and has a copy of both your credit reports.

@K_s I have told my broker and sent them copies of both credit reports. They have said they can't go any further until they know why Nationwide said no (when I asked I just got a computer says no response, hoping if I ask again tomorrow and state that my broker needs it they will be more helpful) both credit reports are good or excellent and the mortgage payments are the only ones ever missed on anything.

Thank you for all your advice so far.

Me again, Nationwide have said that failed on affordability and credit card utilisation,  but the credit cards will be getting paid off? And there was no discussion about the term of the mortgage so surely this would impact on affordability.

GoonerByron

Hi,

Bit of advice needed. My current fixed rate mortgage of 1.69% runs out next February. I am currently in the process of applying for a variable rate mortgage of 1.62% due to the much larger cost of fixed rate mortgages at the moment. This mortgage offer will last for 6 months, and obviously the rate will rise by the time my current mortgage fixed period expires but I am hoping it is still lower than the current fixed prices.

My question is, at what point am I tied into this mortgage offer? Is it in February at the time of completion? And for piece of mind incase variable rates rise massively in the next 6 months, is it possible for me to also apply for a fixed rate offer now with a different lender at the same time and go through with the better one for myself nearer the time (if I am offered both)?

Thanks.

MummyDN

K_S said:

MummyDN said:

Hi. Currently going through a mortgage application with Skipton. Full application was submitted by the broker on 18Aug. Valuation has been done but on the tracker it says information required. Just got a notification from my bank saying Skipton has set up a direct debit. Is this normal? And is it a sign that a mortgage offer is imminent (crossing fingers here)? Thank you in advance. 

@mummydn Sorry I don't really know as I wouldn't get the DD notification myself. Skipton are pretty quick at present and a genuinely good lender, so I wouldn't worry too much.

If you are still concerned, your broker should be able to give you an update if asked.

Thank you! Just got confirmation of an offer. Super quick. Only applied on 18th Aug! 

K_S

Sarahf said:

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

K_S said:

Sarahf said:

Hi, My current situation is I am looking to remortgage to get additional borrowing to clear debts of around £25k, existing mortgage is just under £60k. I tried additional borrowing with my current lender (halifax) and was declined. The current value of property is around £260k so I don't understand when we have £200k equity in the house they said no. My question is if I go to a different lender, I.e. Nationwide, could I take out a brand new mortgage for £85k. Only ever missed 2 payments, Jan and Feb 21 due to lockdown but paid these when hubby got Swiss grant. For info, I work ft, secure job £29k a year, hubby is a driving instructor, profits Apr 21 £8k but April 22 £15k as things have got back to pre covid. Sorry for the long post i have 2 dependant children aswell. 

@sarahf Yes, you could move to a different lender (it would be a debt-consolidation remortgage) though you may need to pay ERC to Halifax if you're currently in a fixed period.

If you are looking at moving lenders, I would recommend getting in touch with a broker who can look at the whole scenario and advise you accordingly. The MSE guide here can help you find one, including fee-free options.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

When they look at affordability etc, say I wanted to take out over 10 years if they said no to that would they then say but if you did it over 12 that would be ok?  

@sarahf The short answer to your question is yes. Their job is to get you what you need and if a longer term will make that possible, then that's what they will suggest. And tbh you can always take out a longer term and then overpay to achieve the same interest savings as a shorter term.
https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

So update, Nationwide said no even though both mine & hubby's credit rating is good and only looking for 35% ltv. Am waiting on L & C broker to come back to me but am worried that they won't be able to help either...Will a broker be able to help find a suitable mortgage 

@sarahf You need to understand what the reason is for Nationwide declining you at low LTV. What is the reason that they gave? Have you looked at your Experian and Equifax credit reports (ignore the credit score number).

If the missed payments in Jan-21 and Feb-21 were for your Halifax mortgage account, then that could be the reason as lenders can take missed payments on mortgages much more seriously than if it were on a credit card. If you haven't already, make sure your broker knows about it and has a copy of both your credit reports.

@K_s I have told my broker and sent them copies of both credit reports. They have said they can't go any further until they know why Nationwide said no (when I asked I just got a computer says no response, hoping if I ask again tomorrow and state that my broker needs it they will be more helpful) both credit reports are good or excellent and the mortgage payments are the only ones ever missed on anything.

