Mortgage broker - ask me anything

GoonerByron

@K_S Hi, just wondering if you can tell me - Are you typically able to get a remortgage offer with your current lender 6 months in advance of your rate ending like you would switching to a new lender? And are you able to change your mind down the line nearer to the date of switch? Thank you!

K_S

GoonerByron said:

@K_S Hi, just wondering if you can tell me - Are you typically able to get a remortgage offer with your current lender 6 months in advance of your rate ending like you would switching to a new lender? And are you able to change your mind down the line nearer to the date of switch? Thank you!

@goonerbyron Sorry to be pedantic, it's only a remortgage if you change lenders. If you're staying with the same lender it's called a product-switch/product-transfer/rate-switch (PT).

The answer to your question depends on the specific lender and their PT policy/processes. I don't see a reason why you wouldn't be able to cancel a PT before it happens.

GoonerByron

K_S said:

GoonerByron said:

@K_S Hi, just wondering if you can tell me - Are you typically able to get a remortgage offer with your current lender 6 months in advance of your rate ending like you would switching to a new lender? And are you able to change your mind down the line nearer to the date of switch? Thank you!

@goonerbyron Sorry to be pedantic, it's only a remortgage if you change lenders. If you're staying with the same lender it's called a product-switch/product-transfer/rate-switch (PT).

The answer to your question depends on the specific lender and their PT policy/processes. I don't see a reason why you wouldn't be able to cancel a PT before it happens.

That’s great to know, thank you for your help! 

IAMIAM

Can I just check, are Natwest a lender that I can do consent to let with, and then stay with them if I wish to not return to the property in say 12-18 months and convert the mortgage to a interest only BTL/LTB? I will be in rented/abroad and will probably be renting until I decide to buy again - I have already got 50k ready for a new deposit.... 

Current situ 80% LTV £192k/£240k
Rental £875-900

On mortgage renewal will hopefully go from 80% to 75% LTV to meet criteria....(2 years time), if not, stay on CTL and rate change until I meet BTL criteria...

Any other mainstream lenders allow this?

smellogs

My spouse and I will be drawing down  our SIPPs to fund our retirement . Is a mortgage possible using state pension and SIPP drawdown to fund repayments? If so how do you calculate the amount that can be borrowed,  and which lenders lend under these circumstances . Thank you.

K_S

smellogs said:

My spouse and I will be drawing down  our SIPPs to fund our retirement . Is a mortgage possible using state pension and SIPP drawdown to fund repayments? If so how do you calculate the amount that can be borrowed,  and which lenders lend under these circumstances . Thank you.

@smellogs State pension - Yes

SIPP pot - more complicated as many lenders will not consider a flexible pot that can be drawn down as income for the purpose of a mortgage. Of the ones that may consider (almost all of them smaller building societies), the way it is treated will depend on the lender. For example one might take a max of 5% of the pot annually, others might take only 4%, some will calculate based on max age less current age so the max annual drawdown assumption could be 2.5% (for a 60 year old where the max age used is 100), etc. etc. Yet others might discount the pot (to account for future fluctuations in the value of the portfolio) and then apply a %, etc. 

On top of that you may also have ancillary criteria that will differ across lenders - age/term limits/thresholds, min age at application, LTV caps, requirement for the portfolio to be reasonable diversified in 'safe' funds/trackers/companies etc. as well.

To summarise, what may potentially be available to you will depend on the specifics, the numbers, your requirements, etc.

strawb_shortcake

I have access to a fee free broker through work, but struggling to get a return call. 

My current deal ends in January, Santander have just offered a 3/5/7 year fix all at 3.54% LTV is circa 20%, with no product fees. Is it worth persevering with the broker to try and get a better rate? Previous deals have all been product free too.

Our current rate is 1.79% and our monthly payments will go from £451-505 a month which is affordable. We'd be looking for a 3 year fix.

TY

K_S

annabanana82 said:

I have access to a fee free broker through work, but struggling to get a return call. 

My current deal ends in January, Santander have just offered a 3/5/7 year fix all at 3.54% LTV is circa 20%, with no product fees. Is it worth persevering with the broker to try and get a better rate? Previous deals have all been product free too.

Our current rate is 1.79% and our monthly payments will go from £451-505 a month which is affordable. We'd be looking for a 3 year fix.

TY

@annabanana82 You should be able to get a rough idea of your non-Santander options using the MSE mortgage comparison tool here

https://www.moneysavingexpert.com/mortgages/best-buys/

strawb_shortcake

K_S said:

annabanana82 said:

I have access to a fee free broker through work, but struggling to get a return call. 

My current deal ends in January, Santander have just offered a 3/5/7 year fix all at 3.54% LTV is circa 20%, with no product fees. Is it worth persevering with the broker to try and get a better rate? Previous deals have all been product free too.

Our current rate is 1.79% and our monthly payments will go from £451-505 a month which is affordable. We'd be looking for a 3 year fix.

TY

@annabanana82 You should be able to get a rough idea of your non-Santander options using the MSE mortgage comparison tool here

https://www.moneysavingexpert.com/mortgages/best-buys/

Thank you, I managed to get through to the broker but looking at the link we'd only be saving around £5 a month 

purplelila-2007

Once a valuation has been completed how long do Nationwide take to send off a report to the customer?

 Do they flag up if there has been a downvaluation ? 


And is the valuation report sent separate to the mortgage offer?