| Mortgage Advice Required 12:54 - Dec 14 with 2872 views | toboboly |
Thank you in advance.
I am confused and going round in circles, situation is thus;
Selling a flat with a mortgage partly paid off, still owe over 6 figures. Two of us, decent combined salary, no debts other than the mortgage, decent money saved for deposit.
Buying a house, need to find out what is the maximum mortgage we can afford so I can view appropriate houses.
Estate Agents keep saying you can put an offer in without anything more than a mortgage in principle, mortgage broker is indicating they need a load of official documents in order to fill out the paperwork.
I am not sure if I am talking at cross purposes with the broker or if the estate agents are talking out of their arse or a combination of both.
Appreciate this is all a bit vague but we seem to be getting lots of different info that never quite tallies. The basics is that I need to find what our ceiling would be in terms of loans. Have checked Money Saving Expert etc and not a lot clearer. |  |
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| Mortgage Advice Required on 13:14 - Dec 14 with 2025 views | joe90 |
The estate agent is correct, and from what I gather so is the broker.
I purchased a property over the summer and had to provide bank statements, payslips and other various documents at the initial meeting so they could estimate how much we could borrow.
If you're serious about buying I think it's worth doing and also worth asking friends/family if they can recommend a good broker. [Post edited 14 Dec 2020 13:25]
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| Mortgage Advice Required on 13:17 - Dec 14 with 2014 views | TGRRRSSS |
You can put in an offer anytime really, BUT the buyer will probably want proof you can deliver before they will take it off the market ( I would)
I'd try and sort of the amount you will have mortgager wise soon as possible, as to what you can borrow, it's basically going to depend on what you've got to put down, then salaries etc and also how much a lender will lender you in terms of percentage share downpayment from yourself.
You could possible try speaking to your current lender and see what they might be prepared to do in terms of the sale and purchase. |  | | |
| Mortgage Advice Required on 13:22 - Dec 14 with 1998 views | slmrstid |
I think you've got a bit of crossed wires.
We moved in October and didn't actually have a mortgage in principle at all, or even an offer on our house, when we put our offer in. Which actually I don't think went down too well but then within a week we'd got a mortgage in principle and an offer on our house.
The mortgage broker would need all the official documents to get the actual application and offer in, but that follows on from the principle, which is in effect the mortgage provider saying they can lend you that if you can then follow it up with the official stuff.
So from my perspective, the estate agent is right. You can get a mortgage in principle online PDQ if you really want. The mortgage broker should be able to get you the principle pretty quickly too - the official stuff would be when you need to start the actual mortgage application. |  | | |
| Mortgage Advice Required on 13:29 - Dec 14 with 1982 views | Phildo |
They are both right to an extent.
The agent is agent for the seller - not a middle man so when accepting an offer they need to check that you are realistically going to be able to raise the money. They also should do checks about the source of your funds (like equity from your sale) to check you are not money laundering.
The broker will need docs to submit an application.
An offer in principle is different to a full mortgage offer. You only get a full offer specific to the property you are going to buy once the lender has done a valuation of the property. In principle is a letter setting out that you are ok to borrow a certain sum generally so you can go looking. |  | | |
| Mortgage Advice Required on 13:30 - Dec 14 with 1977 views | slmrstid |
| Mortgage Advice Required on 13:29 - Dec 14 by Phildo |
They are both right to an extent.
The agent is agent for the seller - not a middle man so when accepting an offer they need to check that you are realistically going to be able to raise the money. They also should do checks about the source of your funds (like equity from your sale) to check you are not money laundering.
The broker will need docs to submit an application.
An offer in principle is different to a full mortgage offer. You only get a full offer specific to the property you are going to buy once the lender has done a valuation of the property. In principle is a letter setting out that you are ok to borrow a certain sum generally so you can go looking. |
This is the answer I was trying to get at but you've explained it much better than me Phildo! | | | |
| Mortgage Advice Required on 13:31 - Dec 14 with 1969 views | JimmyR |
I worked as a mortgage broker for many years - I've chosen not to do it anymore as its too much hassle
Both are correct - You can put in as many offers as you like on as many properties as you want
A mortgage is principle is just a credit check from a bank that says we will lend you x amount subject to hundreds of other things
The best thing to do it get all of your payslips, ID and address proof and send it over to an independent mortgage broker that works for you, not an estate agent. When i was a broker i didn't bother dealing with anyone who wouldn't send me this info as it was a waste of my time when they finally sent payslips through with much less income that we discussed or they had loads of debts etc
I can introduce you to who i send my old clients to or you could call London & Country who are free independent brokers
Good luck |  | | |
| Mortgage Advice Required on 14:03 - Dec 14 with 1877 views | toboboly |
| Mortgage Advice Required on 13:31 - Dec 14 by JimmyR |
I worked as a mortgage broker for many years - I've chosen not to do it anymore as its too much hassle
Both are correct - You can put in as many offers as you like on as many properties as you want
A mortgage is principle is just a credit check from a bank that says we will lend you x amount subject to hundreds of other things
The best thing to do it get all of your payslips, ID and address proof and send it over to an independent mortgage broker that works for you, not an estate agent. When i was a broker i didn't bother dealing with anyone who wouldn't send me this info as it was a waste of my time when they finally sent payslips through with much less income that we discussed or they had loads of debts etc
I can introduce you to who i send my old clients to or you could call London & Country who are free independent brokers
Good luck |
Hi all, thank you for all your help. Turns out it was both crossed wires and someone had put the wrong figures in for us which made the mortgage look a lot smaller than we had expected.
