Mortgage broker - ask me anything

Pauli2

Please can you recommend a good broker. I am due to remortgage next year. My credit score is quite poor, there is a CCJ from a bullying parking firm which will drop off in about 18 months. They agreed to set aside but not the costs, and I just left it. Thanks.

annetheman

K_S said:

@annetheman Generally speaking from my experience, not specific to your case or Santander -

For all the offer extensions that I've done - as far as I can remember the valuation has always been desktop-refreshed and it's never changed materially.

All the best!

annetheman said:

Hi brokers,
Thanks so much for all the help you give in this thread, you are saving sanity here, truly!!

My mortgage offer from Santander expires on 22nd September and we are nowhere near exchange (second Title application rumbling on...), so my mortgage broker did submit a new application yesterday 4th September. I got a hard search alert and today, 5th September, my broker confirmed my application has been accepted pending valuation.

For this house (dodgy kitchen extension, otherwise standard), Santander's valuation passed in March at the price agreed, though the surveyor advised me to get a damp survey. I did and have the report.

Do you think it's possible that the valuation could fail this second time around, given that the house has been un-lived in for a year now (was 6 months then); it is visibly worse but it's not a wreck - just lots of spider webs and dirt. Just clearly a bit abandoned?

Have you seen the same surveyor decline something they approved 6 months prior without major disaster befalling it?

This valuation wait is sickening but I have a horrible feeling it won't pass this time, unfortunately

Thanks so much. 

Thank you @K_S - this is a completely new application rather than an extension (no point extending because we are nowhere near exchange so 1 month won't get us over the line) - the requirements were the same due to my high LTV, new valuation (physical) and new hard check, so we went all in!

So I guess the scenario is if any of your clients have applied twice to the same lender, had an offer once and then declined due to valuation the next time?

brettsza

Hi

How do you usually calculate how much equity my bank will let me release from existing property

The current value I think is about 250k I have 50k outstanding on mortgage. 
Rental I expect on this property of about 1k per month.
I want to let this out and release money from this house to buy a bigger house.
no outstanding finances, about 45k income, no ccj or missed payments either.
I have a small deposit. The second house has a high stamp duty, so my savings/deposit should cover that.
I am looking at about a 400k house.
Any guidance will help, is this possible or practical at my salary.

K_S

brettsza said:

Hi

How do you usually calculate how much equity my bank will let me release from existing property

The current value I think is about 250k I have 50k outstanding on mortgage. 
Rental I expect on this property of about 1k per month.
I want to let this out and release money from this house to buy a bigger house.
no outstanding finances, about 45k income, no ccj or missed payments either.
I have a small deposit. The second house has a high stamp duty, so my savings/deposit should cover that.
I am looking at about a 400k house.
Any guidance will help, is this possible or practical at my salary.

@brettsza What you’re doing is a let-to-buy. The maximum BTL mortgage that you will be able to take out on your current house will generally be based on the following - lender, value of property, prospective rental income, fix length (usually you’ll be able to borrow more on 5 year fix vs <5 years) and product interest rate, your tax band.

Exactly what you might be able to release depends on the specific lender and any other pertinent details.

Taking Accord LTB as an example (https://www.accordmortgages.com/btl/rental-calculator), you might be able to go up to 160k on the BTL, releasing 110k equity. If you use that as a deposit on a 400k property, your shortfall is 290k. With an income of 45k, you’re very unlikely to be able to stretch all the way to 290k on the residential mortgage. Assuming there aren’t any other issues, no debt, no commitments, etc., you’ll probably max out at around 225-250k or so.

You could also look at the very few lenders that will also use prospective future rental profit in the affordability calculations. Given current rates, not sure how much that would help.

K_S

annetheman said:

K_S said:

@annetheman Generally speaking from my experience, not specific to your case or Santander -

For all the offer extensions that I've done - as far as I can remember the valuation has always been desktop-refreshed and it's never changed materially.

All the best!

annetheman said:

Hi brokers,
Thanks so much for all the help you give in this thread, you are saving sanity here, truly!!

My mortgage offer from Santander expires on 22nd September and we are nowhere near exchange (second Title application rumbling on...), so my mortgage broker did submit a new application yesterday 4th September. I got a hard search alert and today, 5th September, my broker confirmed my application has been accepted pending valuation.

For this house (dodgy kitchen extension, otherwise standard), Santander's valuation passed in March at the price agreed, though the surveyor advised me to get a damp survey. I did and have the report.

