Mortgage broker - ask me anything

EvanEvans

I am pretty much clueless when it comes to mortgages and I have a bit of a weird situation.

I am in the process of buying a property from my Aunt, she has no children and my Grandfather built the house back in the 1950s, it was their family home so she would like to keep it in the family, it has a lot of sentimental value for me too.

The property is worth around £300,000, I am buying it for £60,000. I am borrowing money from my dad to buy the property.

My income is pretty low, £19,000 pa before tax.

My questions are -

I am hoping to get a mortgage as soon as possible after the sale goes through in order to pay my dad back, how soon could I hope for? I assume we would be talking months?

Secondly, the property has been empty for 20+ years and needs some work to put it lightly. Am I even in a position to be able to borrow more than £60,000 in order to do this? I was hoping that the value of the property and the fact that I will own it will help - but am unsure because of my income. Is there a ball park figure for how much I could hope to borrow as I pretty much have no idea what to expect.

K_S

@evanevans Your max borrowing is likely to be limited by your income of 19k. Ballpark, assuming no debt, dependents or financial commitments in the background, I'd estimate it to range between 40-80k depending on the specific lender.

To get a better idea, just play around with a few lender affordability calculators (Google "Halifax for intermediaries affordability calculator" and similar for other lenders) to see what numbers they return.

EvanEvans said:

I am pretty much clueless when it comes to mortgages and I have a bit of a weird situation.

I am in the process of buying a property from my Aunt, she has no children and my Grandfather built the house back in the 1950s, it was their family home so she would like to keep it in the family, it has a lot of sentimental value for me too.

The property is worth around £300,000, I am buying it for £60,000. I am borrowing money from my dad to buy the property.

My income is pretty low, £19,000 pa before tax.

My questions are -

I am hoping to get a mortgage as soon as possible after the sale goes through in order to pay my dad back, how soon could I hope for? I assume we would be talking months?

Secondly, the property has been empty for 20+ years and needs some work to put it lightly. Am I even in a position to be able to borrow more than £60,000 in order to do this? I was hoping that the value of the property and the fact that I will own it will help - but am unsure because of my income. Is there a ball park figure for how much I could hope to borrow as I pretty much have no idea what to expect.

MP23

Hello all, I would appreciate some advice. We accepted an offer from a buyer with an AIP on the 12th of September. I am currently in a chain of 4. The valuation was complete on the 21st of September. 

The week commencing the 10th of October we were updated by our Estate Agent that my buyer's broker is anticipating the offer to come through.

The following week we had an email forwarded to state the lender will issue on the 18th of October. This did not materialise and we were told it was due to interest rate revisions following the mini budget plus the lender has asked for some documents (which I was told is additional ID). The broker advised the offer should come through this week in anticipation of the entire chain to complete and exchange. 

I am not sure if we are being misled. The lender is together. I am not sure how they differ compared to high street lenders in their timeline when it comes to underwriting. We will be close to 6 weeks since valuation. Interest rates are posed to go up thus I wonder if this may be influencing things. Any thoughts or advice would be much appreciated.

Dk1989

Hi, I submitted my mortgage application two weeks ago to Halifax via a broker. Card details and £200 given to him. I haven’t heard anything yet, no hard search done so does this mean it hasn’t even been looked at yet?

K_S

Dk1989 said:

Hi, I submitted my mortgage application two weeks ago to Halifax via a broker. Card details and £200 given to him. I haven’t heard anything yet, no hard search done so does this mean it hasn’t even been looked at yet?

@dk1989 If it's been 2 weeks since your full application was submitted, it's almost certainly been looked at by now. Do check with your broker for an update. Assuming that this is a purchase application involving a £100 valuation fee, this should have shown up on your statement by now as the payment is collected when the broker submits the full application.

K_S

MP23 said:

Hello all, I would appreciate some advice. We accepted an offer from a buyer with an AIP on the 12th of September. I am currently in a chain of 4. The valuation was complete on the 21st of September. 

The week commencing the 10th of October we were updated by our Estate Agent that my buyer's broker is anticipating the offer to come through.

