Mortgage broker - ask me anything

K_S

fatcatonamat said:

Thanks @K_S.

We are okay on the spousal visa front. Even Halifax were okay and we met the affordability criteria. Proceeded to the mortgage valuation and failed there.

The seller has divided the larger property into two dwellings. This has been notified to the city council, and the TP1 is under process.
My solicitor was told by Halifax that "they do not wish to lend unless the title has been separately registered for six months." 

Another issue could be I think the seller did not provide building warranties. They provided electrical warranties for all the rewiring of the house etc. But my solicitor knows about this and she tells me that since it is not a 'new build' there won't be any building warranties. Yet, lender is classifying it as a new build because it has renovation work done and we would be first occupancy.

How can we go about this?

@fatcatonamat Ok, that makes sense, so it's a property issue. What does the copy of the Halifax valuation report say exactly? They're one of the few lenders that actually share a copy of the report.

There's too many unknowns for me to give you any useful comments. Halifax's reason (as conveyed by your solicitor) makes sense for a pre-owned property, but not sure how that would be relevant for a new build.

As a broker what I'd do is get all the pertinent details of the property and run it past a lender BDM (and ideally their valuer panel as well though that might not be an option with all lenders), get their qualified go ahead and only then go on to make a recommendation.

If you're DIY'ing it then do the same though I don't know what the process would be.

Even after doing all that it may still come a cropper at conveyancing if something previously unknown comes up but there's really not a lot you can do about that at this early stage.

All the best, hope it works out!

Just tagging @kingstreet here for any comments as he has a wealth of experience and knowledge with both Halifax and new-builds.

fatcatonamat

Thanks @K_S . (and @kingstreet)

Halifax have said: " As per the valuers comment New Build Incomplete: no building warranty/prof consultant. Lending unsuitable: saleability. I have not provided a valuation because the property is not acceptable to the lender due to lack of a Disclosure Form."

My mortgage broker is currently running past her basket of lenders which suit the new build + visa factor. However, is unable to find anyone . Is there no one on the high street that could provide a mortgage for spousal visa + new build + the current state of the paperwork for the property?

kingstreet

Not much more to add. You need a lender who won't treat this as a newbuild and your warranty issue goes away. I suspect Halifax is applying the six month rule here and won't mortgage it until the new title has been in the hands of the vendor for at least that period.

Your broker need to roll their sleeves up and hit the phone.

K_S

fatcatonamat said:

Thanks @K_S . (and @kingstreet)

Halifax have said: " As per the valuers comment New Build Incomplete: no building warranty/prof consultant. Lending unsuitable: saleability. I have not provided a valuation because the property is not acceptable to the lender due to lack of a Disclosure Form."

My mortgage broker is currently running past her basket of lenders which suit the new build + visa factor. However, is unable to find anyone . Is there no one on the high street that could provide a mortgage for spousal visa + new build + the current state of the paperwork for the property?

@fatcatonamat

New build - if the lender considers it a new build, they will almost certainly need a UKF Disclosure form (bog standard requirement for new build properties) and an acceptable warranty / professional consultant certificate. I don't see how you get around that.

As Kingstreet said above, your best bet is probably to find a lender that won't treat it as a new-build and hope everything else property-related lines up at valuation and during conveyancing.

Good luck!

DE_612183

Hi Mortgage Brokers!

Quick question - I'm 60 years old and am looking to remortgage in the next few months - I'm trying to find a low monthly payment mortgage ( i was hoping to get 20 odd years ) as the debt will be paid off in about 4-5 years anyway when we downsize.

Currently a lot of mortgage companies cap the age that they will lend to - but i was wondering if that would still be an issue if I went for "interest only" as the age limit I presume is about paying off the mortgage in your working lifetime - but with IO that does not apply.

My MO would be to say take out a IO mortgage, then over-pay as and when I could to reduce the balance a bit ( and then the interest when it gets recalculated ) but ultimately clear the balance when the property is sold...

thoughts....

kingstreet

Many lenders have lower age caps for IO then they do for C&I. In addition, some then also take only retirement income into account if you are within ten years of retirement or 70, whichever is the lower.

This can be done but it will take legwork. This morning I've managed to place (with a smaller VS) on IO to 80 for someone who is white collar self-employed, as the lender is more lenient than they would be for an employee. Broker help will be invaluable in getting this over the line.

K_S

DE_612183 said:

Hi Mortgage Brokers!

Quick question - I'm 60 years old and am looking to remortgage in the next few months - I'm trying to find a low monthly payment mortgage ( i was hoping to get 20 odd years ) as the debt will be paid off in about 4-5 years anyway when we downsize.

Currently a lot of mortgage companies cap the age that they will lend to - but i was wondering if that would still be an issue if I went for "interest only" as the age limit I presume is about paying off the mortgage in your working lifetime - but with IO that does not apply.

