Mortgage broker - ask me anything

aoleks

Discounted variable - What type of a mortgage is this?

Are you "fixed" for a certain period to get the discount? Does it normally have ERCs? Do you apply in the same way and are affordability checks similar to a conventional (fixed) mortgage? Do most lenders offer such a product?

GAMBITv5

K_S said:

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!

Nationwide slow? My experience with them this month is App submitted 22/9 Offer 26/9…

tony3619

Are bates rates predicted to be worse in Q1 or Q2 2023?

GAMBITv5

3tony3619 said:

Are bates rates predicted to be worse in Q1 or Q2 2023?

Q2/3

K_S

GAMBITv5 said:

K_S said:

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!

Nationwide slow? My experience with them this month is App submitted 22/9 Offer 26/9…

@gambitv5 Yes they are extremely slow and on average taking between 17 to 28 working days (so around 4-6 calendar weeks) from app to offer and 1 week to turnaround queries (of which the OP has already had 2). Please see current average service levels here https://www.nationwide-intermediary.co.uk/placing-business/service-updates



The timelines above will include both cases like your's which go to offer in a few days and cases which drag on for months.

K_S

tony3619 said:

Are bates rates predicted to be worse in Q1 or Q2 2023?

@tony3619 The financial markets have an ever-changing opinion (currently it is that BoE rates will hit 6% by next summer), but that has and can change with events and isn't something that I am brave enough to factor in when advising clients.

K_S

aoleks said:

Discounted variable - What type of a mortgage is this?

Are you "fixed" for a certain period to get the discount? Does it normally have ERCs? Do you apply in the same way and are affordability checks similar to a conventional (fixed) mortgage? Do most lenders offer such a product?

@aoleks It's a product that offers you an x% discount off of the specific lender's SVR (which can be varied at will and does not track the BOE rate) for a fixed period of time - mostly 2 years but there are also term-products available.

The product is variable from day 1. The vast majority of discount products I've come across have an ERC, though it's usually kinder than a fixed product.

It's usually offered by smaller lenders (I can't think of any mainstream lenders that offer discount products) as they can adjust their SVR to account for any significant changes in their funding to maintain margins and don't have the capacity to absorb large volatility. The building societies have a mandate to have x% of their lending on variable products so this helps with meeting that requirement as well.

Affordability differs based on the specific lender. Very very generally speaking, it is usually tighter with the smaller lenders that offer these products.

GAMBITv5

Thanks for explaining averages 

K_S

GAMBITv5 said:

Thanks for explaining averages 

@gambitv5 Apologies if that came across as patronising, that wasn't my intention I've edited my post.

Ballymoney

Does Lloyds do a final credit check in the days leading up to completion before release of funds for a remortgage? I’m aware that some lenders do but wasn’t sure if Lloyds are one of them.