Mortgage broker - ask me anything

Martisha

K_S said:

Martisha said:

K_S said:

Martisha said:

Hello, got an offer accepted for a house, when should I apply for a mortgage? Is it better go for 30 or 32 years?

@martisha Most applicants will apply for a mortgage once their offer is accepted. Some will delay it if expected completion is more than 6 months away. Can't really comment on the term as that depends on your personal circumstances.

Thanks.
is the offer valid for 6months from application or the actual offer issued?

@martisha Depends on the lender. For example with Barclays it's 6 months from date of application while with HSBC it's 6 months from date of offer. Others like Halifax have a set 'complete-by' date which is currently 31/03/2023, so giving you less than 6 months.

Thank you. What about Nationwide please?

K_S

Panda126 said:

Hi all.

I’m wondering if anyone had any experience with Halifax recently and if there is a delay in mortgage applications?

Our buyer applied for their mortgage beginning of September, we had the valuation two weeks ago and they still haven’t received their offer. Is that normal?

We had our house down valued and we had to reduce the price but we’ve been told that once we accept the lower price they shouldn’t have any issues.

When we applied for our mortgage, we had offer 1day after the valuation.

We are under pressure as we also must exchange contracts for our new built asap, is there anything they can do to push the lender’s decision?

All the searches are done we’re just waiting for their offer.

@panda126 A full Halifax application in early September with no offer yet would be unusual with Halifax. If they are self-employed and there's been a lot of to and fro with a senior underwriter involved, or the underwriter has asked for a letter/confirmation from HMRC then yes I can see underwriting being delayed.

It could be any number of things I suppose, it's hard to speculate. But in most cases, beyond placing it correctly and packaging it appropriately, there's very little that they or their broker can do to 'expedite' the application, be that with Halifax or other mainstream lenders.

K_S

Martisha said:

K_S said:

Martisha said:

K_S said:

Martisha said:

Hello, got an offer accepted for a house, when should I apply for a mortgage? Is it better go for 30 or 32 years?

@martisha Most applicants will apply for a mortgage once their offer is accepted. Some will delay it if expected completion is more than 6 months away. Can't really comment on the term as that depends on your personal circumstances.

Thanks.
is the offer valid for 6months from application or the actual offer issued?

@martisha Depends on the lender. For example with Barclays it's 6 months from date of application while with HSBC it's 6 months from date of offer. Others like Halifax have a set 'complete-by' date which is currently 31/03/2023, so giving you less than 6 months.

Thank you. What about Nationwide please?

@martisha Nationwide allows me to 'reserve' a product/rate at DIP stage (without a full application) which is valid for 90 days by which time an offer must be issued. The full mortgage offer is valid for 180 days from the date of offer and can be extended for another 15 days if needed to complete. So end to end, you can potentially stretch it for as much as 7.5-8 months or so.

K_S

summerb64 said:

K_S said:

summerb64 said:

I have probably an impossible question but was just wondering what people’s opinions were on a mortgage in the current climate. As a First time buyer, would you purchase now and lock in on the rates that are on offer, or wait a little longer as the rates will probably increase but the same house may be up to 10% cheaper in the next 12-18 months, it’s so confusing feel like purchasing now may be the worst time price wise - but the rates are only going higher. Just fear the dreaded negative equity 🥲. Thanks, Debb 

@summerb64 It's a hard question to answer as it depends on your priorities, financial situation, living situation, future market movements and how good a deal it is that you got.

If it helps I've got FTB clients who've decided to pause their house hunting, others who've not changed their plans and yet others who've reduced their budget.

Thank you for your insight - appreciate it! My situation is that I am currently renting, and I am going to be purchasing the house I live in in Bolton, as me and my husband know the landlord. The rent is currently about £300 less than what the mortgage will be, which is making me hesitant at the moment, the price of the house is currently £180k and we have 10% deposit, could actually do 20% if needed but would rather the cash to help with home improvements. Leaning more towards waiting to see how the next few months go to get a clearer picture, and can save the extra money in cheaper rent until becomes a bit clearer I suppose - but then the wasted money in rent could already go towards paying down the mortgage. It’s sooooo confusing and difficult 😞  thank you!

@summerb64 Personally, if I was an FTB in this environment, the mortgage scene would be too stressful for me and I'd wait for next spring to see how things are. It's not so much the rates themselves but more to do with all the news around it.

This wouldn't apply to you as you already have a property in mind, but conversely if you're a strong proceedable buyer, there is a lot more flexibility on offer from sellers with respect to price so the chances of getting a 'good deal' are perhaps better than they were a few months ago.

Panda126

Hi all,

Just an update – the buyer confirmed that they received their mortgage offer (finally) !

My next question is about the deposit for our mortgage for the new house.

Our deposit is based on the sale of our house – so we basically put all the profit as deposit.

When it comes to exchange of contracts are we required to put the full sum for our deposit from our account or the buyer’s lender will transfer it? We are not sure how it works in a chain.

Martisha

K_S said:

Martisha said:

K_S said:

Martisha said:

K_S said:

Martisha said:

Hello, got an offer accepted for a house, when should I apply for a mortgage? Is it better go for 30 or 32 years?

@martisha Most applicants will apply for a mortgage once their offer is accepted. Some will delay it if expected completion is more than 6 months away. Can't really comment on the term as that depends on your personal circumstances.

Thanks.
is the offer valid for 6months from application or the actual offer issued?

@martisha Depends on the lender. For example with Barclays it's 6 months from date of application while with HSBC it's 6 months from date of offer. Others like Halifax have a set 'complete-by' date which is currently 31/03/2023, so giving you less than 6 months.

Thank you. What about Nationwide please?

@martisha Nationwide allows me to 'reserve' a product/rate at DIP stage (without a full application) which is valid for 90 days by which time an offer must be issued. The full mortgage offer is valid for 180 days from the date of offer and can be extended for another 15 days if needed to complete. So end to end, you can potentially stretch it for as much as 7.5-8 months or so.

Thank you this is very helpful.

We have submitted full application in August but we have to pull out soon after (before mortgage offer was given) now we found another property and got offer accepted. Is there a chance we could use the first application (and rate) for this new property?

TheGame21

K_S said:

@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?

Thank you. That was the best offer we found when we compared across other sites. 

kingstreet

Panda126 said:

Hi all,

Just an update – the buyer confirmed that they received their mortgage offer (finally) !

My next question is about the deposit for our mortgage for the new house.

Our deposit is based on the sale of our house – so we basically put all the profit as deposit.

When it comes to exchange of contracts are we required to put the full sum for our deposit from our account or the buyer’s lender will transfer it? We are not sure how it works in a chain.

The first buyer in the chain's cash deposit passes up the chain becoming a smaller percentage of the larger purchase prices as it does so. Solicitors organise this among themselves.

Hanava22

Hi all 

has anyone experienced lender wanting  Government gateway document showing monthly earning for the last 3 years?

I had one previously wanting 3 years but not showing monthly earnings over the past 3 years. Why would they want this?

Thanks in advance 

IAMIAM

Mortgage Expires 16th July 2023 
Which lenders can I secure a rate with now, just Nationwide?