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Mortgage broker - ask me anything

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  • london21
    london21 Posts: 2,159 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    london21 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. 
    Worth checking before your fix rates start.

    Just logged into Virgin money 2 years fix no product fee has dropped to 4.72% I am tempted to wait for another few months but do not like the standard variable rate i will be going on from 01/02/2024.

    5 years fix with £995 product fee tempting 3.97%
  • london21
    london21 Posts: 2,159 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    london21 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.
    Dropped a lot now unsure if to wait further. 2 years fixed no fees 4.72%
    5 years fixed 4.17%
    My current fix ends 01/02/2024 currently paying £1083 standard variable  £2349 will likely drop further.
  • sammo456
    sammo456 Posts: 15 Forumite
    10 Posts Second Anniversary Name Dropper
    edited 10 January 2024 at 6:57AM
    hoping for some help.

    Current mortgage ends 28/02/2024

    Have secured a rate at 85% LTV with Skipton our current lender at 5.42% for 3yf - current best rate they have. £1426 a month which is over £400 increase. Longest we’re willing to fix for.

    Co-Op new rates have come out and are much more palatable and could be looking at 4.34% - even if value at 90% LTV costs would be less than £1300 and far more affordable.

    Current broker saying that Co Op are difficult lenders and timelines may be too short to secure these new rates. We should pass affordability with no major red flags other than high (managed) CC Debt. Joint income 80k for 262k loan. 

    Options: 

    - Move to tracker with Skipton instead and suck it up for a little while. Just about manageable for a couple of months. Once we see a monthly sum of less than £1300 happy to lock.
    - Apply with Coop and take the risk of moving onto Standard Variable if delayed. 
    - Sit tight and hope Skipton bring prices down.

    Would love some help
  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    sammo456 said:
    hoping for some help.

    Current mortgage ends 28/02/2024

    Have secured a rate at 85% LTV with Skipton our current lender at 5.42% for 3yf - current best rate they have. £1426 a month which is over £400 increase. Longest we’re willing to fix for.

    Co-Op new rates have come out and are much more palatable and could be looking at 4.34% - even if value at 90% LTV costs would be less than £1300 and far more affordable.

    Current broker saying that Co Op are difficult lenders and timelines may be too short to secure these new rates. We should pass affordability with no major red flags other than high (managed) CC Debt. Joint income 80k for 262k loan. 

    Options: 

    - Move to tracker with Skipton instead and suck it up for a little while. Just about manageable for a couple of months. Once we see a monthly sum of less than £1300 happy to lock.
    - Apply with Coop and take the risk of moving onto Standard Variable if delayed. 
    - Sit tight and hope Skipton bring prices down.

    Would love some help
    @sammo456

    Platform/Coop - I agree with your broker's opinion of Platform, they're slow and incompetent at the best of times, let alone when they're being swamped with hundreds of applications right after a relaunch. 

    Way forward - Even so, unless I'm missing something obvious, it's a no-brainer to go down the Platform route. The annual interest rate difference is 1.08%. Very rough calcs - with a 260k loan size, that equates to a saving of £2,800/year which on a 3 year fix comes to a saving of about £8k+.

    If you spent a month on SVR at (say) 8%, compared to the ideal of 4.34%, that would be an excess of 3.66% / 12 so 0.305% / month which on a loan size of 260k comes to £800 of excess interest. Two months on SVR - £1,600.

    In the meantime, Skipton might come out with lower rates (their most recent update is from 12 Dec, so imho they're due a price reduction in the next week or two) which may make the above comparison closer, and your broker could easily switch you to the lower rate and you could then decide which route to take.

    I hope that puts things in perspective and gives you more info on how to go about making a decision!

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • sammo456
    sammo456 Posts: 15 Forumite
    10 Posts Second Anniversary Name Dropper
    K_S said:
    sammo456 said:
    hoping for some help.

    Current mortgage ends 28/02/2024

    Have secured a rate at 85% LTV with Skipton our current lender at 5.42% for 3yf - current best rate they have. £1426 a month which is over £400 increase. Longest we’re willing to fix for.

    Co-Op new rates have come out and are much more palatable and could be looking at 4.34% - even if value at 90% LTV costs would be less than £1300 and far more affordable.

    Current broker saying that Co Op are difficult lenders and timelines may be too short to secure these new rates. We should pass affordability with no major red flags other than high (managed) CC Debt. Joint income 80k for 262k loan. 

    Options: 

    - Move to tracker with Skipton instead and suck it up for a little while. Just about manageable for a couple of months. Once we see a monthly sum of less than £1300 happy to lock.
    - Apply with Coop and take the risk of moving onto Standard Variable if delayed. 
    - Sit tight and hope Skipton bring prices down.

    Would love some help
    @sammo456

    Platform/Coop - I agree with your broker's opinion of Platform, they're slow and incompetent at the best of times, let alone when they're being swamped with hundreds of applications right after a relaunch. 

    Way forward - Even so, unless I'm missing something obvious, it's a no-brainer to go down the Platform route. The annual interest rate difference is 1.08%. Very rough calcs - with a 260k loan size, that equates to a saving of £2,800/year which on a 3 year fix comes to a saving of about £8k+.

