Mortgage broker - ask me anything

K_S

@gm0 Short answer - JBSP is the way to go if you want mainstream rates with "support".

With the setup you've mentioned, there isn't much out there if you only want chart topping rates, probably because it's not worth the effort of setting up Springboard type products.

gm0 said:

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

gm0

Thanks for the clarification

K_S said:

@gm0 Short answer - JBSP is the way to go if you want mainstream rates with "support".

With the setup you've mentioned, there isn't much out there if you only want chart topping rates, probably because it's not worth the effort of setting up Springboard type products.

gm0 said:

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

Thanks for the prompt response.  Not sure I want JBSP with full joint and several for the full mortgage - Will investigate and mull some more.  But chart topping wasn't the bar.  Support and "fair" prices appropriate to LTV was - i.e. with LTV below 100.  

Cheryl2022

Hi, just wondered if anyone can help or advise. 

Me and my OH are wanting to buy a house together and have 81k in joint income, my OH has a shared ownership property that he's selling and we will pay any remaining debts off with the equity, might have 1k in credit card and then a 5% deposit for a new home. 

Our credit ratings are okay but not brilliant I have a few old satisfied defaults from about 4 years ago when I had to leave work to become a carer for my gran but since then I've worked really hard to build my credit score back up.

This is the issue that is causing me so much anxiety, so here goes.... I stupidly agreed to go on my parents mortgage in name only with my dad as my mum didn't have enough income when I was 18 and I didn't realise how much this would affect the rest of my life as they have now paid the mortgage off but took out an unsecured loan years ago from the mortgage company and then defaulted on it. This was for £16k and was registered in 2022. It only shows up on a transunion credit report and so it took me years to see it as I have been using Experian to build my credit score! I know most companies use Experian and equifax so wondered what any chances of getting a mortgage and finally owning my own home 🏠 

Please help! Thank you so much for reading ❤️

silvercar

gm0 said:

Thanks for the clarification

K_S said:

@gm0 Short answer - JBSP is the way to go if you want mainstream rates with "support".

With the setup you've mentioned, there isn't much out there if you only want chart topping rates, probably because it's not worth the effort of setting up Springboard type products.

gm0 said:

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

Thanks for the prompt response.  Not sure I want JBSP with full joint and several for the full mortgage - Will investigate and mull some more.  But chart topping wasn't the bar.  Support and "fair" prices appropriate to LTV was - i.e. with LTV below 100.  

What’s easier, JBSP with someone you can trust or gifting a deposit? Once gifted the deposit is theirs whereas JBSP hopefully won’t cost you a penny.

K_S

@cheryl2022 Really hard to say as it depends on the details and what's actually showing on your credit reports but generally speaking -

- you will struggle to get a mainstream 95% LTV mortgage with multiple defaults on your credit file

- the secured loan arrears/default adds to the above. Even though it's only showing on TransUnion, many lenders will ask a question about this on the aplication, plus they might use TransUnion as a backup for credit check at DIP and/or full application stage

Once you're in a position where the OH's property is sold, debt is paid off and you have a deposit, best get copies of your credit reports and speak to a broker to see what they say. Good luck!

Cheryl2022 said:

Hi, just wondered if anyone can help or advise. 

Me and my OH are wanting to buy a house together and have 81k in joint income, my OH has a shared ownership property that he's selling and we will pay any remaining debts off with the equity, might have 1k in credit card and then a 5% deposit for a new home. 

Our credit ratings are okay but not brilliant I have a few old satisfied defaults from about 4 years ago when I had to leave work to become a carer for my gran but since then I've worked really hard to build my credit score back up.