Apparently we don't get a mortgage in principle letter as we will be "porting" the old mortgage over but it all seems a lot more understandable.
Cheers guys :) | |
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| Mortgage Advice Required on 14:38 - Dec 14 with 1793 views | ozranger |
To save creating a new thread..
In Oz, we tend to just go to the bank to ask for the mortgage. Mortgage brokers do exist but under different names - like "Aussie Home Loans" where they search out the best deal for you. Does that mean in the UK one cannot do that (go straight to a bank), is it frowned upon or is it best to use a mortgage broker to solve all the problems of organising a mortgage? Add to that, the misses and I are looking at buying a place next year but I'd like to know how does foreign collateral work here? She has never owned a place while I have, but in Oz. I also assume that conveyancing would also be the same here as it is in Oz? |  | | |
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| Mortgage Advice Required on 14:49 - Dec 14 with 1769 views | Juzzie |
Good luck toboboly. I'm still going through the whole process myself since June and it's a fkin 'mare. Everything taking absolutely ages. I think I'm now 20 weeks into a process that should have taken 16 max even allowing for the covid situation.
We used London & County too for our mortgage and they were great.
The people we're paying the most money to (by a long way), our estate agents, I would not trust them as far as I can throw them. From day 1 it's all been negativity and trying to get us to do things that not only clearly suits them but could actually have a very detrimental effect on us. They're meant to be representing us FFS and they're clearly just in it for themselves. Fuktards. |  | | |
| Mortgage Advice Required on 14:57 - Dec 14 with 1754 views | WestbourneR |
Rule of thumb - you can look for a house that is worth (inc. Stamp Duty) 5 x your combined annual salaries plus whatever you'll be able to put down as a deposit once your flat is sold.
Once you put in an offer you'll need to have bank statements / pay slips / mortgage details on your current property to back it up.
But nothing to stop you looking while you get your ducks in a row. |  |
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| Mortgage Advice Required on 15:15 - Dec 14 with 1729 views | Phildo |
One word of advice - use a local independent firm of lawyers -do not use online or volume conveyancers based in other parts of the country with tons of suspicious 5 star google reviews. They are often paying the agent fees of up to £500 for the referral and simply cannot afford to pay anyone who knows what they are doing from the remaining fee. | | | |
| Mortgage Advice Required on 15:17 - Dec 14 with 1724 views | Boston |
Thankfully I don’t require mortgages anymore, makes life so much easier, well, except for the Fed investigations and money carrying mules. | |
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| Mortgage Advice Required on 15:43 - Dec 14 with 1648 views | BostonR |
Why are you using a broker? There are some incredible mortgage deals on-line. Deal with the bank directly.
I don't have a mortgage anymore and I rarely use "middle-men" other than a lawyer and accountant who are both life-long friends. |  | | |
| Mortgage Advice Required on 16:09 - Dec 14 with 1578 views | Rangersw12 |
| Mortgage Advice Required on 14:49 - Dec 14 by Juzzie |
Good luck toboboly. I'm still going through the whole process myself since June and it's a fkin 'mare. Everything taking absolutely ages. I think I'm now 20 weeks into a process that should have taken 16 max even allowing for the covid situation.
We used London & County too for our mortgage and they were great.
The people we're paying the most money to (by a long way), our estate agents, I would not trust them as far as I can throw them. From day 1 it's all been negativity and trying to get us to do things that not only clearly suits them but could actually have a very detrimental effect on us. They're meant to be representing us FFS and they're clearly just in it for themselves. Fuktards. |
We bought our first house in the summer and it also dragged on for months
Our offer was accepted in Jan, mortgage offer middle of Jan and then we didn't actually complete until the middle of June!
