Mortgage broker - ask me anything

K_S

jonnydeppiwish! said:

Hi again @K_S hopefully my last question for you!

We’ve agreed to purchase a property where we we complete a let to buy mortgage (£278k) on current mortgage free property,  and a smaller mortgage on the new property (£167k).

There is a very good chance that we may end up selling the current property though, but we’re not yet at that stage.

Can we apply for the double mortgage now and the only take the second mortgage if we do sell out current property or do we have to apply for a new mortgage? How will that be affected by the credit checks etc?

Thanks in advance!

@jonnydepiwish! Sorry, there's too many variables for me to give a useful opinion, I would recommend speaking to your broker or lender advisor (if direct) as they'll have all the info needed to answer your question. Or perhaps post in the main forum and something might be able to give a fuller response. Good luck!

shep13713

K_S said:

shep13713 said:

We have been given this update by our solicitor and wondered how long it normally takes for Santander to respond to this kind of question?

The seller’s solicitors have disclosed that the property was previously affected by Knotweed. They have sent over copies of documentation including a guarantee for treatment. The treatment was done in 2015 and the guarantee expires in 2025. I understand your surveyor did not identify any knotweed when surveying the property so hopefully it’s been completely eradicated but we have had to check with the lender to cross reference with their own valuation.

Thank you

@shep13713 It's hard to say because this is the route that this kind of post-offer property related query can typically take -
Your sols -> Santander team1 -> Santander underwriter -> 3rd party valuer/surveyor (the one they instructed for the val) -> Santander -> your sols
As you can see, there are a few links involved so how quickly it is reviewed and responded to depends on their availability, how busy they are etc.

FWIW, Santander's mortgage team aren't particularly busy at all at the moment and are turning things around pretty quick, so hopefully it shouldn't be too long before you hear back.

thank you for your reply.
We mangaged to get an update from the lenders which was,
They have received the information about the Knotweed and have requested our solicitor to provide them with a certificate of completion of treatment and eradication on the 10/1. We spoke to the solicitors who said they had not received this (however this was one of the team and our solicitor may have it in their email account).
The lenders have said that once they have received it they will send to their valuation team who normally respnd in 3 working days of that. However they said it may be that they change their minds and refuse to give us an offer.

Does this all sound correct to you?

loumon91

hi, i was wondering if you could help? i am a at DIP stage although my application was refered straight away. 

i have looked on kent reliances criteria and cannot see universal credits but see tax credits as an accepted income. 

i was wondering do you know if they accept universal credits? 

i work but my income is low, i have a £71,960 deposit and need a £70,040 mortgage for the £142,000 property. 

my issue is with a low income i rely on the universal credits as a top up. 

thankyou  

Myci85

Hi, 

Wondering if any of the MAs on here have any experience of Accord's cascade products? I'm currently in talks with a MA who specialises in contractor mortgages as my partner is employed on a contract and this company have very good reviews in that area, but as I've mentioned on here previously, he also has historical adverse credit. Our MA thinks he can get us a mortgage with the contract employment as it is, but he doesn't seem hopeful that we'll be able to get a 95% LTV with the adverse. He's agreed to try for a DIP with Accord but I don't think we'll hear until mid next week. 

Accord cascade info says they'll go up to 95% LTV and they won't consider CCJs or defaults. My partner has neither of those, but had a loan showing as status 4 for many months within last 6 years, cleared May 2020. Is my MA right to be sceptical accord will consider at 95%, or is this something their cascade products might fit? 

Feeling pretty dejected right now as have been trying to be in a position to get a mortgage for 1.5 years now and every time I start to think we're in with a chance, my hopes get dashed.

ETA: Accord lending criteria shows this:
"Unsecured Credit: Worst status of no more than 2 in the last 24 months. In addition to this, the latest recorded payment must have been made."

K_S

Myci85 said:

Hi, 

Wondering if any of the MAs on here have any experience of Accord's cascade products? I'm currently in talks with a MA who specialises in contractor mortgages as my partner is employed on a contract and this company have very good reviews in that area, but as I've mentioned on here previously, he also has historical adverse credit. Our MA thinks he can get us a mortgage with the contract employment as it is, but he doesn't seem hopeful that we'll be able to get a 95% LTV with the adverse. He's agreed to try for a DIP with Accord but I don't think we'll hear until mid next week. 

