Mortgage broker - ask me anything

K_S

Myci85 said:

Me and my partner are looking to buy our first house. I'm on a permanent contract and earning two thirds of our total income, he is on a fixed term contract with 4 months left. He's had no gaps in employment in past 12 months, but has only been in this job since March and it is a new line of work following him doing a degree/masters to change career. I have an experian credit score of 999, he has 574 on clearscore. 
We have seen a house we may want to offer on, but wondering if we would stand a chance getting a mortgage right now, or if we need to wait for him to get a permanent contract, which may mean losing out on this house. 

@myci85 Depends on his profession, employment history, whether or not his current contract will get extended, the rest of the background details, numbers, etc.

FTCs aren't the impediment to mortgages that most people seem to assume they are but in this case there are multiple factors that will limit the choice of lenders (if any) - change of career, less than 12m contracting history, less than 6m left on contract, etc. 

If you're really serious about getting a mortgage right now, then in the first instance you could speak to a broker on the MSE guide here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

If the above broker isn't able to help (volume brokers might not have the time to dig into the details and speak to lenders that are more flexible) then find a good experienced broker, ask friends/family/colleagues to recommend someone they've used.

If at the end of all this you're still drawing a blank, then it's fairly safe to assume that it's a no go at this stage and wait for either the contract to be extended, a year's contract history or a perm contract before trying again.

CXG1979

Hi all,
I currently have a 2.19% repayment mortgage with Santander, have had this mortgage since buying the property in 2015, remortgaging once with same provider.
I also have a £30k loan I took out over 10 years with Natwest at 16%; worst mistake of my life hands down, as has been the worst managed loan I've ever had the displeasure of doing.  

Our mortgage is split into two parts, as when we remortgaged last time, we took out some more to do home improvements.  Part 1 is £112,312 left to pay over 17 yrs 10mths, and part 2 is £18,695 over 13 years 1 mth.  

The bank loan repayment is £566 per month, and our mortgage payment is £771 per month.

Our property is currently estimated at £670,000, so we have excellent LTV in the current mortgage.

My question is, by adding the loan to the mortgage when we are due to remortgage in November, as I'm barely making a dent in the laon with my payments, as there is little in the way of years between part 2 mortgage and the loan, I wondered if I renewed the mortgage at 4-4.5%, adding the loan, would this be the best way to manage this?

I'm crap when it comes to working out all the finances when it comes to %'s and all that stuff.  I don't mind if it means I pay slightly more overall, as with this cost of living crisis, and my partner was on furlough for a year (he was in sales so had basic, no commission so barely earned anything), we had to seek out bill paying via credit cards and are having to pay those off too.  We are managing now just about, and anticipate being debt free by the end of 2024, but want to try and seek the best way to manage this loan that's crippling me.

Hopefully that's enough info to go on!

Thanks in anticipation

evosy1978

Hi
Why do we have to prove our income to get a mortgage, when the lender can just take and sell our property if we miss payments?

thanks

K_S

evosy1978 said:

Hi
Why do we have to prove our income to get a mortgage, when the lender can just take and sell our property if we miss payments?

thanks

@evosy1978 Repos are a last resort and courts don't just willy nilly allow lenders to repo a property.

For residential lending, lenders are required by the FCA to ensure that the mortgage is affordable to the applicant, both now and in the foreseeable future. That's the regulatory reason to verify income and affordability. The second reason is to simply minimise the risk (to the lender) of the borrower failing to make the monthly payment.

Debtbegone2022

Hello, 

Our Barclays fixed mortgage is coming to an end in October. Just wanted to check a couple of things;

we would be able to switch to a new deal online if there are no changes to amounts/term?

If we wanted to extend the term this would require a credit check? 

We currently have debts and defaults and I don’t want to do anything that might stop us from being able to move onto a new fixed rate.

Thank you

K_S

Debtbegone2022 said:

Hello, 

Our Barclays fixed mortgage is coming to an end in October. Just wanted to check a couple of things;

we would be able to switch to a new deal online if there are no changes to amounts/term?

If we wanted to extend the term this would require a credit check? 

We currently have debts and defaults and I don’t want to do anything that might stop us from being able to move onto a new fixed rate.

Thank you

@debtbegone2022 Yes to your first question, not sure about the second as different lenders have different policies on that and I don't know what it is for Barclays off of the top of my head.

evosy1978

K_S said:

evosy1978 said:

Hi
Why do we have to prove our income to get a mortgage, when the lender can just take and sell our property if we miss payments?

thanks

@evosy1978 Repos are a last resort and courts don't just willy nilly allow lenders to repo a property.

For residential lending, lenders are required by the FCA to ensure that the mortgage is affordable to the applicant, both now and in the foreseeable future. That's the regulatory reason to verify income and affordability. The second reason is to simply minimise the risk (to the lender) of the borrower failing to make the monthly payment.

Thanks.

what is a secured loan or 2nd mortgage? I was reading about them, where it said the lender will always lend this type of mortgage as they know they can just take your house if you default... I was reading up on BRR's.  Have I read this incorrectly?

thanks

stedon

Hi,

Applied for a mortgage with Nationwide and received a text yesterday to say the application had been received and then we got another text to say valuation arranged for 26/05. We have had the hard searches conducted by Nationwide so is it safe to say the application has been approved subject to the valuation coming back ok?

Very stressful time!

kingstreet

stedon said:

Hi,

Applied for a mortgage with Nationwide and received a text yesterday to say the application had been received and then we got another text to say valuation arranged for 26/05. We have had the hard searches conducted by Nationwide so is it safe to say the application has been approved subject to the valuation coming back ok?

Very stressful time!

Typically, it takes Nationwide about three working days to sign-off supporting documents so in practice there is no "approved subject to valuation" milestone. This is similar to the process operated by many lenders these days.

stedon

kingstreet said:

stedon said:

Hi,

Applied for a mortgage with Nationwide and received a text yesterday to say the application had been received and then we got another text to say valuation arranged for 26/05. We have had the hard searches conducted by Nationwide so is it safe to say the application has been approved subject to the valuation coming back ok?

Very stressful time!

Typically, it takes Nationwide about three working days to sign-off supporting documents so in practice there is no "approved subject to valuation" milestone. This is similar to the process operated by many lenders these days.

Thanks for the response!

Our broker called yesterday to say mortgage had been accepted and we were just waiting for a valuation now but I was sceptical as we have only provided payslips so far.

Appreciate you getting back to me