Mortgage broker - ask me anything

jonnym1985

Hi K_S, thanks for the prompt response.

Yes that makes perfect sense, so the broker may request the latest documents but it won’t be a full re-application. This is great news. Thanks again 😊 

BigBoss

We got an AIP through a localised broker the other week from a high street lender, but not much more regarding rate of interest etc. We have a meeting again with them next week.

We've also received a quote from another HS lender (not an AIP) through a London & Country broker. He sent us a link to an online portal which invites us to "apply for this mortgage" at rates we like and we want to crack on quickly. 

Should we hold fire until we meet our localised broker? Is the localised broker more likely to get us accepted and/or better rates than L&C (I know that's not a super easy question to answer, I guess I just mean in general). 

K_S

BigBoss said:

We got an AIP through a localised broker the other week from a high street lender, but not much more regarding rate of interest etc. We have a meeting again with them next week.

We've also received a quote from another HS lender (not an AIP) through a London & Country broker. He sent us a link to an online portal which invites us to "apply for this mortgage" at rates we like and we want to crack on quickly. 

Should we hold fire until we meet our localised broker? Is the localised broker more likely to get us accepted and/or better rates than L&C (I know that's not a super easy question to answer, I guess I just mean in general). 

@bigboss Quick thoughts that will hopefully help you make an informed decision - 

- As far as standard mainstream lenders go, if both brokers are whole of market and have done their job, then there should be no appreciable difference in your chances with either of them and they should both be recommending the same rate.

- The more complex your circumstances/requirements, the more I would lean away from a volume broker like L&C

- If you wait till next week, there is the possibility of the rate no longer being available. Even the L&C rate quoted to you yesterday (31 August) might not be available as a lot of lenders have updated rates from today (01 Sep).

BigBoss

K_S said:

BigBoss said:

We got an AIP through a localised broker the other week from a high street lender, but not much more regarding rate of interest etc. We have a meeting again with them next week.

We've also received a quote from another HS lender (not an AIP) through a London & Country broker. He sent us a link to an online portal which invites us to "apply for this mortgage" at rates we like and we want to crack on quickly. 

Should we hold fire until we meet our localised broker? Is the localised broker more likely to get us accepted and/or better rates than L&C (I know that's not a super easy question to answer, I guess I just mean in general). 

@bigboss Quick thoughts that will hopefully help you make an informed decision - 

- As far as standard mainstream lenders go, if both brokers are whole of market and have done their job, then there should be no appreciable difference in your chances with either of them and they should both be recommending the same rate.

- The more complex your circumstances/requirements, the more I would lean away from a volume broker like L&C

- If you wait till next week, there is the possibility of the rate no longer being available. Even the L&C rate quoted to you yesterday (31 August) might not be available as a lot of lenders have updated rates from today (01 Sep).

Thanks - my worry is the chance of being rejected by L&C but then having no proper recourse. At least with a broker we may get some sensible advice post-decision (whether in favour or not). 

BarneySteel

Hope some might be able to help here. We have applied for a mortgage with HSBC, back in March 8th they told us everything was great we paid the £999 fee and put on holding , as if we drawed it down then we would had large early repayment fee. Assuming that everything OK and been told we just have phone them before 6 months was up. So making sure I phoned them on August the 22nd to say that we wish draw it down,  then again been told that everything is great. It was not till Monday the 23rd in the evening we have call of an unknown number saying they were from HSBC. They then informed that need the registration paperwork (then they just hung up), thing might been scam call I phoned HSBC myself to be informed that they need the Land registration paperwork off out solicitor to processed further. I contact my solicitor and she informed that had still not been process, say this quiet normal for new build sites (often do them in block for efficiency) plus there a huge hold up from the effect of Covid back log.  She informed us she would contact their solicitor and inform of all this and it should fine. (she emailed them on the 25th )

This bit then that I have the main issue with, I phoned them yesterday evening find out about the progress and they then inform me that what been sent is not enough and they need more. The Land registry paperwork, which our solicitor has inform could be anything from 18months to 3 year away from getting. When challenge about not chasing us or the solicitor up about all they just say they sorry. When the 8th September comes the application will laps and the £999 will be lost. Plus the rate of 1.79% we secured in march will disappear and we be stuck either on variable rate or current fixed rates most of them  4% plus. This coupled with the cost living increase and not waged will most likely push us beyond our means.

If anyone can give us any advice on what we can do we be very great

JW2709

Hi- FTB here...employed (not self employed)

Apologise in advance for what might seem like a stupid question.  Do mortgage lenders look at gross pay or net pay on payslips?

Reason I ask is that the company I work for is moving to a salary sacrifice scheme for our company cars which means that they will be paying me a car allowance and then deducting the total cost pre-tax (which will be more than the allowance they are providing, which I am fine with).  I'm worried that the car payments will impact how much I can borrow.  

Any thoughts/advice?

BigBoss

Quick question here, once a broker has found me an AIP with a HS lender, what more am I paying for? Surely we can submit an application ourselves knowing we got the AIP? Unless the broker actually has the capability to go through a particular case over the phone with an underwriter (how likely is that with HS lenders?) I’m unsure precisely what it is I’m paying for. Genuinely asking not being snarky or anything. 

lassfarfromhome

Hello.  My Natwest fixed rate is up in May 2024, by which point about £5,000 will be left on the mortgage.  Will I be able to get a new rate with Natwest given the amount of the loan would be less than £10,000, or is SVR the only option?  If the latter, should I just pay it off when the fixed rate ends?

K_S

lassfarfromhome said:

Hello.  My Natwest fixed rate is up in May 2024, by which point about £5,000 will be left on the mortgage.  Will I be able to get a new rate with Natwest given the amount of the loan would be less than £10,000, or is SVR the only option?  If the latter, should I just pay it off when the fixed rate ends?

@lassfarfromhome For intermediary product-transfers, NatWest has a minimum balance required of 10k. Not sure if it's the same direct or not.

K_S

JW2709 said:

Hi- FTB here...employed (not self employed)

Apologise in advance for what might seem like a stupid question.  Do mortgage lenders look at gross pay or net pay on payslips?

Reason I ask is that the company I work for is moving to a salary sacrifice scheme for our company cars which means that they will be paying me a car allowance and then deducting the total cost pre-tax (which will be more than the allowance they are providing, which I am fine with).  I'm worried that the car payments will impact how much I can borrow.  

Any thoughts/advice?

@jw2709 Generally speaking, for PAYE applicants, lenders will start with the gross pay and apply deductions based on their I individual policies/processes.

Exactly what impact (if any) your salary sacrifice deductions will have on your borrowing capacity depends on the specific lender, the details, what it looks like on your payslip, etc.

Based on the limited info into your post, if I've understood it correctly, the gross pay considered by most lenders is likely to be your basic + car allowance - car deduction. But again, it may differ across lenders depending on how it's worded and where it shows on the payslips.