Mortgage broker - ask me anything

kazzyb123

Hi,

Do you know if Nationwide accept tax credits and child benefit as income if it is a 5 yr deal and they will stop in September 2025 because my daughter is 15.

thanks

K_S

kazzyb123 said:

Hi,

Do you know if Nationwide accept tax credits and child benefit as income if it is a 5 yr deal and they will stop in September 2025 because my daughter is 15.

thanks

@kazzyb123 I'd have to run it past the BDM to be sure as off of the top of my head they (unlike some lenders) don't have a specific max age for child related benefits but the underwriter needs to be happy that it's sustainable and only a small portion of total income. I'm pretty sure my clients have been ok with 12-13 year olds using CB.

matt1983

Hello- my current fix (1.09%) ends 30th April 2023.  I want to stick with Nationwide and have been told i can reserve a product transfer from January (I assume 1st). 

I am also in a very fortunate position whereby i will be able to pay off about half of my mortgage balance (currently £190’000) when I receive some money at some point over the next few months. 

My question is at what point would be best to pay a lump sum? Could this be done when i sort out the product transfer? Or am i better off just waiting until my fix ends and then paying it? 

I hope my question makes sense, thanks in advance. 

K_S

matt1983 said:

Hello- my current fix (1.09%) ends 30th April 2023.  I want to stick with Nationwide and have been told i can reserve a product transfer from January (I assume 1st). 

I am also in a very fortunate position whereby i will be able to pay off about half of my mortgage balance (currently £190’000) when I receive some money at some point over the next few months. 

My question is at what point would be best to pay a lump sum? Could this be done when i sort out the product transfer? Or am i better off just waiting until my fix ends and then paying it? 

I hope my question makes sense, thanks in advance. 

@matt1983 There are a few different ways to do this. I want to be clear that all the below is related to the intermediary PT process, so please do confirm with Nationwide Direct if that's the route you are taking. Their policies may be different for direct business.

1. The last month of the Nationwide fix should (please confirm with Nationwide that this is applicable for whatever product you are on) allow you to make unlimited ERC-free overpayments. So you could wait to 01 March, make the overpayment, wait for it to reflect on your account and then process the PT based on new LTV - 95k loan / value of property. Obviously, not ideal as you'll depend on the rates then.

2. Book a PT now which will be based on the current LTV (190k / value of property) and make the overpayment after 01 March. The LTV for a PT will always be based for what it is at the time of application (without the future lump sum overpayment taken into consideration).

In practice, currently, most Nationwide PTs rates are the same all the way up to 85% LTV, so it doesn't make much of a difference whether you're at 20% LTV or 84%. So if the change in LTV (before/after overpayment) isn't material, then you could consider option 2 above.

barbwyre

Hi, 

Just trying to test the water to see if we may have options. We are looking for purchase a house valued at 280K. We have a deposit of £220k thank to equity in our current property so we need to borrow 60K

we have a joint income of just over 90K

We have 30k of unsecured debt at good rates, well managed etc. No late payments or other adverse for 2 years. however....

On my credit file I do have some AP markers from around 3 years ago. I had arrangements on 4 of my credit accounts for around 6 months when I hit a financial blip. I understand that these will be visible for 6 years. however does the impact of them reduce over time, and will we have options at a reasonable mortgage rate?

K_S

barbwyre said:

Hi, 

Just trying to test the water to see if we may have options. We are looking for purchase a house valued at 280K. We have a deposit of £220k thank to equity in our current property so we need to borrow 60K

we have a joint income of just over 90K

We have 30k of unsecured debt at good rates, well managed etc. No late payments or other adverse for 2 years. however....

On my credit file I do have some AP markers from around 3 years ago. I had arrangements on 4 of my credit accounts for around 6 months when I hit a financial blip. I understand that these will be visible for 6 years. however does the impact of them reduce over time, and will we have options at a reasonable mortgage rate?

@barbwyre Given the limited info in your post, I wouldn't expect 2+ year old AP markers to stop you from borrowing 60k at low LTV at mainstream rates.

JK4158

Hi does anyone have experience switching property in your mortgage offer? ours is Halifax with expiry end of Feb.
Considering the market and we offered t max end of our budget, we want to switch to a cheaper flat but not sure if this means they will ask us to renew the mortgage. The current rate we have locked in is favourable and we don;t want to lose it. The credit check and survey all done and offer came through about a month ago. Please if anyone has done it with Halifax let us know!

K_S

JK4158 said:

Hi does anyone have experience switching property in your mortgage offer? ours is Halifax with expiry end of Feb.
Considering the market and we offered t max end of our budget, we want to switch to a cheaper flat but not sure if this means they will ask us to renew the mortgage. The current rate we have locked in is favourable and we don;t want to lose it. The credit check and survey all done and offer came through about a month ago. Please if anyone has done it with Halifax let us know!

@jk4158 Please see this thread

https://forums.moneysavingexpert.com/discussion/6390500/halifax-transfer-mortgage-offer-to-different-property

jonnypb

If you do a product switch with your existing lender (no extra borrowing) does that create a hard search on your credit report?  Reason I ask is that I'm within the 6 months of my fixed rate ending and I've switched to a new deal that won't kick in until April 2023, but they said if better offers appear I can transfer to one of them so could end up changing mortgage deals multiple times (unlikely but you never know) if a better one appears with my existing lender.

kazzyb123

K_S said:

kazzyb123 said:

Hi,

Do you know if Nationwide accept tax credits and child benefit as income if it is a 5 yr deal and they will stop in September 2025 because my daughter is 15.

thanks

@kazzyb123 I'd have to run it past the BDM to be sure as off of the top of my head they (unlike some lenders) don't have a specific max age for child related benefits but the underwriter needs to be happy that it's sustainable and only a small portion of total income. I'm pretty sure my clients have been ok with 12-13 year olds using CB.

Thanks for the reply, what is the BDM?? 
if we have a DIP from nationwide does it lock in that rate for 90 days? I think it does.
Also if we stay with NatWest and do a product transfer is that immediate so can’t wait 6 months to take up the offer like we could with a new lender? 

Thanks again