Mortgage broker - ask me anything

Aqua1985

I’ve sold and completed on my house today - I assume therefore the mortgage is fully settled and paid off - the difference has been sent to me by solicitor. I have a D/D for my mortgage payment that is showing as coming out tomorrow - is it safe to cancel it ? 

Thinkandgrow1

Aqua1985 said:

I’ve sold and completed on my house today - I assume therefore the mortgage is fully settled and paid off - the difference has been sent to me by solicitor. I have a D/D for my mortgage payment that is showing as coming out tomorrow - is it safe to cancel it ? 

I wouldn’t risk it. Worst case the lender will refund you back. You do not want a missed mortgage payment on your file. 

cjdew

Stupid question - do mortgage brokers charge a fee, and then you also pay a bank fee? 

K_S

cjdew said:

Stupid question - do mortgage brokers charge a fee, and then you also pay a bank fee? 

@cjdew

Mortgage broker fee - some charge, plenty don't. Irrespective of whether they charge the client a fee or not, ALL get a proc fee/commission (usually 0.3-0.4% of the loan size) from the lender. The MSE guide here can help you find a fee free broker
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Lender fee - will depend on the product you go for, goes straight to the lender and can be added to the loan instead of paid upfront. This is unrelated to whether or not the broker charges a fee or you go direct.

Thinkandgrow1

So Nat west have all my bank statements, tax docs, proof of deposit, the valuation was done Friday apparently all ok. They have just asked for documentation regarding a hp I’ve said I will clear before completion. I’ve already cleared it so sent them settlement letter. Does this look like I am any closer to offer?

cjdew

If a property has 2 completely separate small annex type buildings which had been used in the past for family, friends is this going to restrict the number of potential lenders?

If a property has 2 completely separate annexes which had on occasion been used as airbnbs (any income NOT to be counted on any application) is this going to restrict the number of potential lenders?

In short, I think definitely a case for a mortgage broker, as this seems quite a minefield (potentially)

More experienced thoughts from anyone? Or lived experiences too?

Low LTV required. 

K_S

cjdew said:

If a property has 2 completely separate small annex type buildings which had been used in the past for family, friends is this going to restrict the number of potential lenders?

If a property has 2 completely separate annexes which had on occasion been used as airbnbs (any income NOT to be counted on any application) is this going to restrict the number of potential lenders?

In short, I think definitely a case for a mortgage broker, as this seems quite a minefield (potentially)

More experienced thoughts from anyone? Or lived experiences too?

Low LTV required. 

@cjdew

LTV is unlikely to be relevant.

For a purchase application, past use of separate outbuildings is relevant but also relevant is how it is set up and what it could be used for.

The specific approach/policy will depend on the lender and (subjectively) what the valuer (unconnected to the lender) sees and feels on the day. The factors that may play a part when an outbuilding is involved -
— acreage
- how self-contained the outbuilding is with respect to being used as living accommodation
- what the planning permission (if any) says 
- access arrangements
- utilities links
- any commercial use
etc

I’m probably making it sound more complicated than it is. On its own, an outbuilding is unlikely to stop you from getting a mainstream mortgage but it might well mean that you can’t access all the lenders that would otherwise be available to you. 

While a broker can help with identifying a suitable lender who will consider the case, progress will still depend on the valuer’s opinion and anything else that comes up at conveyancing which the broker has little influence over.

sadiedoll

I sold my house recently to move closer to elderly parent, who is unwell. Tried to port my HSBC mortgage, to find out that Scottish Power have registered a default against me for the final bill on the old house (which is paid, and default is showing as settled).

My mortgage is with HSBC, who I know are a really strict lender, but I have significant saving/investments with them and a little while remaining on a low rate mortgage. I've obviously contacted Scottish Power to try and get the default removed, but a) they might refuse and b) time is ticking on my mortgage port, I only have a few months left.

What are my options for other lenders if I can't get this default removed? (Borrowing is a little over 2x salary, earn nearly 50k and have a 65k cash deposit).

K_S

sadiedoll said:

I sold my house recently to move closer to elderly parent, who is unwell. Tried to port my HSBC mortgage, to find out that Scottish Power have registered a default against me for the final bill on the old house (which is paid, and default is showing as settled).

My mortgage is with HSBC, who I know are a really strict lender, but I have significant saving/investments with them and a little while remaining on a low rate mortgage. I've obviously contacted Scottish Power to try and get the default removed, but a) they might refuse and b) time is ticking on my mortgage port, I only have a few months left.

What are my options for other lenders if I can't get this default removed? (Borrowing is a little over 2x salary, earn nearly 50k and have a 65k cash deposit).

@sadiedoll Sorry to hear about this. Scottish Power has form for this issue (incorrectly billing after move), for a few years now, and it beggars belief that they haven't fixed it yet!

- if its a like for like port (no additional borrowing or worse LTV), the lender can sometimes exercise a good amount of discretion to manually override policy/affordability/credit-fails so it is possible that this doesn't scupper your plans. If you've already redeemed the mortgage and are looking to port with a gap, I don't know whether or not this would apply.

- if you are looking at port+additional, then you will need to pass HSBC credit scoring for the port. The default may or may not have an impact, that'll depend on the specifics. HSBC's credit scoring is any more/less strict than other mainstream lenders.

- off of the top of my head, Scottish Power reports to Experian and unfortunately for you HSBC also uses Experian. If that is indeed the case and the HSBC port is a no go, you should have other mainstream options - lenders that use Equifax and don't ask an explicit question about defaults so other than losing the ERC on the port and the remaining time on the low rate fix, you shouldn't be a lot worse off.

Removing the default - I'm sure you have done this already but if not, start with a clear written complaint to Scottish power contactus@scottishpower.com and take it from there. 

All the best.

aliceegordon

Hi, 


Currently in the conveyancing process of buying our first house. Today our solicitor has asked me to complete a gifted deposit form for the £9000 that is being gifted to me from my grandmother. However, as part of that process we realised that my Grandmother no longer has valid photo ID. 

Instead, my Mum has agreed to be the giftor and will sign the letter and provide certified ID. Her and my Mum share a joint account which at the start of today had £9500 in (proof that she had enough to gift us). This afternoon, my Nan moved an additional £9000 into that account from her Savings ISA to ensure there would be enough money in that account once my deposit had come out. Is that okay? I’m conscious of anything getting flagged and holding up the process! 

I can prove where all of the funds have come from if needs be (statement of my Nan’s savings transfer to her current account with my Mum etc).

Everything has been really smooth up until this point so conscious of anything ruining it!