Mortgage broker - ask me anything

joseyjo72

K_S said:

joseyjo72 said:

Our mortgage offer expires (plus 28day extension) tomorrow. If I can get the conveyancer to give a likely completion date, they will extend by a further week. (While we reapply just in case). My estate agent is suggesting that if we don't quite make that date for completion but that funds are requested to get to our solicitor on/before the expiry date, then we can complete a few days later. Is this correct as it seems to contradict what I've read online but I would imagine my estate agent would know from experience...
Thanks

@joseyjo72 It might be possible in theory but it's down to the solicitor whether it's practical to go down that route in this particular case. Best speak to your sols straight away.

Hi, just another question. On NatWest website it says solicitor has to return funds the next day if no completion. Is that different to holding funds beforehand for a few days? It doesn't seem to say anything about that. Thanks

K_S

joseyjo72 said:

K_S said:

joseyjo72 said:

Our mortgage offer expires (plus 28day extension) tomorrow. If I can get the conveyancer to give a likely completion date, they will extend by a further week. (While we reapply just in case). My estate agent is suggesting that if we don't quite make that date for completion but that funds are requested to get to our solicitor on/before the expiry date, then we can complete a few days later. Is this correct as it seems to contradict what I've read online but I would imagine my estate agent would know from experience...
Thanks

@joseyjo72 It might be possible in theory but it's down to the solicitor whether it's practical to go down that route in this particular case. Best speak to your sols straight away.

Hi, just another question. On NatWest website it says solicitor has to return funds the next day if no completion. Is that different to holding funds beforehand for a few days? It doesn't seem to say anything about that. Thanks

@joseyjo72 Sorry, I'm not an expert on conveyancing so don't really know the answer to your question.

My basic understanding of the general process is that -
1. Once a completion date is set, the solicitor informs the lenders of the proposed completion date and requests for release of funds in advance of that date. It usually lands in the solicitor's bank the working day prior to completion at which point the interest clock starts ticking.
2. If completion is delayed beyond the date above then the lender usually requires the solicitor to return the funds within X days. As you would imagine, the lender would have put in some safeguards against the bank's funds being held by the solicitor for a long time.

I don't know the exact NatWest policy on the above but I would definitely not go by whatever the Estate Agent says. Your solicitor will be the best person to tell you clearly whether it's possible or not in your scenario.

Bggg

Hi there
we Are currently about to apply for our first house 
we are looking at a shared ownership with 75% mortgage
im worried because I have a default on my old student account of £957 5 years ago
it was all paid off 4 years ago and I have had no adverse credit since
i owe nothing on my credit card and don’t have a HP loan or anything apart from my phone contract
the account has been settled,satisfied and closed in 2019

Any advise would be great 

joseyjo72

@K_S thanks, I am hoping to speak to the solicitor this afternoon 

Bggg

Bggg said:

Hi there
we Are currently about to apply for our first house 
we are looking at a shared ownership with 75% mortgage
im worried because I have a default on my old student account of £957 5 years ago
it was all paid off 4 years ago and I have had no adverse credit since
i owe nothing on my credit card and don’t have a HP loan or anything apart from my phone contract
the account has been settled,satisfied and closed in 2019

Any advise would be great 

@K_S please help

K_S

Bggg said:

Bggg said:

Hi there
we Are currently about to apply for our first house 
we are looking at a shared ownership with 75% mortgage
im worried because I have a default on my old student account of £957 5 years ago
it was all paid off 4 years ago and I have had no adverse credit since
i owe nothing on my credit card and don’t have a HP loan or anything apart from my phone contract
the account has been settled,satisfied and closed in 2019

Any advise would be great 

@K_S please help

@bggg Given the limited info in your post, you should be fine for mainstream/mainstream-ish rates if the only blot on your credit history is one default registered 5+ years ago. I would still recommend using a broker so they can make sure it meets criteria, the numbers add up, etc. before recommending a lender. The MSE guide here can help you find a fee-free broker https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

If you wish to go direct, try and speak to the lender beforehand to make sure all boxes are ticked.

Good luck!

atlasmm

K_S said:

atlasmm said:

Our broker advised today that the valuation was done, I find this strange before the mortgage has been underwritten as surely if it’s rejected at the underwriting stage, the valuation taking place first means the lender has wasted time/money (albeit it was only a desktop valuation as it was completed the day after application)?

