Mortgage broker - ask me anything

K_S

Myci85 said:

Apologies for so many questions over the last few days, the more I look into mortgage lending criteria, the more I realise how near impossible our situation is, and researching to try and see if there is a work around. Appreciate all the brokers who give their time to answer all these questions. 

Me and partner are FTBs trying to finally buy as we're on borrowed time on our long term rental and rents are so extortionate now. I'm an easy case for mortgage, employed for 2 years in permanent post, excellent credit history etc. Partner is employed on fixed term contract, will have been with employer for a year by Feb, 2 contracts in that time, current one ends end of June. He also has a history of multiple missed payments all now paid off and clear on credit file since mid 2020, paid off his overdrafts Sept 23. 

I had hoped Halifax might work, but seems they would need 6 months remaining on contract. Am now looking at Accord, their lending criteria just say 'a good history of contracting', other stuff I've read says they need you to have 12 months history, nothing about if you've only a few months left on current contract. I can also see they do a cascade product up to 95% LTV for those with credit issues. Do any brokers on here have much experience with Accord and think we'd stand a chance on the above info? Looking for around 92% LTV.

@myci85 I say this with the utmost respect and hope you don't take this the wrong way

You're tying yourself up in knots trying to fit your case, getting disheartened, and there's really no benefit to doing so. Nothing in your post confirms that Halifax won't consider or that Accord will/won't.

I'm not trying to say that you can't DIY it, but I would strongly recommend using a broker, especially given the combination of 95%, new contractor and light adverse. If you don't want to pay a fee, there are plenty of fee free brokers recommended on the MSE guide here 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Alternatively, ask family, friends, colleagues (especially ones that have been long term contractors) that you trust for word of mouth recommendations.

Good luck, I'm fairly confident you'll be able to get a mortgage, be that from Halifax, Accord or other lenders and hope you get what you need!

K_S

chrisrich204 said:

Our fixed mortgage is due to run out at the end of March. I have a couple of new deals i am considering but i also have £15k in savings that i will have access to early March that i want to pay off the mortgage. Should i pay it off the old or do i hand it to my new provider?

@chrisrich204

Option 1 - Assuming it doesn't trigger any ERC/penalties, I would overpay the current one in March simply because it's far less hassle.

Option 2 - You *could* pay it to the new lender but that will involve routing it through the solicitor, them maybe checking source of deposit, additional documentation requirements, etc.

If you want to squeeze every last penny of the interest rate difference between the current low rate and new high rate, then Option 2 may be what you want but the saving is likely to be minimal.

Myci85

K_S said:

Myci85 said:

Apologies for so many questions over the last few days, the more I look into mortgage lending criteria, the more I realise how near impossible our situation is, and researching to try and see if there is a work around. Appreciate all the brokers who give their time to answer all these questions. 

Me and partner are FTBs trying to finally buy as we're on borrowed time on our long term rental and rents are so extortionate now. I'm an easy case for mortgage, employed for 2 years in permanent post, excellent credit history etc. Partner is employed on fixed term contract, will have been with employer for a year by Feb, 2 contracts in that time, current one ends end of June. He also has a history of multiple missed payments all now paid off and clear on credit file since mid 2020, paid off his overdrafts Sept 23. 

I had hoped Halifax might work, but seems they would need 6 months remaining on contract. Am now looking at Accord, their lending criteria just say 'a good history of contracting', other stuff I've read says they need you to have 12 months history, nothing about if you've only a few months left on current contract. I can also see they do a cascade product up to 95% LTV for those with credit issues. Do any brokers on here have much experience with Accord and think we'd stand a chance on the above info? Looking for around 92% LTV.

@myci85 I say this with the utmost respect and hope you don't take this the wrong way

You're tying yourself up in knots trying to fit your case, getting disheartened, and there's really no benefit to doing so. Nothing in your post confirms that Halifax won't consider or that Accord will/won't.

I'm not trying to say that you can't DIY it, but I would strongly recommend using a broker, especially given the combination of 95%, new contractor and light adverse. If you don't want to pay a fee, there are plenty of fee free brokers recommended on the MSE guide here 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Alternatively, ask family, friends, colleagues (especially ones that have been long term contractors) that you trust for word of mouth recommendations.

