Mortgage broker - ask me anything

IAMIAM

Can I make an application on HSBC online and have it sat there ready, then submit my payslip in say 4 weeks, to align with an offer being given end of Start of Dec. Ie, delaying submitting my documents meaning my offer date will be delayed therefore when offer issued, it would be a full 6 months from mid dec. I am adding booking fee on. Its a standard remortgage no additional borrowing. 

K_S

Camboudica said:

Good evening,

We are currently in the process of buying, mortgage offer from Natwest, conveyancing progressing, we've just had a second viewing and the survey done, and although we don't have the actual report yet the surveyor called us to explain the house needs some work doing to it quite urgently, nothing that would stop the sale from our perspective, but things that definitely need attention. We also noticed a lot more things upon second viewing that need replacing /attention. 

We've decided to wait until we get the survey report, get some quotes for the work, then make a reduced offer based on the work that needs doing. My question is, (IF the seller agreed) how does this affect our mortgage offer? We'd like to borrow the same amount and use the additional funds to complete the work, but does the lower sale price change everything? Our LTV at the current level is 72% if we get the full reduction we're estimating the costs to be, it could change to 75%.

Many thanks. 

@camboudica Ordinarily, I would say that as long as you're in the 70-75% LTV band and the loan size is the same, it should have no impact.

However, I have had Santander recalculate affordability for a client in this scenario and then reducing the max loan size by a sizeable amount as their affordability calculations have changed a lot since the initial application.

Afaik, with NatWest a full new affordability recalc is only triggered when the property itself changes, not with a change in purchase price. But please do reconfirm with you broker or the lender (if direct).

msswans

Good afternoon,
I have seen various articles/ comments that lenders have been pulling mortgage offers due to current climate 
We exchanged last week, completion due 1st Nov, if there were any issues with our mortgage offer when would we hear? At which point do funds land with the solicitor and we know all is ok?
Thanks

jonnym1985

IAMIAM said:

Can I make an application on HSBC online and have it sat there ready, then submit my payslip in say 4 weeks, to align with an offer being given end of Start of Dec. Ie, delaying submitting my documents meaning my offer date will be delayed therefore when offer issued, it would be a full 6 months from mid dec. I am adding booking fee on. It’s a standard remortgage no additional borrowing. 

I’d be careful trying this, my broker done exactly this thinking it would stretch the time out meaning we didn’t have to apply for a mortgage extension on a new build property. Barclays started the offer date from first application, not from final offer, meaning we still need the extension but it appears a fairly simple tick box exercise, for Barclays anyway.

IAMIAM

jonnym1985 said:

IAMIAM said:

Can I make an application on HSBC online and have it sat there ready, then submit my payslip in say 4 weeks, to align with an offer being given end of Start of Dec. Ie, delaying submitting my documents meaning my offer date will be delayed therefore when offer issued, it would be a full 6 months from mid dec. I am adding booking fee on. It’s a standard remortgage no additional borrowing. 

I’d be careful trying this, my broker done exactly this thinking it would stretch the time out meaning we didn’t have to apply for a mortgage extension on a new build property. Barclays started the offer date from first application, not from final offer, meaning we still need the extension but it appears a fairly simple tick box exercise, for Barclays anyway.

Thanks. Barclays seems to be 6 months from application whereas HSBC seems to be 6 months from offer

jonnym1985

IAMIAM said:

jonnym1985 said:

IAMIAM said:

Can I make an application on HSBC online and have it sat there ready, then submit my payslip in say 4 weeks, to align with an offer being given end of Start of Dec. Ie, delaying submitting my documents meaning my offer date will be delayed therefore when offer issued, it would be a full 6 months from mid dec. I am adding booking fee on. It’s a standard remortgage no additional borrowing. 

I’d be careful trying this, my broker done exactly this thinking it would stretch the time out meaning we didn’t have to apply for a mortgage extension on a new build property. Barclays started the offer date from first application, not from final offer, meaning we still need the extension but it appears a fairly simple tick box exercise, for Barclays anyway.

Thanks. Barclays seems to be 6 months from application whereas HSBC seems to be 6 months from offer

Good luck with your application 🤞🏻

RudolphHucker

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

I wish I'd seen this earlier - YOU are definately the mysterious H from Line Of Duty!

Camboudica

K_S said:

@camboudica Ordinarily, I would say that as long as you're in the 70-75% LTV band and the loan size is the same, it should have no impact.

However, I have had Santander recalculate affordability for a client in this scenario and then reducing the max loan size by a sizeable amount as their affordability calculations have changed a lot since the initial application.

Afaik, with NatWest a full new affordability recalc is only triggered when the property itself changes, not with a change in purchase price. But please do reconfirm with you broker or the lender (if direct).

Thank you, this is exactly what I'm worried about, that USUALLY there isn't an issue, but as the market has currently gone bonkers it might throw a spanner in the works.

I'll investigate further, but thank again. 

K_S

Camboudica said:

K_S said:

@camboudica Ordinarily, I would say that as long as you're in the 70-75% LTV band and the loan size is the same, it should have no impact.

However, I have had Santander recalculate affordability for a client in this scenario and then reducing the max loan size by a sizeable amount as their affordability calculations have changed a lot since the initial application.

Afaik, with NatWest a full new affordability recalc is only triggered when the property itself changes, not with a change in purchase price. But please do reconfirm with you broker or the lender (if direct).

Thank you, this is exactly what I'm worried about, that USUALLY there isn't an issue, but as the market has currently gone bonkers it might throw a spanner in the works.

I'll investigate further, but thank again. 

@camboudica Sorry I may have given the wrong impression. There is a Yes/No answer to your question, it's just that I don't know the answer to it.

If a NatWest client of mine were in your position, I'd speak to the NatWest processing team and clearly understand what their policy is with respect to post-offer changes in property purchase price, specifically with respect to re-scoring and/or recalculating affordability. And I would get a black and white answer from them and advise the client accordingly.

Camboudica

@camboudica Sorry I may have given the wrong impression. There is a Yes/No answer to your question, it's just that I don't know the answer to it.

If a NatWest client of mine were in your position, I'd speak to the NatWest processing team and clearly understand what their policy is with respect to post-offer changes in property purchase price, specifically with respect to re-scoring and/or recalculating affordability. And I would get a black and white answer from them and advise the client accordingly.

No, I understand, I will get onto my broker again, who when I asked gave a flippant "nah, there won't be any problem with that" which just seems to be his standard response to everything I ask,  which is why I asked on here for a second opinion. So, I will ask him to actually make contact with Natwest and just check what their current policy is with regards to this situation.

I don't want to negotiate a reduced offer only to find out that Natwest have changed their usual policies due to the current economic climate, as we'd gain nothing if they reduce their mortgage offer (and we'd probably have to withdraw from the sale if they offered way less).

I've heard there are situations where the seller can pass on funds to the conveyancing solicitors to be held for works to be completed, outside of the mortgage agreement funds, so that's something else I will also look into.

Thanks again.