This is the issue that is causing me so much anxiety, so here goes.... I stupidly agreed to go on my parents mortgage in name only with my dad as my mum didn't have enough income when I was 18 and I didn't realise how much this would affect the rest of my life as they have now paid the mortgage off but took out an unsecured loan years ago from the mortgage company and then defaulted on it. This was for £16k and was registered in 2022. It only shows up on a transunion credit report and so it took me years to see it as I have been using Experian to build my credit score! I know most companies use Experian and equifax so wondered what any chances of getting a mortgage and finally owning my own home 🏠 

Please help! Thank you so much for reading ❤️

silvercar

K_S said:

@cheryl2022 Really hard to say as it depends on the details and what's actually showing on your credit reports but generally speaking -

- you will struggle to get a mainstream 95% LTV mortgage with multiple defaults on your credit file

- the secured loan arrears/default adds to the above. Even though it's only showing on TransUnion, many lenders will ask a question about this on the aplication, plus they might use TransUnion as a backup for credit check at DIP and/or full application stage

Once you're in a position where the OH's property is sold, debt is paid off and you have a deposit, best get copies of your credit reports and speak to a broker to see what they say. Good luck!

Cheryl2022 said:

Hi, just wondered if anyone can help or advise. 

Me and my OH are wanting to buy a house together and have 81k in joint income, my OH has a shared ownership property that he's selling and we will pay any remaining debts off with the equity, might have 1k in credit card and then a 5% deposit for a new home. 

Our credit ratings are okay but not brilliant I have a few old satisfied defaults from about 4 years ago when I had to leave work to become a carer for my gran but since then I've worked really hard to build my credit score back up.

This is the issue that is causing me so much anxiety, so here goes.... I stupidly agreed to go on my parents mortgage in name only with my dad as my mum didn't have enough income when I was 18 and I didn't realise how much this would affect the rest of my life as they have now paid the mortgage off but took out an unsecured loan years ago from the mortgage company and then defaulted on it. This was for £16k and was registered in 2022. It only shows up on a transunion credit report and so it took me years to see it as I have been using Experian to build my credit score! I know most companies use Experian and equifax so wondered what any chances of getting a mortgage and finally owning my own home 🏠 

Please help! Thank you so much for reading ❤️

OP says it was an unsecured loan, not secured, so should that make things easier? 

@Cheryl2022, is it worth checking with your parents that they haven’t rolled you into any other debts? And also make clear that you have your own finances to think of, a mortgage, a loan and a possible CGT bill all thanks to their own money problems is a lot to burden you with.

Cheryl2022

It is unsecured yes.

i didn't know I'd have to pay CGT on this, what an absolute mess they've got me into! Is it best to stay on their deeds and pay extra stamp duty or take my name off the deeds and pay CGT? 

silvercar

Cheryl2022 said:

It is unsecured yes.

i didn't know I'd have to pay CGT on this, what an absolute mess they've got me into! Is it best to stay on their deeds and pay extra stamp duty or take my name off the deeds and pay CGT? 

That is a calculation to make. You also lose first time buyer status, even if you come off the deeds.

DE_612183

New Request for Info / Help

Ok, so I have a situation which is probably not the norm, but not sure if / what help is available and where I can get it.

So the facts:

I currently have a £200k mortgage on a £450k property.

I'm on a tracker rate with 14 years to run ( taking me to 75 ).

I'm 61.

I'm looking to downsize and want to reduce my mortgage by about £70k - so the required mortgage is £135k

My current lender has looked at my income ( and because they assess my income when I'm retired ) will only lend me about £70k.

My income at the moment is fine £60k pa.

From 67 I'll have SP £10k, Pension1 10k, Pension2 £9k and about £90k in private pension as yet untouched.

Also when I get to 72 We'll have an additional £10k from my wifes SP.

She also has a pot of £60 which we could look to use.

I've explained all this and they did say they would look again at this - although as we are so far apart I'm not sure if I'll get any joy.

I feel I've got all the finance in place to safely manage the mortgage ( we're also planning to probably downsize again within a few years and be mortgage free ).

But we just can't get past the mainstream lending algorithm.

Are there any brokers / companies who would look at this?

I've looked at "lending into retirement" but these all seem to be about releasing equity on existing house rather than moving.

Thanks

blahblahblah85

Not sure if brokers are still answering this old thread? But wondering what people's views are on interest rates atm? 

About to port a mortgage and put extra borrowing on a tracker so that when the ported portion expires May 26, I can just do one remortgage and avoid 2 x lots of product fees all the time but having a wobbly as worried rates could go up between now and May. The tracker rate is 4.40% and the fixed they offered was around 3.90% (2years).