Mortgage broker - ask me anything

Stezza14c

My son, a first time buyer, applied for a mortgage with Nationwide in January 2022 at 1.54% for 60% share of a new build part ownership. He has a very good deposit around £40k. The build was delayed and he applied for an extension. 45 days was granted which took him to August 22. The build was further delayed and he had to re-apply for a new mortgage at 3.29% in July 22. This build is still delayed and he is now in another extension of 45 days which runs out on March 10th 2023. The HA is now saying that completion could be around the end of March 23. Is there any likelyhood that the Nationwide would agree to further extend until completion. If he has to apply for another mortgage it is now possible he will be paying 4% plus. Is there any help for first time buyers? Thanks in advance.

K_S

Stezza14c said:

My son, a first time buyer, applied for a mortgage with Nationwide in January 2022 at 1.54% for 60% share of a new build part ownership. He has a very good deposit around £40k. The build was delayed and he applied for an extension. 45 days was granted which took him to August 22. The build was further delayed and he had to re-apply for a new mortgage at 3.29% in July 22. This build is still delayed and he is now in another extension of 45 days which runs out on March 10th 2023. The HA is now saying that completion could be around the end of March 23. Is there any likelyhood that the Nationwide would agree to further extend until completion. If he has to apply for another mortgage it is now possible he will be paying 4% plus. Is there any help for first time buyers? Thanks in advance.

@stezza14c Nationwide (and it's sister lender TMW) offer a 15 day 'grace period' (not an extension) on their non-newbuild mortgage offers if completion is delayed slightly.

I'm not sure off of the top of my head whether that applies to new-build offers or not (ie 180+45+15) but I suspect it doesn't.

As you've seen, Nationwide's new-build offer validity policies aren't particularly well suited to early stage new build purchases, especially over the past few years when completion delays have been very common. The better lenders offer 6+6 months.

I hope you do manage to keep the current rate, good luck!

needadvicehere

Submitted my direct application to Santander two weeks ago.

Underwriter took one working day to request further documents. Supplied the documents the next working day.

Underwriter came back the next working day with a further request. Mortgage adviser challenged immediately stating we have already supplied the document on file, so that wouldn’t be necessary.

Have never heard since then and it’s the 7th working day since the last request. @K_S @k@kingstreet Does this mean rejection? 🥲 

To add: no adverse credit history at all; falls within the lending criteria; overseas gifted deposit but have all the necessary supporting documentation submitted

Peco141

I appreciate this a drop in the ocean to a lot of people based on some of the figures mentioned in this thread, but I'm currently paying £355 per month with my current 2 year fix with Britannia ending 31st March 23.

Is it beneficial (or cheaper) to increase the term of a mortgage and overpay?

In other words, with a mortgage around £60,000 and around 15 years left on the term, what would be the best option to choose, based on MSE Mortgage Best buy table:

• 2 year fix (for security) over 15 years 4.39% and therefore pay £436 per month with Yorkshire Building society or
  
• 2 year fix (for security) over 20 years 4.70% and therefore pay £370 per month with Yorkshire Building society and make overpayments

Sorry if this is a daft question, but I'm hopeless at this kind of thing.  Any kind of help would be much appreciated.

K_S

needadvicehere said:

Submitted my direct application to Santander two weeks ago.

Underwriter took one working day to request further documents. Supplied the documents the next working day.

Underwriter came back the next working day with a further request. Mortgage adviser challenged immediately stating we have already supplied the document on file, so that wouldn’t be necessary.

Have never heard since then and it’s the 7th working day since the last request. @K_S @k@kingstreet Does this mean rejection? 🥲 

To add: no adverse credit history at all; falls within the lending criteria; overseas gifted deposit but have all the necessary supporting documentation submitted

@needadvicehere What was the follow up query about - source of deposit?

I've no idea how direct apps work but generally speaking if your case meets criteria (including the very recent changes in Santander overseas deposit source countries list), you've provided the required documentation, responded adequately to any queries raised, there's no reason for it to be declined.

Good luck, hope the offer comes through soon!

needadvicehere

K_S said:

needadvicehere said:

Submitted my direct application to Santander two weeks ago.

Underwriter took one working day to request further documents. Supplied the documents the next working day.

Underwriter came back the next working day with a further request. Mortgage adviser challenged immediately stating we have already supplied the document on file, so that wouldn’t be necessary.

Have never heard since then and it’s the 7th working day since the last request. @K_S @k@kingstreet Does this mean rejection? 🥲 

To add: no adverse credit history at all; falls within the lending criteria; overseas gifted deposit but have all the necessary supporting documentation submitted

@needadvicehere What was the follow up query about - source of deposit?

I've no idea how direct apps work but generally speaking if your case meets criteria (including the very recent changes in Santander overseas deposit source countries list), you've provided the required documentation, responded adequately to any queries raised, there's no reason for it to be declined.

Good luck, hope the offer comes through soon!

Thanks @K_S, very helpful. The first query relates to gifted deposit; second query relates to my residency status. 

Does that indicate anything?

lis1320

Hello, I have a query regarding a name change.

I got married towards the end of 2022, and updated my name on the things that were easy to do (bills, council tax etc.) but my passport has many years left on it so decided not to apply for a new one (I am an EU national and getting an embassy appointment to do so takes months).

Would me having some documents in my married name and some in my maiden name affect anything in the mortgage process? Or is the marriage certificate as evidence of name change enough? Thanks in advance for any answers.

Nuri123

Hi just wanted to ask, I've got a mortgage offer from natwest couple of months ago, but I want to buy my brother out of my home I own with him, its high in value than the house I was going to buy so could bring the ltv down slightly,the mortgage amount would stay the same aswell, would natwest change the property on the current offer as its probably going to be a remortgage now instead of a purchase of another property, but my brother would be coming off the mortgage.

sarahdh

Most of our deposit is going to be gifted. We want to take as little as possible from parents, even though they are willing to cover the majority of deposit.

There's a good chance that by the time we need to actually pay the deposit that we will have saved some extra ourselves, and won't need the full amount of the gift (although not 100% guaranteed, in which case we would just use all of the amount offered as a gift).

Is there any issue with us using less gift (so say they confirmed to lender they would give us £10k, but we actually end up only needing £8k from them by the time we pay deposit over), or is it a case of it has to all come exactly where we stated it would come from?

JMA74

sarahdh said:

Most of our deposit is going to be gifted. We want to take as little as possible from parents, even though they are willing to cover the majority of deposit.

There's a good chance that by the time we need to actually pay the deposit that we will have saved some extra ourselves, and won't need the full amount of the gift (although not 100% guaranteed, in which case we would just use all of the amount offered as a gift).

Is there any issue with us using less gift (so say they confirmed to lender they would give us £10k, but we actually end up only needing £8k from them by the time we pay deposit over), or is it a case of it has to all come exactly where we stated it would come from?

If you put £10k gift on your mortgage application then you will have to provide a gift letter saying you are getting £10k.   If, by the time it gets to the end of the transaction, it turns out to be less then it doesnt really matter. Solicitor will report that you are getting a gifted deposit near the end of the process so as long as they know its a gift in the first place then the actual amounts dont really come in to it. 

I cant think of any lenders who have a different underwriting process if you have a bigger or smaller gift.   Unless you are non UK clients without indefinite leave to remain, gift amounts come in to it then.   If you have uk residency then no issues at all