Mortgage broker - ask me anything

theonenonly

K_S said:

theonenonly said:

I've received varying levels of what banks can lend me, even 2 different amounts from Nationwide's Helping Hand, one a lower amount going through the broker Habito, and more when going directly with Nationwide, even when inputting the same information. How comes?

E.g.

• L&C, DIP of £273,000, but after speaking with the broker on the phone he crunched some numbers and I'm apparently unlikely to get more than £248,000.

• Habito, £250,000, but able to get £286,000 via Nationwides Helping Hands over 40 years.

• Nationwide Helping Hands (applying directly), initially offered £268,000 non Helping Hands. When I asked for Helping Hands and what I can be offered, they gave me a DIP of £306,000

@theonenonly If the question is - what is the most that I can borrow from a mainstream lender - then only one of the above can be correct.

For the same requirement (term, fix length, LTV, property type, etc.) and same information input (age, income, credit commitments, etc.), there should be no difference in the HH max borrowing irrespective of whether you go through a broker or direct. They *should* be based on the same NW HH affordability calculator.
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

Hmm that's really odd, now on that link it says "Based on your inputs, we are unable to lend your client(s) any additional funds on a Helping Hand basis"

The differing amounts of the DIP makes it difficult to know what kind of homes I can view, 

NatalieanneDFW

Me and my partner are thinking about buying a property. First time buyers. We currently live separately. He is employed full time and I'm not working due to disability and my son is also disabled so we receive DLA and PIP. Our total income is 61k roughly. I understand that some lenders will only accept some benefit income. Which lenders are most willing to lend to us and take a good portion of my income into account? My eldest is 14 and I believe some income is disregarded if your children are of a certain age. Our credit histories are both very good. 

We've also been looking at shared ownership as a potential option due to the size of house we need. Luckily we are up north so houses are affordable on the open market but due to circumstances, we are thinking this might be a more realistic option. 

Any help or guidance is appreciated. 

Thank you 

herewego123

Hello

I am creeping towards completion and my solicitor has advised that once the remaining enquiries and local search has come back we will be in a position to proceed to exchange! All contracts have been signed and returned from me to solicitor, mortgage offer has been sent from Halifax to solicitors and other bits like fixtures and fittings etc have been completed.

Upon reading my special conditions part of my mortgage offer the only thing listed is that all over 18yr olds will sign a mortgage consent form which is no problem.

Now, my credit file has not changed at all since the initial mortgage offer and literally the only postitive changes are just monthly on time payments.
I have not taken out nor used any available credit at all. All balances are 0. I completed Armalytix and sent sorce of funds over and my solicitor advised everything I have sent over thus far has been fine!

Is it known that halifax will run another credit check before completion and have you known of any one who has gone for a mortgage who have had it withdrawn and for what reason between exchange and completion? 

I have been on this roller coaster since August and am trying not to get my hopes up for them to come crashing down for any reason from now until completion. 

What's your experience of lenders withdrawing offers? 

And maybe a chill pill if you have one? 🤣

Thanks

K_S

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.

@herewego123 The above post might help address some of your concerns.

charliechalk85

We’re porting our mortgage, and my partner has just been offered a new job with a £10k pay rise, plus remote so no costs to commute. The property is cheaper too. He has a three month notice period, so feasibly could still be in current job when we complete. We just need to sign the paperwork and post back, but have the DIP etc. Do we need to tell them and/or is it a risk not telling them? How likely are they to reject us as a result? 

K_S

charliechalk85 said:

We’re porting our mortgage, and my partner has just been offered a new job with a £10k pay rise, plus remote so no costs to commute. The property is cheaper too. He has a three month notice period, so feasibly could still be in current job when we complete. We just need to sign the paperwork and post back, but have the DIP etc. Do we need to tell them and/or is it a risk not telling them? How likely are they to reject us as a result? 

@charliechalk85 Assuming you've accepted the new employment and/or resigned from the current one:

Would the lender expect you to run it past them (if direct) or the broker (if you're using one) - yes

Will it matter - depends on the lender. Some will accept a future contract, some will need you to have started, some will need a full payslip from a new job.

