Mortgage broker - ask me anything

druan7

I was having a look at the Natwest lending criteria, and from what I can see it looks to me like they only use Equifax for their searches. Is that correct? I have a default that shows up on my TransUnion and Experian reports, but doesn't appear on my Equifax report so I'm hoping to go forward with them if possible. 

Chemistry777

Really appreciate the time you spend helping people on here, hopefully you can answer a query for me.

Got a mortgage with Nationwide (direct) on a property we had a bid accepted on.  Purchase price £500k with Deposit of 250k.  Due to issues raised in the survey we are negotiating a price reduction (£450k)  but still need the same amount of mortgage  as money on our deposit will go on the fixes raised in survey.

We have contacted Nationwide and they want a f2f (teams) call to go through the changes.  Earliest opportunity for a meeting is 2 weeks away.   Is this normal?  Is there any risk to our acceptance.   I think the LTV is still in the bracket of our product.

Also, when we initially applied we were told we could pay the mortgage product fee upfront or spread the cost over the fixed (3 year term),  We went for the formal as overall it was slightly cheaper (but not by much),.   If the whole thing collapses do we get product fee back?

Many thanks

snowqueen555

Looking to buy a new build studio in the city centre.

Is it worth me avoiding studios?

I had a rate locked in form a few months ago but they will not lend on studios so will need to apply at the current rates.

K_S

Chemistry777 said:

Really appreciate the time you spend helping people on here, hopefully you can answer a query for me.

Got a mortgage with Nationwide (direct) on a property we had a bid accepted on.  Purchase price £500k with Deposit of 250k.  Due to issues raised in the survey we are negotiating a price reduction (£450k)  but still need the same amount of mortgage  as money on our deposit will go on the fixes raised in survey.

We have contacted Nationwide and they want a f2f (teams) call to go through the changes.  Earliest opportunity for a meeting is 2 weeks away.   Is this normal?  Is there any risk to our acceptance.   I think the LTV is still in the bracket of our product.

Also, when we initially applied we were told we could pay the mortgage product fee upfront or spread the cost over the fixed (3 year term),  We went for the formal as overall it was slightly cheaper (but not by much),.   If the whole thing collapses do we get product fee back?

Many thanks

@chemistry777 Apologies, I know nothing about the Nationwide direct process.

I can't imagine why they need a video call or the point of a 2 week wait. For an intermediary in this situation it's usually just a matter getting the relevant details from the client over email, reviewing the old/new numbers and making the amendment on the Nationwide system.

With respect to the product fee, I always get my clients to add it to the mortgage and (if they wish to), pay it off on day 1 by overpaying £999 (or whatever the fee is) so they end up in the same position as they would by paying it upfront but without the faff of having to try for a refund (some lenders will refund it before completion, some won't, don't know about Nationwide) if they change lenders or the transaction falls through.

Based on the very limited info in your post, I don't see anything in particular to worry about, hope the reissued offer comes through quick, good luck!

K_S

snowqueen555 said:

Looking to buy a new build studio in the city centre.

Is it worth me avoiding studios?

I had a rate locked in form a few months ago but they will not lend on studios so will need to apply at the current rates.

@snowqueen555 Sorry, I'm not entirely clear on what aspects of the purchase you are worried about. Whether a studio flat works for you depends on what you're looking for, a mortgage is simply a tool to get the kind of property you like.

My first home was a studio flat in Stratford and it served the purpose at the time. Not every lender would lend on it but it was still mortgageable at mainstream rates, and because of the location saleability wasn't an issue, and these were all that really mattered to me.

Rachel*

I’ve just received my reminder from HSBC that my fixed rate mortgage (1.34%) ends 31st December 2022, so now I need to start looking again. This is my first time remortgaging since I purchased my property 2 years ago so I have a few questions that hopefully someone can help me with.. 

1. The best rate with HSBC I can get (my LTV is about 50%, taking into account HSBC’s new valuation - which has increased since purchase) is 3.5% (5yr fix) or 3.7% (2yr fix)… given the current climate is it worth me paying a broker’s fee and solicitor’s fees, plus have the additional credit checks when they may not be any substantially better deals available?

2. If I choose to stay with HSBC and choose a new rate now, will I automatically start paying the new rate or when my current rate ends? 

