Mortgage broker - ask me anything

K_S

Nichelette said:

Think I know the answer to this but worth checking in case. We're with Halifax and did a product transfer which starts today. We're in the 60% bracket and got 4.9%. I was debating whether to do a month on SVR as I've seen Halifax change rates on the 1st but fixed as I didn't know if it would come down enough to be worth it. It looks like they've reduced by a good bit today 🙄. I believe we're now locked in and have no cooling off period etc. Am I correct in my thinking? 

@nichelette Assuming that you're already on the new rate today and that's what's showing on your online banking, you're right.

I don't know if it's any different for a direct PT so perhaps just give them a call and see anyway.

jmsa7

I currently have BTL mortgage with Virgin Money @ 1.8% that will end in April 2025. My circumstances changed and I need to move in to the property (only property I own) so I need a residential Mortgage. Shall I bother to contact Virgin Money explaining the situation in the hope that they allow me to live at the property or shall I be looking to remortgage using a broker even if I have to pay an ERC and go to higher interest rate? What is the worse that can happen if I just move in and don't let the lender know?

silvercar

jmsa7 said:

I currently have BTL mortgage with Virgin Money @ 1.8% that will end in April 2025. My circumstances changed and I need to move in to the property (only property I own) so I need a residential Mortgage. Shall I bother to contact Virgin Money explaining the situation in the hope that they allow me to live at the property or shall I be looking to remortgage using a broker even if I have to pay an ERC and go to higher interest rate? What is the worse that can happen if I just move in and don't let the lender know?

I doubt very much would happen short term. You would correspond explaining your circumstances and they would write back to you, this could drag on for months, if not longer. Theoretically they could call in the mortgage, but to do that they may need a court order if you didn’t comply. I haven’t seen any case where a lender repossessed for keeping up with mortgage payments as opposed to not doing so. To be accurate you would be breaching the terms of your mortgage, that is a contractual issue rather than illegal. When the mortgage ends you will need to take out a residential mortgage as you can’t take a BTL while you are living in the property as that would be deception, but I guess you know that.

muchembe

Hi & I hope it's ok to repost this question. Apologies if not, or if the question is just a foolish one or something! I'm very aware kind folk are giving their time to provide free & very helpful advice on here.

YBS give a schedule of early repayment charges reducing from 5% to 1% over the term of their five year fixed rate offset. However, they then say this on repayments: "Overpayments (monthly or lump sum) up to a total of 99.90% of the outstanding loan per year are allowed without charge. Any amount repaid over the 99.90% limit will incur an Early Repayment Charge. " The charge would be based on the original borrowed amount.

Does this effectively mean we could pay off say 99% of our remaining loan at any point without a repayment charge, as long as we keep the last 1% there?

Hillwalker1975

Hi, need some advice please.

currently got a £120k mortgage, house probably worth £190,000 on the market and I’d like to sell.

ideally, would need a £300k mortgage next.

I earn £60k, missus earns £26k

i have a loan of £20k and c/cards about £7k

missus has no debt. I’m 48 she’s 43.

we have 2 kids and steady jobs.

ideally, I want to be able to sell the house, clear the mortgage and £27k debts and use rest as a deposit.

am I likely to be able to do that, or would the loans/c/cards be an obstacle?

worried I might just get refused or only offered daft rates.

any advice welcomed.

thanks

K_S

Hillwalker1975 said:

Hi, need some advice please.
currently got a £120k mortgage, house probably worth £190,000 on the market and I’d like to sell.
ideally, would need a £300k mortgage next.
I earn £60k, missus earns £26k
i have a loan of £20k and c/cards about £7k
missus has no debt. I’m 48 she’s 43.
we have 2 kids and steady jobs.
ideally, I want to be able to sell the house, clear the mortgage and £27k debts and use rest as a deposit.
am I likely to be able to do that, or would the loans/c/cards be an obstacle?
worried I might just get refused or only offered daft rates.
any advice welcomed.
thanks

@hillwalker1975 Unless you have issues on your credit report, you can ignore the possibility of 'daft rates' - which essentially correlates to having to use specialist or bad-credit lenders (eg: Aldermore, Kensington, Pepper, Bluestone, etc.) due to your credit history.

How much you can borrow - The important points are as follows -
- Assuming you get 67k in hand after the sale, 27k goes to paying off debt, leaves you with a 40k deposit.
- You need to borrow 300k so that'll mean a purchase price of 340k with a 40k deposit.
- You're looking at 90% LTV (loan to value): 300k/340k.
- The 27k debt will only be paid off at/after completion
- oldest borrower is 48, so you're looking at a max term of 21, 26 or 31 years depending on the lender.

Plug in your numbers in a couple of lender affordability calculators (include the debt) and you'll get an idea of whether or not you can borrow what you need. I suspect you'll be fine given the numbers in your post. You may have to go for a 25+ year term or so.
https://www.halifax-intermediaries.co.uk/tools-calculators/mortgage-affordability-calculator.html
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

Good luck!

naf123

I got a remortgage offer of 200k. Then I asked for 30K more for building works. I got a revised mortgage offer of 230k. But when i look at the paperwork, it seems to be in two part.  one of 200k and the other of 30k. (Santander). Is this normal?

Thank you 

K_S

naf123 said:

I got a remortgage offer of 200k. Then I asked for 30K more for building works. I got a revised mortgage offer of 230k. But when i look at the paperwork, it seems to be in two part.  one of 200k and the other of 30k. (Santander). Is this normal?

Thank you 

@naf123 Is it a remortgage (moving to Santander from another lender) or a product-switch with additional borrowing (staying with Santander)?

If a remortgage then I would expect it to be a single part.

If a product switch+additional borrowing then 2 parts sound right.

naf123

K_S said:

naf123 said:

I got a remortgage offer of 200k. Then I asked for 30K more for building works. I got a revised mortgage offer of 230k. But when i look at the paperwork, it seems to be in two part.  one of 200k and the other of 30k. (Santander). Is this normal?

Thank you 

@naf123 Is it a remortgage (moving to Santander from another lender) or a product-switch with additional borrowing (staying with Santander)?

If a remortgage then I would expect it to be a single part.

If a product switch+additional borrowing then 2 parts sound right.

First I did a remortgage from barclays (i'm still with barclays) and got an offer from santander. Then i asked for 30k more.....

Hstar123

Hi

Just after some help if possible. So, my broker has applied to Halifax for 80% LTV. On my application, I am employed earning £75k per annum, which is accurate. The company I am working for I was, until 31/03/2023 a 20% shareholder and director. That ceased and then I went full time PAYE. 

The DIP went through and so proceeded to full app. 

Halifax have come back wanted bank statements and payslips for March 23, August 23 and December 2023. 

My March payslip was nominal. August, payslip was correct but payment into account was c. £2,500 higher as between April and November, I was receiving additional income (not included in the basic paye of £75k) as this was technically money owed to me from previous years. December payslip and bank statement correct to the penny. 

my p60 for 21/22 and 22/23 are also lower than the current salary I am on. As are the sa302s. 

My broker is going to explain all the above to Halifax but would appreciate some views on how this could go. 

Many thanks