Mortgage broker - ask me anything

haras_n0sirrah

happyapples said:

haras_n0sirrah said:

happyapples said:

HI, My partner and I are splitting up and im trying to get an idea about the mortgage situation.
We have a mortgage on our home which I would probably stay in with children  (30 LTV and should have affordability. we have a deed of trust so think this should be straightforward.) 
We also have a Buy To Let which is currently empty. Easy solution is for ex to move in to his and change it to a standard residential mortgage in his name only and take his name off the family home. 
Any advise on what we need to consider. Thanks very much. 

It is going to depend on affordability. Can he afford to take over the btl mortgage and can you afford to take over the residential?

Yes I think affordability will be fine. The main issue is transferring the buy to let property to a residential mortgage and taking my name off. And if there is any order which should be done first. I'm guessing sort out family home, then look at buy to let, would there be any capital gains tax if the property is not sold?
Thank you. 

Capital gains tax would be a solicitor question. I would check the affordability on both options to make sure it is viable for both of you to take over the mortgages.

becky8690

If I've received the letter stating "thank you for your recent application. I confirm that the society has carried out an initial assessment and we are currently liaising with your introducer to advise of any outstanding requirements in order that a mortgage offer can be produced ASAP. This mortgage offer will be sent to you and to your introducer as soon as it is available." Is this a good sign? Theyve just asked for a letter from my husbands employee stating his job is secure after covid, the date I return after maternity and the accounta where they can see chunks money being moved to, which is just our savings accounts 

haras_n0sirrah

becky8690 said:

If I've received the letter stating "thank you for your recent application. I confirm that the society has carried out an initial assessment and we are currently liaising with your introducer to advise of any outstanding requirements in order that a mortgage offer can be produced ASAP. This mortgage offer will be sent to you and to your introducer as soon as it is available." Is this a good sign? Theyve just asked for a letter from my husbands employee stating his job is secure after covid, the date I return after maternity and the accounta where they can see chunks money being moved to, which is just our savings accounts 

It means the initial assessments has been done and a list of questions sent to your broker for you to answer

becky8690

haras_n0sirrah said:

becky8690 said:

If I've received the letter stating "thank you for your recent application. I confirm that the society has carried out an initial assessment and we are currently liaising with your introducer to advise of any outstanding requirements in order that a mortgage offer can be produced ASAP. This mortgage offer will be sent to you and to your introducer as soon as it is available." Is this a good sign? Theyve just asked for a letter from my husbands employee stating his job is secure after covid, the date I return after maternity and the accounta where they can see chunks money being moved to, which is just our savings accounts 

It means the initial assessments has been done and a list of questions sent to your broker for you to answer

Thank you
Well its not a decline then so I've still got fingers crossed for an offer then! We've been able to supply the info they've requested so I'm hopeful!

MSN2220

Hello
Just going through solicitor contacts and it says on exchange we have to pay 10% deposit. Is this correct even though we are buying a shared ownership property with 5% deposit? 

Many thanks for all your help!! 

michelle27xx

My house is currently up for sale (has been for 12 months) and my fixed rate mortgage has now ended. I will automatically switch to a variable rate am I best to stay on this or tie myself into a fixed 2 year deal at a lower interest rate and if I sell within that time transfer my mortgage to a new property? Thank you

haras_n0sirrah

MSN2220 said:

Hello
Just going through solicitor contacts and it says on exchange we have to pay 10% deposit. Is this correct even though we are buying a shared ownership property with 5% deposit? 

Many thanks for all your help!! 

It is probably standard wording. 5% will  be fine

haras_n0sirrah

michelle27xx said:

My house is currently up for sale (has been for 12 months) and my fixed rate mortgage has now ended. I will automatically switch to a variable rate am I best to stay on this or tie myself into a fixed 2 year deal at a lower interest rate and if I sell within that time transfer my mortgage to a new property? Thank you

Which lender are you with?

Filo25

This is a great thread, thanks for doing it haras.

My wife was a director of her own limited company but as contracting work hours were drying up, so she has now taken on a fixed term contract for 12 months, and will keep putting a few hours of work through the limited company. We have a remortgage coming up, am I right in presuming that no income from her job would be able to be used in the affordability calculation?

Just to add to the complications I am on reduced income due to my employer being in a sector badly affected by COVID, even with all of that I think I could likely make affordability work (fingers crossed), but I was wondering are banks doing additional reviews with tighter criteria on employees for companies in sectors which are being hit hard by COVID, at present?

haras_n0sirrah

Filo25 said:

This is a great thread, thanks for doing it haras.

My wife was a director of her own limited company but as contracting work hours were drying up, so she has now taken on a fixed term contract for 12 months, and will keep putting a few hours of work through the limited company. We have a remortgage coming up, am I right in presuming that no income from her job would be able to be used in the affordability calculation?

Just to add to the complications I am on reduced income due to my employer being in a sector badly affected by COVID, even with all of that I think I could likely make affordability work (fingers crossed), but I was wondering are banks doing additional reviews with tighter criteria on employees for companies in sectors which are being hit hard by COVID, at present?

If you are not looking to borrow more or change your terms a product transfer may be the best option as then there are no affordability or lender checks. 
If you want the added protection of a broker then a lot of us (myself included) do not charge to do product transfers or you can do it yourself without advice on the lenders portal.