Mortgage broker - ask me anything

K_S

ayupmeduck said:

Would having one default (settled) on my credit file with a date of December 2023 look terrible if I was looking to get a mortgage in2026?

@ayupmeduck Impossible to say unfortunately, entirely depends on the details, what your credit files look like in 2026 and what lender policies will be at the time. 

One settled default more than 3+ years old (with a clean credit report otherwise) will not stop you from getting a mortgage, but where among the lender spectrum you’ll land will depend on the details. What you can do here on to maximise your chances of getting a mainstream mortgage is to make sure your report is squeaky clean and save up a deposit that is 15%+.

theonenonly

Looking to use Accord's Boost LTI to get a higher borrowing amount. My wife will be getting a second job after returning from maternity, and it's not clear how many months she needs to be in the job before we can apply for a mortgage as a joint mortgage? All I can find is the below, when going on the calculator here and clicking the question mark https://online.accordmortgages.com/public/mortgages/quick_enquiry.do#section;

• If the applicant has a full-time job (main job) and a part-time job, we will use 100% of the income from the second job - please enter the gross income amount for the second job.

K_S

theonenonly said:

Looking to use Accord's Boost LTI to get a higher borrowing amount. My wife will be getting a second job after returning from maternity, and it's not clear how many months she needs to be in the job before we can apply for a mortgage as a joint mortgage? All I can find is the below, when going on the calculator here and clicking the question mark https://online.accordmortgages.com/public/mortgages/quick_enquiry.do#section;

• If the applicant has a full-time job (main job) and a part-time job, we will use 100% of the income from the second job - please enter the gross income amount for the second job.

@theonenonly Accord doesn't have a rigid 'x months in second job' criteria afaik.

Irrespective of the number of months in the second job (the longer the better of course), the underwriter will use their judgement to decide whether the second job is longterm+sustainable, and not just entered into for the purpose of boosting borrowing. This is just on the balance of probability of course.

For example if Job1+Job2 is 40-50 hours/week, in similar fields, one/both of them WFH, then they might not need you to have been in Job2 for too long to meet their plausibility threshold.

Otoh, if Job1 is FT 40hours as a council planning officer and Job2 is PT 20hours/week at a pub an hour's drive away, then they'll probably want you to have been in Job2 for a good few months and able to show full months' payslips for that period.

MrBounce

Hi

We did a borrow more application with Halifax via a broker. Current LTV is 26%, with additional borrowing it would be 45%.

They requested upto date signed tenancy for our rentals, which we have now provided. 

Then a few days later, they requested applicant 2 (my partner) needed to call the servicing team to update the correct full name on the application as the broker forgot to add the middle name in application. Not normally like him. 

We called and they said they cannot do it over the phone, she needs to take ID in and verify it in branch. We already have our mortgage with them, they would have copies of the id etc already. 

My question is, do Halifax review everything altogether, or step by step? It seems as though, we provide them with information they requested, then a few days later, they ask for something else...? 

I would have thought, Name/ID would have been checked 1st before requesting further information. I don't want to waste time taking ID into the city centre, for them to then request further information, or say no! 

annetheman

Hi there!
as I am coming close to exchange I am becoming increasingly nervous. 

Although I have a mortgage offer from Santander, when I use their “How much can I borrow?” tool, it is coming up with the result saying they can’t offer me a mortgage with my current profile. 

It is making me extremely nervous. 

Although I am a relatively high earner (89k basic, 23k bonus) I do have high debts (see my signature) and it is when I include these that I get the result above. Otherwise, apparently it’s fine. My broker applied for me and declared my debts and obviously they were seen at hard search during underwriting. 

Only adverse is 1 missed payment £200 May 2022 paid off in full the following month (didn’t have a DD set up for a never-used credit card). 

How often have you seen mortgage offers revoked before completion and what were the circumstances? 

Thank you so much. 

kingstreet

Once, due to fraud.

Fkhan95

Hi,

Just wondering what the lti multiples for NatWest is for different income bands - I’ve had a look at their intermediaries section but I can’t seem to find anything.

Thanks in advance. 

K_S

Fkhan95 said:

Hi,

Just wondering what the lti multiples for NatWest is for different income bands - I’ve had a look at their intermediaries section but I can’t seem to find anything.

Thanks in advance. 

@fkhan95 Off of the top of my head, I think it’s 4x-4.5x-5x-5.5x subject to both income and LTV thresholds. The high-income threshold is probably 75k, and LTV bands at which LTI reduces is usually 75%, then sometimes at 85/90% and then 95%. 

Just play around with their affordability calculator using a 40 year term and 0 commitments, you’ll be able to figure out the exact LTI thresholds, the ones I’ve given above might not be entirely accurate.

Mahzes

Hi, 

An opportunity has come up to buy a 50% share of a property from a friend who initially bought it with another friend of ours back in August 2020 as Joint Tenants. They are looking to come off the mortgage so I can buy their share with the intent of changing the mortgage to Tenants in Common.

Am I correct in understanding that a Transfer of Equity would simply move me onto the existing mortgage in place of the person selling, or would a new mortgage be drawn up from scratch for this?

The value of the properly was £243,000 and a deposit of £65,000 was paid, with each person paying half of this. A mortgage was then taken out on the remaining £178,000 which both parties have been paying off equally since.

If the person selling their 50% share has paid toward it since August 2020 (when the property was bought), how would this work in terms of them selling the full 50% share to me at the value they paid? So effectively they would be selling their half to me at a value of £121,500. How does this work in terms of what they have already paid off?

Since they would have already been paying into their half of the overall mortgage, me moving onto this presumably wouldn't set their half back to zero, so how would this work? Would I just need to arrange payment to them for the amount they had already paid (presumably their half of the deposit + mortgage contributions so far?) and then continue paying toward the remainder of their half of the mortgage as well? Or does it work some other way in this situation?

K_S

@mahzes I don’t think I understood the whole scenario, but generally speaking -

- transfer of equity is usually adding someone to the deeds+mortgage or removing someone to the deeds+mortgage. I don’t know how simple/complicated it is (from the lender’s point of view) to actually replace one of the owners with another person through this process but it should be possible I guess.

- if the lender is ok with the above and allows a ToE, the new combination of owners will need to meet affordability and criteria for the required loan amount so there will be some form of checks and underwriting. Conveyancing will also be required.

- the mortgage will always be joint (both of you will be responsible for 100% of it), irrespective of whether you own the property as tenants in common or joint tenants.

Mahzes said:

Hi, 

An opportunity has come up to buy a 50% share of a property from a friend who initially bought it with another friend of ours back in August 2020 as Joint Tenants. They are looking to come off the mortgage so I can buy their share with the intent of changing the mortgage to Tenants in Common.

Am I correct in understanding that a Transfer of Equity would simply move me onto the existing mortgage in place of the person selling, or would a new mortgage be drawn up from scratch for this?

The value of the properly was £243,000 and a deposit of £65,000 was paid, with each person paying half of this. A mortgage was then taken out on the remaining £178,000 which both parties have been paying off equally since.

If the person selling their 50% share has paid toward it since August 2020 (when the property was bought), how would this work in terms of them selling the full 50% share to me at the value they paid? So effectively they would be selling their half to me at a value of £121,500. How does this work in terms of what they have already paid off?

Since they would have already been paying into their half of the overall mortgage, me moving onto this presumably wouldn't set their half back to zero, so how would this work? Would I just need to arrange payment to them for the amount they had already paid (presumably their half of the deposit + mortgage contributions so far?) and then continue paying toward the remainder of their half of the mortgage as well? Or does it work some other way in this situation?