3. I know no one can predict the future and say if 2 or 5 years is best, but I would hope within 5 years I could potentially sell my flat and buy a house - so if I secured a 5 year fix how would this affect me if I chose to sell, in say 3 years time? 

Sorry for such a long post!

K_S

Rachel* said:

I’ve just received my reminder from HSBC that my fixed rate mortgage (1.34%) ends 31st December 2022, so now I need to start looking again. This is my first time remortgaging since I purchased my property 2 years ago so I have a few questions that hopefully someone can help me with.. 

1. The best rate with HSBC I can get (my LTV is about 50%, taking into account HSBC’s new valuation - which has increased since purchase) is 3.5% (5yr fix) or 3.7% (2yr fix)… given the current climate is it worth me paying a broker’s fee and solicitor’s fees, plus have the additional credit checks when they may not be any substantially better deals available?

2. If I choose to stay with HSBC and choose a new rate now, will I automatically start paying the new rate or when my current rate ends? 

3. I know no one can predict the future and say if 2 or 5 years is best, but I would hope within 5 years I could potentially sell my flat and buy a house - so if I secured a 5 year fix how would this affect me if I chose to sell, in say 3 years time? 

Sorry for such a long post!

@Rachel*

1. I'll start off with saying that HSBC are updating their product-transfer rates from Tuesday, so you may have to hurry to reserve the current rate if that's what you wish to do. To answer your question, it's quite likely that the HSBC rate available to you is indeed the 'best' fixed rate that you can access at this moment. You can confirm that by using the MSE mortgage comparison here https://www.moneysavingexpert.com/mortgages/best-buys/

2. You can choose for the new rate to start up to 120 days (4 months) in the future. In your case, if your fix is ending on 31st December, you would usually select it to start the first working day after that, which seems to be 3rd Jan 2023.

3. If you picked a 5 year fix and needed to move home in 3 years time, you could either try and port the mortgage (with additional borrowing on top if you need it to upsize) with HSBC or (if HSBC won't lend what you need) pay the ERC and find a mortgage with another lender to buy your new home.

Rachel*

K_S said:

@Rachel*

1. I'll start off with saying that HSBC are updating their product-transfer rates from Tuesday, so you may have to hurry to reserve the current rate if that's what you wish to do. To answer your question, it's quite likely that the HSBC rate available to you is indeed the 'best' fixed rate that you can access at this moment. You can confirm that by using the MSE mortgage comparison here https://www.moneysavingexpert.com/mortgages/best-buys/

2. You can choose for the new rate to start up to 120 days (4 months) in the future. In your case, if your fix is ending on 31st December, you would usually select it to start the first working day after that, which seems to be 3rd Jan 2023.

3. If you picked a 5 year fix and needed to move home in 3 years time, you could either try and port the mortgage (with additional borrowing on top if you need it to upsize) with HSBC or (if HSBC won't lend what you need) pay the ERC and find a mortgage with another lender to buy your new home.

Thank you for all this information, it’s really helped me! 

I’ve decided to go with the 5 year fix for some consistency with my payments, and as my mortgage isn’t huge if the interest rates did drop in a few years time I wouldn’t be missing out massively. 

heston2014

Hello,

Sadly, the previous occupant was a hoarder and the agent said the property is sold as is. Structurally sound but unfortunately, won’t know what issues may be hiding underneath all the stuff.  It is an ex council 3-bed flat on the ground floor, would need full renovation, mostly cosmetics but also rewiring and new boiler. Otherwise, in a good location. Would be an ideal investment but have been doing some research and may be difficult to find a suitable lender apparently?

Thanks.

K_S

heston2014 said:

Hello,

Sadly, the previous occupant was a hoarder and the agent said the property is sold as is. Structurally sound but unfortunately, won’t know what issues may be hiding underneath all the stuff.  It is an ex council 3-bed flat on the ground floor, would need full renovation, mostly cosmetics but also rewiring and new boiler. Otherwise, in a good location. Would be an ideal investment but have been doing some research and may be difficult to find a suitable lender apparently?

Thanks.

@heston2014 Unless the property is clearly uninhabitable, you should have options available to buy it using a mortgage.

What options (if any) will depend on the details and some of the pertinent criteria will be that it's an ex-council flat, block specifics, location, value, LTV, etc.

Very very generally speaking, with ex council flats location is quite important. For example a council flat in London is likely to be much more easily mortgageable than the exact same flat in a town up north.