Mortgage broker - ask me anything

K_S

Rvsbf_104 said:

Hi. In your experience, how long are straightforward Halifax applications (via broker) taking from application to offer at the moment?
Joint house move mortgage, 55%LTV, joint paye salaries of 90k, standard build mid 90s property, unsecured debt declared as being repaid on completion, strong credit scores and history for both of us. Thanks.

@rvsbf_104Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, vendor availability, etc.). The processing/underwriting team pick applications up and raise queries in 1-2 working days, turn around any responses in the same timescales so there's rarely any waiting around.

I've done a few Halifax apps this month and they've all flown through with underwriting done in 1-2 days and offer coming through soon as the valuation is completed, all of them were fairly straightforward 95% LTV FTB PAYE apps. In all cases, it was the valuation (all were physical vals as high-LTV) that decided how long it took from app to offer.

stevat

Hello, just wanted to see if anyone has a good idea whether a mortgage application can in any way be affected by one of the joint applicants having difficulty locating their credit report with some of the CRAs?

We're looking to buy our first house and my wife has trouble getting her report from Equifax and Transunion, as no matter what variations to the details we try, their respective websites can't seem to identify her. Experian seems OK, she can find her report on there, and also she can see her report in her Natwest banking app (which apparently sources its data from Transunion). We were also able to get a DIP from Natwest with no issues, in case this matters.

We're trying to raise disputes with Equifax/Transunion (they're not making it easy) so we can get her credit report (just to make sure no surprises/errors in there), but for now our main question is if/how this could affect a future mortgage application.

Many thanks!

Rvsbf_104

Hi, can anyone tell me what outcomes can potentially arise from an AVM (Halifax) undervaluing the property from the agreed price? Our has come back around 6k down. LTV based on original figures was 55%. Thanks.

K_S

Rvsbf_104 said:

Hi, can anyone tell me what outcomes can potentially arise from an AVM (Halifax) undervaluing the property from the agreed price? Our has come back around 6k down. LTV based on original figures was 55%. Thanks.

@rvsbf_104 Given the original LTV of 55% and product LTV of 60%, most likely no impact at all.

For example, assuming a property price of 300k -

Original LTV - property Val 300k, loan size 165k, LTV of 55%, product LTV 60%

New LTV after downval - property Val 294k, loan size 175k, LTV of 56.12%, product LTV 60%.

K_S

stevat said:

Hello, just wanted to see if anyone has a good idea whether a mortgage application can in any way be affected by one of the joint applicants having difficulty locating their credit report with some of the CRAs?

We're looking to buy our first house and my wife has trouble getting her report from Equifax and Transunion, as no matter what variations to the details we try, their respective websites can't seem to identify her. Experian seems OK, she can find her report on there, and also she can see her report in her Natwest banking app (which apparently sources its data from Transunion). We were also able to get a DIP from Natwest with no issues, in case this matters.

We're trying to raise disputes with Equifax/Transunion (they're not making it easy) so we can get her credit report (just to make sure no surprises/errors in there), but for now our main question is if/how this could affect a future mortgage application.

Many thanks!

@stevat All mainstream lenders will "credit-score" the application at DIP/AIP stage and if their system can't dig up the Equifax/Experian/Transunion report (different lenders will use different CRA combinations) then the application may not get past the DIP stage.

I come across this issue occasionally with clients - usually when they've only been in the country for a few years, or have been living in shared accomodation until recently, or have issues with their flat-address being shown differently in different places, have moved around frequently but not always updated their accounts, never had their names on any bills and only used Revolut type accounts, etc.

It's good that you've spotted it now as it's good to confirm that your Equifax and Experian credit reports are all up to date prior to getting a mortgage.

Hope you're able to sort it out easily, good luck!

stevat

K_S said:

@stevat All mainstream lenders will "credit-score" the application at DIP/AIP stage and if their system can't dig up the Equifax/Experian/Transunion report (different lenders will use different CRA combinations) then the application may not get past the DIP stage.

I come across this issue occasionally with clients - usually when they've only been in the country for a few years, or have been living in shared accomodation until recently, or have issues with their flat-address being shown differently in different places, have moved around frequently but not always updated their accounts, never had their names on any bills and only used Revolut type accounts, etc.

It's good that you've spotted it now as it's good to confirm that your Equifax and Experian credit reports are all up to date prior to getting a mortgage.

Hope you're able to sort it out easily, good luck!

Thanks @K_S, from what you're saying the fact that we were able to get a DIP from NatWest is a good sign (i.e. at least one mainstream lender was able to find enough info to soft credit-check us), right? Or did I misread that?

Maybe it's something to do with the flat address or personal title (Ms/Miss/Mrs), as otherwise we've been in the country for 15 years now, always bank with the same bank (NatWest), no shared accommodation, been at the current address 6+ years and only moved 2/3 times in total. 

Or maybe it's because most of the bill payments (apart from c.tax) come out of my account, even though her name has been on all utility accounts for the last several years. Also, she doesn't have a credit card, or had any loans/PCP/etc. 

