Mortgage broker - ask me anything

ftbLondon90

Hi,

Wondering if you can answer my query...

I am a first time buyer hoping to buy in London. I have found a flat that I like and have a mortgage in principle and a 5% deposit saved and ready to go. My credit history is fine and I have a good and stable credit score. However, I don't currently live in London and I don't start my new job until September. The job is the same role but just in a new city. I have a letter from my employer confirming my employment start date and salary. So my question is, is it possible to get a mortgage before starting a new job? I have a meeting with my advisor early next week but thought I'd ask on here first.

Thanks in advance!

K_S

@ftblondon90

Short answer, yet it is indeed possible.

Based solely on the issue of the new role/job:

If it's a new role in London with the same employer - plenty of mainstream lenders will consider with some form of employer confirmation 

If it's a new job in London with a different employer - a handful of lenders will consider based on new employment contract starting soon

Don't stress too much about how many mainstream lenders you can access. Generally speaking, whether you are able to access 2 mainstream lenders or 10 won't make a huge difference on rate as it'll still be pretty competitive.

ftbLondon90 said:

Hi,

Wondering if you can answer my query...

I am a first time buyer hoping to buy in London. I have found a flat that I like and have a mortgage in principle and a 5% deposit saved and ready to go. My credit history is fine and I have a good and stable credit score. However, I don't currently live in London and I don't start my new job until September. The job is the same role but just in a new city. I have a letter from my employer confirming my employment start date and salary. So my question is, is it possible to get a mortgage before starting a new job? I have a meeting with my advisor early next week but thought I'd ask on here first.

Thanks in advance!

ftbLondon90

K_S said:

@ftblondon90

Short answer, yet it is indeed possible.

Based solely on the issue of the new role/job:

If it's a new role in London with the same employer - plenty of mainstream lenders will consider with some form of employer confirmation 

If it's a new job in London with a different employer - a handful of lenders will consider based on new employment contract starting soon

Don't stress too much about how many mainstream lenders you can access. Generally speaking, whether you are able to access 2 mainstream lenders or 10 won't make a huge difference on rate as it'll still be pretty competitive.

ftbLondon90 said:

Hi,

Wondering if you can answer my query...

I am a first time buyer hoping to buy in London. I have found a flat that I like and have a mortgage in principle and a 5% deposit saved and ready to go. My credit history is fine and I have a good and stable credit score. However, I don't currently live in London and I don't start my new job until September. The job is the same role but just in a new city. I have a letter from my employer confirming my employment start date and salary. So my question is, is it possible to get a mortgage before starting a new job? I have a meeting with my advisor early next week but thought I'd ask on here first.

Thanks in advance!

Thanks, puts my mind at ease slightly. I am a primary school teacher. It's a new school, so a different employer.

curtis122

In the next 6/8 months we will be looking at remortgaging our BTL as the fixed term ends June next year and want to release some of the equity that's built up in it also. We are putting our main residence on the market next year and we will then be looking for our new home but expecting to end up renting for a while as where we want to move to the type of properties we are looking for come up few and far between. 

As we have to remortgage next year we want to then get the extra funding at the same time and we want to secure the extra money before we put our house on the market so therefore we know our budget and what we can offer when any new properties do come up.

My question is do all lenders require evidence of what you are using the extra money for? I know they need to know why you want the extra funding but when we went to remortgage with Metro last year through a financial adviser tr try and take advantage of the lower rate, despite making it very clear the situation, that we needed the money to use in the near future, Metro wanted to know the address of the property we were moving to and if not we would have to provide one within 6 months. In our situation obviously we can't do this. The remortgage fell through and we were not happy at all given the FA messed up.

We are currently with Coventry and ideally (although it may depend nearer the time) are looking at staying and remortgaging with them as the process is just easier. I've looked on their website and can't see anything obvious about this other than stating reasons they will consider the loan.

Ibits4321

The fixed rate deal on my BTL mortgage ends 31/12/23 and I have a mortgage offer from a different mortgage provider in place to start when the deal ends. The new mortgage provider is paying for conveyancing and the conveyancers want me to sign the mortgage deed now.

I'm a bit concerned about this because I've followed advice on this board to get an offer in place as soon as you can because of the increasing rates, but was hoping I would have the option to pull out if rates by some miracle go down. It is such a volatile time in the economy that a lot can happen in five months!

My question is: "if I sign the deed does it mean I can no longer pull out if mortgage rates go down?" 

K_S

@curtis122 If you want to do a capital raise remo and use the released cash towards the purchase of a residential property - most lenders are ok with this in principle but generally speaking will fall into one of the following buckets -

- need simultaneous completion

- need evidence of purchase, memo of sale, etc.

- will release funds to you and you can buy at some indeterminate point of time in the future.

