Mortgage broker - ask me anything

kingstreet

Your existing lender is...?

Seraphi

kingstreet said:

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?

The initial assumed amount was on the basis of an AIP which only cared about the total lending amount. No dramas were raised during that process. Actually it's none of those three.

Malibu1209

I own my house with my husband, we are divorcing and I am keeping the house so I need to get the mortgage into my name alone and him removed from everything, I don’t need to buy him out. We owe 102k and property is about 320k based on sales nearby. I really need to borrow money to do an extension as the current one needs to come down. 

How am I best to go about doing this? How much roughly would I want to be borrowing to add a single storey extention to a 3bed semi? Get him removed and secure the mortgage alone and then ask to borrow more, or do it all in one go? The divorce papers are submitted but nothing more can be done till the end of December.

K_S

Malibu1209 said:

I own my house with my husband, we are divorcing and I am keeping the house so I need to get the mortgage into my name alone and him removed from everything, I don’t need to buy him out. We owe 102k and property is about 320k based on sales nearby. I really need to borrow money to do an extension as the current one needs to come down. 

How am I best to go about doing this? How much roughly would I want to be borrowing to add a single storey extention to a 3bed semi? Get him removed and secure the mortgage alone and then ask to borrow more, or do it all in one go? The divorce papers are submitted but nothing more can be done till the end of December.

@malibu1209 Assuming that you're staying with the current lender and product, what you're looking to do is called a transfer of equity. It'll involve -

- your current lender: who will treat it somewhat similar to a new mortgage application where they will check and confirm that you meet the criteria and affordability requirements for the required loan amount on your own

- solicitor/conveyancer: who'll do the legal work involved in a ToE

- the current joint owner: whose signature will be required as part of the legal work

Best speak to your current lender to see what their process is and whether or not you can do it now or it needs to wait.

To get a rough idea of what's involved, just have a look at the process here for a residential ToE, it'll be pretty similar irrespective of lender.
https://www.accordmortgages.com/existing-customers/my-mortgage/transfer-of-equity/

kingstreet

Seraphi said:

kingstreet said:

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?

The initial assumed amount was on the basis of an AIP which only cared about the total lending amount. No dramas were raised during that process. Actually it's none of those three.

Many agreements in principle ask if a five year fix is planned and if so, a higher maximum loan is generated. The list wasn't exhaustive, just a few examples.

Seraphi

kingstreet said:

Seraphi said:

kingstreet said:

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?

The initial assumed amount was on the basis of an AIP which only cared about the total lending amount. No dramas were raised during that process. Actually it's none of those three.

Many agreements in principle ask if a five year fix is planned and if so, a higher maximum loan is generated. The list wasn't exhaustive, just a few examples.

Thanks. Useful to know.

Heard back this afternoon that they aren't budging. I'm in the fortunate position that my salary is changing this month (hence the move) and I have the cash to pay off a PCP deal - so we think we can just about make it work. But tbh I don't really want to stay with the lender after this.

I need to focus on securing the house but after that I plan on making myself as unpopular as I can, because this situation is ridiculous.

cinderella_bella

Help, my mum has an Interest Only mortgage which she originally took out with my stepdad, who left about 15 years ago, at the time it went through the courts, he has been taken off the deeds but due to affordability he was left on the mortgage. My mum wants to remortgage on to hopefully a repayment mortgage, my stepdad is now in Thailand with no access to him will she be able to start a new mortgage, releasing the old mortgage without his signature?

K_S

cinderella_bella said:

Help, my mum has an Interest Only mortgage which she originally took out with my stepdad, who left about 15 years ago, at the time it went through the courts, he has been taken off the deeds but due to affordability he was left on the mortgage. My mum wants to remortgage on to hopefully a repayment mortgage, my stepdad is now in Thailand with no access to him will she be able to start a new mortgage, releasing the old mortgage without his signature?

@cindrella_bella If he's definitely off the deeds then yes it should be possible to remortgage away in your sole name without his signature.

sonaldo

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

My partner and I are considering moving house. I earn £62,425 a year in a permanent, full time job but, since May this year, she's been freelance. Her average monthly income is ~5k. ~1k of this comes from a regular contract and the rest from media appearances (e.g. podcasts, broadcasts), public speaking and columns for newspapers/magazines.

When applying for a 'mortgage in principle', when you click 'self-employed' in the drop-down it asks when the business was set up, net profit for the previous year etc. None of this seems applicable because she hasn't 'set up' a business and she doesn't yet have a year's worth of income...

As a result, we can't really get a sense of how much we can borrow. Is our only option speaking to someone (rather than applying online) or simply waiting until she's been freelance for longer?

ACG

Hi Sonaldo,

I do not answer posts in this thread. It all become too confusing as there were too many posts. (I only mention it as it popped up as a notification that I had been tagged but it looks like that is only because you quoted the original post).

The other brokers on this site who were tagged no longer come on here, except kingstreet who occasionally pops up now and again. 

If you want to maake your own thread, I am happy to take a look and try to answer.