My MO would be to say take out a IO mortgage, then over-pay as and when I could to reduce the balance a bit ( and then the interest when it gets recalculated ) but ultimately clear the balance when the property is sold...

thoughts....

@de612183

Term - if you want to go to 80 - firstly you'll need a lender who's ok with going past 70 on I/O, the vast majority aren't. Plus, you'll then be limited to meeting the income requirements (in most cases even for I/O the affordability will be calculated on capital repayment basis) of that particular lender or two.

If you expect to downsize around the 4-5 year mark, are happy with the padding offered by a 9-10 year term, and the LTV is low enough, your best bet is probably to look for an I/O option on that basis - 9/10 year term with downsizing as the repayment vehicle, as that'll probably give you a wider universe of potential lenders.

You'll still need income to satisfy lender affordability calculations and meet their criteria for I/O with downsizing of security property.

wubbzy

can i please for some advise as i have a complicated situation, we have no option but to try and get a mortgage before we planned to.

i am filling in our right to buy application tomorrow, i expect the house to be valued around £140,000 and we have will have a 30 year discount so estimate needing around a £60,000 mortgage.

our combined income from long standing jobs are around £70,000 i say around as i have 2 jobs and the earning from the second vary, minimum £65000 a year though between us.

however our credit history is not good, mine is improving well and i just have 2 defaults over 4 years old

my husbands is not so good, we got in debt with many bills (never rent or utilities) and we now pay through step change, however 2 of these debts and still defaulting my husband monthly even though we are paying them through step change and have been for several years now, we still owe around £40,000 in total debt between us

i now have a couple of credit cards that I'm using to improve my credit and they have low utilisation, my credit score is now improving

we have no savings, only enough for the fees from buying, we are 42 and 57 also, but do not expect to try and get a long term, 15 years would be better though 

what i want to know is do we have any chance of someone giving us a mortgage or are we looking at no chance, i am just hoping that because we don't need to borrow much and we have a decent income, there is a chance and we will just accept a high interest rate

thank you in advance

K_S

@wubbzy Based on the limited info in your post, the main bits I can pick up from you are -
- RTB purchase
- property is a house not a flat, valued ~140k
- loan size 60k
- LTV < 50%
- no cash deposit
- perm PAYE income of 65k
- background debt of 40k
- longstanding DMP (assuming it has been conducted satisfactorily) that will remain after completion of the mortgage

Based simply on the above, you may have options to borrow from specialist lenders. What I would suggest doing is, get copies of your full Checkmyfile credit reports (ignore the 'credit score'), all the details of the DMP and speak to a broker that deals in adverse.

All the best, hope it works out!

wubbzy said:

can i please for some advise as i have a complicated situation, we have no option but to try and get a mortgage before we planned to.

i am filling in our right to buy application tomorrow, i expect the house to be valued around £140,000 and we have will have a 30 year discount so estimate needing around a £60,000 mortgage.

our combined income from long standing jobs are around £70,000 i say around as i have 2 jobs and the earning from the second vary, minimum £65000 a year though between us.

however our credit history is not good, mine is improving well and i just have 2 defaults over 4 years old

my husbands is not so good, we got in debt with many bills (never rent or utilities) and we now pay through step change, however 2 of these debts and still defaulting my husband monthly even though we are paying them through step change and have been for several years now, we still owe around £40,000 in total debt between us

i now have a couple of credit cards that I'm using to improve my credit and they have low utilisation, my credit score is now improving

we have no savings, only enough for the fees from buying, we are 42 and 57 also, but do not expect to try and get a long term, 15 years would be better though 

what i want to know is do we have any chance of someone giving us a mortgage or are we looking at no chance, i am just hoping that because we don't need to borrow much and we have a decent income, there is a chance and we will just accept a high interest rate

thank you in advance

wubbzy

K_S said:

@wubbzy Based on the limited info in your post, the main bits I can pick up from you are -
- RTB purchase
- property is a house not a flat, valued ~140k
- loan size 60k
- LTV < 50%
- no cash deposit
- perm PAYE income of 65k
- background debt of 40k
- longstanding DMP (assuming it has been conducted satisfactorily) that will remain after completion of the mortgage

Based simply on the above, you may have options to borrow from specialist lenders. What I would suggest doing is, get copies of your full Checkmyfile credit reports (ignore the 'credit score'), all the details of the DMP and speak to a broker that deals in adverse.

All the best, hope it works out!

yes that's all exactly correct, i think my main concern is the monthly defaults appearing on my husbands credit files, basically the DMP has been paid regular for several years now but 2 companies we are paying through it, default him still every single month, my fear is we won't get the mortgage mainly because of this, just hoping a lender will see it as not actually a proper default

thank you for your help, we have no choice but to take the risk anyway