Good luck, I'm fairly confident you'll be able to get a mortgage, be that from Halifax, Accord or other lenders and hope you get what you need!

Absolutely not taken the wrong way, and you're right about tying myself up in knots over it! I had been in talks with a broker before but I guess didn't want to waste his time if it was looking hopeless. 

Thank you for your reply, you've given me a glimmer of hope and I've emailed the broker again to discuss our options. Much appreciated. 

JustMe18

Hello. We are getting our mortgage with Kent reliance, as we had 2 defaults  a year ago ( paid off within a month though), then couple of late payments too. Income is good , so affordability is not a problem, mortgage is much less then we needed. we also have 10% deposit ( or more if needed from the sale of current house). We've got an AIP with Kent ( others pretty much refused it), I guess the one with Kent went to underwriters, as it took 3 days to get an AIP. Now applied for a mortgage offer, so timescale on 23rd of December they did hard credit check, then did valuation on 27th - all was good. Broker said it has passed that hard credit check , affordability as well and valuation is fine too. However now they requested some more documents, checkmyfile reports for example, as they cannot see default on Experian (this is what they use), also some questions about childcare, about payments from my mum etc. Is everything so far going good ?  I am just extremely worried , that is can still be declined, or it's a good sign it didn't fail at affordability and hard credit check?  I know there won't be a certain answer, but just need some reassurance, as I don't know how underwriting process works. I can see they also done around 8 soft checks so far. Also credit scores are 860 and 960 and we didnt have any major credit issues in the last 6 months.

englandsrose

Do you think Nationwide will announce new rates within the next week! I have to fix by the 26th Jan! 

K_S

englandsrose said:

Do you think Nationwide will announce new rates within the next week! I have to fix by the 26th Jan! 

@englandsrose Your guess is as good as mine.

Their last product guide update was on 8th December, so on that basis I would say they may be due an update in the next week or so.

london21

englandsrose said:

Do you think Nationwide will announce new rates within the next week! I have to fix by the 26th Jan! 

In a similar situation with Virgin money, they have said to finalise by 18th January, current mortgage ends 01/02/2024 the date BOE are due to announce from their meeting.

Currently selected 5.1% 2 years fix no product fee. 65% LTV.

Been checking if any updates. 

mateyboon

I am in the process of buying a property with my long term partner. They have very foolishly taken out a £20,000 loan in order to buy a vehicle without discussing with me and therefore we are now unlikely to be able to proceed with our mortgage. What do I do? I've been advised that any company is now likely to offer us £20k less which is going to be impossible in the area I live and also I am in love with the house that we have offered on. It is our first property so I don't know what I'm doing here and I really need some advice. 

K_S

mateyboon said:

I am in the process of buying a property with my long term partner. They have very foolishly taken out a £20,000 loan in order to buy a vehicle without discussing with me and therefore we are now unlikely to be able to proceed with our mortgage. What do I do? I've been advised that any company is now likely to offer us £20k less which is going to be impossible in the area I live and also I am in love with the house that we have offered on. It is our first property so I don't know what I'm doing here and I really need some advice. 

@mateyboon You told you the part in bold above, and did they state this equivocally? If it's your mortgage broker or the lender's adviser (if direct), then you can place some weight on it. If it's just something you researched online, then there's no need to worry yet.

For a mortgage lender, the main impact (if any) of the 20k loan will depend on what the monthly payment is, not the loan size itself.

Whether or not the monthly payment has an impact on your borrowing requirements depends on the numbers. Whatever lender you are using (say its Nationwide), google 'Nationwide for intermediaries affordability calculator', plug in your numbers with and without the 20k loan and that should give you a very rough idea of whether or not it may have an impact.

Good luck! 

kingstreet

london21 said:

englandsrose said:

Do you think Nationwide will announce new rates within the next week! I have to fix by the 26th Jan! 

In a similar situation with Virgin money, they have said to finalise by 18th January, current mortgage ends 01/02/2024 the date BOE are due to announce from their meeting.

Currently selected 5.1% 2 years fix no product fee. 65% LTV.

Been checking if any updates. 

VM rate reduction email just received.