Mortgage broker - ask me anything

ACG

mj_wl_22 said:

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 😊 

I dont know about that deal specifically, but yes we do get access to products not available directly. 
Likewise there are also deals not available through brokers. 

K_S

mj_wl_22 said:

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 😊 

@mj_wl_22 Can't speak for your specific case or what your broker has said but generally speaking, with respect to high-street/mainstream lending, yes brokers may have access to mainstream products that aren't available direct -
1. broker-only lenders like Co-op/Platform, Clydesdale, SW, Accord, BOI (outside NI) etc. Conversely, there are also lenders that are direct-only like YBS, Lloyds, etc.
2. high-street lenders offering some products that are exclusive to brokers. Virgin is one that regularly has broker-exclusives.
3. high-street lenders offering some products that are exclusive to some brokers/networks/clubs. 
4. high-street lenders offering some features (eg: longer max term/age) or product-ranges through brokers (in general) or some brokers/networks/clubs specifically, but not for direct apps. This is usually where the lender doesn't want to take on the risk of advice, doesn't want the hassle associated with whatever that feature might be or wants to lean on an intermediary focusing on that area of the market, eg: new build.

From your post, if such a product exists, it'll probably be under 3 or 4 above.

If I'm not wrong @kingstreet does a lot of new-build so may be able to add more.

mj_wl_22

Thank you very much. I appreciate the reply, I guess I will have to wait and see what comes of it then

kingstreet

NatWest doesn't offer 90% on newbuilds.

It's 85% on houses and 75% on flats. Less for house if for BTL purposes.

UniqueTES

Hi, we are looking at buying a flat which is not a qualifying lease under the Building Safety Act.  It has a B1 EWS certificate and therefore no remedial work currently required.  We are not looking for a mortgage but it has been suggested that lenders are less willing to lend if the property does not have a qualifying lease regardless of the EWS position.  This is important for future saleability so I wondered if anyone had any insight on this. Thank you

silvercar

UniqueTES said:

Hi, we are looking at buying a flat which is not a qualifying lease under the Building Safety Act.  It has a B1 EWS certificate and therefore no remedial work currently required.  We are not looking for a mortgage but it has been suggested that lenders are less willing to lend if the property does not have a qualifying lease regardless of the EWS position.  This is important for future saleability so I wondered if anyone had any insight on this. Thank you

This explains qualifying leases: https://www.solegal.co.uk/insights/building-safety-act-2022-what-qualifying-leaseholder

So the question is why isn't it qualifying? As a buyer I would be worried that if remedial action was decided by the freeholder in the future you could be liable for some of the costs.

K_S

UniqueTES said:

Hi, we are looking at buying a flat which is not a qualifying lease under the Building Safety Act.  It has a B1 EWS certificate and therefore no remedial work currently required.  We are not looking for a mortgage but it has been suggested that lenders are less willing to lend if the property does not have a qualifying lease regardless of the EWS position.  This is important for future saleability so I wondered if anyone had any insight on this. Thank you

@uniqueTES I'll caveat my post - this isn't my area of expertise as these sort of issues usually only come up during conveyancing and are dealt with by the solicitor in conjunction with the lender. During the mortgage application stage the lender will rarely give a clear answer on these kind of issues, so a buyer might get a mortgage offer from the lender without any issues but end up unable to complete if this comes up as a roadblock. 

To answer your question - whether or not the lease is 'qualifying' can indeed form of the conveyancer's work and be a factor in whether or not the property is acceptable security for the lender. This is not looked at in isolation, the building's height, EWS rating, etc. may all play a part. How much of an impact it has on future saleability in your particular flat, I couldn't really say.

Here's one example from a specific lender of conveyancing guidance, you can see a longlist here to get an idea of the different approaches lenders might have https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/3099/ -

Similar to cladding, not all lenders will have the same approach, plus the situation may change in the future depending on any new regulations, newly deemed unsafe materials, etc. That being the case, as the 'non-qualifying' status is in perpetuity, there is some element of risk involved that may put off lenders and/or buyers.

K_S

silvercar said:

UniqueTES said:

Hi, we are looking at buying a flat which is not a qualifying lease under the Building Safety Act.  It has a B1 EWS certificate and therefore no remedial work currently required.  We are not looking for a mortgage but it has been suggested that lenders are less willing to lend if the property does not have a qualifying lease regardless of the EWS position.  This is important for future saleability so I wondered if anyone had any insight on this. Thank you

This explains qualifying leases: https://www.solegal.co.uk/insights/building-safety-act-2022-what-qualifying-leaseholder

So the question is why isn't it qualifying? As a buyer I would be worried that if remedial action was decided by the freeholder in the future you could be liable for some of the costs.

@silvercar It's probably because the current owner (or whoever owned the flat in Feb 2022) is a portfolio landlord.

Unfortunately, the 'non-qualifying' status is attached to the lease and remains in perpetuity so anyone who purchases a lease from a non-qualifying leaseholder will also not qualify, regardless of their own circumstances, even if they were an FTB!

This is how it's defined - 

A non-qualifying leaseholder is anyone who has a lease which, on 14 February 2022: 

• related to a property in a building below 11m in height
• was owned by someone with three or more properties and who did not live in the affected flat as their primary residence

mj_wl_22

kingstreet said:

NatWest doesn't offer 90% on newbuilds.

It's 85% on houses and 75% on flats. Less for house if for BTL purposes.

Turns out I was right to be worried, just had the call...  After making the full application that they don't offer this to new builds. Little disappointed to say the least. Luckily i'm in the position to change to 85%, so i'm going down that route now to avoid multiple credit applications.  

K_S

mj_wl_22 said:

kingstreet said:

NatWest doesn't offer 90% on newbuilds.

It's 85% on houses and 75% on flats. Less for house if for BTL purposes.

Turns out I was right to be worried, just had the call...  After making the full application that they don't offer this to new builds. Little disappointed to say the least. Luckily i'm in the position to change to 85%, so i'm going down that route now to avoid multiple credit applications.  

@mj_wl_22 Sorry to hear that, it’s a bit poor on the part of the broker to not pick this up until after the full application.

Hope it goes smoothly here on, good luck!