Mortgage broker - ask me anything

Penguin_

So a friend of mine went with Yorkshire Building Society & she has poor credit issues in the past. She mentioned to me that her & her partner were able to get an offer as they had 20% deposit with them & suggested I have a look.

I've plugged our numbers & information into the YBS system & they have surprisingly said they will offer us a mortgage (obviously subject to checking the information we've provided is correct etc). Are YBS more flexible with people who have had credit issues 4 years & more ago so as I've been ok for the last 3 years, should we be ok if we were to go full application?

kingstreet

YBS is direct-only, so a broker can only tell you its broker subsidiary Accord is pretty flexible but it would depend on the dates, amounts etc.

ILoveSittingDown

musntcrumble said:

Looking at switch fixing with HSBC for another 2 or 3 years.

Remaining mortgage around £240,000.

2 year rate is 4.43% with £999 product fee so around £1360 monthly payments, or 2 year saver (without fee) is 4.69% so around £1395 monthly over 21 payments.

3 year rate is 4.34% with £999 product fee so around £1350 monthly payments, or 3 year saver (without fee) is 4.64% so around £1390 monthly over 33 payments

How do I best decide on whether to go with the saver or product fee?  What's the maths I need to be doing to work this out?

Someone has suggested if it's not saving you any money take the saver over the product fee.

Any assistance in helping to decide would be much appreciated.

Have you checked those rates are still available? I'm looking at remortgaging to HSBC and the lowest rate 2 year fix is 5.29%

Viperex

Just seen on BBC that Nationwide are gonna up there rate to 0.7 https://www.bbc.co.uk/news/business-65921085

I have been waiting for valuer to come back and hopefully get offer anytime soon , will this news effect me and end up getting a new rate as to the one i had accepted with broker ? im worried 

Penguin_

kingstreet said:

YBS is direct-only, so a broker can only tell you its broker subsidiary Accord is pretty flexible but it would depend on the dates, amounts etc.

Sorry I should have said, I completed the DIP myself not the broker.

Edited to add, we were looking at £150,000 mortgage with 25% deposit & combined earnings of £72,000.

Girlisgettingthere

Hi looking for help on adverse lender. My partners credit file has no defaults/late payments etc but mine has 2 registered defaults (end of 2019) both satisfied and a late payment marked in March 2023. We are using the sale of property for a 15% deposit for new home and paying off all of our credit cards. I know I likely don’t allow us to have high street lenders but our broker has matched us with precise and looking at their reviews I’m worried about likelihood of getting an offer. Would we have other options?

Nicki_Sue

K_S said:

Nicki_Sue said:

Hi @K_S (and others). 

I have a self-employed/self-assessment documentation question someone might have the answer to. 

We're in our 40's, FTB on a new build. We have our MIP from Leeds BS, the valuation has come back ok and everything has been submitted to the lender to lock in a rate despite me struggling to get a document from HMRC.

My 22/23 self-assessment was submitted 2/5 but wasn't "captured" properly on their system. It's taken nearly a month but it's now been manually processed and I have my calculation and tax year overview....

BUT (there's always a but).

The overview showed I owed some tax, to be paid by Jan '24. The mortgage broker said the underwriter wouldn't accept that and I had to pay the tax owing now. 
I've done that BUT HMRC are saying they won't update the 22/23 tax year overview to show my balancing payment is paid and up to date and me owing zero until 28 days before the Jan '24 deadline. 

I've asked for a statement to be sent which they've said they will but the mortgage broker has said only the updated tax year overview will do for the lender.

Has anyone else encountered this and knows any way around it? 
I have the HMRC receipt email and download showing the tax payment was paid but apparently, that's inadequate.

Any advice would be much appreciated. It's sat with the lender now and the timing is getting a bit sticky.

@nicki_sue It's a tricky one unfortunately as the eventual outcome depends on the subjective opinion of the underwriter. 

I can't speak for your specific issue as I don't know anything about it but I'll give an example of a similar issue with the TYO (where the tax due figures don't match exactly with the SA302) and hopefully you can get something useful out of it.

The SA302 not matching TYO due to adjustments/overpayments/etc. is a much more common issue than lenders acknowledge and can arise due to a number of valid reasons. Where the underwriter (or processor) is simply refusing to accept any diff between the TYO and SA302, where I've had successes, it's from the client calling HMRC, explaining that they've having severe issues with a mortgage due to the discrepancy and getting a manual letter explaining the discrepancy, reconciling the numbers and then me packaging this evidence to the underwriter, pushing the BDM, trying to get it assigned to a senior underwriter, etc. to try and get a favourable outcome.

More often that not, it has worked but it may require a good bit of effort from yourself (getting someone to speak to at HMRC has got increasingly difficult over the recent past with all the cuts to staff numbers and customer lines), a big dollop of luck (you need them to be willing to draft a letter), time and effort from the broker and even after all that you could get an underwriter who simply isn't willing to budge.

Out of professional interest, if and when this reaches an end conclusion, It would be good if you could circle back and update us as to what happened.

