Mortgage broker - ask me anything

dsab

We have a mortgage of approx. 85K on a house worth approx. 185K. Our current fixed rate mortgage deal runs out in 3 months and we were considering remortgaging with another lender and to add 30K to the mortgage to pay off our short term debts and to finance some (minor) building renovation.

Now I know that Lenders are tightening up their lending based on the current global situation and I was just wondering if the above would still be possible. Or would we be better off by just taking the best follow on deal we can get from our current lender. We can afford to service our short term debt and never had any missed payments etc. Even by adding 30K we would still be below 70% LTV and the Loan to Income rate based on only my Salary would still only be about 2.

Any thoughts appreciated.

mowgliisaG

haras_n0sirrah said:

mowgliisaG said:

Random question - the buyer of our our house has had their buyer pull out. They are back in the market. If I bought their house through an SPV as a future investment (theres is a lot cheaper then my current home) would this affect my residential mortgage application? I.e the lender for the BTL would credit check me and this would show up to lender for residential. 

Where it would mainly affect you is you would need a 25% deposit to buy it. Would that mean you couldn't afford the deposit for both houses?

I could afford both. I’d need to do an I terloan from my trading company to the new SPV, but could put 25% down. Only thing is don’t want my residential mortgage lender to then have an issue as I assume the BTL via SPV will be personally credit checked too. 

anthonyha

Hi, my lender (Barclays) changed the LTI on my mortgage from x 5.5 to x 5.0 four weeks into application pipeline.
As a result, overtime needed to come into play to reach the full amount. Depending on their interpretation of my overtime i suspect that when i finally get an offer (now 11 weeks in!) it may be below what i applied for by about 10k.
I suspect this will mean i lose my house and any expenses incurred so far.
Is there a mechanism for me to appeal at this change to the terms part way through the application? Is it even worth it?
 

haras_n0sirrah

anthonyha said:

Hi, my lender (Barclays) changed the LTI on my mortgage from x 5.5 to x 5.0 four weeks into application pipeline.
As a result, overtime needed to come into play to reach the full amount. Depending on their interpretation of my overtime i suspect that when i finally get an offer (now 11 weeks in!) it may be below what i applied for by about 10k.
I suspect this will mean i lose my house and any expenses incurred so far.
Is there a mechanism for me to appeal at this change to the terms part way through the application? Is it even worth it?
 

Unfortunately I don't think there is although a complaint wouldn't hurt you but I don't think they will lend at the higher multiples - I do think it was a horrible thing they did though. For new applications is one thing but for existing applications it was cruel

haras_n0sirrah

mowgliisaG said:

haras_n0sirrah said:

mowgliisaG said:

Random question - the buyer of our our house has had their buyer pull out. They are back in the market. If I bought their house through an SPV as a future investment (theres is a lot cheaper then my current home) would this affect my residential mortgage application? I.e the lender for the BTL would credit check me and this would show up to lender for residential. 

Where it would mainly affect you is you would need a 25% deposit to buy it. Would that mean you couldn't afford the deposit for both houses?

I could afford both. I’d need to do an I terloan from my trading company to the new SPV, but could put 25% down. Only thing is don’t want my residential mortgage lender to then have an issue as I assume the BTL via SPV will be personally credit checked too. 

If it is a ltd company btl I don't think it will impact you no

MSN2220

Hi. Do you know how long it takes to get a response from Kent Reliance, once you return requested docs? 

Thanks! 

haras_n0sirrah

MSN2220 said:

Hi. Do you know how long it takes to get a response from Kent Reliance, once you return requested docs? 

Thanks! 

About 7 working days at the moment

georgia1993

Hi,

do mortgage lenders class 118-118 money as a payday loan? This was closed 5 months ago and I’ve spoken to 118118 and Experian(who I found the loan through), and both have stated it’s not a payday loan 

leypt1

Hi,
Thanks very much for this thread - it's very helpful. We are in the process of submitting an application with Yorkshire Building Society - sadly direct, as our very efficient and helpful broker doesn't work with them and it's a solid £2k saving over the 2 years compared to her best rate.
I've noticed a discrepancy in my P60 - I'm paid a basic salary + a London weighting which is specified in the terms of my contract. However I've noticed that my P60 only mentions my basic salary, and my payslip only includes my basic salary under the "taxable income" section. 
The YBS asks me to specify both my basic salary and any extra income - I've always considered my "basic" salary to be basic + London weighting but I'm now having doubts.
My first question is - Should I separate the two out, listing the London weighting as an allowance?
My second question is - should I have been submitting a tax return to account for my London weighting?? Nobody ever mentioned this to me when I joined my organisation (100s of people get the London allowance), but it's still my fault for not checking. I'm now worried that I'll be asked to provide a tax return in the application and won't be able to.
Thanks for any advice!

haras_n0sirrah

leypt1 said:

Hi,
Thanks very much for this thread - it's very helpful. We are in the process of submitting an application with Yorkshire Building Society - sadly direct, as our very efficient and helpful broker doesn't work with them and it's a solid £2k saving over the 2 years compared to her best rate.
I've noticed a discrepancy in my P60 - I'm paid a basic salary + a London weighting which is specified in the terms of my contract. However I've noticed that my P60 only mentions my basic salary, and my payslip only includes my basic salary under the "taxable income" section. 
The YBS asks me to specify both my basic salary and any extra income - I've always considered my "basic" salary to be basic + London weighting but I'm now having doubts.
My first question is - Should I separate the two out, listing the London weighting as an allowance?
My second question is - should I have been submitting a tax return to account for my London weighting?? Nobody ever mentioned this to me when I joined my organisation (100s of people get the London allowance), but it's still my fault for not checking. I'm now worried that I'll be asked to provide a tax return in the application and won't be able to.
Thanks for any advice!

It would be split into basic and allowances