We used a company called Citrus mortgages and they were fantatsic, got us a great deal and were holding ourhands though the whole process and providing us weekly updates
Llike you the estate agents were a pain to deal with and put me off moving ever again! | | | |
| Mortgage Advice Required on 16:48 - Dec 14 with 1498 views | ted_hendrix |
| Mortgage Advice Required on 15:15 - Dec 14 by Phildo |
One word of advice - use a local independent firm of lawyers -do not use online or volume conveyancers based in other parts of the country with tons of suspicious 5 star google reviews. They are often paying the agent fees of up to £500 for the referral and simply cannot afford to pay anyone who knows what they are doing from the remaining fee. |
I had no option but to use the developers named solicitor as I 'chipped' the developer with a low bid for the new house, they eventually accepted as I had a cash buyer for my property and I could prove I had sufficient cash funds of my own, the other issue though was I had to complete within 42 days.
Utter nightmare If I'm honest, It was the first time we ever moved house having bought my house back in 1980, never ever again.
It took over a 100 days to complete, on the day of exchange of contracts late in the evening we still hadn't exchanged so I e-mailed the estate agent and the solicitor and told them if we don't exchange by COB the following day then the whole deal is off. At 9.10am the following morning the solicitor rang me to tell me we were exchanging later that day and we moved the following Monday.
One thing I really didn't like was moving a large amount of my cash into my solicitors bank account before completion, I never knew but you can only move so much in a 24 hour period, getting home two nights on the trot and checking my account almost gave me a bloody heart attack.
Never ever again.
Good luck to the OP anyway. |  |
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| Mortgage Advice Required on 16:53 - Dec 14 with 1478 views | Juzzie |
| Mortgage Advice Required on 15:15 - Dec 14 by Phildo |
One word of advice - use a local independent firm of lawyers -do not use online or volume conveyancers based in other parts of the country with tons of suspicious 5 star google reviews. They are often paying the agent fees of up to £500 for the referral and simply cannot afford to pay anyone who knows what they are doing from the remaining fee. |
Our estate agents (who everyone can probably gather I have no love for) insisted at the beginning that we use their lawyer/conveyancer/solicitor rather than our own as they can have a more direct 'hand's on' approach.
They're now trying to cite that had we used their solicitor "as they had suggested" that things would have happened sooner.
Really? considering the delays have mainly been caused by the buyer's solicitor I'm unsure as to how it could have happened any quicker regardless who we used our end.
They really are pond life.
[Post edited 14 Dec 2020 16:54]
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| Mortgage Advice Required on 17:25 - Dec 14 with 1398 views | westberksr |
| Mortgage Advice Required on 14:57 - Dec 14 by WestbourneR |
Rule of thumb - you can look for a house that is worth (inc. Stamp Duty) 5 x your combined annual salaries plus whatever you'll be able to put down as a deposit once your flat is sold.
Once you put in an offer you'll need to have bank statements / pay slips / mortgage details on your current property to back it up.
But nothing to stop you looking while you get your ducks in a row. |
you are being very optimistic on the multiples there at 5 times; that is probably the absolute max and would require very strong affordability; ie, no background finance, 25 year term available etc.
some lender will go to that level but some others cap it at a lower multiple; it is also dependent on the size deposit; currently 90% money is very thin on the ground and multiples are being squeezed as lenders cherry pick the strongest cases |  | | |
| Mortgage Advice Required on 17:28 - Dec 14 with 1394 views | westberksr |
| Mortgage Advice Required on 15:43 - Dec 14 by BostonR |
Why are you using a broker? There are some incredible mortgage deals on-line. Deal with the bank directly.
I don't have a mortgage anymore and I rarely use "middle-men" other than a lawyer and accountant who are both life-long friends. |
correct but also not.
there are some great deals and if you have the time and sense to make head or tails of it, do have a go yourself.
If there is anything unusual about your personal circumstances ie, self employed, been furloughed, contractors, large pension contributions.....etc, these can all affect the outcome so a broker might filter out many lenders you won't qualify for. | | | |
| Mortgage Advice Required on 17:35 - Dec 14 with 1380 views | tkqpr |
Hi Toboboly/all,
I am an Independent Mortgage Adviser myself (Kingswood Mortgages Ltd) and have recently gone Directly Authorised in June this year but been a Mortgage Adviser for over 20 years.
Estate Agents are the bane of my life! They are the middle men, as such, that deal with Mortgage Advisers and Solicitors who are all regulated and authorised within their own bodies, yet they are not regulated at all and can unlawfully demand information and documents from clients in order so they can get kick backs (commission) from referring them on to their 'own' solicitors or mortgage brokers. Obviously there are some good ones, but as some one has said theyrepresent the Vendor and themsleves only, not necessarily you.
