Mortgage broker - ask me anything
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Myci85 said:Hello,
We're back to the drawing board on house hunting after offering on a house that one lender wouldn't lend on due to single skin brick, and the second lender wouldn't lend to us due to my partner's fixed term contract having little time left and no guaranteed extension yet.
The first lender confirmed they were happy with our application but not the house, and it was 8th April they declined. If we were to put an offer on another house now and go through them again for mortgage, do you know if they'd re-open our previous application, or start a new one? Reason for asking is 2 fold. One, their mortgage rates have increased since our original application went in, and two, where my partner had almost 4 months left on his contract previously, he now has just gone past the 2 months remaining which this lender stipulate on their criteria.
Lender is Accord.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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K_S said:Myci85 said:Hello,
We're back to the drawing board on house hunting after offering on a house that one lender wouldn't lend on due to single skin brick, and the second lender wouldn't lend to us due to my partner's fixed term contract having little time left and no guaranteed extension yet.
The first lender confirmed they were happy with our application but not the house, and it was 8th April they declined. If we were to put an offer on another house now and go through them again for mortgage, do you know if they'd re-open our previous application, or start a new one? Reason for asking is 2 fold. One, their mortgage rates have increased since our original application went in, and two, where my partner had almost 4 months left on his contract previously, he now has just gone past the 2 months remaining which this lender stipulate on their criteria.
Lender is Accord.
So frustrating as we have wasted almost a month waiting for Skipton to make a decision, with them asking for extra things each time we thought we'd given everything they needed, only for them to decline it anyway.0 -
Myci85 said:K_S said:Myci85 said:Hello,
We're back to the drawing board on house hunting after offering on a house that one lender wouldn't lend on due to single skin brick, and the second lender wouldn't lend to us due to my partner's fixed term contract having little time left and no guaranteed extension yet.
The first lender confirmed they were happy with our application but not the house, and it was 8th April they declined. If we were to put an offer on another house now and go through them again for mortgage, do you know if they'd re-open our previous application, or start a new one? Reason for asking is 2 fold. One, their mortgage rates have increased since our original application went in, and two, where my partner had almost 4 months left on his contract previously, he now has just gone past the 2 months remaining which this lender stipulate on their criteria.
Lender is Accord.
So frustrating as we have wasted almost a month waiting for Skipton to make a decision, with them asking for extra things each time we thought we'd given everything they needed, only for them to decline it anyway.
If you have 2 years of continuous employment (doesn’t need to be on an FTC) prior to the application, in the field that your contract is in, Halifax is pretty good with new/ending FTCs though they dial down the salary to 46/52 so can impact max borrowing.
Skipton - I can see why they declined it but am surprised to hear that it took a month, especially if it was basically down to the contract. Usually what the broker does in this kind of case is get their Skipton BDM to run the pertinent points of the case past an underwriter to get their opinion, and only then go ahead with recommending Skipton. Skipton BDMs are pretty good and will give a frank opinion on a case.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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silvercar said:jen_fpb said:Thanks both.
Have been looking at fee free as because we are 100% off setting the interest rate isn't mich of a concern.
Unsure on your last point about how low we want to take the balance and interest only, are you able to explain?
If you have a repayment mortgage then you are repaying the capital each month, so the balance would naturally fall over time.0 -
jen_fpb said:silvercar said:jen_fpb said:Thanks both.
Have been looking at fee free as because we are 100% off setting the interest rate isn't mich of a concern.
Unsure on your last point about how low we want to take the balance and interest only, are you able to explain?
If you have a repayment mortgage then you are repaying the capital each month, so the balance would naturally fall over time.
Assume fully offset.
Interest only. The interest charged would be £833 a month if you were not offsetting at all, but you are offsetting fully so you pay nothing. End of 2 years the mortgage balance is still £200k and you've paid nothing for 2 years. Effectively the money is there waiting for you if you want to take it out and start paying interest on it.
Repayment mortgage. (a) monthly repayments would be £1,169 a month. You are fully offset, so all that money would go to repaying the capital borrowed. At the end of 2 years, you would have repaid 24 x 1,169 = approx 28k. so your outstanding balance would be £172k. (b) (Some lenders may instead allow you to make reduced monthly repayments, based on not paying the interest on the offset balance and so would charge you less per month and the remaining balance owed would then be higher eg reduced repayments of £336 as no interest charged, so the balance reduces to £192k at the end of 2 years). Either way the balance owed on the mortgage drops and your savings in the offset mortgage stay intact.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
Hi Does anyone know if once NatWest do hard credit search this means they are in underwriting process or are they just collecting info to pass to underwriters?
Thanks0 -
Thinkandgrow1 said:Hi Does anyone know if once NatWest do hard credit search this means they are in underwriting process or are they just collecting info to pass to underwriters?
ThanksYou can get an idea of the stages/phases here
https://www.intermediary.natwest.com/intermediary-solutions/service-levels.htmlI am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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K_S said:Thinkandgrow1 said:Hi Does anyone know if once NatWest do hard credit search this means they are in underwriting process or are they just collecting info to pass to underwriters?
ThanksYou can get an idea of the stages/phases here
https://www.intermediary.natwest.com/intermediary-solutions/service-levels.html0 -
We’ve applied with NatWest too. Application went in on Tuesday and our broker said we should hear something by end of today or early next week.0
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silvercar said:jen_fpb said:silvercar said:jen_fpb said:Thanks both.
Have been looking at fee free as because we are 100% off setting the interest rate isn't mich of a concern.
Unsure on your last point about how low we want to take the balance and interest only, are you able to explain?
If you have a repayment mortgage then you are repaying the capital each month, so the balance would naturally fall over time.
Assume fully offset.
Interest only. The interest charged would be £833 a month if you were not offsetting at all, but you are offsetting fully so you pay nothing. End of 2 years the mortgage balance is still £200k and you've paid nothing for 2 years. Effectively the money is there waiting for you if you want to take it out and start paying interest on it.
Repayment mortgage. (a) monthly repayments would be £1,169 a month. You are fully offset, so all that money would go to repaying the capital borrowed. At the end of 2 years, you would have repaid 24 x 1,169 = approx 28k. so your outstanding balance would be £172k. (b) (Some lenders may instead allow you to make reduced monthly repayments, based on not paying the interest on the offset balance and so would charge you less per month and the remaining balance owed would then be higher eg reduced repayments of £336 as no interest charged, so the balance reduces to £192k at the end of 2 years). Either way the balance owed on the mortgage drops and your savings in the offset mortgage stay intact.
This makes sense.
If we do interest only do we just choose how much we want to pay each month? Is there any point in 100% offsetting on an interest only mortgage?0
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