Mortgage broker - ask me anything

CSI_Yorkshire

machiavellie said:

Once you've accepted a mortgage offer from a lender, how likely is it they will pull out and refuse to release the funds before completion (assuming my circumstances don't change).

Completion is 8th September and just being a bit paranoid.

Extremely unlikely.  So much so that you can stop thinking about the possibility.

machiavellie

CSI_Yorkshire said:

machiavellie said:

Once you've accepted a mortgage offer from a lender, how likely is it they will pull out and refuse to release the funds before completion (assuming my circumstances don't change).

Completion is 8th September and just being a bit paranoid.

Extremely unlikely.  So much so that you can stop thinking about the possibility.

Thank you! Just last minute jitters as a solo buyer 

Bggg

Hi there,
Im not sure if you can answer this or not but we've applied for a mortgage and its gone to the underwriters and we should hear back tomorrow with an answer. But i've had an email from Clearscore saying a new financial association has been added to your report with my partner (joint mortgage application).

Can i consider this a positive sign? obviously don't want to get ahead of myself!

mothership03

Due to complete in 2 days. On mortgage offer from Kensington, it said we had to pay off £400 of credit card debt within 28 days of completion. We have since used the credit card up to about £800 (only 5% of available credit) and then paid off in full. I'm panicking that if they do a final credit check, the CRAs still show an increase. Could this be an issue that would stop completion or if they query it would they accept us being able to show we've paid off in full? Panicking now! 

K_S

machiavellie said:

Once you've accepted a mortgage offer from a lender, how likely is it they will pull out and refuse to release the funds before completion (assuming my circumstances don't change).

Completion is 8th September and just being a bit paranoid.

@machiavellie There are only a few reasons why a mainstream lender would reconsider/reassess an offer between offer and completion. The main ones are -
- suspicion of application fraud (incorrect information supplied on the application)
- material change in applicant's circumstances (credit history, debt levels, income type, job status, etc.)
- new information coming to light which makes a material difference (eg: solicitor reporting unacceptable lease terms)

So there's nothing to worry about for the vast majority of applications, they complete as expected. Even at the height of the Truss mortgage volatility, I haven't heard of a single instance in which a mainstream mortgage lender withdrew an offer because rates had jumped significantly between offer and completion.

K_S

Bggg said:

Hi there,
Im not sure if you can answer this or not but we've applied for a mortgage and its gone to the underwriters and we should hear back tomorrow with an answer. But i've had an email from Clearscore saying a new financial association has been added to your report with my partner (joint mortgage application).

Can i consider this a positive sign? obviously don't want to get ahead of myself!

@bggg A financial-association is made when a joint application for credit is submitted. So this indicates that the mortgage application has been submitted.

K_S

mothership03 said:

Due to complete in 2 days. On mortgage offer from Kensington, it said we had to pay off £400 of credit card debt within 28 days of completion. We have since used the credit card up to about £800 (only 5% of available credit) and then paid off in full. I'm panicking that if they do a final credit check, the CRAs still show an increase. Could this be an issue that would stop completion or if they query it would they accept us being able to show we've paid off in full? Panicking now! 

@mothership03 Given that you've paid it off in full and can evidence that if needed, I doubt it'll be an issue even if it comes up.

Off of the top of my head, Kensington looks at Equifax, so whatever you see on your Clearscore report is what they see as well.

mothership03

K_S said:

mothership03 said:

Due to complete in 2 days. On mortgage offer from Kensington, it said we had to pay off £400 of credit card debt within 28 days of completion. We have since used the credit card up to about £800 (only 5% of available credit) and then paid off in full. I'm panicking that if they do a final credit check, the CRAs still show an increase. Could this be an issue that would stop completion or if they query it would they accept us being able to show we've paid off in full? Panicking now! 

@mothership03 Given that you've paid it off in full and can evidence that if needed, I doubt it'll be an issue even if it comes up.

Off of the top of my head, Kensington looks at Equifax, so whatever you see on your Clearscore report is what they see as well.

Thank you so much for answering. I can't believe how stressful the whole process has been! 

philng

Would going interest only for 12 months affect looking for a new lender in 12 months time? Considering going Interest Only with an additional monthly sum on top. Reason is restriction on current term to 16 years due to age of parent on mortgage who can be removed in 12 months time.

machiavellie

K_S said:

machiavellie said:

Once you've accepted a mortgage offer from a lender, how likely is it they will pull out and refuse to release the funds before completion (assuming my circumstances don't change).

Completion is 8th September and just being a bit paranoid.

@machiavellie There are only a few reasons why a mainstream lender would reconsider/reassess an offer between offer and completion. The main ones are -
- suspicion of application fraud (incorrect information supplied on the application)
- material change in applicant's circumstances (credit history, debt levels, income type, job status, etc.)
- new information coming to light which makes a material difference (eg: solicitor reporting unacceptable lease terms)

So there's nothing to worry about for the vast majority of applications, they complete as expected. Even at the height of the Truss mortgage volatility, I haven't heard of a single instance in which a mainstream mortgage lender withdrew an offer because rates had jumped significantly between offer and completion.

Thanks! I'm pretty clear of all those thankfully, if anything I might be looking at a pay increase soon so that would be nice