Mortgage broker - ask me anything

happy_2008

Hi Haras,

What sort of mortgage rate could you provide on a 60% LTV mortgage?

haras_n0sirrah

Hannabear2016 said:

We've been told by our MA that we passed full assessment by Nationwide last week (our valuation was completed on the 27/08). Does passing full assessment mean we can expect an offer soon or could we still be declined? 

If it has gone through underwriting it should be fine. If it has just passed the doc check phase and then been referred to underwriter then there may still be potential questions coming.

haras_n0sirrah

ad_23 said:

Hi, Firstly just wanted to say I really appreciate all the professionals on here who are taking the time to give advice on these issues, especially in such uncertain times.
I'm a first time buyer looking to get a mortgage with my spouse. I'm self employed (sole director of a limited company) and my spouse is employed (part time), both of us have been in the same position for at least 3+ years and our earnings split is around 70% me and 30% my spouse. From reading the replies and comments on this thread I'm really apprehensive about whether we realistically have any chance of getting a mortgage in this current climate. There are a few main queries I had, I would appreciate any suggestions/comments -

1. From the comments above I can see that the lender is likely to ask me for 3 months business bank statements to see how the pandemic has affected my business. Thankfully, it hasn't had a big impact but I have had to put a member of staff on furlough (so there are monthly CJRS grants coming in to the bank). Moreover, recently I just applied for a loan using the bounce back scheme (mainly as a backup as things are so uncertain even now and I can pay it back in full within a year without any interest), this hasn't been processed yet so I was wondering if it's better I don't take this loan in order to improve chances of getting a mortgage? Obviously I would much rather have the loan if there is a way around it as the scheme will end soon and it could be helpful in the short term for business cash flow. What about the CJRS grants, would they have an adverse effect as well?

2. It looks like we'll need around 75% LTV, are we likely to get decent offers for that? Also, are there any particular lenders who are more favourable towards self employed?

3. Lastly, our status in the UK is I have permanent leave to remain and my spouse is on a dependant visa (she has around 2 years to go on her current visa but has already qualified to apply for permanent leave), would my spouses' visa status have any bearing on which lenders we can apply to?

Any guidance will be much appreciated  

Hi
Some lenders are better with self employed and bounce back loans than others - at the moment it is mainly about being able to tell a story and back it up. I have a lender in mind who should be ok with both of your scenarios and rates are in line with the rest of the market (high street lender)

haras_n0sirrah

Dinpraad said:

With Natwest using a hard search for DIP what are the chances of getting accepted with a mortgage after a full application is submitted ? Also what is the timeline for Natwest at the moment from DIP to full offer??

It depends a little on whether it is self employed or employed.
Most lenders are around 3 weeks for assessment and it will largely depend on when the valuation is done
As long as everything has been imput correctly and there are no bad debts with the natwest group in the closet then no reason it shouldn't be accepted subject to valuation

haras_n0sirrah

Newhome21 said:

Hi there - sorry in advance as this is a 2 part question but any help or advice you could give would be most helpful.

1. Currently have a mortgage with Halifax (for over 10 years, no payment issues) - this is a shared equity mortgage which I would now like to add additional borrowing onto so that I can redeem the shared equity loan (LTV after additional borrowing is under 60% so all good) 
2. Thinking of moving: have seen a New Build property - I will have 10% deposit (when I sell current house) and builder is offering 5% towards deposit contribution so a total 15% deposit on house @ approx £280K. 

My Concerns are: 
In 2014 (due to redundancy) I entered into an IVA/Trust Deed - completed and discharged 2018 and everything is now off credit files. I have checked with Equifax / Experian / Credit Karma / MSE Club and all showing excellent scores with no defaults or negative information registered.
No loans/finance, credit cards are at £0 balance, car finance is paid off
Based on this do you think I would have any chance with point 1 or 2 above with Halifax (prefer to stay with them if I could) or a lender without really high rates. 
Is there a time limit between me adding additional borrowing onto my loan before I can apply for an AIP for the new house - think there may only be a couple of weeks between me repaying the shared equity and the new house plot being released.

I hope this makes sense and apologies for it being so long winded. 

I wouldn't want to say either way without site of credit files as the devil will be in the detail due to the iva

haras_n0sirrah

Dave46049 said:

Hi, I’m a director of my own company ( as is my wife ) we are getting separated. We have joint mortgage on a property which won’t be sold. I want to buy a small property for myself.
what type of mortgage would I need and can you recommend one that is get accepted for?

There are lenders who will accept a second property and will take the payment rather than the balance from property 1 mortgage into consideration which would probably best fit your circumstances (subject to income, credit file etc) - you will need a min 15% deposit on the new purchase. I cannot name lenders on here but myself and the other brokers on here are able to be contacted by pm should you wish to do so.

haras_n0sirrah

mh_ww said:

haras_n0sirrah said:

peppapig14 said:

haras_n0sirrah said:

peppapig14 said:

are you experiencing 100% complete delays with Nationwide ( delays fully documented on other threads) or are there any positive Nationwide timelines?

