Mortgage broker - ask me anything

K_S

@Cnkp21 Hard to say tbh. I've no clue about future interest rates and your guess is as good as mine. And when recommending a product to a client, my thoughts on future interest rates are not a factor. It's entirely based on the client's personal circumstances, preferences and attitude to risk.

I never expected rates to stay as low as they did for so long, or that they'd go up by this much over such a short period of time. 

If you have a strong opinion either way and getting it wrong wouldn't be a disaster then you could follow that thought.

Whatever you do just make sure you're getting the best rate available to you. Check with your current lender if you can switch to a lower rate. If you booked your rate in June, odds are that they're offering a lower rate now for the same product. Also check the wider market for lower rates, 5 weeks can be sufficient time to get from app-completion with most larger lenders.

Good luck!

Cnkp21 said:

Hi 

my mortgage is due for renewal on 30th November and on the 21st June 2023 I secured a new fixed rate mortgage with my current provider at 5.33%. My existing rate is 0.97%, therefore there is a significant increase in my mortgage payments. 

I have been keeping a close eye on the interest rate in the hope that it won’t go much higher and over the last days there have been reports that the interest rate may stay at 5.25% again next month. I am hoping this will encourage lenders to reduce the rates further before my new deal starts. 

I will have to go with my existing lender with the timescales involved, however they also offer a tracker deal at 5.39% with a £999 fee attached. This would mean only slightly higher monthly payments than with the fixed rate. 

I am not massively familiar with a tracker mortgage as I have always opted for a fixed rate deal, however I am thinking that if the interest rate has peaked and will start to go down over the next two years then a tracker deal may be the better option in the long run. 

What are your thoughts? 

Many thanks 

Chris 

Cnkp21

Thanks K_S I appreciate your help 👍

Asbestross

Thanks for the advice. Is greatly appreciated.

K_S

@asbestross Unfortunately I can’t tell you what to declare or withhold but very generally speaking, as far as the mortgage application goes, these are the facts that the lender will usually use -
- current maintenance outgoing of xxx/month
- this outgoing will end on 31/08/2024

Assuming that you declare this, Whether or not the lender will ignore the outgoing will depend on the specific lender’s policy and how you present it so it’s hard to say for sure.

In similar circumstances (usually childcare expenses scheduled to end soon after completion when child becomes eligible for funded nursery hours) for previous clients I have had lenders refuse to ignore because it’s above 6 months away and others that have been willing to ignore either due to the small gap or because the client could demonstrate sufficient funds to cover the future funds or they pre-paid those expenses and evidenced the same.

If your maintenance payments completely cover all and any regular financial contributions towards your daughter’s upbringing, then most lenders will disregard her as a dependent though I would still include a note to the underwriter to make this clear and pre-confirm this with the lender.

Don’t stress too much because even if this specific lender is a no go if you declare it, there should be other lenders willing to take a more common sense approach, good luck!

Asbestross said:

Hi,

I'm submitting a mortgage application in the next few weeks for a new build, expected to complete next April. I have an AIP from the lender for the full amount. Have deposit of >10% with ~£4k in further savings to cover costs, fees etc. 

EDIT: Also sorry, to add...I have no debts whatsoever and a squeeky clean credit file. Not sure if thats relevant or not.

I currently pay Child Maintenance for my 18yr old daughter, she's in college full time but leaves July next year and is off to uni in Sept. Hence CMS payments will automatically end the last week of August.

However we've made a private arrangement between me, my daughter and her mother, that when I get the keys in April, daughter will stay with me 4 nights a week as its literally a stonesthrow away from the college. So CMS payments won't be made when the mortgage payments actually start.

My question; do I need to declare the CMS payments in my application as an expenditure, or would I need to declare my daughter as a dependent? or neither? I'm concerned as I wont be paying CMS once the mortgage is being paid, but if I add the CMS payments as an expenditure in the lenders affordability calc, the lend amount is much lower than I need for the property  

Thanks,

Asbestross

K_S said:

@asbestross Unfortunately I can’t tell you what to declare or withhold but very generally speaking, as far as the mortgage application goes, these are the facts that the lender will usually use -
- current maintenance outgoing of xxx/month
- this outgoing will end on 31/08/2024

Assuming that you declare this, Whether or not the lender will ignore the outgoing will depend on the specific lender’s policy and how you present it so it’s hard to say for sure.