There is a relevance to having a Mortgage in Principle, however its not always imperitive to have one with one lender before you start viewing, yes an indication of what you can afford is obviously very useful, but it should not be a restriction in order for you to view a property with an agent, especially if you have outside advice. I always get my customers to obtain their free credit reports (not credit scores) with companies like Clearscore or CreditKarma, this tells me if there is any unforeseen issues with credit commitments in the past as well as a host of other things.
Anyway, always happy to help fellow R's if anyone so wishes any help. I dont necessarily charge a fee unlike most do as well. But happy to discuss with anyone if you wanna DM me.
Good Luck with things, its a minefield out there at present with lots of lenders not or reducing lending/criteria. Valuers are downvaluing and lenders restricting lending! LEts hope things get back to normal soon.
All the best. |  | | |
| Mortgage Advice Required on 17:51 - Dec 14 with 1356 views | Konk |
I know a lot of people have a bad experience with estate agents, but we had brilliant service from the same estate agent when we bought and sold our flat in London. We came away thinking they'd earned their money, because they were loads of help when it came to dealing with two sets of pretty rubbish solicitors, and gave us really useful, prompt feedback after viewings too.
We're very fortunate to have been able to get on the housing ladder, but buying/selling a place, is such a massive, stressful ballache, that I said to my wife, barring something extreme happening, we are in this house for at least 20 years. Having renovated the fu cker too, there's no way I'm doing all this again in a hurry!
Good luck with the whole process. |  |
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| Mortgage Advice Required on 17:58 - Dec 14 with 1347 views | toboboly |
Cheers guys. Got a family friend who works in conveyance and the broker is someone they have suggested. I think it was all just a misunderstanding earlier so all good now. They also said they aren't taking a payment from us due to the family friend so all good :) | |
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| Mortgage Advice Required on 19:01 - Dec 14 with 1261 views | Juzzie |
| Mortgage Advice Required on 17:51 - Dec 14 by Konk |
I know a lot of people have a bad experience with estate agents, but we had brilliant service from the same estate agent when we bought and sold our flat in London. We came away thinking they'd earned their money, because they were loads of help when it came to dealing with two sets of pretty rubbish solicitors, and gave us really useful, prompt feedback after viewings too.
We're very fortunate to have been able to get on the housing ladder, but buying/selling a place, is such a massive, stressful ballache, that I said to my wife, barring something extreme happening, we are in this house for at least 20 years. Having renovated the fu cker too, there's no way I'm doing all this again in a hurry!
Good luck with the whole process. |
My mrs has already been talking about the next place before we have even moved into this one.
I’ll be buggered if I’m go through all that again anytime soon.
My brother and his wife moved every couple of years (about 7 times in all), that would have driven me insane. | | | |
| Mortgage Advice Required on 19:23 - Dec 14 with 1243 views | MickS |
| Mortgage Advice Required on 19:01 - Dec 14 by Juzzie |
My mrs has already been talking about the next place before we have even moved into this one.
I’ll be buggered if I’m go through all that again anytime soon.
My brother and his wife moved every couple of years (about 7 times in all), that would have driven me insane. |
Feck that! Depending on good luck and all the blah blah blahs, we’ll be away from here in a couple of years. We’ve been in our place for 23 years and still only got 2/3rds of it done. One more move, and that’s it. No more stairs either. | | | |
| Mortgage Advice Required on 20:41 - Dec 14 with 1163 views | Konk |
| Mortgage Advice Required on 19:23 - Dec 14 by MickS |
Feck that! Depending on good luck and all the blah blah blahs, we’ll be away from here in a couple of years. We’ve been in our place for 23 years and still only got 2/3rds of it done. One more move, and that’s it. No more stairs either. |
Nice bungalow down in Weston, Mick? With my coaching skills and your cones, at the very least, we could set-up that football coaching academy we’ve always talked about in Minehead. Best case scenario, me and you in the hot seat at Ashton Gate, with you driving in from a palatial bungalow in Chew Magna. You could do a lot worse. Get on the cider. | |
| Fulham FC: It's the taking part that counts |
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| Mortgage Advice Required on 20:47 - Dec 14 with 1153 views | hantssi |
| Mortgage Advice Required on 17:25 - Dec 14 by westberksr |
you are being very optimistic on the multiples there at 5 times; that is probably the absolute max and would require very strong affordability; ie, no background finance, 25 year term available etc.
some lender will go to that level but some others cap it at a lower multiple; it is also dependent on the size deposit; currently 90% money is very thin on the ground and multiples are being squeezed as lenders cherry pick the strongest cases |
Blimey, it’s was 2.5 times joint or 3 times individual last time I got a mortgage!
Moved here 30 years ago next May, viewed mid March in by 1st weekend in May (wanted to make use of the bank holiday!).
Interest rates were 12% and went up briefly to 15%!
Don’t intend to move again unless it’s to downsize! | | | |
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