Mortgage broker - ask me anything

K_S

VNX said:

Have just read many lenders don’t offer many mortgage of under 50k is this true? My loan amount will be under 50k at remortgage 

thank you 

@VNX

Remortgages (changing lenders) - Different lenders have different minimum loan size thresholds, usually 100k - 75k - 50k and 25k.

Product switch (staying with the same lender) - the thresholds are usually much lower, as low as £5,000

london21

How are people coping.

My 2 years fix ending 02/2024 and virgin money allow new deal within 4 months. They have said can fix without a charge 4th October. That is 2 more increases by the BOE before then.

I have about £284k outstanding 26 years, currently pay £1110.

Checking Virgin rates today already about 5.29% 5 years fix  £1,677 per month. Already 51% increase.

Will the banks allow residential mortgage to be interest only temporarily? I could increase the tern of the mortgage to maybe 30 years but that will only bring it down a bit. 

Now feeling slightly annoyed not paying the £4500 ERC to fix earlier. Virgin charge 1.5% ERC

K_S

homesaver234 said:

Have you found any way to get Nationwide or Barclays to honour their comittment to provide the new Mortgage Charter switch to interest-only?

Both have refused me. Nationwide even denied it has agreed to the charter, saying the Govt. info that it has agreed is wrong!

@homesaver234 Nationwide's update on the Mortgage Charter, it was sent out today to brokers and full details are on their consumer website here 

silvercar

K_S said:

homesaver234 said:

Have you found any way to get Nationwide or Barclays to honour their comittment to provide the new Mortgage Charter switch to interest-only?

Both have refused me. Nationwide even denied it has agreed to the charter, saying the Govt. info that it has agreed is wrong!

@homesaver234 Nationwide's update on the Mortgage Charter, it was sent out today to brokers and full details are on their consumer website here 

Surely 1, 2 and 4 are nothing new. 5 would have happened by default anyway given that customers would always had a few months before the lender resorted to repossession and the legal processes would have taken another few months. So the new item is 3, with 6 coming soon.

K_S

@silvercar

1 - nothing new with mainstream lenders, though yet to be seen if PT eligibility criteria (eg: no recent/current arrears on the mortgage) will be loosened 

2 - There are lenders with 3-4 months product switch window, so if that extends to 6 months, that's an improvement for those borrowers

3 - the devil lies in the detail. If this involves an affordability check then it's similar to what it is now, though some lenders already extend to stated retirement age or 70 without full underwriting. If it a more blanket policy (eg: extend to lower of stated retirement age and 70 without full underwriting ) then it's an improvement

4 - as it is now

5 - not likely to mean anything in practice

6 - definitely a big change and from what I've heard it looks like it will be something like a PT, you go on the website, click the option and it's done.

silvercar said:

K_S said:

homesaver234 said:

Have you found any way to get Nationwide or Barclays to honour their comittment to provide the new Mortgage Charter switch to interest-only?

Both have refused me. Nationwide even denied it has agreed to the charter, saying the Govt. info that it has agreed is wrong!

@homesaver234 Nationwide's update on the Mortgage Charter, it was sent out today to brokers and full details are on their consumer website here 

Surely 1, 2 and 4 are nothing new. 5 would have happened by default anyway given that customers would always had a few months before the lender resorted to repossession and the legal processes would have taken another few months. So the new item is 3, with 6 coming soon.

Natztastic2

Hi,

My fixed mortgage deal came to an end in October 2022 and every month since I've received a letter to say the monthly cost is increasing in line with current rates.

Since we took out the mortgage I work less hours and have more debt. Never missed any payments on anything though, just in a slightly worse situation financially.

If I go with my current mortgage provider and sign up to one of their fixed rate deals, is there anyway it can be rejected?

I am throwing away money every month by being on a variable rate but I am worried I will be rejected for some reason and then I won't have a mortgage at all, is this possible? Or if they reject me would I just stay on the variable rate for the foreseeable?

Sorry for the complicated question!

It is a shared ownership mortgage with LBS if it makes any odds.

Thanks so much

VNX

K_S said:

VNX said:

Have just read many lenders don’t offer many mortgage of under 50k is this true? My loan amount will be under 50k at remortgage 

thank you 

@VNX

Remortgages (changing lenders) - Different lenders have different minimum loan size thresholds, usually 100k - 75k - 50k and 25k.

Product switch (staying with the same lender) - the thresholds are usually much lower, as low as £5,000

Thank you for your reply, I may have around 20k left next remortgage so I really appreciate this information 

turtletowers

I’ve separated from my husband. He has moved to a rental property for 3 months while we sort out long term logistics. 
He wants to buy me out of the family home, but in order to obtain a mortgage I will be relying on work income, Universal Credit and child maintenance payments from him.

Until we have finalised the sale of the house to him, he has agreed to keep paying the share of the family bills as normal (he wants us to take the rental costs out of overall equity eventually) 
Therefore I have not yet made a claim of any benefits nor is he specifically transferring maintenance payments to me.  

My question is - How flexible are lenders about offering an agreement in principle when a Universal Credit claim is not yet processed or maintenance payments have been agreed but not yet commenced? 

It feels like in order to get a head start on the process I would need to sever financial ties with him sooner and claim benefits but that feels wrong when we don’t need the benefit yet as we have the agreement that he will continue to contribute to the mortgage and bills until ownership and equity are transferred. 

I want to be viewing properties but feel I will be misleading vendors if I need to wait 3 months post equity release to be approved for a mortgage. 

Fkhan95

Hi,

I wanted to know if accord mortgages accept DLA (in name of child) as a source of income.

Also, are there any additional barriers to their boost LTI (upto 5.5 I believe?) apart from the >60k income requirement? 

Thanks 

K_S

Natztastic2 said:

Hi,

My fixed mortgage deal came to an end in October 2022 and every month since I've received a letter to say the monthly cost is increasing in line with current rates.

Since we took out the mortgage I work less hours and have more debt. Never missed any payments on anything though, just in a slightly worse situation financially.

If I go with my current mortgage provider and sign up to one of their fixed rate deals, is there anyway it can be rejected?

I am throwing away money every month by being on a variable rate but I am worried I will be rejected for some reason and then I won't have a mortgage at all, is this possible? Or if they reject me would I just stay on the variable rate for the foreseeable?

Sorry for the complicated question!

It is a shared ownership mortgage with LBS if it makes any odds.

Thanks so much

@natztastic2 Staying with Leeds, not borrowing any more or changing your term, you should be able to switch to a fix irrespective of your income status, credit history, etc. as it normally involves no underwriting or affordability assessment. It should very easy to do on the Leeds online portal.

I can't think of any reason why but if it got declined all that would happen is you would continue in the position that you are in now, so you're no worse off.