Mortgage broker - ask me anything

K_S

exmrsw said:

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.

@exmrsw What exactly do you mean by 'low cost home', do you know what the specific scheme name is?

There is an England-wide First Homes discounted scheme but that's only for FTBs.

K_S

englandsrose said:

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

@englandsrose Keep an eye on this page for any Nationwide updates
https://www.nationwide-intermediary.co.uk/news

kingstreet

exmrsw said:

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.

Discounted Open Market Value? Only a fixed percentage is sold and the remainder is held by a local authority or other registered social landlord.

Flyinghigh

Good morning, me and my partner have a aip with pepper money my in laws want to gift us the deposit but they are old and have it saved in cash.
i have looked at pepper money lending criteria and it does say cash gifted deposits are accepted or am i reading this wrong?

K_S

Flyinghigh said:

Good morning, me and my partner have a aip with pepper money my in laws want to gift us the deposit but they are old and have it saved in cash.
i have looked at pepper money lending criteria and it does say cash gifted deposits are accepted or am i reading this wrong?

@flyinghigh You are reading it right, but what is unsaid is that this is subject to being able to verify the source of funds and satisfy AML (anti money laundering) checks/requirements at broker/solicitor/lender levels.

This thread may give you an idea of the subjectivity involved in verifying a cash deposit for a mortgage.
https://forums.moneysavingexpert.com/discussion/5335893/cash-mortgage-deposit

kingstreet

Nationwide rate cuts tomorrow.

Rocco85

First time buyers here - found a new build property with incentives (£6k towards deposit and £1k towards legal fees) put in an offer with a 10% deposit. Used a broker who advised us to go with TSB and got a mortgage in principle from them for the full 90%. The application went in last Friday and they’ve instructed a valuation for today. However, concerned as our solicitor (which was provided by the estate agents) has begun the local searches already which we have paid an initial fee of £750 for without us knowing if we’ve been approved for the mortgage yet. I guess I’m seeking reassurance that this is normal? Partners credit history is blemish free, mine has been rocky over the years however I am not behind on anything and make regular payments towards two credit cards and HP car finance and dip in and out of arranged overdrafts on occasion, and my credit scores on the various platforms range from good to excellent. 

Floydy2be

Would you recommend an offset mortgage? What would the ££savings threshold be for recommending one compared to a regular fixed rate mortgage with a slightly lower interest rate? 20k 50k 100k? 

K_S

Floydy2be said:

Would you recommend an offset mortgage? What would the ££savings threshold be for recommending one compared to a regular fixed rate mortgage with a slightly lower interest rate? 20k 50k 100k? 

@floydy2be Depends on your personal circumstances and numbers involved. Try playing around with the MSE offset calc to compare against a standard mortgage 
https://www.moneysavingexpert.com/mortgages/offset-mortgage-calculator/

K_S

Rocco85 said:

First time buyers here - found a new build property with incentives (£6k towards deposit and £1k towards legal fees) put in an offer with a 10% deposit. Used a broker who advised us to go with TSB and got a mortgage in principle from them for the full 90%. The application went in last Friday and they’ve instructed a valuation for today. However, concerned as our solicitor (which was provided by the estate agents) has begun the local searches already which we have paid an initial fee of £750 for without us knowing if we’ve been approved for the mortgage yet. I guess I’m seeking reassurance that this is normal? Partners credit history is blemish free, mine has been rocky over the years however I am not behind on anything and make regular payments towards two credit cards and HP car finance and dip in and out of arranged overdrafts on occasion, and my credit scores on the various platforms range from good to excellent. 

@rocco85 Can't comment on your specific case or the outcome but with respect to the question you've asked about paying for searches before mortgage offer - generally what I recommend to clients is to not incur any property specific costs (searches, building survey, etc.) until they have the mortgage offer to hand.

The reason for that is less to do with the applicants chances of an offer and more to do with the potential stumbling blocks that are property related that I don't have any control over - down-valuation, property not compatible or other show-stoppers thrown up by the valuer. I hope that makes sense.