Mortgage broker - ask me anything

K_S

IAMIAM said:

NatWest Mortgage Offers

My current deal elsewhere ends 16 July 2023

Can I apply 16th November to NatWest, meaning about a month to secure an offer after valuation and documents then 6 months offer validity and then potentially extend another month to 16th July and then complete then? 

@iamiam Apologies, I have no idea how NatWest works direct. I wouldn't time it to the day, might be worth keeping at least a week's overlap to account for any last-minute conveyancing issues/delays.

TheGame21

Hi,

We were in the process of sorting a remortgage with a broker a couple of months ago however it couldn't be sorted and now that product was taken away with the Government's announcement. That was a good rate with a small jump in monthly payments. Our mortgage expires in February and we have £295k outstanding. We have now been offered a 5 year fixed at 4.5% however it jumps our monthly payment by £500. I have been looking at trackers and other fixed but can't really find anything better. Do you have any suggestions in terms of whether that is a good rate?

K_S

@thegame21 A 5yr fix at 4.5% is indeed likely to be a very competitive option compared to 5yr fixed products offered by other lenders. You can always do a sense check on the MSE mortgage comparison here to get an idea of how it compares to the rest of the market.
https://www.moneysavingexpert.com/mortgages/best-buys/

TheGame21 said:

Hi,

We were in the process of sorting a remortgage with a broker a couple of months ago however it couldn't be sorted and now that product was taken away with the Government's announcement. That was a good rate with a small jump in monthly payments. Our mortgage expires in February and we have £295k outstanding. We have now been offered a 5 year fixed at 4.5% however it jumps our monthly payment by £500. I have been looking at trackers and other fixed but can't really find anything better. Do you have any suggestions in terms of whether that is a good rate?

IAMIAM

What is the maximum term/age for Natwest?

80 and or 40 years? Cant find it online

Wanting to extend my term to 40 on my next remortgage, the maximum - which would take me to 78 - and have the freedom to overpay (which I will)

Any lenders that allow this? Currently 38

Troy_af

Hi,

So, am I correct in saying that loan to value will affect the rates which you are offered? If so, by how much does it change? I have currently been getting quotes from my broker assuming an 82% ltv and this is coming back with 5.5% interest rates. However, given the rise in interest rates, I am looking at maybe increasing my deposit from savings and would be looking at 74% ltv, do you think this will reduce the interest by anything?

Thanks.

K_S

IAMIAM said:

What is the maximum term/age for Natwest?

@iamiam Subject to criteria and plausibility - 75/40.

K_S

Troy_af said:

Hi,

So, am I correct in saying that loan to value will affect the rates which you are offered? If so, by how much does it change? I have currently been getting quotes from my broker assuming an 82% ltv and this is coming back with 5.5% interest rates. However, given the rise in interest rates, I am looking at maybe increasing my deposit from savings and would be looking at 74% ltv, do you think this will reduce the interest by anything?

Thanks.

@troy_af Depends on the lender but generally speaking currently the difference between 75% and 85% LTV for most mainstream lenders is likely to be quite small.

For example Halifax/NatWest 5yr fix 75% and 85% LTV products have about a 0.10-0.15% difference. OTOH for Nationwide there's no difference for 5yr fix rates all the way from 60% LTV to 85% LTV.

Troy_af

K_S said:

Troy_af said:

Hi,

So, am I correct in saying that loan to value will affect the rates which you are offered? If so, by how much does it change? I have currently been getting quotes from my broker assuming an 82% ltv and this is coming back with 5.5% interest rates. However, given the rise in interest rates, I am looking at maybe increasing my deposit from savings and would be looking at 74% ltv, do you think this will reduce the interest by anything?

Thanks.

@troy_af Depends on the lender but generally speaking currently the difference between 75% and 85% LTV for most mainstream lenders is likely to be quite small.

For example Halifax/NatWest 5yr fix 75% and 85% LTV products have about a 0.10-0.15% difference. OTOH for Nationwide there's no difference for 5yr fix rates all the way from 60% LTV to 85% LTV.

Thanks.

Another quick question. If I overpay a lump sum, will this reduce my monthly payments or reduce interest but monthly payments stay the same?

Giggidy

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

Goldie57843367

Had mortgage offer granted in May this year with Nationwide, the house purchase fell through. I have just seen a house couple days ago that I would like to offer on, can NatIonwide update the details to cover the new house? I believe offer runs out around 26th Nov, and would like to use the lower interest rate granted earlier if possible. 

Second question would be if this was feasible, would the exchange have to be complete before 26th Nov, would this in itself be feasible, given the short time frame?

any advice greatly appreciated