Accord cascade info says they'll go up to 95% LTV and they won't consider CCJs or defaults. My partner has neither of those, but had a loan showing as status 4 for many months within last 6 years, cleared May 2020. Is my MA right to be sceptical accord will consider at 95%, or is this something their cascade products might fit? 

Feeling pretty dejected right now as have been trying to be in a position to get a mortgage for 1.5 years now and every time I start to think we're in with a chance, my hopes get dashed.

ETA: Accord lending criteria shows this:
"Unsecured Credit: Worst status of no more than 2 in the last 24 months. In addition to this, the latest recorded payment must have been made."

@myci85 First off, I’ll say that don’t always take printed criteria as the final word. There might be leeway depending on the rest of the application, it may be out of date, you may have misinterpreted it, etc.

For example, Accord can indeed consider high-LTV applicants with historic defaults on their credit reports. My most recent Accord app was a high-LTV one where the apps had 4 historic defaults between them, it went through on the Cascade range. Another example is Accord considering a single year’s variable bonus history for income for a previous app, which is outside their standard criteria/policy. 

Coming back to your specific app, based on the limited info in your post, it looks like the main points are - contractor income, 3+ years old historic adverse markers (assuming clean credit history since then) and 95% LTV.

I’m assuming there’s a particular reason you jumped straight to Accord cascade? Based on just the above, depending on the details of the contractor income, given the age of the arrears on your credit history, this may get through with any number of mainstream/mainstream-ish lenders, just depends on contracting details and passing lender DIP credit scoring at 95% LTV.

You’ve done the right thing by using a broker. As long as they’re good at their job, trust them and they’ll place you if possible. Good luck!

Myci85

K_S said:

Myci85 said:

Hi, 

Wondering if any of the MAs on here have any experience of Accord's cascade products? I'm currently in talks with a MA who specialises in contractor mortgages as my partner is employed on a contract and this company have very good reviews in that area, but as I've mentioned on here previously, he also has historical adverse credit. Our MA thinks he can get us a mortgage with the contract employment as it is, but he doesn't seem hopeful that we'll be able to get a 95% LTV with the adverse. He's agreed to try for a DIP with Accord but I don't think we'll hear until mid next week. 

Accord cascade info says they'll go up to 95% LTV and they won't consider CCJs or defaults. My partner has neither of those, but had a loan showing as status 4 for many months within last 6 years, cleared May 2020. Is my MA right to be sceptical accord will consider at 95%, or is this something their cascade products might fit? 

Feeling pretty dejected right now as have been trying to be in a position to get a mortgage for 1.5 years now and every time I start to think we're in with a chance, my hopes get dashed.

ETA: Accord lending criteria shows this:
"Unsecured Credit: Worst status of no more than 2 in the last 24 months. In addition to this, the latest recorded payment must have been made."

@myci85 First off, I’ll say that don’t always take printed criteria as the final word. There might be leeway depending on the rest of the application, it may be out of date, you may have misinterpreted it, etc.

For example, Accord can indeed consider high-LTV applicants with historic defaults on their credit reports. My most recent Accord app was a high-LTV one where the apps had 4 historic defaults between them, it went through on the Cascade range. Another example is Accord considering a single year’s variable bonus history for income for a previous app, which is outside their standard criteria/policy. 

Coming back to your specific app, based on the limited info in your post, it looks like the main points are - contractor income, 3+ years old historic adverse markers (assuming clean credit history since then) and 95% LTV.

I’m assuming there’s a particular reason you jumped straight to Accord cascade? Based on just the above, depending on the details of the contractor income, given the age of the arrears on your credit history, this may get through with any number of mainstream/mainstream-ish lenders, just depends on contracting details and passing lender DIP credit scoring at 95% LTV.

You’ve done the right thing by using a broker. As long as they’re good at their job, trust them and they’ll place you if possible. Good luck!

Thank you KS, I really appreciate all the time you've taken answering my questions on here. 

