Mortgage broker - ask me anything

theonenonly

K_S said:

GoingOn30 said:

Current 3yr fix ends in June 24 but we're facing increasing costs that will impact ability to meet repayments this winter. 

We're looking at asking for a term extension under the mortgage charter to help make repayments affordable in the short term. 
Are there any downsides I may not have considered? I know its more interest to pay overall (but we will have to extend term anyway when current fix ends next June as we will lose our lovely 1.95% rate). Lenders says no impact to my credit file. 

We are both 33 and current term with our existing mortgage is 27 years. 
The alternative is putting more of our spending on interest free credit card in the short to medium term. 
Any thoughts?

@goingon30 Stretching the term to its max is definitely an option to consider when cashflow is tight and it's likely to result in a noticeably smaller monthly payment given that your current term is only up to 60.

I don't know which lender you're with but as long as you have a corresponding intended retirement age, lenders will range from 70-80 for max term so if you're in a desk based job and with someone like Barclays, HSBC, Nationwide, NatWest, you could potentially stretch to a 40 year term.

Other than the obvious impact from taking longer to pay off the mortgage (assuming you don't make any overpayments) there aren't any credit file implications.

And if stretching the term will give you some breathing space, I wouldn't stress too much about the longer term as how much you'll pay in interest is still fully within your control.
https://www.moneysavingexpert.com/news/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers

How do you ask for this when completing an online DIP? Even when speaking to my broker at LandC, I mentioned I'm a civil servant so I intend to work beyond retirement as I'm desk based, and we get supposedly a good pension that's viewed favourably- all I got from the broker was "computer says no" type response, he can only tell me what I can get based off what his computer says. 

K_S

theonenonly said:

K_S said:

GoingOn30 said:

Current 3yr fix ends in June 24 but we're facing increasing costs that will impact ability to meet repayments this winter. 

We're looking at asking for a term extension under the mortgage charter to help make repayments affordable in the short term. 
Are there any downsides I may not have considered? I know its more interest to pay overall (but we will have to extend term anyway when current fix ends next June as we will lose our lovely 1.95% rate). Lenders says no impact to my credit file. 

We are both 33 and current term with our existing mortgage is 27 years. 
The alternative is putting more of our spending on interest free credit card in the short to medium term. 
Any thoughts?

@goingon30 Stretching the term to its max is definitely an option to consider when cashflow is tight and it's likely to result in a noticeably smaller monthly payment given that your current term is only up to 60.

I don't know which lender you're with but as long as you have a corresponding intended retirement age, lenders will range from 70-80 for max term so if you're in a desk based job and with someone like Barclays, HSBC, Nationwide, NatWest, you could potentially stretch to a 40 year term.

Other than the obvious impact from taking longer to pay off the mortgage (assuming you don't make any overpayments) there aren't any credit file implications.

And if stretching the term will give you some breathing space, I wouldn't stress too much about the longer term as how much you'll pay in interest is still fully within your control.
https://www.moneysavingexpert.com/news/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers

How do you ask for this when completing an online DIP? Even when speaking to my broker at LandC, I mentioned I'm a civil servant so I intend to work beyond retirement as I'm desk based, and we get supposedly a good pension that's viewed favourably- all I got from the broker was "computer says no" type response, he can only tell me what I can get based off what his computer says. 

@theonenonly I'm not sure I understand the question but the maximum term (based on current employment income) for a lender DIP will be based on the following - your current age / years to retirement, your intended retirement age, lender's policy on maximum retirement age, lender's policy on maximum age at end of term, lender's policy and evidence requirements for lending-into-retirement.

For example, Nationwide has a max retirement age of 70 BUT (assuming you are more than 10 years from retirement) will lend to 75 based on current employment income as long as there is evidence of pension payments (payslip).

Otoh, Accord has a max retirement age of 80 and will consider a term to 80 based on current employment income as long as it is plausible for the applicant to work until 80, which usually means a desk-based role.

In the above scenario, whether your pension is a career-average DB or a DC pension, what the projected pension is, etc. is unlikely to make a difference one way or the other.

Bigphil1474

I was wondering if there's a minimum amount you can get for a mortgage?

We are selling our house (no mortgage) and have some inherited cash to add for a new bigger better more suitable for us property, and have some separate savings to use for costs. Our house is due to go onto market this week. We've looked online and have a shortlist for viewing once we get offers on ours, and I'm sure that list will change. However, we want to move up the ladder basically. The houses we are looking at are all in budget mortgage free if we achieve our marketing price, but many have seen reductions presumably due to lack of interest so not sure if there will be much room for offering below if we don't. Potentially there might be a £15-20k shortfall - would we still be able to get a mortgage for that amount? I'm early 50's and would look to pay over 15 years ish - affordability isn't an issue.

