Mortgage broker - ask me anything

K_S

https://forums.moneysavingexpert.com/discussion/comment/81897502#Comment_81897502

@Guna I don't see anything to worry about.

9/10 times, the identity checks will be done fully online, no documents are needed. HSBC doesn't usually ask for proof of deposit either.

For normal PAYE applications relying on basic pay, all HSBC needs as standard packaging is 1 payslip.

Timelines for offer on purchase apps - for straightforward applications, it primarily depends on two things, how busy they are (you can see average service levels on their website) and how long a physical valuation (if needed) takes. You could get the offer through in a couple of days if it's a desktop valuation and they aren't busy, it could take a couple of weeks if they are busy and/or the valuation appointment is delayed.

Good luck, hope your offer comes through quickly!

Guna

Thanks @LondonBuyer and @K_S

I got a call from the valuation company that it's been completed and sent off to HSBC on Friday. They wouldn't disclose the results bus assured me that I should hear from the bank shortly with a decision.

I would have thought they'd have more questions about my ID since I am a EU national and previously I was asked to provide evidence of residential status. But maybe it was the previous broker being extra cautious and Halifax didn't ask for any documents either. Who knows - I never thought to ask!

But it sounds like a single payslip is all they want so fingers crossed. Thanks again

london21

Mortgage expiring soon 1st April and due for remortgage.

What do you reckon, 2,3 or 5 years thought rates would have dropped further but now the Iran war.

Thinking 2 years fixed no product fee or 5 years with £999 product fee or 3 years with product fee of £999.

Virgin money

2 Year Everyday Fixed

No product fee 4.04%

£999 product fee 3.72%

3 Year Everyday Fixed

4.15% no product fee

3.8% £999 product fees

5 years fixed

4.02% no product fee

3.89% £999 product fee

theonenonly

Bit of a personal question: since the gilt markets have been going since the start of the war has been really busy for you/other brokers, or is it business as usual?

K_S

https://forums.moneysavingexpert.com/discussion/comment/81922959#Comment_81922959

@theonenonly I'm only a one-person band with all my clients coming from referrals, so not particularly representative of the larger industry.

With that caveat, I haven't seen any noticeable difference. People who need to remortgage still need to remortgage and for most of my remo clients I try and secure a mainstream rate 8-9 months in advance to try and mitigate against sudden changes in the market.

From experience, 1 in 10 of my purchase clients might be rate-watchers but most (especially FTBs) are largely insensitive to the kind of rate movements we've seen.

The only thing I did different was accelerate a couple of pending mortgage applications when the lender or BDM sent out warning of impending product rate hikes a day or two before it happened.

Carfixer93

Morning,

Do you think the current spike and removal of products are because the banks are waiting to see what/if there is any changes to the upcoming rate announcement and if so will things ultimately settle when they confirm what/if there is any change?

feynman33

Hello,

Is there any value in seeing a broker, vs say mse best buy, if you dont have any unusual circumstances and aren't borrowing too close to your limit?

Cheers

SpireCaptain

Good evening,

I wonder if anyone would be able to help with a few questions I have about Regulated BTL mortgage to buy my ex out of our house.

Backstory - I'm in a lot of debt (would enter a self managed DMP if/when I know my housing situation is secure) I own a home with my ex partner and have 3 sons.

Current property

£111,000 left on mortgage

house valued at £260,000

We have a deed of trust whereby my ex would get £75k plus 50% equity. I stupidly agreed and didn't protect my £55k and so for a sale price of £260,000 I'd get £37k my ex would get £112,000 approx.

My Mum is 72 and has a few rental properties. It pushed her into the higher rate tax band for the 1st time in her life this year.

My sister is a basic rate payer and my sister in law is a higher rate tax payer. My sister and sister in law have no rental experience and have a residential mortgage themselves. My mum is mortgage free at her residential address but has BTLs on her rental houses.

Mum's figures (not from her usual mortgage broker but from her financial advisor) were £80,000 deposit and £150,000 mortgage (we would sell at £223,000 so I would give up on my equity but ex would still get her £112,000 when mortgage is paid off.

Looking at £915 per month on 6.5% capital repayment regulated BTL.

The reason we thought of buying my ex out of the house is because it's 4/5 bed and we have 3 sons. My Ex will only be able to afford a 3 bed house but will afford holidays abroad etc as will have access to credit and so we thought keeping the boys where they are and don't need to start sharing bedrooms again aged 10 would be more palatable for them.

I would then be able to start my DMP journey financially independent to my ex and my mum and sister.

The other option was Mum paid off debt and I went on a Joint Borrower Sole Propieter Mortgage with my Mum or Sister in Law and bought my ex out of the house.

But I don't think that is an option without a bigger deposit.

I'd welcome any thoughts. Thank you.

Joint Mortgage (with ex) £111,000

Deed of Trust -

Mortgage paid off

Ex- £75,000

Equity split 50/50

My original deposit of £63,000 is lost and I come out with £37,000. Ex gets £75,000 + £37,000

So Mum can purchase property for £223,000 (value minus my equity) ex still gets her dues.

Mum would deposit £80,000 and mortgage for £150,000 to cover costs of purchase.

That's the situation I'm facing.

A previous thread has shown possible ways forward by @silvercar very helpfully.

1) a gifted deposit of £80k from your Mum to you and a joint borrower, sole proprietor mortgage for the £110k. Property held in your name. This is not so rare these days, as parents help their kids get on the housing ladder.

(My level of debt would mean I wouldn't pass affordability)

2) Or property in joint names of your Mum and you. Joint mortgage with a deed specifying the split of ownership. There may be higher SDLT to pay as Mum already owns other properties.

(Again my level of indebtedness would mean this wouldn't be affordable even with Mum's income assessed?)

3) Or your Mum buys it in her name with a regulated mortgage and you pay her whatever the 2 of you agree. Doesn't necessarily have to be formal rent.

(This seems the most plausible as Mum's finances would be separate to mine and I could sort my debts out without affecting her credit record )

Have I missed any possible way through this mess? If I default on my CCs and settle my debts in 6 years time I would hopefully be able to get back on a JBSP mortgage with Mum perhaps or my Sister even.

Would need to look at estate planning for Mum if she were to pass away and I was renting off her what would happen etc.

Many thanks