Yes clean credit file since mid 2020. Hearing you've got someone through on accord cascade recently with multiple defaults has given me a tiny bit of hope, so perhaps my MA just hasn't used them much before and is more familiar with the nuances of contractor difficulties than bad credit difficulties so doesn't want to give me false hope. 

I know you guys can't tout for business on here, but if I get no joy with this MA, and if it's allowed, I might message you with more info to see if you think you can help us. 

Jjmbrown1

Hi, 

My house is currently on the market with my fixed rate with BOI coming to an end at the end of next month. I haven't received an offer on the house yet, and conscious with a slow market this could take some time. The SVR I am staring into is £1100 higher than my existing rate. I live alone and its a big portion of my salary, I can afford it for a few months but its not going to be comfortable. 

At this stage, I am unsure as to if I will be buying another property but most likely will be in the near future. I just want to get rid of the house and the massive payment asap so on that basis a tracker rate with no ERC makes the most sense so I am not sat around trying to port/ waiting for another property to become available that I like.

The issue that I am finding is that from the lenders I have spoke to, non will lend on a house that is on the market, as they consider it short term lending. Are there any lenders I can target that would lend on this/any other options I have? I would even consider a fixed rate with a low % ERC (1-2% max) as it would just give me that breathing room into selling the house and not be forced into taking whatever offer I can get with the pressure of the high monthly payments.

Thanks

Josh

K_S

Jjmbrown1 said:

Hi, 

My house is currently on the market with my fixed rate with BOI coming to an end at the end of next month. I haven't received an offer on the house yet, and conscious with a slow market this could take some time. The SVR I am staring into is £1100 higher than my existing rate. I live alone and its a big portion of my salary, I can afford it for a few months but its not going to be comfortable. 

At this stage, I am unsure as to if I will be buying another property but most likely will be in the near future. I just want to get rid of the house and the massive payment asap so on that basis a tracker rate with no ERC makes the most sense so I am not sat around trying to port/ waiting for another property to become available that I like.

The issue that I am finding is that from the lenders I have spoke to, non will lend on a house that is on the market, as they consider it short term lending. Are there any lenders I can target that would lend on this/any other options I have? I would even consider a fixed rate with a low % ERC (1-2% max) as it would just give me that breathing room into selling the house and not be forced into taking whatever offer I can get with the pressure of the high monthly payments.

Thanks

Josh

@jjmbrown1 As you've found out, mainstream residential lender products aren't meant for short-term purposes so if the valuer or the underwriter sees that the security property is on the market, they won't lend. It doesn't matter if its a fixed product or a tracker product unfortunately.

If its a low LTV app and your circumstances are straightforward, you might get it through on an execution-only direct online app where (if you're lucky) an automated valuation happens at the application stage and it doesn't enter manual underwriting anywhere. But you'd need quite a few things to line up along with a huge dollop of luck.

I'm afraid I don't really have anything that comes to mind that would be significantly cheaper overall than the BOI SVR of 8%. If it is practically possible, perhaps take the home off the market, get an ERC-free remortgage and then it put it back on after completion? But that may still involve mispresenting the application to the lender.

It might be worth speaking to Furness to see if this product might suit your situation? It's an ERC-free 2 year term (max) meant for short term lending but targeted at chain-break rather than your requirement, so perhaps a long shot.

https://www.furnessbs.co.uk/intermediaries/short-term-lending

englandsrose

Has there been anymore chatter on Nationwide I’m on a knife’s edge here! Thank you! 

exmrsw

Hi, we have a fixed rate mortgage with nationwide. We are looking at buying a new build with Taylor Wimpey. We wanted to port our mortgage over, the property value is £405 and they’ve just told us it’s a low cost home.

The mortgage we’d port is £270 and we have equity for the rest of the value.

Taylor Wimpey have said that nationwide won’t port on a low cost home.

Nationwide have said they will but Taylor Wimpey said that when it goes to underwriting they will say no.

Do you have any experience of this at all and could you advise if it is possible to do?

Obviously, we are taking a mortgage of less than property value so there would be profit for Nationwide if it were to be repossessed.