    If you spent a month on SVR at (say) 8%, compared to the ideal of 4.34%, that would be an excess of 3.66% / 12 so 0.305% / month which on a loan size of 260k comes to £800 of excess interest. Two months on SVR - £1,600.

    In the meantime, Skipton might come out with lower rates (their most recent update is from 12 Dec, so imho they're due a price reduction in the next week or two) which may make the above comparison closer, and your broker could easily switch you to the lower rate and you could then decide which route to take.

    I hope that puts things in perspective and gives you more info on how to go about making a decision!
    Really appreciate this. This was my line of thinking.

    The savings are almost so good that it feels like I shouldn’t pass up the opportunity and should Skipton reduce in the meantime I can make a more composed decision. 

    We didn’t want to go through valuation and credit scoring again but the difference is so substantial it feels worth the punt. 
  • kingstreet
    kingstreet Posts: 39,268 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Skipton rate cuts tomorrow according to Mortgage Strategy;-

    "The mutual says new business loans will fall by up to 49bps, products for existing customers will come down by up to 66bps, while its track record mortgage will be reduced by 13bps to 5.52%."
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • naf123
    naf123 Posts: 1,708 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Hi

    I want to remortgage to a new provider. I got the following two questions

    • Please confirm you can still afford your monthly mortgage payment once child tax credit payments stop and explain how it will remain affordable using your application tracking page.
    • Please confirm you can still afford your monthly mortgage payment once child benefit payments stop and explain how it will remain affordable using your application tracking page.

    What is the best way to answer such questions?  

    Thank you!
  • jjmmww1
    jjmmww1 Posts: 136 Forumite
    Seventh Anniversary 100 Posts Name Dropper
    Due to remortgage dec 24 

    Whats the best way to go about this? Do i  just look on the app around June to see what rates i'm being offered or do i go back to my broker to see if they can get me a better rate ( don't really want a credit check since we have credit card and loans outstanding currently but hoping only a loan left by dec)  currently if i was on the standard it tell me my payments would be 1300 which would be well out of price since its double what were paying now

    Also how does it value my house as the app currently suggests im at an LTV of 62% and our house is 254k vs the 205k we paid nearly 5 years ago 
    Mortgage 165,065/183,000

    Credit card cleared Oct 2024
  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 11 January 2024 at 10:47AM
    jjmmww1 said:
    Due to remortgage dec 24 

    Whats the best way to go about this? Do i  just look on the app around June to see what rates i'm being offered or do i go back to my broker to see if they can get me a better rate ( don't really want a credit check since we have credit card and loans outstanding currently but hoping only a loan left by dec)  currently if i was on the standard it tell me my payments would be 1300 which would be well out of price since its double what were paying now

    Also how does it value my house as the app currently suggests im at an LTV of 62% and our house is 254k vs the 205k we paid nearly 5 years ago 
    @jjmmww1 With a remortgage due in 11 months, there are a few ways to go about locking a rate. Wait until 6m before expiry (vast majority of lenders), 7m (eg: NatWest allows 6+1 ie 6 months initial validity plus 1 month extension), wait until 8-9m before expiry (a handful of lenders like Nationwide, CoOp allow 6+2/3), lock in now with a lender that allows 6+6 (eg: Leeds).
    Valuation -
    - product-switch with your current lender will use an indexed valuation which is what you're seeing on the app
    - remortgage with a new lender, they will do a fresh valuation which may be an internal inspection, driveby valuation or a desktop one.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • jjmmww1
    jjmmww1 Posts: 136 Forumite
    Seventh Anniversary 100 Posts Name Dropper
    K_S said:
    jjmmww1 said:
    Due to remortgage dec 24 

    Whats the best way to go about this? Do i  just look on the app around June to see what rates i'm being offered or do i go back to my broker to see if they can get me a better rate ( don't really want a credit check since we have credit card and loans outstanding currently but hoping only a loan left by dec)  currently if i was on the standard it tell me my payments would be 1300 which would be well out of price since its double what were paying now

    Also how does it value my house as the app currently suggests im at an LTV of 62% and our house is 254k vs the 205k we paid nearly 5 years ago 
    @jjmmww1 With a remortgage due in 11 months, there are a few ways to go about locking a rate. Wait until 6m before expiry (vast majority of lenders), 7m (eg: NatWest allows 6+1 ie 6 months initial validity plus 1 month extension), wait until 8-9m before expiry (a handful of lenders like Nationwide, CoOp allow 6+2/3), lock in now with a lender that allows 6+6 (eg: Leeds).
    Valuation -
    - product-switch with your current lender will use an indexed valuation which is what you're seeing on the app
    - remortgage with a new lender, they will do a fresh valuation which may be an internal inspection, driveby valuation or a desktop one.
    Thank you thats helpful with nationwide currently so will have a look in a few months time then and see what the app offers. I was hoping for around the 4% mark  now going by recent rates but wanted to lock something in as soon as just in case something crazy happens at least i know i could afford it.  

    One last thing is it likely to get better rates switching as per everything else (ie internet,phone,insurance) ? or will it just be what there offering to all? as normally switching anything will give better offers to " new customers"
    Mortgage 165,065/183,000

    Credit card cleared Oct 2024
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