Mortgage broker - ask me anything

annetheman

Hi brokers, thank you for your help in this thread! I have a question based on your experience:

I have been having Title issues with a purcahse and long story short it looks like it might not be resolved before my mortgage offer expires on 22nd September 2024.
In the time since application, I have had a pay increase (by approx £4k) and slightly lower debt, so  better affordability, however the major problem is the house.

The Santander valuation was okay, but the report suggested a damp survey (which I have paid for and done). 

Previously, Accord refused to lend (I had an active offer from them for another house) because the house has a single skin brick extension housing the entire kitchen.

The Santander valuer didn't mention it in the report, and Santander doesn't exclude single skin construction, but it doesn't say anything specific about it at all (Accord specifically say they do not lend on single-skin in their criteria).

So I am EXTREMELY worried that if a different valuer does another valuation for a mortgage extension (mandatory for Santander), they will go the way of the Accord valuer, rather than the previous Santander one. 

Have you ever seen this happen before? A refusal due to the property condition/construction after a previous approval?

K_S

@annetheman I can't speak for your case specifically, but generally speaking - if it's actually being processed as an offer-extension, and there was a physical inspection carried out as part of the initial application, I can't imagine the (re)valuation being anything more than a desktop exercise.

annetheman said:

Hi brokers, thank you for your help in this thread! I have a question based on your experience:

I have been having Title issues with a purcahse and long story short it looks like it might not be resolved before my mortgage offer expires on 22nd September 2024.
In the time since application, I have had a pay increase (by approx £4k) and slightly lower debt, so  better affordability, however the major problem is the house.

The Santander valuation was okay, but the report suggested a damp survey (which I have paid for and done). 

Previously, Accord refused to lend (I had an active offer from them for another house) because the house has a single skin brick extension housing the entire kitchen.

The Santander valuer didn't mention it in the report, and Santander doesn't exclude single skin construction, but it doesn't say anything specific about it at all (Accord specifically say they do not lend on single-skin in their criteria).

So I am EXTREMELY worried that if a different valuer does another valuation for a mortgage extension (mandatory for Santander), they will go the way of the Accord valuer, rather than the previous Santander one. 

Have you ever seen this happen before? A refusal due to the property condition/construction after a previous approval?

annetheman

K_S said:

@annetheman I can't speak for your case specifically, but generally speaking - if it's actually being processed as an offer-extension, and there was a physical inspection carried out as part of the initial application, I can't imagine the (re)valuation being anything more than a desktop exercise.

annetheman said:

Hi brokers, thank you for your help in this thread! I have a question based on your experience:

I have been having Title issues with a purcahse and long story short it looks like it might not be resolved before my mortgage offer expires on 22nd September 2024.
In the time since application, I have had a pay increase (by approx £4k) and slightly lower debt, so  better affordability, however the major problem is the house.

The Santander valuation was okay, but the report suggested a damp survey (which I have paid for and done). 

Previously, Accord refused to lend (I had an active offer from them for another house) because the house has a single skin brick extension housing the entire kitchen.

The Santander valuer didn't mention it in the report, and Santander doesn't exclude single skin construction, but it doesn't say anything specific about it at all (Accord specifically say they do not lend on single-skin in their criteria).

So I am EXTREMELY worried that if a different valuer does another valuation for a mortgage extension (mandatory for Santander), they will go the way of the Accord valuer, rather than the previous Santander one. 

Have you ever seen this happen before? A refusal due to the property condition/construction after a previous approval?

Thank you so much - it is an offer extension, my broker sent me their criteria and said we need to give them 5-7 days notice - I have already asked my broker this but I am losing my mind so appreciate as many opinions as possible! If it's a desktop, that would be amazing (I don't mind the second hard search)! Thank you for your thoughts!!!:

muchemenye

Hello, its been a while since I last asked a question on here but thought I'd give it another shot.

Partner and I looking to purchase our first home and are hoping to get something with 90% LTV. She has super clean credit history however I have 3 defaults on my file from just bad money management. All were registered in 2022 (April, May and October) with one becoming 2 years on in October this year and will be paid off for a year from end of September. The rest are paid off for at least 18 months each.

Just trying to get some feedback on possible chances of us getting a 90% LTV mortgage even at slightly higher rates with the view to remortgage to a high street lender down the line when we remortgage.

Appreciate your feedback on this

muchemenye

muchemenye said:

Hello, its been a while since I last asked a question on here but thought I'd give it another shot.

Partner and I looking to purchase our first home and are hoping to get something with 90% LTV. She has super clean credit history however I have 3 defaults on my file from just bad money management. All were registered in 2022 (April, May and October) with one becoming 2 years on in October this year and will be paid off for a year from end of September. The rest are paid off for at least 18 months each.

Just trying to get some feedback on possible chances of us getting a 90% LTV mortgage even at slightly higher rates with the view to remortgage to a high street lender down the line when we remortgage.

Appreciate your feedback on this

Realised this might be relevant after pressing post, debts are £4500, £580 & £121

Thanks again

K_S

muchemenye said:

Hello, its been a while since I last asked a question on here but thought I'd give it another shot.

Partner and I looking to purchase our first home and are hoping to get something with 90% LTV. She has super clean credit history however I have 3 defaults on my file from just bad money management. All were registered in 2022 (April, May and October) with one becoming 2 years on in October this year and will be paid off for a year from end of September. The rest are paid off for at least 18 months each.

Just trying to get some feedback on possible chances of us getting a 90% LTV mortgage even at slightly higher rates with the view to remortgage to a high street lender down the line when we remortgage.

