Mortgage broker - ask me anything

s_frenchie91

 have 3 sub accounts on my mortgage: the first expires end of Jan 2024, the second end of April 2024 and the third end of May 2024. 
I want to remortgage all three into one with a new lender as soon as possible, as the predictions show the base rate is due to peak early 2024 which is terrible timing for me.
My question is, can I get an agreement in principle now with a new lender (as it is 6 months before the first sub account expires) and add the ERC for the other two sub accounts onto the new mortgage?
Thanks

K_S

@s_frenchie91 Yes, subject to criteria and affordability, many lenders will allow you to do a capital raise remortgage to pay off ERC for the current lender.

An AIP/DIP will not secure the rate with the vast majority of lenders, only a full application will.

s_frenchie91 said:

 have 3 sub accounts on my mortgage: the first expires end of Jan 2024, the second end of April 2024 and the third end of May 2024. 
I want to remortgage all three into one with a new lender as soon as possible, as the predictions show the base rate is due to peak early 2024 which is terrible timing for me.
My question is, can I get an agreement in principle now with a new lender (as it is 6 months before the first sub account expires) and add the ERC for the other two sub accounts onto the new mortgage?
Thanks

E0991

I am looking to buy my own place soon and I've been living with my parents for around a year and haven't been paying rent. This is obviously allowing me to save much more for a deposit but would this be an issue when applying for a mortgage and would it be better to have these monthly outgoings? 

Pinkbear2023

Hi,

My husband is wanting to put me on the mortgage as it’s up for renewal, he’s going with a different lender. For the last 4 years he has been the only one paying the mortgage, it’s solely been in his name.

I should’ve prefaced this by saying he only mentioned on Friday morning that he wanted me to go on the mortgage, it was kind of sprung on me so I’ve had no chance to prepare and I’ve never had a mortgage before. 

He earns £80k, the current mortgage is £240,000. 

I earn £25k but am currently on maternity leave.

The lenders have asked me for for last month’s payslip, I don’t have one as I’m currently in my 3 months of no pay (I took the full 12 months and only got paid for 9 as it was statutory Mat pay) should I contact my employer or ask if they’ll accept my last full payslip? 

They have also asked for bank statements from me. My current account is healthy enough, I’m not in an overdraft and always have at least £600 sitting in it. However, I have been a bit ‘spendy’ the last few months.

I have another debit card from another bank that I use to pay for all my online spends etc (no idea why, just laziness as it was the card details that were on my phone) so I just transfer money over as I need to to the other account. I also bent my current account bank card at soft play back in March and never got round to ordering another one so again, I’ve been using the card from my other account to withdraw cash if needed (as the other one is so bent I can’t get it into a cash point) and also to pay for some stuff on contactless as the contactless bit doesn’t work on my broken card either 😳 so in a nutshell there’s about £400 worth of money transfers to my other account each month. Sometimes 3-4 a day of different amounts. Will that look dodgy? Will it look like I’m money laundering or something?! Will they want to go through every single transaction?

I just wish we’d sat down and discussed me going onto the mortgage properly a few months back and I’d feel a lot more prepared to have my finances scrutinised!

Any help appreciated! 

gih

Probably a daft question, but do any lenders allow you to spread out your borrowing over multiple products when taking out a mortgage or remortgaging? For example, when remortgaging 100k, put 70k on a 2 year fix and 30k on a 5 year fix, to hedge your bets a bit. 

We've ended up on two products by virtue of porting and borrowing more when moving house, and I like the fact the two products have different lengths and end dates (reduces the risk of remortgaging the lot at a time when rates are peaking, and we can focus all overpayments on the product with the higher rate). But is it possible to go from one product to two products during a normal remortgage?

Mangojambo

Hi - I’m really worried. I haven’t had time to sort out my bank statements before myself and partner decided to bite the bullet and move. We’re going with Mansfield BS and already had an underwriter go through my credit file who asked about certain things before agreeing a MIP. They want 3 bank statements and on 2 out of 3 I have went into an unarranged overdraft only because my bank adds the interest charges from my arranged overdraft right before I’m paid again (this is the only thing that makes me go over and it’s by no more than £15). I’ve already had the bank change this going forward. Not only that but a DD for my internet rejected too as it was set to the wrong time of the month(also sorted going forward). Extremely worried this is going to stop us from getting approved as we’re selling as well as buying. Has anyone had any experience in having a mortgage approved with this or have any experience in how Mansfield will view it? 

