Find the Best Mortgage: Article Discussion Area

misselvis

thanks andy was thinking that myself but good to hear it from someone else

Raware

Hi,

I was wondering if anybody could give me a bit of advice?

I took out my mortgage in 2005 for £127,000 on a interest only option at the SVR. However, I relocated to Hong Kong in 2008 so changed to a fixed rate interest only for the 2 years i've been out here (so I was able to control how much I pay). The time has now come for me to return home and my fixed rate has now finished and has gone back to the SVR on an interest only (which incidentally is lower than my previous fixed rate). I now want to change my mortgage over to a repayment mortgage but with myself not having a job when I return home (hopefully i'll have one once I return home), will I be able to do this? My wife has a job when she returns so will this help us swap mortgages? Obviously I want to start paying back the mortgage and not just the interest so if I continue on my current mortgage, i'll only be paying back the interest.

Once I know if i'll be able to swap mortgages, then I can start looking for the best deals (if anybody also has tips on that then it would be much appreciated)

Regards

Pete.

ackaboosie

Thank you very much

LC_in_london

Hi All,

I am a first time buyer and I am looking to get a mortgage. As the mortgage lenders are only offering good rates if it's 75% LTV or less, and my sister (who is overseas) would like to invest/assist with the deposit, my proposed arrangement was to have her take a 25% interest in the property to be purchased (i.e. the size of the deposit) by having her name on the title deed and I would take out a mortgage (which base on my salary is more than adequate to pay back the mortgage on my own).

The only problem which I have been advised by my mortgage broker is that mortgage lender will need her to be a co-applicant to the mortgage if she wants her name on the title deed but they very likely not approve the mortgage as she is a non-UK tax resident.

What I don't understand is why a mortgage lender will have a problem in this given, my sister will take an equity piece in the property and to the extent I default the lender has a first charge on the property (and given if it's only 75% LTV, the rate of full recovery should be quite high for them).

Grateful if anyone know whether mortgage lenders as a general rule of thumbs will not lend in such circumstances like this or would there be any mortgage lenders happy to take this on. Also, any alternative approaches to get around this issue (assuming this is a real issue)?

Many thanks.
LC

herbiesjp

Are you both UK nationals?
You live in the UK - where does your sister live and work?

What is the purchase price you are looking at?
What are your two gross annual salaries?
Do either of you have any other debts?

You could potentially have options available to you, but it will depend initially on the answers to the above.

janemoore86

Find The Cheapest Mortgages. About Your Mortgage. Are you looking to: ... available from all mortgage providers in the UK including the leading fixed, ...

gaterwatch

I'm a first time buyer, and so all this is fairly new to me! MoneySavingExpert has been my bible throughout, but I need a little additional help and wondered if anyone out there could offer it.

Background: my partner and I are looking to purchase a property for £108,000 with a deposit of 20%. I earn £28,900 p.a. (to rise to £33,600 p.a. as of 1st November); my partner earns £16,700 p.a. and has a loan with repayments of £377 per month. We have no other debts or outstanding credit card balances, etc. We aim to hold onto the house for 2 - 3 years before moving on; we reckon this'll work out cheaper than renting over the next few years, as well as getting us on the property ladder.

Problem 1: HSBC. We opted to apply for a HSBC 2 year fixed rate mortgage because the rate was the best we could find. This was last Wednesday, and I'm already getting the jitters. Although someone called on Thursday "to create a profile" for me, and promised someone would call on Friday morning, they didn't. So I called HSBC. Because they "couldn't see the online system", they offered to take me through the telephone process instead. I said yes, wanting to hurry things along. Unfortunately, they were "unable to provide a decision in principle at this time". However, they recommended that I hold on and wait for the online team to call me and try again!!

This is all very confusing. Surely if we don't meet their telephone application criteria, we won't meet their online application criteria? And they also couldn't tell me why we couldn't even get a decision in principle: the man on the phone helpfully said "yes, although you seem to meet our lending criteria, I can't offer you a decision in principle... I don't know why that is". My main concern is that I don't want to end up with our application being denied, and this impacting our credit score (which is currently ok).

Problem 2: my second concern, what with the spending review and everything, is that house prices are going to fall horribly. Can anyone comment on this (I know no-one can really know what's going to happen!)? Part of me feels that, if we don't get this mortgage, it's "a sign" and we shouldn't bother after all and just keep renting! Any thoughts?

All help and advice gratefully received. All the best.

Yogini

Hi,

Was wondering if anyone had any advice about this one. My little sister is trying to buy (1st time buyer). She went through a financial advisor to get a mortage. Nationwide offered her 85% LTV, initially, then asked for about 3k more. Agreeing this, she went ahead with the survey. They took over £1500 out of her account including about £900 product fee. However, since the survey was done, they have refused and are now asking for 20% deposit. There is nothing in the survey or her credit check that would explain their decision. They are refusing to refund any of the money they have taken, so she will be massively out of pocket if she wants to go elsewhere. They are also refusing to specify why they have changed their minds.

What should she do? I suggested she go to the FSA, or at least put a complaint in writing. She is naturally anxious about going anywhere else until she knows whether she will get any of her money back, so things have stalled in terms of the purchase going forward.

Conrad

Yogini wrote: »

Hi,

She went through a financial advisor to get a mortage. Nationwide offered her 85% LTV, initially, then asked for about 3k more. Agreeing this, she went ahead with the survey. They took over £1500 out of her account including about £900 product fee.

As ever the broker has not enough experience. An experienced broker would never have a client pay a massive product fee up front!

I suspect this was a fees free broker with a little bit of 'training course' experience.

The broker is at fault - Nationwide do not insist on the product fee up front. I did an online Nationwide case last week and the new system is confusing and makes you think the fee is up front. A quick phone call infomred me the fee can be added on completion.

Conrad

LC_in_london wrote: »

What I don't understand is why a mortgage lender will have a problem in this given, my sister will take an equity piece in the property and to the extent I default the lender has a first charge on the property (and given if it's only 75% LTV, the rate of full recovery should be quite high for them).

LC

It's because there are several intractible legal problems. She has Human rights - what if the lender cannot find her abroad - say she does not want to be found - in the UK it's relatively straight forward to track someone down, but not the case if someone lives abroad.

Her rights mean she would need to be presented with a repossesion order if you guys fall behind - but if she could not be found how would the order be presented.

This only one of several issues.

She might be better doing a buy to let. Perhaps HSBC if she has an account with them.

Otherwise she just has to give you the deposit and hope you wont later sell the property without her knowing.