You need a lender that falls in the last bucket. So make sure you mention that clearly to your broker at the outset. If it's one of the volume brokers (L&C, etc.) make sure you spell it out clearly as they might not necessarily know/investigate the detail.

curtis122 said:

In the next 6/8 months we will be looking at remortgaging our BTL as the fixed term ends June next year and want to release some of the equity that's built up in it also. We are putting our main residence on the market next year and we will then be looking for our new home but expecting to end up renting for a while as where we want to move to the type of properties we are looking for come up few and far between. 

As we have to remortgage next year we want to then get the extra funding at the same time and we want to secure the extra money before we put our house on the market so therefore we know our budget and what we can offer when any new properties do come up.

My question is do all lenders require evidence of what you are using the extra money for? I know they need to know why you want the extra funding but when we went to remortgage with Metro last year through a financial adviser tr try and take advantage of the lower rate, despite making it very clear the situation, that we needed the money to use in the near future, Metro wanted to know the address of the property we were moving to and if not we would have to provide one within 6 months. In our situation obviously we can't do this. The remortgage fell through and we were not happy at all given the FA messed up.

We are currently with Coventry and ideally (although it may depend nearer the time) are looking at staying and remortgaging with them as the process is just easier. I've looked on their website and can't see anything obvious about this other than stating reasons they will consider the loan.

K_S

@ibits4321 I can't speak for your specific case but generally speaking, whether the applicant signs a mortgage deed or not, they should be able to pull out from a remortgage at any point until completion. If you want to be sure, then just consider holding on to the deed until 6-7 weeks before completion. That gives you enough time to be sure that you want to proceed and sufficient time for the completion to proceed on time.

Ibits4321 said:

The fixed rate deal on my BTL mortgage ends 31/12/23 and I have a mortgage offer from a different mortgage provider in place to start when the deal ends. The new mortgage provider is paying for conveyancing and the conveyancers want me to sign the mortgage deed now.

I'm a bit concerned about this because I've followed advice on this board to get an offer in place as soon as you can because of the increasing rates, but was hoping I would have the option to pull out if rates by some miracle go down. It is such a volatile time in the economy that a lot can happen in five months!

My question is: "if I sign the deed does it mean I can no longer pull out if mortgage rates go down?" 

Ibits4321

K_S said:

@ibits4321 I can't speak for your specific case but generally speaking, whether the applicant signs a mortgage deed or not, they should be able to pull out from a remortgage at any point until completion. If you want to be sure, then just consider holding on to the deed until 6-7 weeks before completion. That gives you enough time to be sure that you want to proceed and sufficient time for the completion to proceed on time.

Ibits4321 said:

The fixed rate deal on my BTL mortgage ends 31/12/23 and I have a mortgage offer from a different mortgage provider in place to start when the deal ends. The new mortgage provider is paying for conveyancing and the conveyancers want me to sign the mortgage deed now.

I'm a bit concerned about this because I've followed advice on this board to get an offer in place as soon as you can because of the increasing rates, but was hoping I would have the option to pull out if rates by some miracle go down. It is such a volatile time in the economy that a lot can happen in five months!

My question is: "if I sign the deed does it mean I can no longer pull out if mortgage rates go down?" 

It's amazing how you give your time on this thread. And very much appreciated 😊

curtis122

Thank you for your time to reply. Can I also confirm what exactly is meant by 'Further advance' I understand its getting more money but is it counted as a 'further advance' if your asking for more on an existing mortgage? If your fixed deal is coming to an end and you need to then look to arrange to move\setup to another product and at that point aswell want to take a bigger loan to use some of the equity, is that then classed as a 'new mortgage'. 

The reason I ask is one lender for a further advance had different requirements for having it. The LTV could be up to and no more 50% for further advances.

K_S

@curtis122

Staying with the current lender - Further advance or additional borrowing usually means taking out extra borrowing against your property from your current lender. You usually end up with 2 mortgage parts - your original mortgage and the new loan.

Remortgage (moving to a new lender) - you can either do a like-for-like remortgage, so there’s no change in loan size. Or you can do a capital-raise remortgage which involves taking a loan that is larger than your existing mortgage with the current lender.

The criteria for each of these - FA (with or without a product-switch with the same lender), like-for-like remo and capital raise remo can be different.

If the 50% LTV cap is overall (current loan plus extra cash), it seems pretty low. Lenders will have overall LTV caps on FAs or capital raise remos, but it’s usually at least 70-75% LTV so I would recommend checking to make sure that it is indeed correct.

curtis122 said:

Thank you for your time to reply. Can I also confirm what exactly is meant by 'Further advance' I understand its getting more money but is it counted as a 'further advance' if your asking for more on an existing mortgage? If your fixed deal is coming to an end and you need to then look to arrange to move\setup to another product and at that point aswell want to take a bigger loan to use some of the equity, is that then classed as a 'new mortgage'. 

The reason I ask is one lender for a further advance had different requirements for having it. The LTV could be up to and no more 50% for further advances.