K_S

@Bigphil1474 There are multiple mainstream lenders that have a minimum 25k loan size for purchase mortgages. Off of the top of my head I can’t think of any that go below that, but there might be.

But for 15-20k, unless you absolutely need a 15 year term, you’d probably be better off overall getting a personal loan and paying it off as soon as you can, rather than taking out a mortgage.

Bigphil1474 said:

I was wondering if there's a minimum amount you can get for a mortgage?

We are selling our house (no mortgage) and have some inherited cash to add for a new bigger better more suitable for us property, and have some separate savings to use for costs. Our house is due to go onto market this week. We've looked online and have a shortlist for viewing once we get offers on ours, and I'm sure that list will change. However, we want to move up the ladder basically. The houses we are looking at are all in budget mortgage free if we achieve our marketing price, but many have seen reductions presumably due to lack of interest so not sure if there will be much room for offering below if we don't. Potentially there might be a £15-20k shortfall - would we still be able to get a mortgage for that amount? I'm early 50's and would look to pay over 15 years ish - affordability isn't an issue.

kingstreet

Santander, as an example, has products with a £6k minimum loan size.

theonenonly

K_S said:

theonenonly said:

K_S said:

GoingOn30 said:

Current 3yr fix ends in June 24 but we're facing increasing costs that will impact ability to meet repayments this winter. 

We're looking at asking for a term extension under the mortgage charter to help make repayments affordable in the short term. 
Are there any downsides I may not have considered? I know its more interest to pay overall (but we will have to extend term anyway when current fix ends next June as we will lose our lovely 1.95% rate). Lenders says no impact to my credit file. 

We are both 33 and current term with our existing mortgage is 27 years. 
The alternative is putting more of our spending on interest free credit card in the short to medium term. 
Any thoughts?

@goingon30 Stretching the term to its max is definitely an option to consider when cashflow is tight and it's likely to result in a noticeably smaller monthly payment given that your current term is only up to 60.

I don't know which lender you're with but as long as you have a corresponding intended retirement age, lenders will range from 70-80 for max term so if you're in a desk based job and with someone like Barclays, HSBC, Nationwide, NatWest, you could potentially stretch to a 40 year term.

Other than the obvious impact from taking longer to pay off the mortgage (assuming you don't make any overpayments) there aren't any credit file implications.

And if stretching the term will give you some breathing space, I wouldn't stress too much about the longer term as how much you'll pay in interest is still fully within your control.
https://www.moneysavingexpert.com/news/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers

How do you ask for this when completing an online DIP? Even when speaking to my broker at LandC, I mentioned I'm a civil servant so I intend to work beyond retirement as I'm desk based, and we get supposedly a good pension that's viewed favourably- all I got from the broker was "computer says no" type response, he can only tell me what I can get based off what his computer says. 

@theonenonly I'm not sure I understand the question but the maximum term (based on current employment income) for a lender DIP will be based on the following - your current age / years to retirement, your intended retirement age, lender's policy on maximum retirement age, lender's policy on maximum age at end of term, lender's policy and evidence requirements for lending-into-retirement.

For example, Nationwide has a max retirement age of 70 BUT (assuming you are more than 10 years from retirement) will lend to 75 based on current employment income as long as there is evidence of pension payments (payslip).

Otoh, Accord has a max retirement age of 80 and will consider a term to 80 based on current employment income as long as it is plausible for the applicant to work until 80, which usually means a desk-based role.

In the above scenario, whether your pension is a career-average DB or a DC pension, what the projected pension is, etc. is unlikely to make a difference one way or the other.

Sorry, what I meant was, how does one access these products where they consider longer retirement ages based on your occupation? I've spoken to 2 brokers (LandC and Habito) and both advisors produced generic products rather than offering products which consider my job factor, thus allowing me to borrow for longer

K_S

@theoneonly What exactly is it that you want to do? I suspect the brokers you’ve spoken to might be misunderstanding what you’re trying to achieve.

With respect to the mainstream lenders that I’ve named, there are no special products, every product they offer can potentially lend up to the max term possible. And every whole of market broker (including those you have spoken to) will have access to the vast majority of those lenders. And so will you if you went direct to most of those high street lenders.

If a 39 year old self-employed sole-trader eBay electronics trader came to me and said he wants a mortgage with a 40 year term, and he intends to work to 80, I’d probably be able to place him with one of HSBC, Barclays, Accord, etc. because those lenders will consider terms up to 80 and retirement ages up to 80, and it is plausible for him to carry on his trade until that age. Nothing special about the specific product, it’s as per the lender’s policy and the applicant’s circumstances.