Thank you for all your advice so far.

Me again, Nationwide have said that failed on affordability and credit card utilisation,  but the credit cards will be getting paid off? And there was no discussion about the term of the mortgage so surely this would impact on affordability.

@sarahf Sorry, I simply don't have anywhere close to the info required to give you any further useful comments. I wouldn't want to unknowingly lead you down the wrong path by giving my half-baked thoughts. I would recommend leaning on your broker for advice or starting a thread on the main forum. Good luck, I hope it gets sorted soon!

K_S

GoonerByron said:

My question is, at what point am I tied into this mortgage offer? Is it in February at the time of completion? And for piece of mind incase variable rates rise massively in the next 6 months, is it possible for me to also apply for a fixed rate offer now with a different lender at the same time and go through with the better one for myself nearer the time (if I am offered both)?

@goonerbyron Generally speaking, usually only when the lender is requested to release funds.

Practically, there's nothing stopping an applicant from having 1 or 5 simultaneous mortgage applications. What impact (if any) they might have on each other depends on the details. 

silvercar

K_S said:

silvercar said:

I posted previously about a Barclays mortgage offer that we had asked to extend and been told that they would only extend by 2 weeks. It is a 5 yr fix. Today a new offer comes through that is now a 4.5 yr fix but extended for another 6 months. We are slightly confused as to how this has happened as we didn’t apply for a new mortgage just an extension of the old one and certainly weren’t expecting another 6 months. The rate is the same. Not to look a gift horse in the mouth, but is there anything to be concerned about?

@silvercar I haven't myself come across this before but it perhaps might be similar to the error described in this thread here https://forums.moneysavingexpert.com/discussion/6365591/help-needed-please-problem-with-mortgage-offer

Personally, I would look this gift horse in the mouth and get the broker to confirm that the new expiry date is indeed correct. What you don't want is for it to get close to completion and then for Barclays to say that the offer was already expired or the valuation is out of date, etc. 

Turns out it was an error in the covering letter and they won’t honour it.

kizzy1926

Hi

My broker submitted an application last Tuesday to Santander on the 16th Aug, the next day they booked a valuation for next Friday, 26th August. 

So far, all they have asked my broker for is for 1mth pay slip. 

Is this normal to sit on an application for almost 10 days by the time the valuation happens? 

I am a FTb and going for a 60%ltv as I am doing HTB.

Thanks

K_S

silvercar said:

K_S said:

silvercar said:

I posted previously about a Barclays mortgage offer that we had asked to extend and been told that they would only extend by 2 weeks. It is a 5 yr fix. Today a new offer comes through that is now a 4.5 yr fix but extended for another 6 months. We are slightly confused as to how this has happened as we didn’t apply for a new mortgage just an extension of the old one and certainly weren’t expecting another 6 months. The rate is the same. Not to look a gift horse in the mouth, but is there anything to be concerned about?

@silvercar I haven't myself come across this before but it perhaps might be similar to the error described in this thread here https://forums.moneysavingexpert.com/discussion/6365591/help-needed-please-problem-with-mortgage-offer

Personally, I would look this gift horse in the mouth and get the broker to confirm that the new expiry date is indeed correct. What you don't want is for it to get close to completion and then for Barclays to say that the offer was already expired or the valuation is out of date, etc. 

Turns out it was an error in the covering letter and they won’t honour it.

@silvercar Sorry to hear that. Out of professional interest, can I ask, did you get the 2 week extension or not finally?

K_S

kizzy1926 said:

Hi

My broker submitted an application last Tuesday to Santander on the 16th Aug, the next day they booked a valuation for next Friday, 26th August. 

So far, all they have asked my broker for is for 1mth pay slip. 

Is this normal to sit on an application for almost 10 days by the time the valuation happens? 

I am a FTb and going for a 60%ltv as I am doing HTB.

Thanks

@kizzy1926 Santander is incredibly slow currently. If the application requires underwriting (not all do), then Santander is only at 10 August as of today, so you probably have another week or 10 days to go yet.

If it doesn't require underwriting, then the offer will probably be issued a couple of days after the valuation.

See here for current service levels https://www.santanderforintermediaries.co.uk/submit-and-track-business/our-service-levels/