I had a nationwide case offer today to my complete surprise which went in on the 5th sept (lender looked at payslips and bank statements so not a no document case) but have had another one from last month which has not offered despite no questions (90%) Currently nationwide are at 19 working days. 
I suspect there are higher ltv tracks and lower ltv tracks (the one that offered today was under 75%)
I know self employed have their own track as well.

thank you. we submitted our application 14/9 and valuation booked for 17/9.No other communication.  Does this mean Nationwide are doing valuations before underwriting? 

yes - nationwide are instructing valuations on application

If this is the case is there any reason we may not have received any messages to advise us of booking etc for the valuation? We applied through a broker rather than direct and the only thing we had was the text message saying the application had been received.

We get messages to say when recieved, when all docs are in and referred to underwriter. If you have just had the one saying recieved you may still be in the underwriter queue.

Newhome21

haras_n0sirrah said:

Newhome21 said:

Hi there - sorry in advance as this is a 2 part question but any help or advice you could give would be most helpful.

1. Currently have a mortgage with Halifax (for over 10 years, no payment issues) - this is a shared equity mortgage which I would now like to add additional borrowing onto so that I can redeem the shared equity loan (LTV after additional borrowing is under 60% so all good) 
2. Thinking of moving: have seen a New Build property - I will have 10% deposit (when I sell current house) and builder is offering 5% towards deposit contribution so a total 15% deposit on house @ approx £280K. 

My Concerns are: 
In 2014 (due to redundancy) I entered into an IVA/Trust Deed - completed and discharged 2018 and everything is now off credit files. I have checked with Equifax / Experian / Credit Karma / MSE Club and all showing excellent scores with no defaults or negative information registered.
No loans/finance, credit cards are at £0 balance, car finance is paid off
Based on this do you think I would have any chance with point 1 or 2 above with Halifax (prefer to stay with them if I could) or a lender without really high rates. 
Is there a time limit between me adding additional borrowing onto my loan before I can apply for an AIP for the new house - think there may only be a couple of weeks between me repaying the shared equity and the new house plot being released.

I hope this makes sense and apologies for it being so long winded. 

I wouldn't want to say either way without site of credit files as the devil will be in the detail due to the iva

Thank you Haras - Can I ask what I should be looking for in the credit files that you mean about the IVA - I have checked all files and looked into closed / open accounts and Court/CCJ information but there is nothing there. Am I missing looking for something?

haras_n0sirrah

Newhome21 said:

haras_n0sirrah said:

Newhome21 said:

Hi there - sorry in advance as this is a 2 part question but any help or advice you could give would be most helpful.

1. Currently have a mortgage with Halifax (for over 10 years, no payment issues) - this is a shared equity mortgage which I would now like to add additional borrowing onto so that I can redeem the shared equity loan (LTV after additional borrowing is under 60% so all good) 
2. Thinking of moving: have seen a New Build property - I will have 10% deposit (when I sell current house) and builder is offering 5% towards deposit contribution so a total 15% deposit on house @ approx £280K. 

My Concerns are: 
In 2014 (due to redundancy) I entered into an IVA/Trust Deed - completed and discharged 2018 and everything is now off credit files. I have checked with Equifax / Experian / Credit Karma / MSE Club and all showing excellent scores with no defaults or negative information registered.
No loans/finance, credit cards are at £0 balance, car finance is paid off
Based on this do you think I would have any chance with point 1 or 2 above with Halifax (prefer to stay with them if I could) or a lender without really high rates. 
Is there a time limit between me adding additional borrowing onto my loan before I can apply for an AIP for the new house - think there may only be a couple of weeks between me repaying the shared equity and the new house plot being released.

I hope this makes sense and apologies for it being so long winded. 

I wouldn't want to say either way without site of credit files as the devil will be in the detail due to the iva

Thank you Haras - Can I ask what I should be looking for in the credit files that you mean about the IVA - I have checked all files and looked into closed / open accounts and Court/CCJ information but there is nothing there. Am I missing looking for something?

I mean you need to get your file in front of a broker who knows about adverse as it will depend on what has been recorded as to which lender would do it.

Dinpraad

haras_n0sirrah said:

Dinpraad said:

With Natwest using a hard search for DIP what are the chances of getting accepted with a mortgage after a full application is submitted ? Also what is the timeline for Natwest at the moment from DIP to full offer??

It depends a little on whether it is self employed or employed.
Most lenders are around 3 weeks for assessment and it will largely depend on when the valuation is done
As long as everything has been imput correctly and there are no bad debts with the natwest group in the closet then no reason it shouldn't be accepted subject to valuation

Well in this case its employed. 
No valuation yet since submission.