The following week we had an email forwarded to state the lender will issue on the 18th of October. This did not materialise and we were told it was due to interest rate revisions following the mini budget plus the lender has asked for some documents (which I was told is additional ID). The broker advised the offer should come through this week in anticipation of the entire chain to complete and exchange. 

I am not sure if we are being misled. The lender is together. I am not sure how they differ compared to high street lenders in their timeline when it comes to underwriting. We will be close to 6 weeks since valuation. Interest rates are posed to go up thus I wonder if this may be influencing things. Any thoughts or advice would be much appreciated.

@mp23 Together is sort of a last-chance-saloon type of lender. They don't have any set timelines like mainstream lenders as most cases that get to them are unique and require manual underwriting so can indeed take a long time. On top of that this appears to have been right in the middle of all the mortgage volatility that happened after the budget so additional issues due to that as well.

I don't have an opinion on whether or not the buyer might be misleading you but the timelines given above are not hugely excessive given the context.

Dk1989

@K_S we spoke to our mortgage broker on Tuesday and he said to give it a few more days. He said halifax are taking two and a half hours to get through to on the phone so he won’t ring. Nothing has came out of my bank account. I’m finding it really strange that I have no evidence of anything been done.

K_S

Dk1989 said:

@K_S we spoke to our mortgage broker on Tuesday and he said to give it a few more days. He said halifax are taking two and a half hours to get through to on the phone so he won’t ring. Nothing has came out of my bank account. I’m finding it really strange that I have no evidence of anything been done.

@dk1989 Unless it's a Scottish purchase (no valuation required as they use the home report rekey) or a remortgage application, I've no idea how he submitted the application without paying the £100. Or perhaps he used some of the £200 you mentioned to pay the valuation fee.

I don't want to risk misleading you by commenting any further without knowing anything about your case so would suggest leaning on your broker for a clear update 

Good luck, hope your offer comes through soon!

doraspenlow

Hello. Thanks for this thread. I am looking for some help on affordability. We'd like to take out Green Additional Borrowing with Nationwide to put solar panels on the roof, but currently the calculator is coming back with a big fat zero on what they will lend. Here's our situation:

House value: £465k

Mortgage outstanding: £230k

Would like to borrow about: £15k

Two borrowers, but only one earns. Full time permanent, on £70k pa

24.5 years left on mortgage term.

Three children, but discounting one as a dependant as he is 21 and works full time. Others are 19 (away at uni) and 11.

Currently £4300 on a 0% credit card (about 2 years left on the 0% so I haven't seen the point in hurrying to pay it).

£215 per month on a car lease (2 years to go).

What's best to do here? Even fully paying back the credit card leaves it tight on what they say they'll lend. To the point where if I then concede to spending £100 a month on petrol they won't do it. Are they really saying that we can't afford £90 a month extra on the mortgage to make energy bills lower?

Any advice, or maybe idiosyncracies about the Nationwide form it might help to know about. I would hate for them to be double counting anything. Maybe it's just a busted flush.

K_S

doraspenlow said:

Hello. Thanks for this thread. I am looking for some help on affordability. We'd like to take out Green Additional Borrowing with Nationwide to put solar panels on the roof, but currently the calculator is coming back with a big fat zero on what they will lend. Here's our situation:

House value: £465k

Mortgage outstanding: £230k

Would like to borrow about: £15k

Two borrowers, but only one earns. Full time permanent, on £70k pa

24.5 years left on mortgage term.

Three children, but discounting one as a dependant as he is 21 and works full time. Others are 19 (away at uni) and 11.

Currently £4300 on a 0% credit card (about 2 years left on the 0% so I haven't seen the point in hurrying to pay it).

£215 per month on a car lease (2 years to go).

What's best to do here? Even fully paying back the credit card leaves it tight on what they say they'll lend. To the point where if I then concede to spending £100 a month on petrol they won't do it. Are they really saying that we can't afford £90 a month extra on the mortgage to make energy bills lower?

Any advice, or maybe idiosyncracies about the Nationwide form it might help to know about. I would hate for them to be double counting anything. Maybe it's just a busted flush.

@doraspenlow Sorry it's not clear to me - who's saying that you can't borrow the extra 15k?