Mortgage broker - ask me anything

crex

I understand that you can't use the Help to Buy scheme / equity loan with a JBSP mortgage. What about a Help to Buy ISA or Lifetime ISA?
A second question, if the answer to the above is Yes - if one of the joint borrowers doesn't use their Isa for the deposit, is it still available for that person to use for a deposit in the future, or would they no longer be eligible if no longer classed as a FTB?
Thanks

silvercar

crex said:

I understand that you can't use the Help to Buy scheme / equity loan with a JBSP mortgage. What about a Help to Buy ISA or Lifetime ISA?
A second question, if the answer to the above is Yes - if one of the joint borrowers doesn't use their Isa for the deposit, is it still available for that person to use for a deposit in the future, or would they no longer be eligible if no longer classed as a FTB?
Thanks

You can definitely use a HTB ISA as a deposit on a purchase with a JBSP mortgage. The purchase needs to be in the name of the SP, not the JB. Remember that the JB on the JBSP mortgage isn't allowed to live in the property. They would still be a FTB if their name isn't on the deeds, all they are doing is effectively acting as a guarantor on the mortgage. If the JB doesn't have and has never had a property in their own name, they keep their FTB status, but when applying for their own mortgage on another property with their own HTB ISA, their commitment to the JBSP mortgage on the other person's property may be considered as a financial commitment when assessing how much they can borrow.

JCJC2706

Currently have a 90% LTV mortgage application for £480k (with a £48k deposit) in with Natwest. Joint income of £144k.

Previously had £48k debt, but family have kindly offered to pay off £25k of it, leaving £23k. Had missed payments but no defaults - this was back in 2020. We've submitted payslips etc to Natwest and they all have ticks against them and the valuation is tomorrow. They've asked our broker (well, our broker hasn't told us yet, we found out through the online chat) to provide proof that the debts have been paid off. 

Is this a good sign (e.g it wasn't a complete no once they looked over the form etc) or should I not be getting my hopes up just yet?

K_S

JCJC2706 said:

Currently have a 90% LTV mortgage application for £480k (with a £48k deposit) in with Natwest. Joint income of £144k.

Previously had £48k debt, but family have kindly offered to pay off £25k of it, leaving £23k. Had missed payments but no defaults - this was back in 2020. We've submitted payslips etc to Natwest and they all have ticks against them and the valuation is tomorrow. They've asked our broker (well, our broker hasn't told us yet, we found out through the online chat) to provide proof that the debts have been paid off. 

Is this a good sign (e.g it wasn't a complete no once they looked over the form etc) or should I not be getting my hopes up just yet?

@JCJC2706

You've passed a DIP (needs to be run before submitting a full application) and your broker will have checked criteria, affordability before going with NatWest. At that point, with a clean (no defaults/CCJs) credit history, with the vast majority of mainstream lenders you're 99% there.

With mainstream lenders, the primary aspects they're looking for beyond that point in the applicant is whether you can evidence the income declared in the application and whether there are any undisclosed commitments in the background.

That's a long winded way to say that you're probably fine and I wouldn't read anything positive/negative in the query raised. I hope that makes sense. Good luck and hope you get to offer soon!

theonenonly

Reading about how some lenders will be increasing their rates, are we expecting Nationwide to increase their rates too?

K_S

theonenonly said:

Reading about how some lenders will be increasing their rates, are we expecting Nationwide to increase their rates too?

@theonenonly Couldn't say tbh. They haven't updated rates since 12 Feb and haven't announced any upcoming changes yet. Keep an eye on this page for any product updates https://www.nationwide-intermediary.co.uk/news

If you've already reserved a product or submitted a full application, your rate is secured so it doesn't matter if Nationwide increases rates.

If you haven't, then you can use Nationwide's product reservation feature to reserve a current product/rate for 90 days so that protects you from any product rate increases https://www.nationwide-intermediary.co.uk/products/reserving-a-product

theonenonly

K_S said:

theonenonly said:

Reading about how some lenders will be increasing their rates, are we expecting Nationwide to increase their rates too?

@theonenonly Couldn't say tbh. They haven't updated rates since 12 Feb and haven't announced any upcoming changes yet. Keep an eye on this page for any product updates https://www.nationwide-intermediary.co.uk/news

If you've already reserved a product or submitted a full application, your rate is secured so it doesn't matter if Nationwide increases rates.

