Mortgage-related question

[BUDFORCE]

You've just described a lot of people just before buying a house I suspect. Loads of people act in the same way and will buy a house having inherited or having been given gifts from the bank of mum and dad. Or sold something. Or possibly even won gambling. Why do they care where the deposit came? £25000 from Mum and Dad surprisingly works as well as £25000 from a Casino.

AML (anti money laundering) regulations. Believe me its insane now. The lender I work for goes a little over the top in my opinion, the solicitors are also supposed to do their own AML checks but we question a lot of stuff - I don't make the rules.

Get particularly messy with deposits coming from overseas.

But you know, people all blamed the banks for 2008, and now people complain its more difficult to get a mortgage, which do you want?

 

[placeholder]

Yeah I have to agree with the above. Myself and my wife have just remortgaged a property in order to renovate and the difference in hassle compared to both our past mortgage experiences was night and day. We were a very straight forward case. My earnings alone covered what we wanted to borrow and what we wanted to borrow was less than a third of the properties value. There was no chain. It took 3 months.

I actually wouldn't have cared had our initial mortgage advisor not suggested we could have the whole process done and dusted inside a month which meant we ended up having most of the renovation done across 3 credit cards while waiting for the money to come through. Our own fault I suppose but a lesson learned for the future.

 

[413x]

I was super concerned with my bitcoin money.
Bitcoin deposits can (apparently) cripple your mortgage By chance my last withdrawal to my bank account was in June. So not in the checking window.

I bet close to withdrawing to help my deposit Thank goodness I didn't.

These are the sort of sources that will lose you your mortgage. Gifts, declared, are fine

 

[BUDFORCE]

I was super concerned with my bitcoin money.
Bitcoin deposits can (apparently) cripple your mortgage By chance my last withdrawal to my bank account was in June. So not in the checking window.

I bet close to withdrawing to help my deposit Thank goodness I didn't.

These are the sort of sources that will lose you your mortgage. Gifts, declared, are fine

Yea 100%, lenders get a massive boner about bitcoin or similar, it's because it's completely untraceable and therefore you can't really satisfy AML.

Also, the more synical side of me thinks financial institutions just plain don't like it because it's money they have no control over, and the capitalist pigs that run these businesses don't like the idea of money they can't control.

 

[Skillmister]

Most people don't understand that proof of funds and source of funds are two very different things.

Solicitors need both. It's not good enough to show you have the money they need to know where its come from. Its amazing the amount of people who will put "savings" as their source of funds yet from looking at their bank statement there's a 5/6 figure deposit from a third party on it.

Best thing to do is declare any gifts etc to the broker/lender when applying for the offer because the solicitors are going to have to report it anyway and its a lot more likely to go smoothly if they've already approved it. It's very common for people to have their entire deposit gifted, I guess lenders don't really care so long as they cans afford the repayments.

 

[bainbridge]

Thanks everyone for posting tips and their experiences. We had our meeting yesterday with the broker who took away our details and will get back to us next week. I did another soft search on a comparison site last night and the max available to borrow was 184k so we're a fair way short of target, though this figure does tie in with 4.5 times our joint earnings which I understand is the max borrowing amount.

I hope the broker comes through with something clever.

 

[bainbridge]

Ps he charges £499 on application and applications thereafter are £90 and advises solicitor and survey fees are likely to be around £1500

 

[413x]

Try LandC for mortgage advisor. My advisor was amazing. It's free as they work on a commission basis.

We also have a hefty mortgage. Not much lower than the limit. Its higher than what I wanted but not that bad. I totally agree with the maths they use to set limits

My solicitor fees were 1k (all searches included) , home buyers survey was 500 (just under) stamp duty was a brutal 3k

Get a local solicitor!!, mortgage advisor can be online

 

[Semple]

It's worth keeping in mind that mortgage interest rates are in 5% intervals.

If you're buying a house with a 10% deposit you will be on interest rates for someone with a 10% deposit
If you're buying a house with a 9% deposit you will be on interest rates for someone with a 5% deposit - quite a bit more per month, so always push up your deposit to the nearest 5%.