Also, there are no late payments, arrears, defaults and so on, so we really just wanted to make sure the data CRAs hold for us (addresses etc) are correct.

kavithatom

Just wanted some advice in regards to confidentiality with brokers. We were planning on buying a new build, we first went with the recommended mortgage advisor for the company, they got back to us a week later to say the lender can’t give the full amount. We get in touch with another broker who successfully finds us a lender that can give us the full amount however the building company’s recommended broker goes back and speaks with customer service representative for the site we are buying the house from and discusses the reasoning to why they couldn’t find us a lender. Is this common practice 

femster82

K_S said:

@femster82 Applicants with multiple income streams aren't uncommon at all, and aren't necessarily more complicated simply because it's two contracts as opposed to an applicant with PAYE+selfemployed or PAYE+s/e+rental income, etc.

As far as the 'deal' is concerned, the vast majority of whole of market brokers will all have access to the same lenders and products. So if yours is a high street case, in theory they should all be recommending the same product/rate. And while there are exceptions (BoI Bespoke cases for example), with the vast majority of high-street lenders, while we can speak to our lender BDMs and get their take on a case, we don't have direct access to an underwriter prior to submitting an application. And in any case, high-street lenders will only look at a case in underwriting level of detail once it is submitted.

The point of the broker is that they should be able to place a case with reasonable confidence, package it properly and be able to anticipate most queries. There will always be an element of subjectivity when it comes to situations like yours as the underwriter will want to ascertain the plausibility and sustainability of the two income streams eg: are these two separate income streams or are they one contractor shuttling between outside-IR35 contracts (through ltd co) and inside-IR35 (through umbrella PAYE), is it plausible for both contracts to be carried out simultaneously, etc. 

In your place, I would go with whichever broker fills you with the most confidence, is good at communication and seems invested in getting you to offer quickly. Also keep in mind that delaying an application can come at a cost. I have a large loan client who's been mulling a Platform 5yr fix recommendation for a couple of days and Platform has now gone and pulled the product due to excess demand. So most likely he's now going to be paying 3-4k more over the 5 years due to the delay. Over the past week there have been other lenders who have increased rates slightly to avoid being at the top of the charts.

Are you sure you need both incomes for the required loan size? If not, then it should all be pretty smooth going.

A long winded comment but hope it helps

I hope you settle upon a broker and get a mortgage that you're happy with, good luck!

femster82 said:

Situation - I have two IT contracts, one through an LTD company, and one through an Umbrella. I have had an offer on a house accepted and have been speaking to 3 brokers with the hope of securing the right mortgage deal. I take my credit very seriously and I don't want to do a full application until I am confident in the broker.

Broker #1 - Recommended by a friend who has two contracts and they seemed to help him. Came back with a deal with a high street bank but I do not know whether they spoke to the underwriters first or just submitted my details based on the information I gave. They got me an AIP for way more than the value of the house which worried me a bit. I put them on hold for now to do more research. The fee is £499. 

Broker #2 - Has not come back with any deals, but a friend had used him for over 17 deals and he always gets him a mortgage sorted. He has been taking his time and speaking to underwriters, which actually gives me more confidence than someone just applying for an AIP. He is just taking a bit longer than I would like and days are ticking by before the seller starts asking questions. The fee is £399.

Broker #3 - CMME, after reading contractor forums this was recommended and I wanted to see what they could offer. They came back with the same offer as broker #1 for a high street bank they say is favorable to two contracts. The main issue is the fee is almost £1000 on top of the bank fee of £995 and surveying still to pay for that would hit me massively short term. But they seem to be good at what they do and seem highly recommended even on this site. But the deal they came back with was almost identical to Broker #1

The third broker actually gave me a bit more confidence in broker one.

I know it's long, but does anyone have experience with multiple contract mortgages?
Is CMME worth the high fee, considering they found the exact same deal as the others?

Thanks for the quick reply. It's been doing my head in recently but I made a decision to pay the extra money and go with CMME as they are more skilled in working with contractors especially with two contracts.

The contract I have paying into my Ltd company would probably get me 75% towards my asking price so the other contract tops it up.

I have been doing it for over a year and have renewals on both as well so they are confident about using both and the high street lender will be fine.

The only other question you might be familiar with is proof of deposit for the solicitor. Do you have to have proof of Stamp duty at the start of the process or is that something they don't ask for?

silvercar

kavithatom said:

Just wanted some advice in regards to confidentiality with brokers. We were planning on buying a new build, we first went with the recommended mortgage advisor for the company, they got back to us a week later to say the lender can’t give the full amount. We get in touch with another broker who successfully finds us a lender that can give us the full amount however the building company’s recommended broker goes back and speaks with customer service representative for the site we are buying the house from and discusses the reasoning to why they couldn’t find us a lender. Is this common practice 

I'd say that was a breach of confidentiality. No doubt the broker will claim he discussed things in general terms, but I still think it is out of order. Imagine a building supplier recommended a bank to you, then the bank manager went and discussed your details with the building supplier??

kavithatom

Thankyou for your response! 
once all is well and done. I’m hoping to give some feedback on this service to the guys manager/ company