If it's a like-for-like port (no additional borrowing, no change in LTV, no change in term, etc.) then the lender can often override policy fails.

MistyWaters

If someone is still paying old debts to collection agencies but no longer has defaults can they get a mortgage? Earn approx £43K. Car finance recently taken for £13K and approx £14K old debts to ARC, Lowell and Cabot 

K_S

MistyWaters said:

If someone is still paying old debts to collection agencies but no longer has defaults can they get a mortgage? Earn approx £43K. Car finance recently taken for £13K and approx £14K old debts to ARC, Lowell and Cabot 

@mistywaters I can’t speak for your case specifically but generally speaking - yes, an applicant paying off historic collection agency debt can get a mortgage. Even applicants with recent defaults and CCJs can get mortgages.

GMNN

The initial 2y-fix period of our current mortgage is coming to an end on 29th Feb next year and we are assessing our options. We are looking to move to a bigger home, but have not found anything we like yet. Would ideally like to move by summer 2024.

The product transfer options from our current provider (Natwest) are not competitive - both for fixed and variable rate options. Therefore we are thinking about going through a remortgage, but are concerned about its potential impact on a new mortgage application for our house move, potentially just a few months later.

We know most mortgage products are "portable" but we would rather not rely on this, and would prefer to opt for a "fresh" mortgage application once we find a house we want to buy. So we are leaning towards a variable-rate tracker with no ERC for our remortgage. Nationwide, HSBC, Barclays all offer remortgage at base +0.14-0.15% for 2 years with no ERC (and we are confident we would get approved for at least 1 of these products), whereas best we can get from Natwest product transfer is base +0.49% with 0.5% ERC. The % difference does not seem like much, but the ERC charge alone with Natwest would be ~1.5k if we were not able to port the product to the new property..

So current thinking is to apply for remortgage in ~November. But say we find a house we like 1-3 months later, do you think the remortgage application would impact our mortgage application on the other property we'd move to? Would it be better to just bite the bullet and do a product transfer with our current provider in order to leave a "clean" credit history? Or are we just overthinking this and it likely has no impact?

K_S

@gmnn I can't speak for your specific case but generally speaking:

- a mortgage app hard check that is 1+ months old is very unlikely to make any difference whatsoever to another full mortgage app. I often have clients come to me soon after a declined mortgage app either direct or with another broker, that's never on its own stopped me from placing them elsewhere.

- however, do research what the impact may be to conveyancing as the remortgage will involve one set of LR changes (current lender to new lender) which, depending on delays at LR, may not reflect by the time the sale conveyancing starts. I'm not an expert in conveyancing but anecdotally I have had clients tell me of conveyancing issues/delays in similar circumstances where one remortgage app to a new lender is quickly followed by another transaction.

GMNN said:

The initial 2y-fix period of our current mortgage is coming to an end on 29th Feb next year and we are assessing our options. We are looking to move to a bigger home, but have not found anything we like yet. Would ideally like to move by summer 2024.

The product transfer options from our current provider (Natwest) are not competitive - both for fixed and variable rate options. Therefore we are thinking about going through a remortgage, but are concerned about its potential impact on a new mortgage application for our house move, potentially just a few months later.

We know most mortgage products are "portable" but we would rather not rely on this, and would prefer to opt for a "fresh" mortgage application once we find a house we want to buy. So we are leaning towards a variable-rate tracker with no ERC for our remortgage. Nationwide, HSBC, Barclays all offer remortgage at base +0.14-0.15% for 2 years with no ERC (and we are confident we would get approved for at least 1 of these products), whereas best we can get from Natwest product transfer is base +0.49% with 0.5% ERC. The % difference does not seem like much, but the ERC charge alone with Natwest would be ~1.5k if we were not able to port the product to the new property..

So current thinking is to apply for remortgage in ~November. But say we find a house we like 1-3 months later, do you think the remortgage application would impact our mortgage application on the other property we'd move to? Would it be better to just bite the bullet and do a product transfer with our current provider in order to leave a "clean" credit history? Or are we just overthinking this and it likely has no impact?