Mortgage broker - ask me anything

K_S

theonenonly said:

How strict are Nationwide with their Second Job criteria, specifically for their Helping Hand products (the criteria being that you must have been in the second job for 6 months)- I've been in my second job for 3 months and have found I house I want to put an offer in, the extra £9k annual salary from the second job will make it so much more easier.

@theonenonly I can't speak from experience of this specific situation but generally speaking I would expect them to apply the second job criteria as described at the point of application or underwriting.

theonenonly

K_S said:

theonenonly said:

How strict are Nationwide with their Second Job criteria, specifically for their Helping Hand products (the criteria being that you must have been in the second job for 6 months)- I've been in my second job for 3 months and have found I house I want to put an offer in, the extra £9k annual salary from the second job will make it so much more easier.

@theonenonly I can't speak from experience of this specific situation but generally speaking I would expect them to apply the second job criteria as described at the point of application or underwriting.

Thanks. Is it possible (and I appreciate you're not speaking from experience necessarily) that I've worked there for 3 months, and a letter from my employer showing that I've got a permanent contract, would they take that into consideration?

kingstreet

theonenonly said:

K_S said:

theonenonly said:

How strict are Nationwide with their Second Job criteria, specifically for their Helping Hand products (the criteria being that you must have been in the second job for 6 months)- I've been in my second job for 3 months and have found I house I want to put an offer in, the extra £9k annual salary from the second job will make it so much more easier.

@theonenonly I can't speak from experience of this specific situation but generally speaking I would expect them to apply the second job criteria as described at the point of application or underwriting.

Thanks. Is it possible (and I appreciate you're not speaking from experience necessarily) that I've worked there for 3 months, and a letter from my employer showing that I've got a permanent contract, would they take that into consideration?

As a broker I would not put such a case to Nationwide as it's outside criteria. I suspect that income will not be accepted until you meet that criteria. You can only ask; or have a broker run it past their Nationwide contact.

vienly

Hello - Looking to remortgage from Natwest to First Direct at the end of my fixed term, but a bit unsure about the fees involved. Understand First Direct has a Product fee of £495, but can't find any information about Legal fee, do I pay for a solicitor or licensed conveyancer, or does First Direct provide one for free?
What other specific fees during the transfer from Natwest to First Direct should I be concerned about?
I believe the Valuation is free from them -  Thanks

kingstreet

Ask FD for an illustration. The costs will be shown there.

Lenders often have products with a free valuation and free standard legal work or a cashback to cover the latter for those wanting to use their own solicitor. As these are lender/product specific an illustration is the only way to confirm what you have.

zoothornrollo_2

Hi all. Part of my mortgage is ending at end-November so I'm looking at the loans that are available for me to switch to on their portal and there's one detail on all the products that is confusing me greatly.

That is, when you add the product to the loan the monthly fee is higher, in every case, as you'd expect - makes sense.
BUT in each case the 'Estimated total cost' on the same product is LOWER if you add the fee to the loan...? How does that work?

So in the case of the product I am looking at it says this:

PS. I'm with YBS with a mortgage in three parts with deals ending at different times so quite hard for me to switch lender or go with a broker - without paying ERCs or being on SVR for a while on one part or another.

K_S

zoothornrollo_2 said:

Hi all. Part of my mortgage is ending at end-November so I'm looking at the loans that are available for me to switch to on their portal and there's one detail on all the products that is confusing me greatly.

That is, when you add the product to the loan the monthly fee is higher, in every case, as you'd expect - makes sense.
BUT in each case the 'Estimated total cost' on the same product is LOWER if you add the fee to the loan...? How does that work?

So in the case of the product I am looking at it says this:

PS. I'm with YBS with a mortgage in three parts with deals ending at different times so quite hard for me to switch lender or go with a broker - without paying ERCs or being on SVR for a while on one part or another.

@zoothornrollo_2 At first glance, it looks like the "estimated total cost" is basically summing up the cash-flow out during the 2 year fix, thus showing a higher number if you pay the fee upfront as in that case it's the fee+monthly payments, while if you add it to the loan it's only factoring in the slightly higher monthly payments.

zoothornrollo_2

Ok thanks. So in short if one is more bothered about the overall cost over the two years than the level of monthly payments then it's actually BETTER to include fee in loan!? (that still confuses me)

Also - and this might be a sillier question: why, if you add the fee to the loan, is the estimated total cost not equal to 24 times the monthly fee? In this e.g., 24 x 330.12 = £7,923 versus estimated total cost of £8,913...?

K_S

zoothornrollo_2 said:

Also - and this might be a sillier question: why, if you add the fee to the loan, is the estimated total cost not equal to 24 times the monthly fee? In this e.g., 24 x 330.12 = £7,923 versus estimated total cost of £8,913...?

@zoothornrollo_2 While it is termed a '2 year fix', the actual product fixed rate ends on 30/11/2027 so if the estimate uses a start date of (say) 01/09/2025, it's a 2years+3month fix so perhaps the calculation is for 2 years + x months. I hope that makes sense.

gm0

Broker question

I am interested to understand if the "family savings" tied up in support for 3-5 year type mortgages of the Barclays Springboard (or similar type) are made available in flavours other than the poorer value very high interest rate for 100% LTV ones. i.e. to access normal competitive 90% and sub 80% normal fixed rates.  But with relaxed criteria on income multiplier because of the additional 10%+ security thus offered.  

Is this a thing?  

If so - who is a good lender example to look at to explore the idea and fine print in a bit more detail.  
Web sites seem to suggest it's aimed at a niche linked to 100% LTV lending - but as usual it says talk to us when applying.

I'm not thinking about JBSP especially - but the intermediate temporary additional security via savings types - deposits held for good payment behaviour for a term of 3-5.  These fall between a simple gifted deposit to lower LTV and JBPSP in terms of guarantor risks.  It doesn't seem worth the bother for poor value product.  For better product it miight be interesting.

Any pointers on what's happening in the market on this