You mean LTV rather than "interest rates", also they are in 5% incrementals at the top of the scale. By the time you get down to 80% i think it pretty much jumps to 65%/70% and then down to 50%, and sub 50%. Some lenders might have slightly different boundaries, but that was about the gist when i was looking.

Ps he charges £499 on application and applications thereafter are £90 and advises solicitor and survey fees are likely to be around £1500

Ooof! You shouldn't really be paying a mortgage broker a penny. They get their referral fee from the mortgage lender. By charging you as well he's getting paid twice!

We used Hey Habito and they were excellent. It's free to use as they get paid from the lender (and only upon completion). If i recall we entered our details in on day 1, had a chat with an advisor online, submitted a few more documents, and by about day 3 we'd had a full mortgage offer.

 

[Junglist]

Ps he charges £499 on application and applications thereafter are £90 and advises solicitor and survey fees are likely to be around £1500

Give Key Solutions a call. They sorted our Mortgage out (whole process with them took from the 28th December until yesterday when we got the offer. Our contact was actually on Holiday for a week during that time as well) and they don't charge as instead get their payment from the bank. I wouldn't be paying a Mortgage advisor, it's just extra free money for them

We don't have to pay stamp duty as it's our first home and £280k so it's under the threshold. Solicitors cost us £1600 in total and the bank did the valuation for free. Not sure which side of Bristol you're on but we used Watkins in Fishponds. Think they have other offices in Kingswood and maybe elsewhere in Bristol

 

[bazzabear]

You mean LTV rather than "interest rates",

No he doesn't. He's saying that the interest rates you are offered are dependent on the LTV (although rather than referring to a 90% LTV he was talking about a 10% deposit). I think you might have just slightly misread what he wrote.

 

[Semple]

No he doesn't. He's saying that the interest rates you are offered are dependent on the LTV (although rather than referring to a 90% LTV he was talking about a 10% deposit). I think you might have just slightly misread what he wrote.

I know what he means, but saying "It's worth keeping in mind that mortgage interest rates are in 5% intervals." isn't quite the correct terminology.

 

[413x]

I know what he means, but saying "It's worth keeping in mind that mortgage interest rates are in 5% intervals." isn't quite the correct terminology.

Yeah agreed. It's LTV%. It's confusing to say mortgage interest rate

 

[Skillmister]

Ps he charges £499 on application and applications thereafter are £90 and advises solicitor and survey fees are likely to be around £1500

Lol last mortgage broker who tried to charge me quickly for dropped. Total con when they get paid by the lender already and I'm yet to meet one that can get a better deal than an online free one or even comparison websites except for every unusual circumstances.

I found Habito excellent. Pm me for a referral and it's £100 each

 

[Mercenary Keyboard Warrior]

Only circumstances I would use a broker
- self employed, or issues with earnings proof
- recent historic issues such as CCJs
- you need a higher multipler than standard (these options exists but normally for young professionals etc who want to risk issues down the line based on future expected earnings)
- you need to application to happen very quickly
- the mortgage itself is complicated (many reasons, but such as needing to include rental income, a guarantor etc)

If you arent one of the above you are highly unlikely to get a better offer via a broker, and can often beat it. Many lenders will give cashback to direct applications you may not get on broker applications, ie the brokers fee in effect to you that the lender would have paid to the broker.

Ie if you are a normal PAYE employee, looking for a mainstream mortgage, on a residential house you intend to occupy, and you dont need it to complete in 20 days I would just do it myself.
Like with many things, the internet has simplified these things dramatically.

 

[413x]

Yeah, to be fair I did some research online and decided in same deal as the broker.

Broker just makes it easier. Wouldn't pay for the service

 

[krooton]

My solicitor fees were 1k (all searches included) , home buyers survey was 500 (just under) stamp duty was a brutal 3k

Nah, brutal was the £20k we had to pay, instantly halved the profit my wife made from her flat

 

[413x]

Nah, brutal was the £20k we had to pay, instantly halved the profit my wife made from her flat

That must be a nice house though. I'm a first time buyer