Is this standard practice (Leeds BS)

@atlasmm Yes this is standard practice for many mainstream lender apps - the valuation is automatically instructed on application and then the valuation and processing/underwriting happen in parallel, independent of each other.

Smaller building societies and specialist lenders sometimes do it in sequence - initial assessment/underwriting and then the valuation.

Thanks, however I’m still confused - their website says underwriting turnaround of 2.5 working days but offer time of 11 working days (for a residential mortgage).

If valuation is completed immediately and then another 2.5 working days for underwriting, what is the other 8.5 working days for?

K_S

atlasmm said:

K_S said:

atlasmm said:

Our broker advised today that the valuation was done, I find this strange before the mortgage has been underwritten as surely if it’s rejected at the underwriting stage, the valuation taking place first means the lender has wasted time/money (albeit it was only a desktop valuation as it was completed the day after application)?

Is this standard practice (Leeds BS)

@atlasmm Yes this is standard practice for many mainstream lender apps - the valuation is automatically instructed on application and then the valuation and processing/underwriting happen in parallel, independent of each other.

Smaller building societies and specialist lenders sometimes do it in sequence - initial assessment/underwriting and then the valuation.

Thanks, however I’m still confused - their website says underwriting turnaround of 2.5 working days but offer time of 11 working days (for a residential mortgage).

If valuation is completed immediately and then another 2.5 working days for underwriting, what is the other 8.5 working days for?

@atlasmm The service levels published are not a target or a guide, they're just an average. So they would include people who got an offer in 3 days (like you might if there are no queries) and people who got an offer in 20 days (due to a physical valuation or queries, etc.)

The 2.5 days average for underwriting generally refers to the wait time for someone to pick up things from a queue, they'll probably only spend 10-15 minutes on a mainstream application. If the underwriter raises a query, that may add another 2.5 day wait time to the mix, etc.

I hope that puts it in context.

Catty288

K_S said:

Catty288 said:

@K_S we have been asked by our conveyancer if we have any completion date in mind and have replied with ‘as soon as feasibly possible’. What is the quickest timescale that they could get this done? Should we have given an actual date? We are buying out another party who also wants this completed as soon as possible. Partner is already on deeds. No chain. My name is to be added to deeds instead of other party and changed from tenants in common to joint tenants. We already live in the property. All searches have been done several weeks ago, except maybe the bankruptcy search. TR1 is signed and other party’s solicitor has confirmed receipt (finally!) today, mortgage deed signed and returned last week. All document reviews and queries have been dealt with last week. As far as we are aware, we are only waiting on funds to be transferred, although there may be other documents needing signing that we are unaware of as have never done this before. If they have asked for a completion date, are we correct in assuming that? 

@catty288 Sounds like most of the work is done.

A transfer of equity usually involves the party being bought out being sent a document to sign and returning it to the solicitor. If the solicitor has that as well then completion should be doable soon as.

I believe that the Transfer of Equity document was the TR1 form. This was completed by us and they have received the other party’s. Other party’s solicitor has confirmed yesterday that they have received our original signed document. We have also signed the joint ownership form and returned at the same time as the mortgage deed and TR1. 

We have not heard anything today aside from the same update from our broker. May be a silly question, but do they need to confirm this with the other party’s solicitor? Even though they will only be receiving the funds as all else appears to be done? She is not living at the property and isn’t moving anywhere. She will possibly have to pay stamp duty but that shouldn’t be holding things up. How long does it take, on average, for them to negotiate this if both parties want it completed ASAP? 

Concerned as it has taken a week for her Sols to confirm receipt of the TR1. As you can tell, we are very anxious and having not done this before, pretty clueless as everything we have read seems to be different to what we are experiencing.

joseyjo72

I've already posted on the buying and selling board about our mortgage expiry - it is now due to expire today. The conveyancer emailed a request to the bank yesterday as the mortgage adviser had suggested Nat West were willing to consider an extra 7 day extension if they were give an expected completion date. (We have already had the 28 day extension).  There is nothing from the bank yet - the mortgage adviser is away but his assistant suggested that if the request was received before the mortgage expiry it might still be considered even if it is not granted today. Does that sound possible? I've been banging my head against a wall all week trying to get this extension. We're putting in a new application too just in case but it is the same product which we are porting and we are well within affordability so it would really be a ridiculous situation if our mortgage expired then we had to wait for a week or so without a mortgage until exactly the same product was approved. In that time someone else in the chain is due to have their mortgage expire. I'd be grateful for any advice.