K_S

E0991 said:

I am looking to buy my own place soon and I've been living with my parents for around a year and haven't been paying rent. This is obviously allowing me to save much more for a deposit but would this be an issue when applying for a mortgage and would it be better to have these monthly outgoings? 

@e0991 Whether you live at your parents with zero rent and utilities or on your own with rent and utilities, that shouldn’t make any significant impact on your mortgage application.

K_S

@Pinkbear2023 If you’re on mat leave, most lenders will consider your return to work pay. So if you intend to go back to work full time on x date on the same pre-mat salary, that’s what the lender will use.

With respect to evidence, different lenders will ask for different things, so just provide whatever the broker or lender asks for. If that’s not sufficient, they’ll simply ask for more.

Pinkbear2023 said:

Hi,

My husband is wanting to put me on the mortgage as it’s up for renewal, he’s going with a different lender. For the last 4 years he has been the only one paying the mortgage, it’s solely been in his name.

I should’ve prefaced this by saying he only mentioned on Friday morning that he wanted me to go on the mortgage, it was kind of sprung on me so I’ve had no chance to prepare and I’ve never had a mortgage before. 

He earns £80k, the current mortgage is £240,000. 

I earn £25k but am currently on maternity leave.

The lenders have asked me for for last month’s payslip, I don’t have one as I’m currently in my 3 months of no pay (I took the full 12 months and only got paid for 9 as it was statutory Mat pay) should I contact my employer or ask if they’ll accept my last full payslip? 

They have also asked for bank statements from me. My current account is healthy enough, I’m not in an overdraft and always have at least £600 sitting in it. However, I have been a bit ‘spendy’ the last few months.

I have another debit card from another bank that I use to pay for all my online spends etc (no idea why, just laziness as it was the card details that were on my phone) so I just transfer money over as I need to to the other account. I also bent my current account bank card at soft play back in March and never got round to ordering another one so again, I’ve been using the card from my other account to withdraw cash if needed (as the other one is so bent I can’t get it into a cash point) and also to pay for some stuff on contactless as the contactless bit doesn’t work on my broken card either 😳 so in a nutshell there’s about £400 worth of money transfers to my other account each month. Sometimes 3-4 a day of different amounts. Will that look dodgy? Will it look like I’m money laundering or something?! Will they want to go through every single transaction?

I just wish we’d sat down and discussed me going onto the mortgage properly a few months back and I’d feel a lot more prepared to have my finances scrutinised!

Any help appreciated! 

K_S

gih said:

Probably a daft question, but do any lenders allow you to spread out your borrowing over multiple products when taking out a mortgage or remortgaging? For example, when remortgaging 100k, put 70k on a 2 year fix and 30k on a 5 year fix, to hedge your bets a bit. 

We've ended up on two products by virtue of porting and borrowing more when moving house, and I like the fact the two products have different lengths and end dates (reduces the risk of remortgaging the lot at a time when rates are peaking, and we can focus all overpayments on the product with the higher rate). But is it possible to go from one product to two products during a normal remortgage?

@gih Not that I’m aware of.

K_S

@mangojambo It’s not ideal but what’s done is done.

Mansfield versatility underwriting is quite common sense, so hopefully it won’t be an issue. Good luck!

Mangojambo said:

Hi - I’m really worried. I haven’t had time to sort out my bank statements before myself and partner decided to bite the bullet and move. We’re going with Mansfield BS and already had an underwriter go through my credit file who asked about certain things before agreeing a MIP. They want 3 bank statements and on 2 out of 3 I have went into an unarranged overdraft only because my bank adds the interest charges from my arranged overdraft right before I’m paid again (this is the only thing that makes me go over and it’s by no more than £15). I’ve already had the bank change this going forward. Not only that but a DD for my internet rejected too as it was set to the wrong time of the month(also sorted going forward). Extremely worried this is going to stop us from getting approved as we’re selling as well as buying. Has anyone had any experience in having a mortgage approved with this or have any experience in how Mansfield will view it?