Mortgage broker - ask me anything

K_S

K_S said:

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 misrepresenting 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

@jjmbrown1 Nothing much to add to the above unfortunately.

Might be worth posting in the main forums in case anyone else has any useful suggestions or experience.

All the best.

Jjmbrown1 said:

Hi, do you know of any lenders that will do a remortgage on a property that is up for sale? My house is currently up for sale and I am really quite reluctant to take it off the market for a number of weeks (in fear of losing a potential buyer when I am desperate to move). However equally I am now 2 weeks away from moving on to SVR and my mortgage doubling, a nightmare position! In an ideal world I would agree a sale on the house and I will deal with SVR for a couple months but no offer in sight yet. A product transfer through my existing lender (BOI) isn't really worth doing as the ERC is so high, 3% repayment which knocks £6k off my sale. I'm also looking for a tracker, which BOI don't offer. be downsizing significantly in value so porting isn't really an option. 

I am getting very mixed free back from a number of mortgage advisors saying the banks simply will not lend on a property that is for sale (considered short term lending) but hearing very conflicting stories! I would consider any lender. 

kingstreet

All you can hope for is an automated valuation where no physical inspection takes place.

Sammie_1985

Hi all 
Our fixed rate ends in August so just signed up to a new deal with our existing lender, Santander at 3.89% fixed for another 5 years. 

Our monthly payments will be around £1000 based on what our current mortgage amount would be but I’m wanting to make a single overpayment of around £5000 in the next couple of months. We also overpay £100 a month by direct debit. 

Will Santander adjust our monthly payments come August as our mortgage will be lower than predicted to be or will the payments still stay the same? We always opt for the overpayment to reduce the term of our mortgage but just wondered if they’d automatically readjust monthly payment for the new monthly payments on our new deal? 

rottcodd

We complete tomorrow, solicitors say they will be receiving the mortgage monies from Halifax today (we applied via a broker). Once they confirm that they have received the mortgage monies, is it then safe to start putting my credit card to work? Or should I wait until completion? Also I assume once solicitor receives the money that's my mortgage account officially "opened" and I can register to view it online, change payment date etc.?

hufc2002

Cheap fix ends 01/08 so I submitted a product transfer with Virgin for a 5 year fix @4.03%.

I have just received the offer and I understand it is valid for 14 days.  If I accept the offer (use it as an insurance policy/worst case scenario) can I subsequently submit a further product transfer if a more favourable product(s) become available between now and the end of my cheap fix or, if I accept this one, do I have to go with it?

K_S

hufc2002 said:

Cheap fix ends 01/08 so I submitted a product transfer with Virgin for a 5 year fix @4.03%.

I have just received the offer and I understand it is valid for 14 days.  If I accept the offer (use it as an insurance policy/worst case scenario) can I subsequently submit a further product transfer if a more favourable product(s) become available between now and the end of my cheap fix or, if I accept this one, do I have to go with it?

@hufc2002

Generally speaking -

- the offer is valid for 6 months (the specific date will be mentioned on the offer doc)
- the applicant doesn't need to do anything specific to accept/reject it at this point
- if/when the applicant schedules completion and the solicitor requests for release of funds, that's when it is deemed to be accepted
- if the applicant don't complete on the offer by expiry, it is no longer valid
- if Virgin rates go down, the applicant can ask to reissue the offer with the new product. 

The above applies to remortgage (changing lenders) offers from the vast majority of mainstream lenders, not just Virgin. And what I've said above refers to broker apps, I've no idea if it's any different direct.

hufc2002

K_S said:

hufc2002 said:

Cheap fix ends 01/08 so I submitted a product transfer with Virgin for a 5 year fix @4.03%.

I have just received the offer and I understand it is valid for 14 days.  If I accept the offer (use it as an insurance policy/worst case scenario) can I subsequently submit a further product transfer if a more favourable product(s) become available between now and the end of my cheap fix or, if I accept this one, do I have to go with it?

@hufc2002

Generally speaking -

- the offer is valid for 6 months (the specific date will be mentioned on the offer doc)
- the applicant doesn't need to do anything specific to accept/reject it at this point
- if/when the applicant schedules completion and the solicitor requests for release of funds, that's when it is deemed to be accepted
- if the applicant don't complete on the offer by expiry, it is no longer valid
- if Virgin rates go down, the applicant can ask to reissue the offer with the new product. 

The above applies to the vast majority of mainstream lenders, not just Virgin. And what I've said above refers to broker apps, I've no idea if it's any different direct.

Thanks for this.

Virgin are my current lender and I submitted this product transfer online myself.  In this case, I would therefore expect no solicitors to be involved. 

The paperwork I have received says This Offer and Offer Illustration will expire on 28 February 2024. 
 

K_S

hufc2002 said:

K_S said:

hufc2002 said:

Cheap fix ends 01/08 so I submitted a product transfer with Virgin for a 5 year fix @4.03%.

I have just received the offer and I understand it is valid for 14 days.  If I accept the offer (use it as an insurance policy/worst case scenario) can I subsequently submit a further product transfer if a more favourable product(s) become available between now and the end of my cheap fix or, if I accept this one, do I have to go with it?

@hufc2002

Generally speaking -

- the offer is valid for 6 months (the specific date will be mentioned on the offer doc)
- the applicant doesn't need to do anything specific to accept/reject it at this point
- if/when the applicant schedules completion and the solicitor requests for release of funds, that's when it is deemed to be accepted
- if the applicant don't complete on the offer by expiry, it is no longer valid
- if Virgin rates go down, the applicant can ask to reissue the offer with the new product. 

The above applies to the vast majority of mainstream lenders, not just Virgin. And what I've said above refers to broker apps, I've no idea if it's any different direct.

Thanks for this.

Virgin are my current lender and I submitted this product transfer online myself.  In this case, I would therefore expect no solicitors to be involved. 

The paperwork I have received says This Offer and Offer Illustration will expire on 28 February 2024. 
 

@hufc2002 Please ignore what I said above, that referred to a remortgage (moving from another lender to Virgin) app, not a PT.

Ruggers13

I am currently on a mortgage with my father so that I could borrow the initial amount I needed. When I come to remortgage I want to try and remove him from the mortgage so that I can increase the term as it is heavily reduced due to his age.

My Salary will be about £47k and I require a remortgage of £260k this is just roughly over 5.5x How difficult would this be to achieve? I'd like to add that I am Chartered Accountant and I am aware some lenders offer favourable income multipliers to this profession. Would that be the route I'd need to take?

Thanks

Ruggers13

I am currently on a mortgage with my father so that I could borrow the initial amount I needed. When I come to remortgage I want to try and remove him from the mortgage so that I can increase the term as it is heavily reduced due to his age.

My Salary will be about £47k and I require a remortgage of £260k this is just roughly over 5.5x How difficult would this be to achieve? I'd like to add that I am Chartered Accountant aged 28 so further scope for salary increases and I am aware some lenders offer favourable income multipliers to this profession. Would that be the route I'd need to take?

Thanks