Mortgage broker - ask me anything

Rumana03

Our completion is now just waiting on a gift deposit form approval from Nationwide. The issue now is that the bank have queried why the original gift deposit form said £25k and the new recent form says £33k. The reason for this is because the bank asked for 15% deposit after they did the property valuation (originally was supposed to be 10%) as they class the property as a maisonette. 
The bank said they will give an answer regarding the gift deposit form within 24-48 hours. Is it likely they can withdraw the mortgage offer based on all the information? Or ask for even more money (as I read this happened to someone else).

K_S

Rumana03 said:

Our completion is now just waiting on a gift deposit form approval from Nationwide. The issue now is that the bank have queried why the original gift deposit form said £25k and the new recent form says £33k. The reason for this is because the bank asked for 15% deposit after they did the property valuation (originally was supposed to be 10%) as they class the property as a maisonette. 
The bank said they will give an answer regarding the gift deposit form within 24-48 hours. Is it likely they can withdraw the mortgage offer based on all the information? Or ask for even more money (as I read this happened to someone else).

@rumana03 Based on the limited info in your post, I would be very very surprised if this changed anything at all. The only reason for withdrawing the offer would be if they strongly suspected that the extra 8k is being falsely declared as a gift. This is just pure conjecture, I've never had a case where a client's offer was withdrawn on this basis.

Rumana03

K_S said:

Rumana03 said:

Our completion is now just waiting on a gift deposit form approval from Nationwide. The issue now is that the bank have queried why the original gift deposit form said £25k and the new recent form says £33k. The reason for this is because the bank asked for 15% deposit after they did the property valuation (originally was supposed to be 10%) as they class the property as a maisonette. 
The bank said they will give an answer regarding the gift deposit form within 24-48 hours. Is it likely they can withdraw the mortgage offer based on all the information? Or ask for even more money (as I read this happened to someone else).

@rumana03 Based on the limited info in your post, I would be very very surprised if this changed anything at all. The only reason for withdrawing the offer would be if they strongly suspected that the extra 8k is being falsely declared as a gift. This is just pure conjecture, I've never had a case where a client's offer was withdrawn on this basis.

Thanks..that puts my mind at ease.

purplelila-2007

If a property has been valued at 500,000 by a bank, and we are selling our property for £400,000 at the last minute our buyer requests a discount of say £10,000 and we were were looking to pass this onto our onward purchase how would that work if the valuations had already been done on both properties which have been valued the property at the asking price?

If the buyer wants to buy ours at £390,000 and our onward purchase agrees to £490,000 will our mortgage offer reduce and how would loan to values be affected if the deposit amount remained the same ?

MasterplanC

Assume we got a 5-year fixed rate mortgage offer at the end of July [Barclays, valid until January], which stated the rate is fixed until end of August 2027 and it has an early repayment charge during the first 5 years.
If we don't complete and start paying the mortgage before October or November, is it correct to assume it's not really fixed for 5 years, but in fact until August 2027? Would that shorten the period for the early repayment charge as well? I am just wondering whether otherwise one might have to swallow a worse interest rate for a few months before being able to remortgage without the extra charge.

K_S

MasterplanC said:

Assume we got a 5-year fixed rate mortgage offer at the end of July [Barclays, valid until January], which stated the rate is fixed until end of August 2027 and it has an early repayment charge during the first 5 years.
If we don't complete and start paying the mortgage before October or November, is it correct to assume it's not really fixed for 5 years, but in fact until August 2027? Would that shorten the period for the early repayment charge as well? I am just wondering whether otherwise one might have to swallow a worse interest rate for a few months before being able to remortgage without the extra charge.

@masterplan The ERC will only be until 31 Aug 2027. To verify this, go to section 8 of your mortgage offer which should be titled 'Early repayment'. The third line should say "Early repayment charges are payable on this mortgage until xxxxx as follows."

K_S

purplelila-2007 said:

If a property has been valued at 500,000 by a bank, and we are selling our property for £400,000 at the last minute our buyer requests a discount of say £10,000 and we were were looking to pass this onto our onward purchase how would that work if the valuations had already been done on both properties which have been valued the property at the asking price?

If the buyer wants to buy ours at £390,000 and our onward purchase agrees to £490,000 will our mortgage offer reduce and how would loan to values be affected if the deposit amount remained the same ?

@purplelila-2007 If your vendor agrees to a reduced purchase price of 490k, whether or not it has any impact on your existing mortgage offer will depend on the mortgage size.

MasterplanC

K_S said:

MasterplanC said:

Assume we got a 5-year fixed rate mortgage offer at the end of July [Barclays, valid until January], which stated the rate is fixed until end of August 2027 and it has an early repayment charge during the first 5 years.
If we don't complete and start paying the mortgage before October or November, is it correct to assume it's not really fixed for 5 years, but in fact until August 2027? Would that shorten the period for the early repayment charge as well? I am just wondering whether otherwise one might have to swallow a worse interest rate for a few months before being able to remortgage without the extra charge.

@masterplan The ERC will only be until 31 Aug 2027. To verify this, go to section 8 of your mortgage offer which should be titled 'Early repayment'. The third line should say "Early repayment charges are payable on this mortgage until xxxxx as follows."

Confusingly, section 8 states "The figures assume a start date for the mortgage of 01 August 2022. Early repayment charges are payable on this mortgage until 31 August 2027 as follows." Then they list a table that basically relays the same information and computes how much the ERC would be at most given the total mortgage amount.
So based on this it wasn't so obvious to me whether it would be 5 years from the start of the mortgage or indeed August like the fixed interest period.

Martisha

We have pulled out from the purchase after mortgage application has been submitted but before mortgage offer given.

the lender is Nationwide

what do we need to do now? Cancel it?

Hayterking

What happens if my remortgage offer expires before optima legal set a completion date? Surely it doesn’t just expire and I have to start the entire process again, I mean I’ve paid them?! I only used them because the bank set it up so do you think the bank would just extend the mortgage offer? I mean I’d have thought they want the offer to be processed so why wouldnt they?Appreciate any help, I’m pretty nervy about this.