Mortgage broker - ask me anything

matthewhine

kingstreet said:

matthewhine said:

kingstreet said:

Some lenders might accept a concessionary purchase from a tenant purchasing from their landlord. Suggest independent broker advice as your first step.

Would you say we have a slim chance then? I have an advisor calling me later today.

Not enough information to speculate accurately, sorry.

Understood, thank you. I’ll wait to speak to the advisor

Troy_af

Hello. I have two questions relating to my current nightmare house moving situation.

Ive had two house purchases fall through in the last year and therefore am now going to have to apply for a third mortgage. My broker has told me that my credit score may have been affected because of the hard searches. I am just wondering, could this affect my chances of getting an offer? It would be pretty devastating since these hard searches are through no fault of my own, I am hoping that even if it doesn't look great on my credit score, mortgage under writers would surely look on a case by case basis as to the reasons why Ive had to make a third application? Both sales fell though due to chains collapsing.

Next question, would the rise in interest rates likely reduce how much I can borrow? My last offer was at 2.7%. I'm concerned if they come back with a smaller loan offer, as I may not get the required amount that I need.

K_S

Troy_af said:

Hello. I have two questions relating to my current nightmare house moving situation.

Ive had two house purchases fall through in the last year and therefore am now going to have to apply for a third mortgage. My broker has told me that my credit score may have been affected because of the hard searches. I am just wondering, could this affect my chances of getting an offer? It would be pretty devastating since these hard searches are through no fault of my own, I am hoping that even if it doesn't look great on my credit score, mortgage under writers would surely look on a case by case basis as to the reasons why Ive had to make a third application? Both sales fell though due to chains collapsing.

Next question, would the rise in interest rates likely reduce how much I can borrow? My last offer was at 2.7%. I'm concerned if they come back with a smaller loan offer, as I may not get the required amount that I need.

@troy_af The hard checks from two full applications over the last year are unlikely to have any material impact on your mortgage chances. If it was two mortgage applications in the last 2 weeks then yes it may, for a short while. I often get clients that come to me shortly after having a mortgage application (or two!) declined and on its own that's never stopped me from getting them a mortgage. I wouldn't stress too much.

The rise in interest rates may well impact what you can borrow, along with the ever-increasing cost of living assumptions that lender calculators use but what impact (if any) it has on your application depends on the specifics and numbers. You could play around with a couple of lender affordability calculators to get a very rough idea -
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

Troy_af

K_S said:

Troy_af said:

Hello. I have two questions relating to my current nightmare house moving situation.

Ive had two house purchases fall through in the last year and therefore am now going to have to apply for a third mortgage. My broker has told me that my credit score may have been affected because of the hard searches. I am just wondering, could this affect my chances of getting an offer? It would be pretty devastating since these hard searches are through no fault of my own, I am hoping that even if it doesn't look great on my credit score, mortgage under writers would surely look on a case by case basis as to the reasons why Ive had to make a third application? Both sales fell though due to chains collapsing.

Next question, would the rise in interest rates likely reduce how much I can borrow? My last offer was at 2.7%. I'm concerned if they come back with a smaller loan offer, as I may not get the required amount that I need.

@troy_af The hard checks from two full applications over the last year are unlikely to have any material impact on your mortgage chances. If it was two mortgage applications in the last 2 weeks then yes it may, for a short while. I often get clients that come to me shortly after having a mortgage application (or two!) declined and on its own that's never stopped me from getting them a mortgage. I wouldn't stress too much.

The rise in interest rates may well impact what you can borrow, along with the ever-increasing cost of living assumptions that lender calculators use but what impact (if any) it has on your application depends on the specifics and numbers. You could play around with a couple of lender affordability calculators to get a very rough idea -
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

Thanks once again for the reply.

I'm hoping that the affordability being brought up was just a passing comment from my broker at the time. I was offered up to 300k 6 month ago and now am only needing 200k. I'm assuming it wont have reduced by that much, but we'll see.

rc28

@K_S

Some info suggests Natwest may lend on newbuilds, maybe only through brokers, link here:

New-Build-Hub (natwest.com)

Do you think i need to speak to Natwest about changing the application to advisory, do they offer this service? not a broker?

elleb86

Hi, how much do lenders vary with their valuations, we had a really big down valuation of £70,000, is it worth trying with a different mortgage company? Thanks 

K_S

rc28 said:

@K_S

Some info suggests Natwest may lend on newbuilds, maybe only through brokers, link here:

New-Build-Hub (natwest.com)

Do you think i need to speak to Natwest about changing the application to advisory, do they offer this service? not a broker?

@rc28 NatWest does do new-build purchase mortgages, both direct and through brokers.

But your's is unlikely to fall in that bucket as it's a self-build and you already have a mortgage, making it a remortgage.

I trawled through NatWest's criteria and it indicates what the BDM told me, that they don't cater to your scenario.


Again, do confirm the same with NatWest direct as perhaps they can do it direct though I would think it unlikely.

If the NatWest app you've submitted is a no go, I'm sure you can do it yourself direct as well but I would strongly recommend speaking to a whole of market broker once completion is up close to make the process much smoother and to get the assurance that you are getting the best deal available to you. If it's a broker fee that's stopping you from using a broker, the MSE guidance here has plenty of fee-free brokers that you can speak to.
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

K_S

elleb86 said:

Hi, how much do lenders vary with their valuations, we had a really big down valuation of £70,000, is it worth trying with a different mortgage company? Thanks 

@elleb86 There's no guarantee of a different result but what I do for clients in this scenario is to use a different lender that uses a different surveyor panel. In the last 6 months I've probably done it twice and it's managed to rescue the deal both times. If you get the same result again by a different surveyor panel then at least you know that the property is probably overvalued, at least from a mortgage point of view.

gjs6385

Hi,

We’re currently on a fixed rate of 2.44% that ends in just under 12 months.  I looked into rates fairly recently and the best were around 3.49% but now they’re obviously higher.

Given things could change quite a bit in that time I’m inclined not to apply for another fixed remortgage rate and just see how the market moves and perhaps look at moving to a discounted SVR product once the fixed ends.  I just wondered what your view is and I appreciate we won’t be the only ones in this position.

I’m also going to have about £50pm available to use shortly and can’t decide whether to start overpaying on the mortgage or use it to clear off finance quicker in preparation for remortgaging….again your suggestions would be most welcome.

Thanks.

bubby08

@K_S Hi K_S thank you for your info I have now researched what you suggested and done some DTI calulations it seems I need to be under 28% ?!? My other question is that in terms of DTI what actually counts as debt I get finance agreements (loans cc’s rent etc ) but there anything outside that as I said my outgoings are a PCP agreement and a credit card and rent. Is there anything else I need to factor in a DTI calculation.

thank you