Mortgage broker - ask me anything

lotte123

I have a question about 1.mortgage sub accounts and 2. gaining access to previous years' statements. I have accessed the online mortgage account on our marital home and seen that there are 3 separate sub accounts. They all have the same rate, the same date for end of rate and the same end date. We have not moved house since the mortgage was taken out. Are these likely to indicate that more money has been borrowed against the house since the mortgage was taken out or is there another reason they may exist? And is there a way to access historic statements on the mortgage? I can only see a way of accessing the previous 12 months (which I already have in hard copy). There is a possibility that my husband has been borrowing money against the house for a gambling habit, that I have just found out about.

K_S

Lckuj2018 said:

Does NatWest ask for bank statements again if you change the property? 

Initial property fell through just before validation so we couldn’t get offer. We have chosen another property 5 months later on same application. Will they defo want the statements again? 

@lckuj2018 Couldn't say for sure but if the case never went to offer in 5 months, it's almost certainly expired so I would assume they'll need all the packaging (supporting documentation, application, etc.) again like a new app.

K_S

lotte123 said:

I have a question about 1.mortgage sub accounts and 2. gaining access to previous years' statements. I have accessed the online mortgage account on our marital home and seen that there are 3 separate sub accounts. They all have the same rate, the same date for end of rate and the same end date. We have not moved house since the mortgage was taken out. Are these likely to indicate that more money has been borrowed against the house since the mortgage was taken out or is there another reason they may exist? And is there a way to access historic statements on the mortgage? I can only see a way of accessing the previous 12 months (which I already have in hard copy). There is a possibility that my husband has been borrowing money against the house for a gambling habit, that I have just found out about.

@lotte123 Assuming that you're a joint mortgage holder, the lender should be able to answer all your questions and that would probably be the best place to get accurate info.

If these are genuinely 3 different sub accounts (at least the amounts are different and substantial) then if they have the exact same rate and fix end date that suggests it would likely have been taken out along with product switch for the original mortgage.

Rarely, with some lenders, there are end of product admin fees which shows up as a separate sub-account. But these will be tiny, say a few hundred pounds at most so you should be able to tell that way.

doraspenlow

Hello! If I wanted to apply for additional lending from Nationwide would they do an in-person or desktop valuation, do you think?

My mortgage is already with them and the lending, including additional would be less than 60% LTV.

GrahamL67

I previously posted this a while ago with no responses after a few months. I wonder if you could help?

I'm trying to secure funding for a home extension. Somewhere between 100 to 150k.

I'm currently earning 60% of what I was 9 years ago when I took out the original mortgage so my current lender is reluctant to give me a further advance.

The deeds are in my name only.

There is around 350k equity in the property.

I got married 3 years ago and my wife and I thought that the bank would happily lend against my wife's salary as well as mine. Around 18 months ago my bank said that a joint borrower, sole proprietor mortgage was possible, but now they're refusing. They insist on my wife being on the deeds.

This would appear to incur stamp duty on transfer of equity, a rearranged mortgage fee, valuation fee, fees for the bank having to deal with a solicitor and solicitors fees -  a galling prospect given that I already paid stamp duty when I bought the house.

So the questions are?

1. Does anyone know any way to avoid this?

2. Is it possible for my wife to borrow money using the house as security even if only my name is on the deeds?

3. Are there any mortgage lenders out there that will take my wife's salary into consideration without her being on the deeds?

4. Is my bank trying to pull a fast one by saying they won't take my wife's salary into account?

Thanks in advance.

K_S

doraspenlow said:

Hello! If I wanted to apply for additional lending from Nationwide would they do an in-person or desktop valuation, do you think?

My mortgage is already with them and the lending, including additional would be less than 60% LTV.

@doraspenlow There's no way to be sure unfortunately.

What happens is that I input an estimated value of the clients property on the loan requirements screen. Nationwide will then attempt to value the property using an AVM (desktop val) and if that is possible then there'll be no physical val. Logic would suggest that the lower the LTV, the more likely it is that an AVM would suffice but it's not a given.

But if their system is unable to do an AVM and says that the application requires a 'Further Advance Revaluation Report', that will usually involve a physical inspection of the property.

No idea how similar/different it would be for a direct application for additional borrowing / further advance.

K_S

GrahamL67 said:

I previously posted this a while ago with no responses after a few months. I wonder if you could help?

I'm trying to secure funding for a home extension. Somewhere between 100 to 150k.

