Mortgage broker - ask me anything

IAMIAM

HSBC Remortgage with Optima Legal - can you pick a completion date?
I want 1st July 2023, this is a Saturday, is this allowed?

Also, I am getting surplus funds of £15k, but it's been done as a full amount and not as additional borrowing on my application that has gone through to offer. Will this £15k be returned to me or the bank, as its not done as a homeowner loan? Optimal Legal on their portal I have put expecting surplus funds of £15k.

Is it easier to apply to my existing lender for the £15k and then the full HSBC amount will go through and pay all my lending off in one lump sum, I don't want to get to completion and the 15k not be given to me....

adriantink69

Morning all,

My current mortgage deals end on March 31st, so am currently looking at remortgaging options - I've run into the classic quandary;

1. stay with my current provider on a 2 year fixed deal at 4.75%, which due to an increased term bring me a marginal monthly saving but security.
2. go on a 2-year fixed tracker 0.24% above the BoE base rate, bigger initial savings but naturally reliant on what happens on interest rates.

My mortgage is small in modern terms and due to my impending retirement in under 2 years, I fully intend to use my tax free cash to repay it in full in about 20 months time.

I'm leaning towards the tracker...as I'll only start to 'lose' out if the base rate hits 4.75% and above... but I'm nervous and hence the post!

jonnym1985

Hi All,

I have posted before regarding mortgage extension (which we successfully received) this question is about HTB ISA.

I have previously bought a house so cannot avail of the bonus however my partner can. Unfortunately she had not been saving into it until recently. She has since been saving the max £200/month since July 2022 (deposited into the ISA on 25th July) so come our completion date she will have saved £1600, which we believe to be the minimum required to receive the 25% bonus.

My 2 questions are;

1. Our completion date is 23rd February, so if we apply for the bonus on 1st/2nd would it be available on completion day?

2. Will the deposit made late in the month of July be ok? As if that does not count then we will lose out on the bonus.

It may only be £400, but it will come in handy for removal costs etc 

ronjambo

I've just received a mortgage offer from Nationwide, involving porting my current mortgage and adding about 1.5x again in new borrowing. The ability to port makes Nationwide my best option, the only problem is the rate on the new borrowing in my offer is 4.89% (i.e. their standard rate at the point I submitted my application) and the day after they made the offer the equivalent rate dropped to 4.49%.

Does have anyone have any experience of asking Nationwide (or any other lender) to drop their rate to their new standard after an offer has been made? Will I just have to reapply and go through the whole process again if I want an offer that reflects their current rates? 

gih

ronjambo said:

I've just received a mortgage offer from Nationwide, involving porting my current mortgage and adding about 1.5x again in new borrowing. The ability to port makes Nationwide my best option, the only problem is the rate on the new borrowing in my offer is 4.89% (i.e. their standard rate at the point I submitted my application) and the day after they made the offer the equivalent rate dropped to 4.49%.

Does have anyone have any experience of asking Nationwide (or any other lender) to drop their rate to their new standard after an offer has been made? Will I just have to reapply and go through the whole process again if I want an offer that reflects their current rates? 

We're doing exactly the same - porting our existing mortgage with Nationwide, with new additional borrowing of about the same amount. We originally applied for a 5-year fix in October, and rates have dropped about 4-5 times since then, from 5.64% to 4.59%.  We've updated our offer twice in that time, both times involved just e-mailing the mortgage advisor to arrange a phone call. He then phoned us up, and after 15 minutes we had a new offer issued.  Nothing complicated. 

A few things to consider:
- I noticed one person on another thread did say that their conveyancer charged each time their mortgage offer was updated, so that might be something to check. Not an issue in our case.
- Our advisor did mention that if we were doing updates more than 90 days after our decision in principle, then affordability checks would need to be done again, i.e. sending through latest pay-slips. 
- Our advisor also said the valuation of the house we're buying is valid for 90 days, so again making changes after that point would require us getting a new valuation. 

