Mortgage broker - ask me anything

K_S

@sidneyvic The procuration-fee (commission) paid by the lender is based on the loan size, and doesn't change whether it's a 2/3/5/7/10 year product.

sidneyvic said:

Bit of a blunt question but are mortgage advisors paid more for five year fixes rather than 2 year ? Getting push towards 5 year fix at over 6% but everything tells me to only fix at 2 years at that rate .....

silvercar

sidneyvic said:

Bit of a blunt question but are mortgage advisors paid more for five year fixes rather than 2 year ? Getting push towards 5 year fix at over 6% but everything tells me to only fix at 2 years at that rate .....

Would have thought the opposite, a 5 yr fix means your broker is unlikely to see you for 4,5  years, whereas a 2 yr fix means you could be knocking on their door in under 2 years.

Troy_af

Can I ask what your experience is when a mortgage agreement in principle is referred? I’ve had this happen and as I understand it just means that the lender is taking a closer look at the application, but now I’m starting to worry. If I don’t get a new offer, my purchase is doomed.

Two things I’ve been told could be a potential issue. Firstly, I’ve had 2 offers within the last year, both expired due to chains collapsing. Secondly, my partner started a new job last month and therefore only has one pay slip from the new job. However, it is a permanent position with no probationary period and the exact same profession.

It is in fact just as stable as her previous job was so I really don’t understand why this could be an issue?

Thanks.

 

 

K_S

Troy_af said:

Can I ask what your experience is when a mortgage agreement in principle is referred? I’ve had this happen and as I understand it just means that the lender is taking a closer look at the application, but now I’m starting to worry. If I don’t get a new offer, my purchase is doomed.

Two things I’ve been told could be a potential issue. Firstly, I’ve had 2 offers within the last year, both expired due to chains collapsing. Secondly, my partner started a new job last month and therefore only has one pay slip from the new job. However, it is a permanent position with no probationary period and the exact same profession.

It is in fact just as stable as her previous job was so I really don’t understand why this could be an issue?

Thanks.

@troy_af It could be referred as a routine matter - some lenders will refer all 95% ltv applications or any applications with contractor income, etc.

Or it could be referred because of a particular aspect of the application that is borderline, subjective or potentially doesn't meet criteria. For example a marginal credit score fail, or indeed a new job. If it is the new job then criteria varies across lenders so they might just want someone to manually review it before passing the DIP.

I wouldn't worry too much. With the vast majority of mainstream lenders if it's a perm contact, you have one full payslip showing the basic that you need and no more than a few weeks gap between jobs, it should meet criteria.

Unless the two hard checks are very recent, that should not be material.

Lewis7498

@K_S may I ask a question, apologies if I’m not meant to now on this thread (I’m a newbie!)

My mortgage is up in April 23 and looking to stay with Halifax as I’m newly self employed so switching lenders wouldn’t be a good idea.
I have around 22% LTV and £75,000 left to pay on the mortgage (currently on 2.09%)

Their current fix is at 5.75% and if I went onto SVR it’s 5.74%.
After seeing Martins show tonight I’m wondering what a tracker mortgage is or is that the same as SVR as he’s said it’s currently cheaper?

Do you have any advice as Halifax is coming up a bit higher than most other lenders overall?!

Thank you!

K_S

Lewis7498 said:

@K_S may I ask a question, apologies if I’m not meant to now on this thread (I’m a newbie!)

My mortgage is up in April 23 and looking to stay with Halifax as I’m newly self employed so switching lenders wouldn’t be a good idea.
I have around 22% LTV and £75,000 left to pay on the mortgage (currently on 2.09%)

Their current fix is at 5.75% and if I went onto SVR it’s 5.74%.
After seeing Martins show tonight I’m wondering what a tracker mortgage is or is that the same as SVR as he’s said it’s currently cheaper?

Do you have any advice as Halifax is coming up a bit higher than most other lenders overall?!

Thank you!

@lewis7498 Newbie or not, anyone is welcome to post anywhere on the forum!

If you're limited to Halifax, a tracker is not likely to be an option as Halifax doesn't offer one. If your fix is ending 30-Apr, you should be able to select a new Halifax product penalty-free from 01-Feb.

Boma99

Hi,

I'm was/am on a fixed rate until 30th April 23 at 2.94%.

I got in touch with my lender Nationwide the week after the mini budget and agreed to pay the ERC of £1k and switch to a ten year fix at 4.84%.

The reason for this was largely influenced by the date of the next scheduled BOE rise of the 3rd November (I mentioned this on the video call to the nwide adviser) At that time Nationwide said the earliest switch period without a ERC was 5 months (1st Dec).

My new fixed rate kicks in from 1st Nov.

However I now see on Money Saving Expert site that Nationwide have changed their policy to 6 months bringing my date without ERC to 1st Nov. 

I'm theory I could still cancel the change (if I'm quick) but obviously nwide could increase rates earlier than planned. I would also likely struggle to get a new meeting with their mortgage adviser on the 1st Nov to agree the switch then.

Is it worth me complaining about the change of date, thought I might receive notification of this change from nwide detailing options, given it'll majorly affect people who's rate ends in April/May. 

Any advice gratefully received. 

Boma99

Also 4.84% is still available with Nationwide on their website however it's not on MSE best buys or other comp sites for some reason. 

K_S

Boma99 said:

Also 4.84% is still available with Nationwide on their website however it's not on MSE best buys or other comp sites for some reason. 

@boma99 The product is still available for existing borrower rate switch, all the way up to 85% LTV.
https://www.nationwide-intermediary.co.uk/products/product-finder

Once you cancel your current product switch, on 1 Nov you *should* be able to select a new product online without having to speak to an adviser. You only had to speak to an adviser because there was an ERC involved.

The above is an educated guess as I know very little about how Nationwide does direct PTs.

If you aren't able to cancel the PT and the product is still available on 1 Nov, then there's no harm in putting in a complaint asking for the ERC to be refunded.

Chally2697

Hi,
I am new to the forum but I’m hoping you can help. Not sure if this question has been previously asked.
Fourteen years ago i purchased a flat off plan as a buy to let investment in Durham. The flat was initially valued at £130,000 by the mortgage company. I put £10,000 deposit down and mortgaged the rest with Birmingham Midshires at the time. I have had the flat let out for the majority of this time and have been able to cover the mortgage payments. The mortgage i have with Birmingham Midshires is an Interest only mortgage and £120,000 is still owed. I have 11 years left on the mortgage. When me and my partner initially purchased the property it was as an investment. I have never seen the property reach anywhere near the original purchase price and for the most part the flats current value has been around £85,000 - £90,000. 

My feelings are that a major miscalculation was made by the mortgage company when it was initially valued for mortgage purposes. Would i have any grounds for complaint or claim in respect of the original valuation by Birmingham Midshires? If so who would be best to contact?

Thank you