If it was a 39 year old SEO at HMRC/DWP (or a Finance Officer at a small charity) with an intended retirement age of 80, it’d be a similar approach.

theonenonly said:

K_S said:

theonenonly said:

K_S said:

GoingOn30 said:

Current 3yr fix ends in June 24 but we're facing increasing costs that will impact ability to meet repayments this winter. 

We're looking at asking for a term extension under the mortgage charter to help make repayments affordable in the short term. 
Are there any downsides I may not have considered? I know its more interest to pay overall (but we will have to extend term anyway when current fix ends next June as we will lose our lovely 1.95% rate). Lenders says no impact to my credit file. 

We are both 33 and current term with our existing mortgage is 27 years. 
The alternative is putting more of our spending on interest free credit card in the short to medium term. 
Any thoughts?

@goingon30 Stretching the term to its max is definitely an option to consider when cashflow is tight and it's likely to result in a noticeably smaller monthly payment given that your current term is only up to 60.

I don't know which lender you're with but as long as you have a corresponding intended retirement age, lenders will range from 70-80 for max term so if you're in a desk based job and with someone like Barclays, HSBC, Nationwide, NatWest, you could potentially stretch to a 40 year term.

Other than the obvious impact from taking longer to pay off the mortgage (assuming you don't make any overpayments) there aren't any credit file implications.

And if stretching the term will give you some breathing space, I wouldn't stress too much about the longer term as how much you'll pay in interest is still fully within your control.
https://www.moneysavingexpert.com/news/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers

How do you ask for this when completing an online DIP? Even when speaking to my broker at LandC, I mentioned I'm a civil servant so I intend to work beyond retirement as I'm desk based, and we get supposedly a good pension that's viewed favourably- all I got from the broker was "computer says no" type response, he can only tell me what I can get based off what his computer says. 

@theonenonly I'm not sure I understand the question but the maximum term (based on current employment income) for a lender DIP will be based on the following - your current age / years to retirement, your intended retirement age, lender's policy on maximum retirement age, lender's policy on maximum age at end of term, lender's policy and evidence requirements for lending-into-retirement.

For example, Nationwide has a max retirement age of 70 BUT (assuming you are more than 10 years from retirement) will lend to 75 based on current employment income as long as there is evidence of pension payments (payslip).

Otoh, Accord has a max retirement age of 80 and will consider a term to 80 based on current employment income as long as it is plausible for the applicant to work until 80, which usually means a desk-based role.

In the above scenario, whether your pension is a career-average DB or a DC pension, what the projected pension is, etc. is unlikely to make a difference one way or the other.

Sorry, what I meant was, how does one access these products where they consider longer retirement ages based on your occupation? I've spoken to 2 brokers (LandC and Habito) and both advisors produced generic products rather than offering products which consider my job factor, thus allowing me to borrow for longer

seriouslyunsurprising

What a great thread, thanks for helping so many on here!

Quick Q from me - we've used an adverse credit broker and now have our mortgage offer ready for remortgage in Dec. Had an initial chat with their insurance salesman a few weeks back but today received a message saying
"We still need to get your insurance application underwritten ready for the mortgage and ensure there are no hold ups
.. I've got the recommendation ready so just need to explain next steps."

What hold ups is he referring to? We have various insurances in place already and are not looking to make any changes. This feels like a sales tactic to try and get us signed up for some product but am I right in thinking if we've got the mortgage offer we don't need to go any further with the insurance stuff?

K_S

seriouslyunsurprising said:

What a great thread, thanks for helping so many on here!

Quick Q from me - we've used an adverse credit broker and now have our mortgage offer ready for remortgage in Dec. Had an initial chat with their insurance salesman a few weeks back but today received a message saying
"We still need to get your insurance application underwritten ready for the mortgage and ensure there are no hold ups
.. I've got the recommendation ready so just need to explain next steps."

What hold ups is he referring to? We have various insurances in place already and are not looking to make any changes. This feels like a sales tactic to try and get us signed up for some product but am I right in thinking if we've got the mortgage offer we don't need to go any further with the insurance stuff?

@seriouslyunsurprising You're probably right.

Other than buildings insurance for the property being mortgaged, there's no mandatory requirement to have any other kind of insurance - life, cic, IP, etc.

mj_wl_22

Hi hope you can help. 

Do mortgage advisors get access to products not available for direct application, I only ask as my MA has said there's a 10% product with natwest on a new build and provided figures and I can see it anywhere I know I should just trust this but don't want delays down the road. 

Thanks 😊