Mortgage broker - ask me anything

kingstreet

K_S said:

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!

It surprises me brokers still make elementary errors like this with sourcing systems now sensitive enough to recognise a newbuild if the data is input correctly!

RHemmings

I am basically a cash buyer. When trying to buy a particular property (*) I obtained a mortgage agreement in principle from L&C Mortgages, the mortgage broker associated with CompareTheMarket.com. When putting in details, I selected a product from the Coventry Building Society, a company that I recognised. 

When I received my agreement in principle result from the company, it includes a 'certificate' that I can show to an estate agent or broker saying that I can borrow the amount that I requested (£20,000) but can borrow up to a higher amount (£42,000). However, it doesn't mention the product I selected, from the Coventry Building Society, at all. 

The 'certificate' says that when I'm ready, I should click on a link in an email and '[they] will find the best mortgage deal for me'. I thought that agreement in principles were more specific than this and they would probably mention the actual product and supplier used. Not just come from the 'broker'. 

Is this normal? Or less specific than normal? 

(*) Unfortunately once I had obtained the AIP, I did a deeper dive into the property and found it was unsuitable. So, I couldn't offer on it. 

K_S

RHemmings said:

I am basically a cash buyer. When trying to buy a particular property (*) I obtained a mortgage agreement in principle from L&C Mortgages, the mortgage broker associated with CompareTheMarket.com. When putting in details, I selected a product from the Coventry Building Society, a company that I recognised. 

When I received my agreement in principle result from the company, it includes a 'certificate' that I can show to an estate agent or broker saying that I can borrow the amount that I requested (£20,000) but can borrow up to a higher amount (£42,000). However, it doesn't mention the product I selected, from the Coventry Building Society, at all. 

The 'certificate' says that when I'm ready, I should click on a link in an email and '[they] will find the best mortgage deal for me'. I thought that agreement in principles were more specific than this and they would probably mention the actual product and supplier used. Not just come from the 'broker'. 

Is this normal? Or less specific than normal? 

(*) Unfortunately once I had obtained the AIP, I did a deeper dive into the property and found it was unsuitable. So, I couldn't offer on it. 

@rhemmings That sounds like an L&C document rather than one issued by the lender. 

Lender DIP - The exact details will differ based on the lender and the channel used to get it, but generally speaking an AIP/DIP will be issued by the lender and have your name, the lender's name, maximum borrowing and expiry date on it.

Some lender DIPs may have more details - LTV, fix length, etc.

You wouldn't normally have a specific product named on a DIP.

RHemmings

K_S said

@rhemmings That sounds like an L&C document rather than one issued by the lender. 

Lender DIP - The exact details will differ based on the lender and the channel used to get it, but generally speaking an AIP/DIP will be issued by the lender and have your name, the lender's name, maximum borrowing and expiry date on it.

Some lender DIPs may have more details - LTV, fix length, etc.

You wouldn't normally have a specific product named on a DIP.

Thanks. It's very clearly an L&C document, as no other company or anything other than L&C is mentioned in it. 

It mentions my requested amount, a larger amount that I may be able to borrow, and an expiry date. And my name, and a reference number. So, it has what you mention. EDIT: It does have the four year term too. So, I suppose it's ... complete. I dunno, I just expected that an agreement in principle would be ... a more thorough process than this. 

I've got one from the Halifax too, but that's just an email. It mentions the basics of how much can be borrowed and expiry date. And my name and a reference number. But, it's just an email. I was surprised at that. I thought an AIP would be ... more formal. At least L&C included a PDF of the agreement. I got the L&C AIP because the Halifax told me that they don't have any products suitable for me as all of theirs have early repayment fees/charges. 

Given how easy it is to get an AIP, I'm not surprised that some sales fall through when buyers try to turn the agreement in principle into a real mortgage. 

silvercar

RHemmings said:

K_S said

@rhemmings That sounds like an L&C document rather than one issued by the lender. 

Lender DIP - The exact details will differ based on the lender and the channel used to get it, but generally speaking an AIP/DIP will be issued by the lender and have your name, the lender's name, maximum borrowing and expiry date on it.

Some lender DIPs may have more details - LTV, fix length, etc.

You wouldn't normally have a specific product named on a DIP.

Thanks. It's very clearly an L&C document, as no other company or anything other than L&C is mentioned in it. 

It mentions my requested amount, a larger amount that I may be able to borrow, and an expiry date. And my name, and a reference number. So, it has what you mention. EDIT: It does have the four year term too. So, I suppose it's ... complete. I dunno, I just expected that an agreement in principle would be ... a more thorough process than this. 

I've got one from the Halifax too, but that's just an email. It mentions the basics of how much can be borrowed and expiry date. And my name and a reference number. But, it's just an email. I was surprised at that. I thought an AIP would be ... more formal. At least L&C included a PDF of the agreement. I got the L&C AIP because the Halifax told me that they don't have any products suitable for me as all of theirs have early repayment fees/charges. 

Given how easy it is to get an AIP, I'm not surprised that some sales fall through when buyers try to turn the agreement in principle into a real mortgage. 

I wouldn’t be comfortable revealing to an estate agent that I could borrow a higher amount than I’d requested. I’d worry that the EA would push for a higher purchase price.

RHemmings

silvercar said:

I wouldn’t be comfortable revealing to an estate agent that I could borrow a higher amount than I’d requested. I’d worry that the EA would push for a higher purchase price.

This is something I've considered in general. In that I'm looking at houses below my absolute maximum and EAs often have me on their files and know that I can pay more. When my strategy was cash only, EAs seemed to accept that I was limited in that way. I've worked out that a mortgage could save me money if it means I can move sooner. When one agent with whom I mentioned the possibility of a mortgage immediately said that they would be sending me properties priced at my with-mortgage maximum, I reminded them that I prefer to buy at the cash only limit. 

If anyone looks at the mortgage AIP and decides to push the price higher, then I'm not going to accept that. Hopefully I buy while the market isn't too heated up. 

EDIT: All day today estate agents have been sending me houses still out of even my new price range. 

kingstreet

AFAIK L&C does only an affordability check and doesn't undertake an agreement in principle in the sense most of us understand - with some form of credit search. Either way, an AIP doesn't confirm a product so what may look best for you today may be different by the time you apply.

charlieboy82

Hi all, I need to move out of the family home next year. I’m medically retired so get a I’ll health pension. My question is are there any mortgage providers that will look at income after tax rather than before? I don’t pay national insurance so my gross income would need to be more if I was still working. I’m 47 and pension is for life.  Any advice gratefully received 

kingstreet

charlieboy82 said:

Hi all, I need to move out of the family home next year. I’m medically retired so get a I’ll health pension. My question is are there any mortgage providers that will look at income after tax rather than before? I don’t pay national insurance so my gross income would need to be more if I was still working. I’m 47 and pension is for life.  Any advice gratefully received 

Lenders use gross income and most I can think of have a place to enter pension income in their affordability calculators.

K_S

charlieboy82 said:

Hi all, I need to move out of the family home next year. I’m medically retired so get a I’ll health pension. My question is are there any mortgage providers that will look at income after tax rather than before? I don’t pay national insurance so my gross income would need to be more if I was still working. I’m 47 and pension is for life.  Any advice gratefully received 

@charlieboy82 You will need to enter the gross income but as long as it’s put in the right place (pension and not salary income), the lender’s affordability calculator should automatically account for the lower tax take on the pension income and adjust accordingly, giving you the outcome you want.