Mortgage broker - ask me anything

haras_n0sirrah

LDreader said:

Hi
Barclays have declined our application because we fail affordability. The reason given is a large part of our Universal credit was ignored due to two of our children being over 13. (Our earned income is topped up by UC) Do all mortgage providers ignore benefits for over 13s or is there anyone who might accept it? 
Thanks in advance.

Some lenders are better with universal credits than others. 13 is a cut off point with a number of lenders but some don't have an age limit.

haras_n0sirrah

de_madon said:

Firstly can I just say thanks for all you are doing on this thread

Our buyer has been attempting to get a mortgage offer for around 12 weeks now.
They received their proposed offer yesterday from the Halifax but for a lesser amount than they had applied for.

We have now lowered the sale price and their broker has sent in all the new details....a desktop valuation will be carried out.

In your experience should this be a quick process now or will this need to go right through the process again
Thank you

If it is just a case of changing the figures then it should be quick - 12 weeks is long for halifax. Do you know why it has taken that long?

haras_n0sirrah

RetSol said:

I am 56 and have an interest-only mortgage at BoE base rate + 0.89% with an  LTV of c. 17%.  The mortgage is repayable when I'm 60.  I have sufficient funds to repay it but I will probably wish ideally to remortgage on interest-only terms when the time comes.  My income consists mainly of a civil service pension and I will receive a full state pension at age 67.  What advice do you have about the timing of the remortgage and the market for someone in my position? I am getting ahead of myself a bit but, since you are here, I would be grateful for advice about the market. 

Are you able to ask the lender if they will extend to 67? If not and you have to change lender then it will be based on your pension income only so will the affordability be high enough? Can you overpay the mortgage now (or save a reasonable sum) so that you have as little to remortgage in 4 years as possible

NannyPlum89

Hi! Would a £200 monthly payment to a debt collection agency to repay a historical overpayment of housing benefit be classed as a Debt Management Plan? Halifax has declined my friend this week on the basis that the £200 is a DMP, but her broker is trying to argue that it isn't as my friend hasn't used a formal organisation such as Stepchange. Thank you 

haras_n0sirrah

NannyPlum89 said:

Hi! Would a £200 monthly payment to a debt collection agency to repay a historical overpayment of housing benefit be classed as a Debt Management Plan? Halifax has declined my friend this week on the basis that the £200 is a DMP, but her broker is trying to argue that it isn't as my friend hasn't used a formal organisation such as Stepchange. Thank you 

It seems to vary from lender to lender. I had someone else in this situation a few weeks back and managed to place it but most lenders were of the impression that it did count as a dmp

RetSol

haras_n0sirrah said:

RetSol said:

I am 56 and have an interest-only mortgage at BoE base rate + 0.89% with an  LTV of c. 17%.  The mortgage is repayable when I'm 60.  I have sufficient funds to repay it but I will probably wish ideally to remortgage on interest-only terms when the time comes.  My income consists mainly of a civil service pension and I will receive a full state pension at age 67.  What advice do you have about the timing of the remortgage and the market for someone in my position? I am getting ahead of myself a bit but, since you are here, I would be grateful for advice about the market. 

Are you able to ask the lender if they will extend to 67? If not and you have to change lender then it will be based on your pension income only so will the affordability be high enough? Can you overpay the mortgage now (or save a reasonable sum) so that you have as little to remortgage in 4 years as possible

Hello, thank you for your prompt reply.  I would be looking to borrow about 4x civil service pension income.  I am in the midst of a career change and intend to have some modest earned income on top of the pension.  I am overpaying a little at the moment. I hadn't thought about an extension to 67 so thanks for that suggestion. 

de_madon

haras_n0sirrah said:

de_madon said:

Firstly can I just say thanks for all you are doing on this thread

Our buyer has been attempting to get a mortgage offer for around 12 weeks now.
They received their proposed offer yesterday from the Halifax but for a lesser amount than they had applied for.

We have now lowered the sale price and their broker has sent in all the new details....a desktop valuation will be carried out.

In your experience should this be a quick process now or will this need to go right through the process again
Thank you

If it is just a case of changing the figures then it should be quick - 12 weeks is long for halifax. Do you know why it has taken that long?

Sorry I wasn't very clear there...
The 12 weeks is the time the buyer has been trying to get an offer from a couple of lenders.
It has been with the Halifax around 15 working days now and yesterday the proposed offer was made ( we thought this was their actual offer). With this offer being lower than they had requested we have now reduced our property price thinking we could then exchange but have now been told that there is a desktop valuation to be done and more to the process.
Thanks

jls85

Hi! I was wondering what is likely to look better in the eyes of mortgage lenders, to have a smaller deposit and no debts at all; or a larger deposit and thus better LTV, with a £10k personal loan still outstanding? 

Our original plan before all the COVID nonsense kicked off was to pay back my loan with the profit from my house sale and aim for a 10% deposit, but I'm aware that a 90% mortgage might not be possible now. 

We could do a 15% deposit if I left £10k of my loan outstanding though but wondering if they'd still consider someone with that amount of debt already if affordability was acceptable? (for info we have a £92k combined salary and only other debts are car finance @£350 p/m). 

I'm aware we need to speak to a broker properly about our circumstances but I just wanted to make sure we won't get laughed out of their office!

davetherave85

How long do Santander mortgage offers last for? Also, once offer made will they do any further checks/questions prior to sending funds to solicitors? Thanks! 

Dinpraad

Dinpraad said:

haras_n0sirrah said:

Dinpraad said:

Hes has just called Natwest and apparently there is a CIFAS marker against his name 3 years ago with Metro Bank as someone paid money into his account which was investigated and eventually had the account closed. 
Question now is that are there any lenders if any who will look at his case? Would it have to be a specialist lender or there are some high street lenders who will still lend?

The CIFAS will make it tricky - do you know what category? Did he deserve the marker (i.e. being honest with himself was the transaction dodgy) or is he contesting it?

He contested it ie was advised by CIFAS to contact the banks involved to remove the record. He did but Metro bank said they were unable to remove it from my record as they are within their right to do so.

The case type recorded with CIFAS: Misuse of facility 

@har@haras_n0sirrah??