In similar circumstances (usually childcare expenses scheduled to end soon after completion when child becomes eligible for funded nursery hours) for previous clients I have had lenders refuse to ignore because it’s above 6 months away and others that have been willing to ignore either due to the small gap or because the client could demonstrate sufficient funds to cover the future funds or they pre-paid those expenses and evidenced the same.

If your maintenance payments completely cover all and any regular financial contributions towards your daughter’s upbringing, then most lenders will disregard her as a dependent though I would still include a note to the underwriter to make this clear and pre-confirm this with the lender.

Don’t stress too much because even if this specific lender is a no go if you declare it, there should be other lenders willing to take a more common sense approach, good luck!

Should have another £2-3k saved up by the handover date so hopefully the lender will be willing to ignore it.
Thanks for the advice, is very much appreciated. Feel a little bit less anxious about it all now 

jonnydeppiwish!

Hi
We want to buy a property that’s a bit of a project but keep our current house to live in for a year whilst we renovate the new home.
No current mortgage on property worth around £425k, new property is £300k but would need £100k spending on it, plus additional stamp duty.

No current debts, circa £115k joint income.

Is this feasible to achieve?

Thanks

K_S

@jonnydeppiwish! Depends on the details, numbers, etc.

If feasible, the simplest/cheapest way is likely to be taking out additional borrowing on your current residence, buying the project property in cash, and taking it from there.

If that's not possible, but the property is 'habitable' then it might be possible to buy it as a second residence using a mortgage.

jonnydeppiwish! said:

Hi
We want to buy a property that’s a bit of a project but keep our current house to live in for a year whilst we renovate the new home.
No current mortgage on property worth around £425k, new property is £300k but would need £100k spending on it, plus additional stamp duty.

No current debts, circa £115k joint income.

Is this feasible to achieve?

Thanks

Pumpk1N888

Hello.

I worked for 13 years and recently resigned to go back to university full time for a one year course. I am wondering if it would be possible for me to secure a mortgage while studying. I am getting conflicting information so would appreciate some input.

I have a big deposit which would be 50%  (or more) of my projected budget. At the moment, I am renting and I have budgeted for rent and expenses for the next 12 months with some additional funds as contingency. Never had any debts, excellent credit score.

Once I complete my course, it is expected that it would be easy to secure a job as this is a sector that is struggling to recruit.

Thoughts?

K_S

Pumpk1N888 said:

Hello.

I worked for 13 years and recently resigned to go back to university full time for a one year course. I am wondering if it would be possible for me to secure a mortgage while studying. I am getting conflicting information so would appreciate some input.

I have a big deposit which would be 50%  (or more) of my projected budget. At the moment, I am renting and I have budgeted for rent and expenses for the next 12 months with some additional funds as contingency. Never had any debts, excellent credit score.

Once I complete my course, it is expected that it would be easy to secure a job as this is a sector that is struggling to recruit.

Thoughts?

@pumpk1n888 Generally speaking, you will need one or more of the following to be able to get a mortgage -

- some kind of personal income: stipend, rental income, part time PAYE job, your own business, etc 

- a family member with an income who is willing to be on the mortgage

- an employment contract with a future start date 

Pumpk1N888

K_S said:

Pumpk1N888 said:

Hello.

I worked for 13 years and recently resigned to go back to university full time for a one year course. I am wondering if it would be possible for me to secure a mortgage while studying. I am getting conflicting information so would appreciate some input.

I have a big deposit which would be 50%  (or more) of my projected budget. At the moment, I am renting and I have budgeted for rent and expenses for the next 12 months with some additional funds as contingency. Never had any debts, excellent credit score.

Once I complete my course, it is expected that it would be easy to secure a job as this is a sector that is struggling to recruit.

Thoughts?

@pumpk1n888 Generally speaking, you will need one or more of the following to be able to get a mortgage -

- some kind of personal income: stipend, rental income, part time PAYE job, your own business, etc 

- a family member with an income who is willing to be on the mortgage

- an employment contract with a future start date 

Thanks. Would a stipend from my parents who live overseas work?