Mortgage broker - ask me anything

sacvwgolf

Morning!
I am currently applying through Nationwide on a FTB 90% LTV with a 16k deposit. I am not overly confident of it being successful (going on by other people's rejection) and I am thinking of selling my car downgrading to a cheaper car to raise funds for a 15% deposit to give me more choice on the market.
My question is what will this look like to a lender as a large sum will go into my account which I'll put in my savings account but technically it's not gifted? How will I prove where it's come from?

GN2020

sacvwgolf said:

Morning!
I am currently applying through Nationwide on a FTB 90% LTV with a 16k deposit. I am not overly confident of it being successful (going on by other people's rejection) and I am thinking of selling my car downgrading to a cheaper car to raise funds for a 15% deposit to give me more choice on the market.
My question is what will this look like to a lender as a large sum will go into my account which I'll put in my savings account but technically it's not gifted? How will I prove where it's come from?

I’m not a financial expert by any means so I hope this helps but you’ll be able to prove it’s come from the sale of your car as there’ll be a trail of the money going into your account whether by cheque, bank transfer etc. 

I had some inheritance paid into my account in June. I’ve given June’s bank statement, my savings account statement, a letter from my mum saying it’s inheritance and a copy of the solicitors letter for the sale of my dads house. They haven’t queried anything as they can see where it comes from.

I’d have thought that the proof of the sale of your car would be sufficient in this case. 

mowgliisaG

Hi Sarah. 

Been following this post a while...great work!!
We have just applied for a mortgage via MB with santander HTB. I took a BBL in April as a precaution from santander (business account) but have not touched it as of yet. Income dropped for a few months but since August is flying again. End of October should be able to give 3 months statements Showing strong turnover.  We are at 62.5% ltv with 17.5% deposit from equity in house and 20% HTB. I’m self employed, wife is a director too and she is also employed.

Questions - 1) how do lenders view HTB, riskier or less risk as lower LTV
2)how much does a BBL effect application (no seiss taken) and should I pay this back?
3)We weren’t asked if any help taken by anyone as of yet, just if business suffered and if it has returned. Is that normal?

thanks 

kingstreet

Question asked by Santander of broker on all cases - expected to be answered on submission of application is;-
"Confirmation of how the applicant's income or business has been impacted by COVID-19
a) If the applicant's income or business is unaffected by COVID 19
We need an explanation why they haven't been affected, or how they've changed the way they operate so our underwriters can assess the plausibility that their income is sustainable.
Or
b) if the applicant's income or business is impacted by COVID 19
We need an explanation of any change in income and whether they have applied for Government Assistance. If Government Assistance has been applied for please provide full details of this."

mowgliisaG

kingstreet said:

Question asked by Santander of broker on all cases - expected to be answered on submission of application is;-
"Confirmation of how the applicant's income or business has been impacted by COVID-19
a) If the applicant's income or business is unaffected by COVID 19
We need an explanation why they haven't been affected, or how they've changed the way they operate so our underwriters can assess the plausibility that their income is sustainable.
Or
b) if the applicant's income or business is impacted by COVID 19
We need an explanation of any change in income and whether they have applied for Government Assistance. If Government Assistance has been applied for please provide full details of this."

And how does bbl sit with santander? Should this be paid back?

kingstreet

If your broker is on top of this they would have discussed the case with their Santander business development manager and established if the application fits and what, if anything, might be needed. There is no hard and fast attitude to anything at the moment so await your broker's instructions.

mowgliisaG

kingstreet said:

If your broker is on top of this they would have discussed the case with their Santander business development manager and established if the application fits and what, if anything, might be needed. There is no hard and fast attitude to anything at the moment so await your broker's instructions.

Thanks Kingstreet, but as long as we can show revenue coming in now again over 3 mo ths bank statements, in your experience, shouldn’t make a huge difference? 

mowgliisaG

And do lenders see HTB as less risk? As lower LTV..

WiseOwl00

I just have a question about mortgage rates. We applied for the 2.99% 90% LTV product with Nationwide, but unfortunately the seller pulled out of the sale. We've found a new house and will be re-applying for the 3.74% 90% LTV product. We're obviously disappointed the rate has since increased, but unsure what this actually means in the grand scheme of things. My mortgage advisor said that the rates have never been better, but we are FTB so these are the only rates we have ever known. 

How would you describe the current average rates for 90% LTV? How does it compare to, say a year or two ago? What would you describe as a low, medium, and high rate? This won't affect our mortgage application process, I'm just curious to know how good these rates actually are. 

haras_n0sirrah

The rates at 90% used to be around 2% - the higher loan to value (85% and above) have gone up massively since March. Low ltv stuff the rates are still pretty low