I'm currently earning 60% of what I was 9 years ago when I took out the original mortgage so my current lender is reluctant to give me a further advance.

The deeds are in my name only.

There is around 350k equity in the property.

I got married 3 years ago and my wife and I thought that the bank would happily lend against my wife's salary as well as mine. Around 18 months ago my bank said that a joint borrower, sole proprietor mortgage was possible, but now they're refusing. They insist on my wife being on the deeds.

This would appear to incur stamp duty on transfer of equity, a rearranged mortgage fee, valuation fee, fees for the bank having to deal with a solicitor and solicitors fees -  a galling prospect given that I already paid stamp duty when I bought the house.

So the questions are?

1. Does anyone know any way to avoid this?

2. Is it possible for my wife to borrow money using the house as security even if only my name is on the deeds?

3. Are there any mortgage lenders out there that will take my wife's salary into consideration without her being on the deeds?

4. Is my bank trying to pull a fast one by saying they won't take my wife's salary into account?

Thanks in advance.

@grahaml67 Quick comments based on the limited info in your post -

Stamp duty - Normally, for a transfer of equity between a married couple, SDLT is only due IF the 'chargeable consideration' is more than the SDLT threshold which is currently 250k in England. For a mortgaged property ownership changing from yourself to the couple, the chargeable consideration is usually the share of the mortgage debt assumed by the wife which is normally 50% of the outstanding mortgage. So if that is above 250k, stamp duty may be due. This is a very generic answer so DYOR.

Other costs associated with a ToE - usually comprise of lender admin fees, valuation fee and solicitor costs. They're unavoidable if you want to add your spouse to the deeds and mortgage as there's work involved to do all this and someone has to pay for it. Most lenders don't charge a lot though. I helped a client recently with a ToE with Accord and it cost around £200 for the Accord admin fee, less than £100 for the Accord valuation and a few hundred quid for the conveyancing. 

There are lenders that offer JBSP products that will consider lending based on the income of someone who's not on the mortgage but I couldn't say off the of top of my head whether the joint borrower could be a married spouse who occupies the property as that isn't a JBSP scenario that I've seen myself.

doraspenlow

K_S said:

doraspenlow said:

Hello! If I wanted to apply for additional lending from Nationwide would they do an in-person or desktop valuation, do you think?

My mortgage is already with them and the lending, including additional would be less than 60% LTV.

@doraspenlow There's no way to be sure unfortunately.

What happens is that I input an estimated value of the clients property on the loan requirements screen. Nationwide will then attempt to value the property using an AVM (desktop val) and if that is possible then there'll be no physical val. Logic would suggest that the lower the LTV, the more likely it is that an AVM would suffice but it's not a given.

But if their system is unable to do an AVM and says that the application requires a 'Further Advance Revaluation Report', that will usually involve a physical inspection of the property.

No idea how similar/different it would be for a direct application for additional borrowing / further advance.

Thanks for the thorough answer. 

Johnny2R

My interest-only mortgage is coming to the end of term, and I am not easily able to pay off the outstanding balance, which is around £50,000, so I am hoping to extend or remortgage. The problem is that I am 62, self-employed and with poor earnings for the last 3 years, so may not be regarded as a good prospect for lending to. Given that the house is worth something like £250,000, though, I would hope that would be enough to reassure a lender. What are likely to be my best prospects at this point?

K_S

Johnny2R said:

My interest-only mortgage is coming to the end of term, and I am not easily able to pay off the outstanding balance, which is around £50,000, so I am hoping to extend or remortgage. The problem is that I am 62, self-employed and with poor earnings for the last 3 years, so may not be regarded as a good prospect for lending to. Given that the house is worth something like £250,000, though, I would hope that would be enough to reassure a lender. What are likely to be my best prospects at this point?

@johnny2R Your first port of call should be your current lender. They might be able to take a view on extending it to give you some more time to sort out an exit.

For a re-mortgage to a new lender on a capital repayment basis, the equity in the property will not necessarily help with a standard mortgage as you will still need to evidence the income requirements to afford (as per the lender calculations) a loan size of 50k. For self-employed sole-trader income, with most lenders it's usually the lower of the following two - average of the last two years net-profit or the latest year's net profit. You'll also be severely limited on term due to your age and this will make affordability harder. With most lenders you will be limited to 70 and with a few lenders they may consider up to 75/80 (if plausible for your profession).

Alternatively, you could look at later life lending options like retirement interest only, equity release, etc. which will take into account the equity you hold in the property.

I hope you're able to find a solution that works for you, good luck!