Do you think it's possible that the valuation could fail this second time around, given that the house has been un-lived in for a year now (was 6 months then); it is visibly worse but it's not a wreck - just lots of spider webs and dirt. Just clearly a bit abandoned?

Have you seen the same surveyor decline something they approved 6 months prior without major disaster befalling it?

This valuation wait is sickening but I have a horrible feeling it won't pass this time, unfortunately

Thanks so much. 

Thank you @K_S - this is a completely new application rather than an extension (no point extending because we are nowhere near exchange so 1 month won't get us over the line) - the requirements were the same due to my high LTV, new valuation (physical) and new hard check, so we went all in!

So I guess the scenario is if any of your clients have applied twice to the same lender, had an offer once and then declined due to valuation the next time?

@annetheman Sorry can’t remember ever having had to make the exact same full app twice with the same lender.

All the best, hope it goes through fine!

mediumchung

Hi,

I am self employed for 3 years having a service contract with a client in Hong Kong. Previously I was paid in HKD which resulted a big hair-cut in my mortgage application so I have to give up my purchase finally.
But since 2 months ago my client agreed to pay my service fee in GBP and we signed an addendum on top of the original contract. Would that be enough for lenders to consider no hair-cut to my income?

TIA.

K_S

mediumchung said:

Hi,

I am self employed for 3 years having a service contract with a client in Hong Kong. Previously I was paid in HKD which resulted a big hair-cut in my mortgage application so I have to give up my purchase finally.
But since 2 months ago my client agreed to pay my service fee in GBP and we signed an addendum on top of the original contract. Would that be enough for lenders to consider no hair-cut to my income?

TIA.

@mediumchung I couldn't say tbh, it'll depend on the details. Even with the same case the approach might also differ across lenders and whether they see you as self-employed or a contractor.

Best speak to a good broker. The MSE guide here should help you find one. https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Seraphi

Hi,

Currently in the process of buying a house.

I have a 10 year mortgage with a lender due to finish in 2031. I will need to take out an second mortgage with the same lender to cover the cost of the second property.

I have an AIP for the amount that I need, but now I am in the process of getting a formal mortgage offer. I have been told no. There's a 20% gap between what they will now offer me and what I require.

The reason being - according to my broker - is that the stress testing that occurs for those who are porting a mortgage is different to those getting out a new mortgage.

Bizarrely, this same lender would lend me the amount I require if I paid the ERC for my current mortgage and applied as a new customer. For that reason my broker plans on finding a way to complain, because the issue is fundamentally not my capacity to pay the mortgage in this circumstance. It's the method by which they stress test those porting a mortgage.

My question is what timely options exist to either me or my broker in terms of complaining/escalating because I do not want to lose a very favourable mortgage and I also don't want to lose the house I am purchasing.

Thanks

kingstreet

Seraphi said:

Hi,

Currently in the process of buying a house.

I have a 10 year mortgage with a lender due to finish in 2031. I will need to take out an second mortgage with the same lender to cover the cost of the second property.

I have an AIP for the amount that I need, but now I am in the process of getting a formal mortgage offer. I have been told no. There's a 20% gap between what they will now offer me and what I require.

The reason being - according to my broker - is that the stress testing that occurs for those who are porting a mortgage is different to those getting out a new mortgage.

Bizarrely, this same lender would lend me the amount I require if I paid the ERC for my current mortgage and applied as a new customer. For that reason my broker plans on finding a way to complain, because the issue is fundamentally not my capacity to pay the mortgage in this circumstance. It's the method by which they stress test those porting a mortgage.

My question is what timely options exist to either me or my broker in terms of complaining/escalating because I do not want to lose a very favourable mortgage and I also don't want to lose the house I am purchasing.

Thanks

Has your broker by any chance achieved the increased amount by assuming the five year fixed rate and then been told that's not possible with the ported option? Halifax, Santander or NatWest by any chance?

Milts1234

Hi,

My 5 year fixed ends in March 2025 and we are looking to move home next summer to allow our kids to finish their school year before moving. What options do I have to get to the summer without having to go on a standard variable rate for 3-4 months? My current deal is at 1.76% so want to avoid that as it will hit hard!

I was thinking of remortgaging on time and then porting that to a new property 3-4 months later. However we are looking to move to a cheaper area so I think I might get hit with a fee if my borrowing requirement then shrinks by a considerable amount when I try to port.

Thanks for any advice