I hope it gets sorted one way or the other, good luck!

Reporting back.....
Mortgage offer approved. Thank goodness! 

The lender (Leeds BS) was happy to accept the letter from the accountant plus the payment email etc instead of an updated tax year overview (as HMRC won't update it as according to them technically it's an overpayment and not being tied to the balancing payment until later in the year). They've now (apparently) closed the SA helpline until September which isn't helpful for many. Accountants aren't having much luck either so thankfully that did the trick.

Thanks for the advice. Good luck all!

Just waiting for the new build completion date now which will hopefully be August.

K_S

@nicki_sue Amazing, happy to hear that! 

Nicki_Sue said:

K_S said:

Nicki_Sue said:

Hi @K_S (and others). 

I have a self-employed/self-assessment documentation question someone might have the answer to. 

We're in our 40's, FTB on a new build. We have our MIP from Leeds BS, the valuation has come back ok and everything has been submitted to the lender to lock in a rate despite me struggling to get a document from HMRC.

My 22/23 self-assessment was submitted 2/5 but wasn't "captured" properly on their system. It's taken nearly a month but it's now been manually processed and I have my calculation and tax year overview....

BUT (there's always a but).

The overview showed I owed some tax, to be paid by Jan '24. The mortgage broker said the underwriter wouldn't accept that and I had to pay the tax owing now. 
I've done that BUT HMRC are saying they won't update the 22/23 tax year overview to show my balancing payment is paid and up to date and me owing zero until 28 days before the Jan '24 deadline. 

I've asked for a statement to be sent which they've said they will but the mortgage broker has said only the updated tax year overview will do for the lender.

Has anyone else encountered this and knows any way around it? 
I have the HMRC receipt email and download showing the tax payment was paid but apparently, that's inadequate.

Any advice would be much appreciated. It's sat with the lender now and the timing is getting a bit sticky.

@nicki_sue It's a tricky one unfortunately as the eventual outcome depends on the subjective opinion of the underwriter. 

I can't speak for your specific issue as I don't know anything about it but I'll give an example of a similar issue with the TYO (where the tax due figures don't match exactly with the SA302) and hopefully you can get something useful out of it.

The SA302 not matching TYO due to adjustments/overpayments/etc. is a much more common issue than lenders acknowledge and can arise due to a number of valid reasons. Where the underwriter (or processor) is simply refusing to accept any diff between the TYO and SA302, where I've had successes, it's from the client calling HMRC, explaining that they've having severe issues with a mortgage due to the discrepancy and getting a manual letter explaining the discrepancy, reconciling the numbers and then me packaging this evidence to the underwriter, pushing the BDM, trying to get it assigned to a senior underwriter, etc. to try and get a favourable outcome.

More often that not, it has worked but it may require a good bit of effort from yourself (getting someone to speak to at HMRC has got increasingly difficult over the recent past with all the cuts to staff numbers and customer lines), a big dollop of luck (you need them to be willing to draft a letter), time and effort from the broker and even after all that you could get an underwriter who simply isn't willing to budge.

Out of professional interest, if and when this reaches an end conclusion, It would be good if you could circle back and update us as to what happened.

I hope it gets sorted one way or the other, good luck!

Reporting back.....
Mortgage offer approved. Thank goodness! 

The lender (Leeds BS) was happy to accept the letter from the accountant plus the payment email etc instead of an updated tax year overview (as HMRC won't update it as according to them technically it's an overpayment and not being tied to the balancing payment until later in the year). They've now (apparently) closed the SA helpline until September which isn't helpful for many. Accountants aren't having much luck either so thankfully that did the trick.

Thanks for the advice. Good luck all!

Just waiting for the new build completion date now which will hopefully be August.

thehet

Bought 3 years ago for £135k. After a year I take secondment job in the US, so i rent the place out. Shortly thereafter my fixed term of circa 2.5% finished and it moved onto variable rate which now sits at 8.7% and continues to go up. It appears I cannot remortgage while it is rented out/and not a UK resident (unless going for a Expat mortgage). I have chucked some money at it whilst away, and now owe £77k with 12 years left. 

Advice on whether to pursue a possible remortgage, expat or otherwise, throw some more money at it to bring the total down some more, or both? Likely to be stateside for another couple of years. 

Thanks ya'll

K_S

Penguin_ said:

So a friend of mine went with Yorkshire Building Society & she has poor credit issues in the past. She mentioned to me that her & her partner were able to get an offer as they had 20% deposit with them & suggested I have a look.

I've plugged our numbers & information into the YBS system & they have surprisingly said they will offer us a mortgage (obviously subject to checking the information we've provided is correct etc). Are YBS more flexible with people who have had credit issues 4 years & more ago so as I've been ok for the last 3 years, should we be ok if we were to go full application?

@penguin_ I know nothing about YBS as they're a direct-only lender but if you've got a positive DIP then that's a great sign and as much assurance you can get at this stage. Hope it all goes through fine, good luck!