Mortgage broker - ask me anything

K_S

Purejaz said:

My fixed rate mortgage deal is ending fairly soon.

I am looking around and a few other companies are offering better rates.

By default i know i can renew with my current provider fairly easily. However, if i applied with another lender but say they valued my house lower (pushing me to a higher LTV). Will it impact my ability to retain a mortgage with my existing lender?

@purejaz No, it will not impact the product-switch options presented to you by your current lender.

Generally speaking, your current lender will use an automated indexed valuation which you should be able to see on your online login. This indexed valuation is unrelated to the outcome of a valuation done by another lender. 

snowqueen555

I work two jobs and want to cut my hours down on the weekend one. Obviously my borrowing amount will be lower, but will lenders see this have any effect on lenders, will they ask for 6 months slips on the new salary? I've been in the job for 3.5 years.

K_S

snowqueen555 said:

I work two jobs and want to cut my hours down on the weekend one. Obviously my borrowing amount will be lower, but will lenders see this have any effect on lenders, will they ask for 6 months slips on the new salary? I've been in the job for 3.5 years.

@snowqueen555 If they're both perm PAYE fixed salary jobs, and you've been in both jobs for 1+ years, and only need to use the new lower salary, generally speaking all they will need is the usual standard pay evidence (or none, if they are able to verify income using data sources they already have access to).

Any deviations from the above might mean they ask for more info, but what exactly will depend on the specifics and lender.

snowqueen555

K_S said:

snowqueen555 said:

I work two jobs and want to cut my hours down on the weekend one. Obviously my borrowing amount will be lower, but will lenders see this have any effect on lenders, will they ask for 6 months slips on the new salary? I've been in the job for 3.5 years.

@snowqueen555 If they're both perm PAYE fixed salary jobs, and you've been in both jobs for 1+ years, and only need to use the new lower salary, generally speaking all they will need is the usual standard pay evidence (or none, if they are able to verify income using data sources they already have access to).

Any deviations from the above might mean they ask for more info, but what exactly will depend on the specifics and lender.

So on the lower salary they won't need 6 months I'm guessing, as long as I have 6 months+

IAMIAM

Hi,

HSBC Rate Switch and FA Application - Both done separately on same day by myself.
Rate Switch Done and Fee added to balance.
Further Advance was awaiting valuation, which is now complete, no issues.
Same product for both. 4.74% Tracker. £999 Fee.
Rate Switch to complete 1st July 2025.
Further Advance offer letter is probably out this week.

1. Can I change product on both if needs be right up to 1st July and get a refund of fee paid (it has been added to my balance already) and pick another product. Is this two brand new applications I have to do - cancel both applications and start again? I don't want numerous credit searches.

2. Can I delay my FA funds being released by a month or so. Say 1st August or 1st Sept instead - the max 6 months basically. Or do both accounts need to drawdown and switch on the same day?

3. If I were to change the term on both AFTER everything has completed - September time, will this result in both accounts amalgamating - this happened to me two years ago and I am hoping I can do this again....

Thanks,

K_S

@iamiam Sorry, I've not a clue, hopefully someone else will be able to comment usefully.

You *should* be able to change products up to X days before the switch, but no idea what the mechanics and X is for an HSBC direct app.

IAMIAM said:

Hi,

HSBC Rate Switch and FA Application - Both done separately on same day by myself.
Rate Switch Done and Fee added to balance.
Further Advance was awaiting valuation, which is now complete, no issues.
Same product for both. 4.74% Tracker. £999 Fee.
Rate Switch to complete 1st July 2025.
Further Advance offer letter is probably out this week.

1. Can I change product on both if needs be right up to 1st July and get a refund of fee paid (it has been added to my balance already) and pick another product. Is this two brand new applications I have to do - cancel both applications and start again? I don't want numerous credit searches.

2. Can I delay my FA funds being released by a month or so. Say 1st August or 1st Sept instead - the max 6 months basically. Or do both accounts need to drawdown and switch on the same day?

3. If I were to change the term on both AFTER everything has completed - September time, will this result in both accounts amalgamating - this happened to me two years ago and I am hoping I can do this again....

Thanks,

gravel_2

I am sure this has been asked many times before so sorry for that.

A lot of noise made in the savings forum about ensuring use of IFA over FA for financial advice. Is there the same concern as present or relevant when it comes to mortgages? Is whole or market essential or recommended when it comes to seeking mortgage broker services? Our needs are pretty simple.

In my area we seem to have the big nationals which do not appear to be whole of market or smaller outfits, some who talk about whole of market and others who say they have a "competitive panel" or similar.

K_S

gravel_2 said:

I am sure this has been asked many times before so sorry for that.

A lot of noise made in the savings forum about ensuring use of IFA over FA for financial advice. Is there the same concern as present or relevant when it comes to mortgages? Is whole or market essential or recommended when it comes to seeking mortgage broker services? Our needs are pretty simple.

In my area we seem to have the big nationals which do not appear to be whole of market or smaller outfits, some who talk about whole of market and others who say they have a "competitive panel" or similar.

@gravel_2 Depends on how rate conscious you are.

If criteria is immaterial and you simply want the lowest rate available to you, that might be with - 1. a high street lender (generally same rate through broker or direct), 2. a broker-only lender (eg: Co-op) or 3. a direct-only lender (eg: First direct).

There are other avenues where rates might be slightly lower (or come with better cashback) for instance exclusive products released only through some brokers/networks but let's ignore that to keep it simple.

To make sure you cover 1&2 in one go, you'd want to use a whole of market (which generally means the vast majority of lenders operating in the market, but rarely all) broker who can access all the lenders that routinely top the rate charts. If you go through a panel broker who has 4 out of 6 major lenders, but the best rate (at a specific point in time) is with a different lender not on their panel, you might lose out.

LilSmiler

Hey,

My son is about to purchase his first home. He is 26 years old in decent employment earning £26.5k pa and has had  a DIP and since then a full mortgage approval with Atom bank through a broker.

My son had 2x credit cards at the time of running the affordability checks for the DIP, both with a balance of ~£1700 at 0% apr. At the DIP stage the broker stated to Atom bank that both of these cards would be paid off before the contracts/mortgage completion, however my son had actually advised the broker that only one of them would be settled and the other he would keep paying at 0% around £50pm (which would be settled before the 0% period runs out).

My question is; as it has been stated to Atom bank that both would be settled in the brokers submission, is there a chance that the mortgage completion could fall through if both CC accounts have not been settled..?

:EDIT: 1x account has already been settled and the other remains as of today

K_S

@LilSmiler Depends on whether or not the outstanding credit card balance (what he chooses to pay monthly or whether it's at 0% or 30% doesn't make a difference when it comes to background credit card debt for a mortgage) is material to the amount that he's been approved to borrow.

If it's immaterial, then it shouldn't matter. If it is material and Atom refresh the credit-check, then they may query it.

LilSmiler said:

Hey,

My son is about to purchase his first home. He is 26 years old in decent employment earning £26.5k pa and has had  a DIP and since then a full mortgage approval with Atom bank through a broker.

My son had 2x credit cards at the time of running the affordability checks for the DIP, both with a balance of ~£1700 at 0% apr. At the DIP stage the broker stated to Atom bank that both of these cards would be paid off before the contracts/mortgage completion, however my son had actually advised the broker that only one of them would be settled and the other he would keep paying at 0% around £50pm (which would be settled before the 0% period runs out).

My question is; as it has been stated to Atom bank that both would be settled in the brokers submission, is there a chance that the mortgage completion could fall through if both CC accounts have not been settled..?

:EDIT: 1x account has already been settled and the other remains as of today