Mortgage broker - ask me anything

haras_n0sirrah

Monik2510a said:

We have submitted our application on the 22nd September (shared ownership with Leeds BS) and we're still waiting to hear. Does Leeds always take so long to review applications ? Or is this the standard time? 

Leeds are currently on 15 working days to review documents. This is pretty normal post covid (pre covid if would have been 2-3 days)
My job is pretty frustrating at the moment. Submitted an application yesterday and told a client we are unlikely to hear anything until first week of nov. It is what it is at the moment 

haras_n0sirrah

littlehol said:

Hi, wondering if you could perhaps help me look at which option would be best. 

Currently have a Help to Buy mortgage (finishes Jan 21), current mortgage balance is £199k, house value approx £305- £310k (purchased in 2018 for £285k). We were looking to pay the HTB off when we remortgage in Jan,  we would like to move in 3 years and unless we start paying more won’t have enough equity, affordability not an issue. 

My question is, are we better off overpaying the mortgage for 2 years and leaving the HTB as it is because its interest free, or, getting it paid off now and adding it too the mortgage ( happy to top up to make sure we are not over the 85% LTV range) because the concern is as the house increases in value, our 20% we have to pay back increases. Thank you in advance ☺️

The 15% deposit rates are currently around 3% whereas the 25% + are low 1%. I would probably leave the equity loan if you aren't paying interest and save/ overpay the monthly payment difference. I dont think we are in for high price increases over the next few years with the current situation and if you are moving in 3 years you may be better saving as much deposit as possible. This is just based on what you have said and to review properly would require a fact find and rate/ payment comparison so take the above as opinion rather than advice 

Monik2510a

Thank you for your prompt reply. We are on working date 15 today. And really frustrated, because if for any reason it's a decline, we've wasted 3 weeks if they require additional info (do they always ask for additional information?) Is it going to be another 15 working days? And if the pre/post pffer correspondence is also 15 days, does that realistically mean that even if everything goes well, we're unlikely to  receive an offer for another 6 weeks? Thank you x

haras_n0sirrah

Monik2510a said:

Thank you for your prompt reply. We are on working date 15 today. And really frustrated, because if for any reason it's a decline, we've wasted 3 weeks if they require additional info (do they always ask for additional information?) Is it going to be another 15 working days? And if the pre/post pffer correspondence is also 15 days, does that realistically mean that even if everything goes well, we're unlikely to  receive an offer for another 6 weeks? Thank you x

Unfortunately yes any further information will also be 15 working days 

movingon2020

Hi there, our Halifax application has been with the Valuers since Tuesday last week. The application itself was approved in less than 24 hours and sent for valuation but has stalled there. Less than 50% LTV so broker said she isn't concerned about the valuation as the bank would likely still lend us the amount we want even if they down value. Are you experiencing similar delays with Halifax or is it region specific? We're moving from London to Hertfordshire. 

Peter74

Hi there.  In your experience, approximately what % of mortgage valuations come back as an under-valuation?  Thanks.

jg89

Hi Everyone,
First off thanks for all the info on this group, it has been really useful reading about everyones experiences. I just wanted to get some advice on my situation.

I am the sole director of my limited company and have been trading for 3 years with my 3rd year just finished last month. During my 1st year I wasn't really trading and had a part time job whilst I was building up my client base.

My figures are as follows:
For my 1st year I encountered a small loss of £517.

For my 2nd year I had a profit before tax and after salary of £31,815 and £26,216 after tax. My salary was £8,538 & I took out £12,000 in dividends.

For my 3rd year I had a profit before tax and after salary of £82,524 and £67,043 after tax. My salary was £8,659 & I took out £37,100 in dividends.

I need to borrow £287,000 and will be putting down 15% deposit and could possibly stretch to 20%. My credit is clean and I don't have any debt apart from my student loan.

What lenders do you think would be suitable? (I've read up about Clydesdale & Coventry but are their any others)

Would they look at all of the years, the most recent year or an average of year 2 & 3 and would it be profit before tax + salary or profit after tax + salary.

Sorry for the long post, any advice would be much appreciated!

Thanks

haras_n0sirrah

jg89 said:

Hi Everyone,
First off thanks for all the info on this group, it has been really useful reading about everyones experiences. I just wanted to get some advice on my situation.

I am the sole director of my limited company and have been trading for 3 years with my 3rd year just finished last month. During my 1st year I wasn't really trading and had a part time job whilst I was building up my client base.

My figures are as follows:
For my 1st year I encountered a small loss of £517.

For my 2nd year I had a profit before tax and after salary of £31,815 and £26,216 after tax. My salary was £8,538 & I took out £12,000 in dividends.

For my 3rd year I had a profit before tax and after salary of £82,524 and £67,043 after tax. My salary was £8,659 & I took out £37,100 in dividends.

I need to borrow £287,000 and will be putting down 15% deposit and could possibly stretch to 20%. My credit is clean and I don't have any debt apart from my student loan.

What lenders do you think would be suitable? (I've read up about Clydesdale & Coventry but are their any others)

Would they look at all of the years, the most recent year or an average of year 2 & 3 and would it be profit before tax + salary or profit after tax + salary.

Sorry for the long post, any advice would be much appreciated!

Thanks

Most lenders would look at the last 2 years accounts so the previous loss won't be too much of an issue. Some lenders take salary plus dividends, others take salary plus profit either before or after tax so dependent on the calculators will depend on the best option for you (at the cheapest rate possible) 
What will currently be crucial will be whether your last 3 months business bank statements are showing income at a normal level and whether you have taken any grants since covid 

haras_n0sirrah

Peter74 said:

Hi there.  In your experience, approximately what % of mortgage valuations come back as an under-valuation?  Thanks.

It would be impossible to say. I am seeing it more in London on flats than anywhere else 

haras_n0sirrah

movingon2020 said:

Hi there, our Halifax application has been with the Valuers since Tuesday last week. The application itself was approved in less than 24 hours and sent for valuation but has stalled there. Less than 50% LTV so broker said she isn't concerned about the valuation as the bank would likely still lend us the amount we want even if they down value. Are you experiencing similar delays with Halifax or is it region specific? We're moving from London to Hertfordshire. 

Esurv are delayed. We tend to get the phone number of the valuers and pass it to the estate agent to 'beat the call out queue'