Mortgage broker - ask me anything

K_S

HouseCR said:

K_S said:

HouseCR said:

Hi, our fixed runs out 31st October 2023 (1.93%) we are thinking of remortgaging to get a 5 year fixed at 3.39% but have to pay exit fee of £6300, which we will need to add to mortgage balance (£217k).
I’m hoping to get the application sorted tomorrow, but will have 6 months to opt out before it goes live so thinking I can reassess before then. 

Does this sound like our best option? thanks. 

@housecr Sounds like a good plan to hedge your bets. Assuming you're talking about a remortgage (changing to a new lender) rather than a product-transfer/product-switch/rate-switch (staying with current lender), I hope the 3.39% rate is already secured/reserved? I don't expect to see any sub 4% rates remaining after mid-week or so. 

It is with same lender (Barclays) but they said only way we can add exit fee to mortgage value was by a remortgage with them (otherwise they wanted the exit fee paid up front and the rate was the same 3.39%)
I’ve looked on comparison sites and couldn’t see any cheaper 5 year rates with other providers but appreciate a broker might have access to other deals that I can’t see, but my worry now is the time we’ve got before 5 year fixes go up again. Hoping I can secure the Barclays 3.39% before they change their rates. I’ve sent all the necessary paperwork, so I guess it’s now in their hands… ☹️

@housecr I don't have any clue of how the Barclays direct process works but from what you have said it looks like you should be fine and the rate already secured as that usually happens when a full application is submitted. And you can rest assured that 3.39% is a very good rate that you're unlikely to get with a different lender. Good luck, hope it comes through soon!

pinewood12

pinewood12 said:

Hi all, I am purely asking these questions to try as best I can to manage to increasing anxiety on gaining a mortgage offer. Hopefully the below summaries my circumstances clearly:

• AIP confirmed with Nationwide 
• Purchasing a shared ownership property on a 5 year fix 75% LTV mortgage - application submitted 8th September @ 3.99%
• Income fits affordability, however is split 3 ways - 60% permanent contract / 20% ZHC with the same employer + 20% with another employer somewhere between ZHC/Self Employed as fall under IR35 and on PAYE. 
• Near perfect credit score, no loans/credit cards etc. 

As you can imagine with a range of income, the lender has come back twice asking for further documentation to justify my income, and the share agreed with the broker is pretty tight on the shared ownership affordability calculator; but obviously like everyone you want to try and purchase the highest share possible. 

Obviously I am just very worried the lender will eventually come back and reject my application despite sizable costs already paid for arrangement fees, solicitor fees, property reservations etc. 

Looking forward to hearing peoples thoughts. Thanks 

Just bumping this - I wonder if anyone has any thoughts/insight to try and reduce my anxiety as it's been 3 weeks since application now. 

Thanks a lot 

london21

Some lenders are fairer than others.
Reading the ERC for Santander, it appears the percentage does not go down with the years. on a 5 years fixed the ERC is staying at 5%.

Barclays stays 2% over the 5 years 

NatWest 1% over the 5 years.

Important to keep an eye on the ERC in the past have mainly focused on the rate and product fees. 

Ballymoney

How many days before completion would the lender transfer funds to conveyancer? For a remortgage set to complete on 03/10 (Completion Statement emailed to me yesterday) would the funds already have been released?

KKG1985

Hi,

I've seen a lot of advice for people with mortgages who are either on a fixed rate coming to an end or a variable rate to act now. My fixed rate ends in Aug next year and I'm very concerned that by that time the interest rates could be 6% or more which is simply unaffordable for me. Is there anything that I could do now to avoid this? It's a very scary prospect that I'm sure is worrying a lot of people.

Atena

@K_S can a lender withdraw an offer due to current situation please? I am few days before exchanging and worry Kent Reliance will decide not to lend even tho my offer runs out in Feb 2023

K_S

Atena said:

@K_S can a lender withdraw an offer due to current situation please? I am few days before exchanging and worry Kent Reliance will decide not to lend even tho my offer runs out in Feb 2023

@atena I wouldn't expect KR to do that.

K_S

pinewood12 said:

pinewood12 said:

Hi all, I am purely asking these questions to try as best I can to manage to increasing anxiety on gaining a mortgage offer. Hopefully the below summaries my circumstances clearly:

• AIP confirmed with Nationwide 
• Purchasing a shared ownership property on a 5 year fix 75% LTV mortgage - application submitted 8th September @ 3.99%
• Income fits affordability, however is split 3 ways - 60% permanent contract / 20% ZHC with the same employer + 20% with another employer somewhere between ZHC/Self Employed as fall under IR35 and on PAYE. 
• Near perfect credit score, no loans/credit cards etc. 

As you can imagine with a range of income, the lender has come back twice asking for further documentation to justify my income, and the share agreed with the broker is pretty tight on the shared ownership affordability calculator; but obviously like everyone you want to try and purchase the highest share possible. 

Obviously I am just very worried the lender will eventually come back and reject my application despite sizable costs already paid for arrangement fees, solicitor fees, property reservations etc. 

Looking forward to hearing peoples thoughts. Thanks 

Just bumping this - I wonder if anyone has any thoughts/insight to try and reduce my anxiety as it's been 3 weeks since application now. 

Thanks a lot 

@pinewood12 Nationwide is extremely slow at the moment so don't be too worried by how long it's taking. And you've used a broker so you've done all you can. I hope the offer comes through in the next few weeks, good luck!

K_S

KKG1985 said:

Hi,

I've seen a lot of advice for people with mortgages who are either on a fixed rate coming to an end or a variable rate to act now. My fixed rate ends in Aug next year and I'm very concerned that by that time the interest rates could be 6% or more which is simply unaffordable for me. Is there anything that I could do now to avoid this? It's a very scary prospect that I'm sure is worrying a lot of people.

@kkg1985 You could look at getting an offer from a lender like Leeds that considers a 6 month extension on the same rate so you can potentially get 6+6 months validity. Alternatively, you could also look at getting an from a lender than offers 6 + 0/1/2/3 months on top and then reassess the market in March.  

There are quite a few things you can do to reduce the risk or give you more options than you otherwise would have.

K_S

Ballymoney said:

How many days before completion would the lender transfer funds to conveyancer? For a remortgage set to complete on 03/10 (Completion Statement emailed to me yesterday) would the funds already have been released?

@ballymoney You're charged interest from the day the cash is released so it's usually the working day prior to completion.