Mortgage broker - ask me anything

duffed

H I'm looking for advice i I have a second charge mortgage with Paragon personal finance which I still had 4.5 years left on. A few months ago I got a letter saying that they were not charging me interest on my account from now on. I phoned them up and asked if this was correct and why they had decided to do this. they replied "due to a business decision they had decided I had paid enough interest and would no longer be charged interest on my balance" I then asked if I have paid enough interest already does this mean you have been charging me to much in the past? They said no I had paid the correct amount. I was thinking this was a bit fishy but hey its still good news over all as I was expecting my monthly payments to lower a lot now. I was paying £427 a month and over 100 of that was interest.
However my payments have not gone down over the past 6 months I'm still being charged £427 I can see the balance has fallen a lot, I phoned them up as I don't really wanna over pay an interest free loan when I can use it to pay off something else but the refused to lower the payment can they do this? I'm looking for some advise about if they can force me to make overpayments in this way and if I should push the issue of have I overpaid my interest in the past?

jones_guitar

Does anyone know how quickly SVRs adjust?

silvercar

My son has exchanged on a property purchase today. He has a mortgage offer. He has 3 weeks before completion. Is it worth asking his broker to look for an improved mortgage, given todays drop in interest rate? FTB, good credit rating, no adverse, about 70% LTV, salary multiple about 3.5 x joint income. no dependents. So should be a straight forward case.

K_S

silvercar said:

My son has exchanged on a property purchase today. He has a mortgage offer. He has 3 weeks before completion. Is it worth asking his broker to look for an improved mortgage, given todays drop in interest rate? FTB, good credit rating, no adverse, about 70% LTV, salary multiple about 3.5 x joint income. no dependents. So should be a straight forward case.

@silvercar Definitely worth checking with current lender at the very least to see if there’s an easy switch to be had to a cheaper rate.

Changing lenders - In theory it’s worth a shot as long as the vendor/EA won’t get spooked (they shouldn’t as you’ve exchanged) by a mortgage valuation. Worst case scenario you don’t get an offer in time and you proceed with the current offer.

But in reality it’s one of those things that I might consider trying for my own mortgage if there’s a decent enough saving to be had, but not something that I would do for a client as if anything at all goes wrong (due to things outside my control), it lands on me.

Other than mpowered, there haven’t been any fixed rate reduction emails yet from lenders since the rate cut. If there is any repricing that happens tomorrow or wef Monday, and you can get an application in on Monday, might be worth a shot.

silvercar

K_S said:

silvercar said:

My son has exchanged on a property purchase today. He has a mortgage offer. He has 3 weeks before completion. Is it worth asking his broker to look for an improved mortgage, given todays drop in interest rate? FTB, good credit rating, no adverse, about 70% LTV, salary multiple about 3.5 x joint income. no dependents. So should be a straight forward case.

@silvercar Definitely worth checking with current lender at the very least to see if there’s an easy switch to be had to a cheaper rate.

Changing lenders - In theory it’s worth a shot as long as the vendor/EA won’t get spooked (they shouldn’t as you’ve exchanged) by a mortgage valuation. Worst case scenario you don’t get an offer in time and you proceed with the current offer.

But in reality it’s one of those things that I might consider trying for my own mortgage if there’s a decent enough saving to be had, but not something that I would do for a client as if anything at all goes wrong (due to things outside my control), it lands on me.

Other than mpowered, there haven’t been any fixed rate reduction emails yet from lenders since the rate cut. If there is any repricing that happens tomorrow or wef Monday, and you can get an application in on Monday, might be worth a shot.

I was all for applying elsewhere and just seeing if it comes through in time, but I’m spooked by your suggestion that something could go wrong. Is there any chance the current mortgage offer could be withdrawn just by a new application being made elsewhere. Current offer is from Barclays, I’m not sure of the deal. There was also a Santandar offer that expired yesterday, so Barclays was the second mortgage application made and that came through within days of applying.

System

This discussion was created from comments split from: Base rate cut 0.25% first time since Aug 23.

Taradiamond1

Hi, Post Office loans have made a mistake on my account with them and reported said mistake to the credit agencies, resulting in a failed mortgage application today. Post Office loans have sent me an email confirming the error (my credit score says I am in £4k of arrears, I settled in full in May and they actually owe me £300) and are treating it as an urgent compaint, its been 2 weeks already and likely to be another week to review my case, then up to 28 days for this to show in my credit reports. My seller is getting tetchy as he wants a quick sale. I am really stuck as its the only house in my price range that has come up in years! Help!! 

Da1991_

Will nationwide lower their mortgage rates after the interest rate cut yesterday 

K_S

silvercar said:

K_S said:

silvercar said:

My son has exchanged on a property purchase today. He has a mortgage offer. He has 3 weeks before completion. Is it worth asking his broker to look for an improved mortgage, given todays drop in interest rate? FTB, good credit rating, no adverse, about 70% LTV, salary multiple about 3.5 x joint income. no dependents. So should be a straight forward case.

@silvercar Definitely worth checking with current lender at the very least to see if there’s an easy switch to be had to a cheaper rate.

Changing lenders - In theory it’s worth a shot as long as the vendor/EA won’t get spooked (they shouldn’t as you’ve exchanged) by a mortgage valuation. Worst case scenario you don’t get an offer in time and you proceed with the current offer.

But in reality it’s one of those things that I might consider trying for my own mortgage if there’s a decent enough saving to be had, but not something that I would do for a client as if anything at all goes wrong (due to things outside my control), it lands on me.

Other than mpowered, there haven’t been any fixed rate reduction emails yet from lenders since the rate cut. If there is any repricing that happens tomorrow or wef Monday, and you can get an application in on Monday, might be worth a shot.

I was all for applying elsewhere and just seeing if it comes through in time, but I’m spooked by your suggestion that something could go wrong. Is there any chance the current mortgage offer could be withdrawn just by a new application being made elsewhere. Current offer is from Barclays, I’m not sure of the deal. There was also a Santandar offer that expired yesterday, so Barclays was the second mortgage application made and that came through within days of applying.

@silvercar Tbf, it's all edge cases centred around Barclays doing a final credit check/rescore before releasing funds and/or any other of the many automated decisioning systems humming away in the background that may or may not be impacted by a new mortgage application with another lender. Not at all likely to cause an issue, but still a remote possibility.

K_S

Taradiamond1 said:

Hi, Post Office loans have made a mistake on my account with them and reported said mistake to the credit agencies, resulting in a failed mortgage application today. Post Office loans have sent me an email confirming the error (my credit score says I am in £4k of arrears, I settled in full in May and they actually owe me £300) and are treating it as an urgent complaint, its been 2 weeks already and likely to be another week to review my case, then up to 28 days for this to show in my credit reports. My seller is getting tetchy as he wants a quick sale. I am really stuck as its the only house in my price range that has come up in years! Help!! 

@taradiamond1I'm assuming the decline was at soft-check DIP/AIP stage? If so don't stress too much, the decline by itself won't have any lasting impact.

If your mortgage application is with a large mainstream lender, then you probably will need to get the credit report fixed before applying again. If it's with a smaller lender, you may have the option to get them to manually adjust for the error based on the communication that you have from Post Office loans.

Is the loan showing on both Experian AND Equifax? If it's only showing on one of them, then you might have options.

All the best, I hope it works out!