Getting a mortgage these days

[foliedouce]

It's been a while since I've taken a mortgage, however I will be in the market for one in Jan 16

I have heard lots of horror stories about how long it takes to get one with the new regulations, so my questions are:-

How long does it take to set up? If I want to complete on 2nd Jan, when should I apply? My income is from multiple (4) sources and consists of LLP (self employed), employed PAYE salary and dividends

Is there a benefit to using an 'advisor'? I have always sorted it out myself as I'm a used to work in Retail Banking 15 years ago and it's not rocket science, but the landscape does seem to have changed.

Many thanks

[Charlie1986]

After going through Sarnie on here I am looking at completing on a house purchase before 7th July. This was started last Tuesday.

I would highly recommend using a broker I know of many horror stories going direct as my OH works for her dad who is a solicitor

Edited to add survey was done Saturday so very quick and professional

[foliedouce]

Thanks - what are Sarnie's costs?

What sort of horror stories? Is it people that have been unrealistic with LTV / income in the first place? Neither of those would apply to my case.

I've always applied directly based on the best deal found online and never had an issue, but as I say I don't fully understand the new regs.

[Charlie1986]

foliedouce said:

Thanks - what are Sarnie's costs?

What sort of horror stories? Is it people that have been unrealistic with LTV / income in the first place? Neither of those would apply to my case.

I've always applied directly based on the best deal found online and never had an issue, but as I say I don't fully understand the new regs.

All in all without survey fee's etc it was under £300 for him to find the best deal get the acceptance in principle and then doing the application. We are now awaiting the offer being sent out which hopefully will be next week then we will exchange.

Just recently My sister in law went direct with Nationwide and 4 weeks later and them losing copies there just instructing the survey. They even adjusted the amount after confirming it etc.

[foliedouce]

Interesting - just did a quick 'how much can I borrow' application on Nationwide. Apparently not even 1 x income....ummmmmm and I zero debt

[Sarnie]

Charlie1986 said:

After going through Sarnie on here I am looking at completing on a house purchase before 7th July. This was started last Tuesday.

I would highly recommend using a broker I know of many horror stories going direct as my OH works for her dad who is a solicitor

Edited to add survey was done Saturday so very quick and professional

Thanks for the positive words!

[Charlie1986]

Sarnie said:

Thanks for the positive words!

Your welcome but I should owe you the thanks

[Sarnie]

foliedouce said:

Interesting - just did a quick 'how much can I borrow' application on Nationwide. Apparently not even 1 x income....ummmmmm and I zero debt

Are you saying that Nationwide stated that they would only go up to a figure equal to 1x your annual income?

I assume thats not enough??

[foliedouce]

Sarnie said:

Are you saying that Nationwide stated that they would only go up to a figure equal to 1x your annual income?

I assume thats not enough??

Yes, I have sent you an email

[aka_kerrly]

Nationwide claim the average application to offer takes 9 working days.

I can honestly say even with every bit of paperwork which we expect to provide upfront plus time for underwriters to request additional documentation & a valuation to be performed I have never had an offer that quick!

When using the affordabality tool on NW website did you use the full detailed form or the quick form? With multiple sources of income you should really try the detailed tool.

In order to get a quick decision you will need accountants certificates/SA302, p60 and evidence of income to hand as in the past I have found some accountants can take far too long to provide paperwork. Also worth noting that if you use an accountant they must be a professional , I.e Nationwide will NOT accept evidence of income from a bookkeeper.

[vonuber]

I got a mortgage recently, went straight to the Bank and had it sorted within an hour and a half. Really easy and a decent rate.

[98elise]

vonuber said:

I got a mortgage recently, went straight to the Bank and had it sorted within an hour and a half. Really easy and a decent rate.

If you're PAYE with a good credit rating etc then its easy and going direct to a bank should be fine.

If you're like the OP it can get complicated. I work for my own ltd company, with additional income from BTL's. Its far simpler for me to use a broker. When I talk to my broker he instantly knows what companies fit my circumstances so 10 minutes after contacting him I have a list of possible deals, often from companies I've never heard of.

Even then the criteria can change suddenly, but that's where my broker is earning his money. he will smooth things over, or tell me what extra documentation I need etc.

One time I needed a mortgage quickly, and we went from offer acceptance, to a mortgage agreed (inc survey) in under 5 days.

[tjk123]

Just looking at getting a mortgage and wondering if London & Country are worth a shout? Anyone had any experiences using them?

[mfmman]

tjk123 said:

Just looking at getting a mortgage and wondering if London & Country are worth a shout? Anyone had any experiences using them?

Yes, they got exactly the same rate from the same provider as I could by going direct but no fees either from the provider or L&C. Saved about £400, not much but still worth having. Efficient enough, had to chase a couple of things but not bad. Remortgage only though

[anonymous-user]

Depends on your circumstances, I simply use a search engine to compare the best mortgages for my financial status, then go to speak to the bank direct with said quote.

I honestly can't see the need for a broker, my dad runs a bankruptcy consultancy business so specialist mortgage brokers are used to restructure clients debt, said brokers are also used to find the best deals for the family and there are never really any better deals when you factor in broker costs.

I got my first mortgage in 2012 at 23, then a second in 2014 at 25 both capital repayment, at the time on a decent wage but nothing special and absolutely no trouble, the second was whilst I kept the first.

[Charlie1986]

Trexthedinosaur said:

Depends on your circumstances, I simply use a search engine to compare the best mortgages for my financial status, then go to speak to the bank direct with said quote.

I honestly can't see the need for a broker, my dad runs a bankruptcy consultancy business so specialist mortgage brokers are used to restructure clients debt, said brokers are also used to find the best deals for the family and there are never really any better deals when you factor in broker costs.

I got my first mortgage in 2012 at 23, then a second in 2014 at 25 both capital repayment, at the time on a decent wage but nothing special and absolutely no trouble, the second was whilst I kept the first.

yes in simple terms your right. But many people will use a broker if they have incomes from different sources, I went to a bank and got rejected in 2011 as I have multiple incomes . I emailed Sarnie on here this month supplied all the info for him and he has sourced a great deal with minimal fuss. So in that view using a broker is highly encouraged but if you just have a PAYE salary then going to the bank will be easier

Edited by Charlie1986 on Thursday 18th June 08:28

[Zyp]

We've just remortgaged and had extra borrowing from Nationwide.

It was an absolute ball-ache compared to the last time.
I'm self employed, wife salaried.

Just about the only thing they didn't ask was our favourite copulating position.

[russ_a]

We have a current mortgage with Nationwide and tried get a simple remortgage with no additional borrowing as we had come to the end of our fixed term.

As the rate has dropped quite significantly the monthly repayment has also come down. However, Nationwide still wanted a 1hr 30 min discussion to check my finances (PAYE) and the process was a massive ball-ache so will be moving to a different provider via a broker.

[Sarnie]

Nationwide really have taken MMR to the fullest extent, we recently moved someone from them who'd been told that the maximum they could borrow was £75k LESS than they already had with them........

[Zyp]

We have a very favourable LTV, have been over paying for the last 3 years, and the extra borrowing adds less than £100 pm on what we should have been paying if we weren't overpaying!

Reckon it'll be the last time we use them.