We're now 90 days beyond our DIP, and close to the 90-day point from our valuation. As our completion is still about a month away, we just decided to go on a fee-free tracker in the end, with a view to switching to a fixed deal shortly after we move (hoping that they might drop again before then, or at least not rise). Rates for "existing members switching" had been lower than "existing members moving" up until yesterday's change, which had been a further reason for us deciding to do this.

needadvicehere

Hi all, I'd appreciate anyone's views particularly for those who have had experience of this (especially if you are broker, advisor, BDM or underwriter!)

I'd like to put in an application with Halifax. I reside in the UK and pay UK taxes. I will be joining a prestigious US-based firm who's got a worldwide presence including London. I will be relying on the income of my new job that will be commencing within 3 months. My salary is quoted in USD, however it will be paid directly in GBP. I am confident that my payslip will only show GBP as the only currency.

However, Halifax pre-approvals team have said that they would be unable to consider my future income as it originates in USD. I do not agree with this, given I will be paid directly in GBP (albeit within a fixed range). 

Further, most American-headquartered firms will quote their London-based front office and senior management employees' salaries in USD, but they will definitely be paid in GBP (otherwise how could one survive in England!). The US-pegged salaries are also likely to be subject to a cap/collar (floor/ceiling), meaning the salary will not fluctuate out of the range despite FX exchange fluctuation.

Anyone has had this but managed to get a mortgage from Halifax (or another high street lender)? Doesn't make sense to me if most American-headquartered London firms can't get a mortgage in UK!

K_S

@needadvicehere I see your point but as far as Halifax is concerned, if your employment contract mentions a salary in USD, your income originates in a non-GBP currency and hence doesn't meet their criteria.

However, it's nothing to worry about. Income (employed, self-employed, etc.) originating in a non GBP currency is not uncommon at all and there are a handful of mainstream lenders that will consider subject to their individual criteria.

For example, HSBC may consider after applying a discount to account for any future currency fluctuations.

needadvicehere said:

Hi all, I'd appreciate anyone's views particularly for those who have had experience of this (especially if you are broker, advisor, BDM or underwriter!)

I'd like to put in an application with Halifax. I reside in the UK and pay UK taxes. I will be joining a prestigious US-based firm who's got a worldwide presence including London. I will be relying on the income of my new job that will be commencing within 3 months. My salary is quoted in USD, however it will be paid directly in GBP. I am confident that my payslip will only show GBP as the only currency.

However, Halifax pre-approvals team have said that they would be unable to consider my future income as it originates in USD. I do not agree with this, given I will be paid directly in GBP (albeit within a fixed range). 

Further, most American-headquartered firms will quote their London-based front office and senior management employees' salaries in USD, but they will definitely be paid in GBP (otherwise how could one survive in England!). The US-pegged salaries are also likely to be subject to a cap/collar (floor/ceiling), meaning the salary will not fluctuate out of the range despite FX exchange fluctuation.

Anyone has had this but managed to get a mortgage from Halifax (or another high street lender)? Doesn't make sense to me if most American-headquartered London firms can't get a mortgage in UK!

needadvicehere

K_S said:

@needadvicehere I see your point but as far as Halifax is concerned, if your employment contract mentions a salary in USD, your income originates in a non-GBP currency and hence doesn't meet their criteria.

However, it's nothing to worry about. Income (employed, self-employed, etc.) originating in a non GBP currency is not uncommon at all and there are a handful of mainstream lenders that will consider subject to their individual criteria.

For example, HSBC may consider after applying a discount to account for any future currency fluctuations.

needadvicehere said:

Hi all, I'd appreciate anyone's views particularly for those who have had experience of this (especially if you are broker, advisor, BDM or underwriter!)

I'd like to put in an application with Halifax. I reside in the UK and pay UK taxes. I will be joining a prestigious US-based firm who's got a worldwide presence including London. I will be relying on the income of my new job that will be commencing within 3 months. My salary is quoted in USD, however it will be paid directly in GBP. I am confident that my payslip will only show GBP as the only currency.

However, Halifax pre-approvals team have said that they would be unable to consider my future income as it originates in USD. I do not agree with this, given I will be paid directly in GBP (albeit within a fixed range). 