If you haven't, then you can use Nationwide's product reservation feature to reserve a current product/rate for 90 days so that protects you from any product rate increases https://www.nationwide-intermediary.co.uk/products/reserving-a-product

Ah thanks, I hadn't realised you can reserve the rate. My broker did a DIP for me with Nationwides Helping Hand beginning of January and since then the rates have dropped. So hopefully he'll lock in this current rate

JCJC2706

K_S said:

JCJC2706 said:

Currently have a 90% LTV mortgage application for £480k (with a £48k deposit) in with Natwest. Joint income of £144k.

Previously had £48k debt, but family have kindly offered to pay off £25k of it, leaving £23k. Had missed payments but no defaults - this was back in 2020. We've submitted payslips etc to Natwest and they all have ticks against them and the valuation is tomorrow. They've asked our broker (well, our broker hasn't told us yet, we found out through the online chat) to provide proof that the debts have been paid off. 

Is this a good sign (e.g it wasn't a complete no once they looked over the form etc) or should I not be getting my hopes up just yet?

@JCJC2706

You've passed a DIP (needs to be run before submitting a full application) and your broker will have checked criteria, affordability before going with NatWest. At that point, with a clean (no defaults/CCJs) credit history, with the vast majority of mainstream lenders you're 99% there.

With mainstream lenders, the primary aspects they're looking for beyond that point in the applicant is whether you can evidence the income declared in the application and whether there are any undisclosed commitments in the background.

That's a long winded way to say that you're probably fine and I wouldn't read anything positive/negative in the query raised. I hope that makes sense. Good luck and hope you get to offer soon!

Thanks!! My broker has said that Natwest won't accept screenshots, but some of the statements won't be generated for another 2-3 weeks showing the balance as zero... have you come across any workarounds for this? Cheers

K_S

JCJC2706 said:

K_S said:

JCJC2706 said:

Currently have a 90% LTV mortgage application for £480k (with a £48k deposit) in with Natwest. Joint income of £144k.

Previously had £48k debt, but family have kindly offered to pay off £25k of it, leaving £23k. Had missed payments but no defaults - this was back in 2020. We've submitted payslips etc to Natwest and they all have ticks against them and the valuation is tomorrow. They've asked our broker (well, our broker hasn't told us yet, we found out through the online chat) to provide proof that the debts have been paid off. 

Is this a good sign (e.g it wasn't a complete no once they looked over the form etc) or should I not be getting my hopes up just yet?

@JCJC2706

You've passed a DIP (needs to be run before submitting a full application) and your broker will have checked criteria, affordability before going with NatWest. At that point, with a clean (no defaults/CCJs) credit history, with the vast majority of mainstream lenders you're 99% there.

With mainstream lenders, the primary aspects they're looking for beyond that point in the applicant is whether you can evidence the income declared in the application and whether there are any undisclosed commitments in the background.

That's a long winded way to say that you're probably fine and I wouldn't read anything positive/negative in the query raised. I hope that makes sense. Good luck and hope you get to offer soon!

Thanks!! My broker has said that Natwest won't accept screenshots, but some of the statements won't be generated for another 2-3 weeks showing the balance as zero... have you come across any workarounds for this? Cheers

@jcjc2706 If a client has a recently paid off cc balance that needs to be evidenced, the usual workaround is producing the following -

1. the latest issued statement

2. current transaction listing / printout of internet banking home page for the account / screenshot: showing zero balance and paid off amount, with enough info on it to identify it as the same account in no.1

3. Client’s current account statement / transaction listing showing amount paid to cc

I’ve never had an issue with the bank not accepting the above in similar situations, and often just 1+2 also suffices.

Gp2006

I have a query about self employed income. My mortgage is with HSBC and planning to speak to them next week but if anyone can answer ahead of that I’d be really grateful!
 

I’m hoping to move and port my mortgage to a new house and increase borrowing. I’m employed part time and also have a separate small business which made a profit of around 3k in 21/22 and again in 22/23. I’m currently on maternity leave and going back to my employed work in around a month. I stopped my business in January last year and will also be returning to that in a month or so. I know for my employed job I can provide my last payslips before maternity leave and confirm I’m going back on the same terms and conditions. According to the HSBC website for my self employment they need the last two years tax calculations dated within 18 months. Will they take into consideration the two tax years that I have calculations for? I didn’t trade at all in 23-24. 

Obviously only a small amount but really need it for affordability! When I took out my mortgage my business had only been up and running for a year and it wasn’t needed for affordability so they don’t know about it. 

Thank you.