Mortgage broker - ask me anything

K_S

sturgeon said:

I’m thinking of buying a property later this year, would it be best to secure a mortgage asap to lock in current rates as the offer should stand for 6 months? I haven’t found a property nor is mine on the market but I’d list mine asap. Also, I’d normally opt for 2 year fixed deals but if I went for a 5 year fix how portable are these? I’d likely move again before the 5 years and imagine the next property would be more expensive so would want to avoid an early repayment charge. If portable, would that mean you take out an additional mortgage or a separate product with the same lender at whatever the current rates/deals are, keeping the ported portion on the same terms?

@sturgeon You will need a specific property address to put in a full mortgage application. The property will then need to be valued by the lender before an offer is issued. So, you wouldn't be able to get a mortgage offer without having an offer accepted on the property that you're looking to buy.

Most mainstream lender mortgages are 'portable', in that they will consider your application for porting the existing product subject to the affordability and criteria rules in place at the future point in time.

Yes, porting does work as described in your post - existing mortgage part on same terms and new additional borrowing mortgage part on whatever rates are available at the time.

K_S

Penguin_ said:

Further to my earlier post regarding open Credit Cards, how much of a struggle will I have when we look to get a mortgage? I have no short term borrowing, as in my over draft is clear & so are my credit cards, no car finance or anything. The only issues I have is I have 4 defaults from 2019/2020 which I am repaying slowly. 

@penguin_ It's hard to say with multiple unsatisfied defaults which are 3+ years old as it'll depend on a lot of factors - what your credit reports actually look like, LTV, income type, reasons for past adverse, etc.

Very very generally speaking, someone with multiple unsatisfied defaults of that age with a clean credit history since, it should be fairly straightforward to place the case (assuming no other significant complicating factors in the background) but unlikely that it will be with a mainstream lender.

Depending on the details, you may still get mainstream-ish rates from smaller lenders that don't credit score, but generally speaking that will depend on them being convinced that the blip in the past is unlikely to repeat and your case being strong otherwise.

Penguin_

Thank @K_S

Reason for past defaults/adverse was I was taken for a ride by an ex who stitched me up! 

Currently on £37,600 with my partner who is on £32,000 & has no credit issues. We have about £45,000 equity in our current house which would form the main bulk of our deposit.

sturgeon

K_S said:

sturgeon said:

I’m thinking of buying a property later this year, would it be best to secure a mortgage asap to lock in current rates as the offer should stand for 6 months? I haven’t found a property nor is mine on the market but I’d list mine asap. Also, I’d normally opt for 2 year fixed deals but if I went for a 5 year fix how portable are these? I’d likely move again before the 5 years and imagine the next property would be more expensive so would want to avoid an early repayment charge. If portable, would that mean you take out an additional mortgage or a separate product with the same lender at whatever the current rates/deals are, keeping the ported portion on the same terms?

@sturgeon You will need a specific property address to put in a full mortgage application. The property will then need to be valued by the lender before an offer is issued. So, you wouldn't be able to get a mortgage offer without having an offer accepted on the property that you're looking to buy.

Most mainstream lender mortgages are 'portable', in that they will consider your application for porting the existing product subject to the affordability and criteria rules in place at the future point in time.

Yes, porting does work as described in your post - existing mortgage part on same terms and new additional borrowing mortgage part on whatever rates are available at the time.

Thank you. Don’t some estate agents try to insist that proof of funding is in place or is that just a mortgage agreement in principle? Do you need a specific property address fir that? Does that constitute an offer with a % rate or does it only tell you what that bank would theoretically lend you pending full application?

sturgeon

And is there any other way to lock in a mortgage rate for a period of time when shopping around or is this only possible when you’ve found a property and put a full application in?

K_S

@sturgeon

Qualifying an offer - EAs will generally ask to see proof of deposit and a lender AIP/DIP when you make an offer. You don't need a specific property address for an AIP.

AIP/DIP - An AIP is an indication from the lender that they may lend up to xxx based on whatever information you've put in the AIP form and what they can see on your credit reports. It is not binding on you or the lender. A mortgage offer is a confirmation from the lender that they will lend you x to buy a specific property after they have confirmed and verified the details, numbers, etc. 

Locking a mortgage rate when shopping around - Unfortunately there's no reliable way to do this without a property address and firm numbers. Nationwide does offer an option to reserve a specific product/rate at DIP stage for 90 days. This can be done without a property address and using approximate numbers but it's not something that is likely to be practical for someone at the viewing stage. 

sturgeon said:

K_S said:

sturgeon said:

I’m thinking of buying a property later this year, would it be best to secure a mortgage asap to lock in current rates as the offer should stand for 6 months? I haven’t found a property nor is mine on the market but I’d list mine asap. Also, I’d normally opt for 2 year fixed deals but if I went for a 5 year fix how portable are these? I’d likely move again before the 5 years and imagine the next property would be more expensive so would want to avoid an early repayment charge. If portable, would that mean you take out an additional mortgage or a separate product with the same lender at whatever the current rates/deals are, keeping the ported portion on the same terms?

@sturgeon You will need a specific property address to put in a full mortgage application. The property will then need to be valued by the lender before an offer is issued. So, you wouldn't be able to get a mortgage offer without having an offer accepted on the property that you're looking to buy.

Most mainstream lender mortgages are 'portable', in that they will consider your application for porting the existing product subject to the affordability and criteria rules in place at the future point in time.

Yes, porting does work as described in your post - existing mortgage part on same terms and new additional borrowing mortgage part on whatever rates are available at the time.

Thank you. Don’t some estate agents try to insist that proof of funding is in place or is that just a mortgage agreement in principle? Do you need a specific property address fir that? Does that constitute an offer with a % rate or does it only tell you what that bank would theoretically lend you pending full application?

sturgeon said:

And is there any other way to lock in a mortgage rate for a period of time when shopping around or is this only possible when you’ve found a property and put a full application in?

sturgeon

Many thanks for your helpful response. Appreciated. 

redhead22

Looking for some advice.

1st home bought together as a couple 5 years ago as joint owners.

3 years ago my partner became unemployed and didn't pay the mortgage for 2 years. I struggled and paid but got into debt to avoid losing the home. 

Unfortunately, my partner's unemployment has become a regular thing and he is just not suited to paying a mortgage as he had led me to believe. The strain has caused the relationship to break down and I'm wondering what my options are.

The home was bought for £410k and is now worth £500k. The mortgage is £1500 approx. and my take home pay is £3500 net. But...... because of the issues with my partner, I have large amount on credit cards to cover the part he failed to pay.

I love my home and do not want to lose it but a mortgage advisor did not feel I would be granted a mortgage solely on my own (CC monthly payments at 3% are £800 approx.).

Would a lender allow interest only do you think? Outstanding mortgage after 5 years of repayment is £350k approx. 

Thanks for any help which is greatly appreciated! 

Kirsty9936

Hoping someone might be able to assist. I have a LISA, and last year I withdrew some of the money I had put in. It has since been put back in and I am adding to it whenever I have some money spare. I'm a little way off having a full deposit yet, but just thinking ahead to applying for a mortgage, will I be asked to provide evidence or proof of what I withdrew that money for? Or will it not even be a question? Thanks! 

Peco141

So I'm somewhat regretting signing up to a 2 year fixed last month and paying an additional £105 on my monthly payments compared to the previous 10 years as we watch interest rates fall. 

I take it I my only option is to suck it up and live with it?