Appreciate your feedback on this

@muchemenye 90% LTV, 3 satisfied defaults registered more than 18m ago, clean credit history since then. Based just on the above assumptions, you should have options right now.

Once it’s >24m, a couple of more lenders should come in to play.

Based purely on the number, size and age of the defaults, I don’t see you being able to access mainstream rates yet at 90% LTV. It’s worth checking out mainstream-ish products like Accord Cascade, Leeds Reach or some smaller BSs, but you might end up with the likes of Aldermore, Kensington, etc.

muchemenye

K_S said:

muchemenye said:

Hello, its been a while since I last asked a question on here but thought I'd give it another shot.

Partner and I looking to purchase our first home and are hoping to get something with 90% LTV. She has super clean credit history however I have 3 defaults on my file from just bad money management. All were registered in 2022 (April, May and October) with one becoming 2 years on in October this year and will be paid off for a year from end of September. The rest are paid off for at least 18 months each.

Just trying to get some feedback on possible chances of us getting a 90% LTV mortgage even at slightly higher rates with the view to remortgage to a high street lender down the line when we remortgage.

Appreciate your feedback on this

@muchemenye 90% LTV, 3 satisfied defaults registered more than 18m ago, clean credit history since then. Based just on the above assumptions, you should have options right now.

Once it’s >24m, a couple of more lenders should come in to play.

Based purely on the number, size and age of the defaults, I don’t see you being able to access mainstream rates yet at 90% LTV. It’s worth checking out mainstream-ish products like Accord Cascade, Leeds Reach or some smaller BSs, but you might end up with the likes of Aldermore, Kensington, etc.

Thanks for getting back to me, great to know there are options out there. 

Really appreciate your response

jojorose

I have an adult child who has mental health issues. Bipolar.  He had previously had episodes every few years and this  meant the loss of his home and his job and therefore a poor credit rating.  We obviously have to support him when this happens in so many ways.

My point is that  he is a lot more stable.  He currently lives in a flat which is rented and is paying £750 a month and he has a lodger (with agreement from the landlord). I am the Guarantor. Hes been there for two years with little problem apart from a flaky Lodger that was asked to leave.

Anyway a property has come up at £100,000 with potential to also have a Lodger.  We can provide a ten percent deposit.  The aim is to give him home security.  Do you think he could get a mortgage in his own right? Hes a Care Worker so minimum wage and his contract is flexible but the reality is he gets all hours he wants.  We own our own home outright and have a recent small inheritance in the bank which is not enough to buy a place.  We have two pensions coming in of about £19,500.  Is it doable?  Is there a way to get a home for him either involving us or on his own merit.  He recently was given a phone contract so we know he is now considered worthy of credit. Im not really worried about the committment from ourselves as we are already committed.  It makes little difference to whom.

K_S

@jojorose For the purpose of this comment, I'll set the mental health issues aside.

On his own, unless he's been clocking up substantial OT consistently over the past 2 years, he's unlikely to meet income requirements to borrow the amount he needs. However, you might potentially be able to use a JBSP mortgage (where all 3 of you will be on the mortgage but only he will be on the deeds) to borrow what you need.

There are far too many variables (ages, income specifics, employment history, credit report, commitments etc. etc.) in play to be able to go into any further detail than this. What I would suggest doing is speaking to a broker 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Alternatively, speak to lenders that offer JBSP options such as Skipton, Barclays, Family BS, etc.

I hope it works out, good luck!

jojorose said:

I have an adult child who has mental health issues. Bipolar.  He had previously had episodes every few years and this  meant the loss of his home and his job and therefore a poor credit rating.  We obviously have to support him when this happens in so many ways.

My point is that  he is a lot more stable.  He currently lives in a flat which is rented and is paying £750 a month and he has a lodger (with agreement from the landlord). I am the Guarantor. Hes been there for two years with little problem apart from a flaky Lodger that was asked to leave.

Anyway a property has come up at £100,000 with potential to also have a Lodger.  We can provide a ten percent deposit.  The aim is to give him home security.  Do you think he could get a mortgage in his own right? Hes a Care Worker so minimum wage and his contract is flexible but the reality is he gets all hours he wants.  We own our own home outright and have a recent small inheritance in the bank which is not enough to buy a place.  We have two pensions coming in of about £19,500.  Is it doable?  Is there a way to get a home for him either involving us or on his own merit.  He recently was given a phone contract so we know he is now considered worthy of credit. Im not really worried about the committment from ourselves as we are already committed.  It makes little difference to whom.

Sunnyhelper

Hi,
I have been reading through a lot of these forums to see if I can find someone that is similar to our situation.  We are getting mortgage broker but was hoping to get some advice before that. I’m really worried we will get rejected so I guess I’m hoping someone here can tell me if we have any chance of being accepted. 

So…
we are FTB, looking to purchase house for £250k. We only have £20k deposit, no debt apart from credit card with balance of £750 and phone loan of £700 left to pay (£50 per month). I have 3 month of missed payments recorded from credit card March last year and my husband has a default registered on 14th September 2022 that will be satisfied by the time we apply for mortgage. The default is for £4500. We won’t apply for mortgage until after the 2 years have passed since the default was registered but even with this after looking through number of different lenders I think we will struggle getting a mortgage without 10% + deposit? Our combined income is £85k. 

Virgin money and Skipton look like we may be able to fit their criteria but I have such limited knowledge of mortgages I’m not sure if this is correct.
any thoughts if we stand a chance or do we need to build up a larger deposit? 

Thanks in advance.