Further, most American-headquartered firms will quote their London-based front office and senior management employees' salaries in USD, but they will definitely be paid in GBP (otherwise how could one survive in England!). The US-pegged salaries are also likely to be subject to a cap/collar (floor/ceiling), meaning the salary will not fluctuate out of the range despite FX exchange fluctuation.

Anyone has had this but managed to get a mortgage from Halifax (or another high street lender)? Doesn't make sense to me if most American-headquartered London firms can't get a mortgage in UK!

Hi K_S, I really appreciate your advice, thank you. Do you think it would make a difference if I can produce a reference letter setting out the fact that my income originates in GBP, since it is a U.K.-registered firm which pays the salary?

K_S

@needadvicehere I don't know is the honest answer But as a broker I wouldn't expect to go down the Halifax route based on the limited info in your post.

As it's a future job, Halifax is likely to go by the contract and if your basic salary is given as USDxxx / year, then that's likely to be what they consider.

If you're fixed on sticking to Halifax for whatever reason, then I guess there's no harm in asking Halifax if they will be happy with a reference letter.

needadvicehere said:

K_S said:

@needadvicehere I see your point but as far as Halifax is concerned, if your employment contract mentions a salary in USD, your income originates in a non-GBP currency and hence doesn't meet their criteria.

However, it's nothing to worry about. Income (employed, self-employed, etc.) originating in a non GBP currency is not uncommon at all and there are a handful of mainstream lenders that will consider subject to their individual criteria.

For example, HSBC may consider after applying a discount to account for any future currency fluctuations.

needadvicehere said:

Hi all, I'd appreciate anyone's views particularly for those who have had experience of this (especially if you are broker, advisor, BDM or underwriter!)

I'd like to put in an application with Halifax. I reside in the UK and pay UK taxes. I will be joining a prestigious US-based firm who's got a worldwide presence including London. I will be relying on the income of my new job that will be commencing within 3 months. My salary is quoted in USD, however it will be paid directly in GBP. I am confident that my payslip will only show GBP as the only currency.

However, Halifax pre-approvals team have said that they would be unable to consider my future income as it originates in USD. I do not agree with this, given I will be paid directly in GBP (albeit within a fixed range). 

Further, most American-headquartered firms will quote their London-based front office and senior management employees' salaries in USD, but they will definitely be paid in GBP (otherwise how could one survive in England!). The US-pegged salaries are also likely to be subject to a cap/collar (floor/ceiling), meaning the salary will not fluctuate out of the range despite FX exchange fluctuation.

Anyone has had this but managed to get a mortgage from Halifax (or another high street lender)? Doesn't make sense to me if most American-headquartered London firms can't get a mortgage in UK!

Hi K_S, I really appreciate your advice, thank you. Do you think it would make a difference if I can produce a reference letter setting out the fact that my income originates in GBP, since it is a U.K.-registered firm which pays the salary?

natalie17

Hi there,

Our fixed rate mortgage is ending on 31 March 2023 with nationwide. We are hoping to move house this year, but, as the expiry is quite near, we will still need to remortgage. The interest rate hike will be quite a blow to our monthly finances, on top of the fact that I am currently on maternity leave (since Nov '22 and planning to take the whole year on a severly decreased income as statutory mat pay kicks in march).

I have a job to go back to and was going to see how things go based on our child as to whether I do return, however, we can't afford the mortgage on just my husband's salary, so it would seem that I would need to go back full-time. If we do move house, I would more-than-likely need to get a new job as my current one wouldn't be very easily workable further away. We'd also need to factor in childcare, so I might not be able to go back full-time, affecting how much we can borrow.

Is it better to move whilst on maternity leave and see what we can afford with my current salary taken into account (even though I'm on mat leave)? It's not a given I'd have to get a new job, so I could honestly say I am planning to go back to work, but what if further down the line, I don't? Does this void anything even if we can still pay the monthly repayments?

Just wondering if you have any other advice for our situation?

Thank you for your help,
Natalie