Mortgage advisor dragging her heels!

[Awkwarddough]

We are wanting to move home and our mortgage advisor is dragging her heels, I think she’s inexperienced and so is struggling with our case. Can anyone help as to whether this is something we can do:

We’ve sold our home for £230000 and have 188000 left to pay on our current mortgage, however it’s a fixed rate mortgage that we have 3.5 years left on with a £7000 get out charge. We’re buying for £300000. Our current lender isn’t offering 90% mortgages at the moment which we need. So can we port our current mortgage and use some equity from selling our home to get another mortgage with another lender to cover the rest?

As far as I know you can’t have mortgages from different lenders on one property, sorry.

But obviously your mortgage advisor should know better than strangers on the internet! Can you get another one?

Even if you can port the first mortgage, @milienhaus is right - a lender will require that they are the only loan secured on the property.

What makes you think she's struggling? Is she an independent broker or employed by by your current lender?

Okay thanks for your responses. We’ve been trying to move since January, so she’s known our situation the whole time and then since the housing market picked up again we’ve had her looking at specifics, but she always says that she’s not done anything like this before and she needs to chat with her business manager etc.

She is an independent broker but employed by the estate agent that we bought our first home through, we used their mortgage services for our first buy and we used her to remortgage a few years ago and haven’t had issues up until now :(

I may be misunderstanding but we are similar (different financial)

12 months left on a fixed with a house for sale at £300k. We have £200k equity and £100k remaining on the 12 month fixed.

The new property will be around £400k. We are porting the £100k to the new property at 2.3% and the same lender is selling us an additional product for another £100k @ 1.? % for the months leading to the end of the first product fixed rate. We will then change both products to a fixed rate overall mortgage.

Hopefully that makes sense?

I think it might be a good idea to pay a broker to help you.
They can find the best mortgage for you in your personal position. Whereas an advisor can only advise on particular ones, usually the bank they are employed by, or employed via EA.

Whoops just read your last post, then I'd go somewhere else, tbh.

@Nomorewineever

That does make sense. The issue we’re having is our current lender, TSB, aren’t offering 90% mortgages currently and we can’t really afford the deposit on an 85%. Whereas other lenders are offering 90%

I'd say no, you need to either be buying somewhere cheaper, or saving for additional equity

Hi. I’m a mortgage broker. As PPs have said, you will not be able to port with TSB and arrange a top up with another lender.
Your only choices are to come up with the extra deposit to fit their max LTV (so on £300k this would be £45k)
or pay the ERC to remortgage to another lender who offers 90% LTV. As long as you still have enough deposit after paying this fee (deposit would be £30k)

If your mortgage broker can’t answer this then there is no point in using her. You need to get a different one pronto! Can you talk to your mortgage provider directly?

Tbh, it sounds very much like you are buying out of your budget...how did you decide upon your budget?

@IndecentFeminist

We decided our budget when we originally decided to move in January. We can afford the monthly repayments easily the only issue we are having is that due to COVID we need an 15% deposit which is £15000 more than the 10% deposit we were planing on using.

That's what I mean. You can afford the repayments but don't have the money to actually buy the house.

I'd say your only option if you want to keep the house, is 'find' 15k elsewhere, or switch mortgages and take the £7k loss. Latter being easier at short notice.

I am having this issue with a few clients. We gave out illustrations at the start of the year for 90% products, and then Covid hit and most lenders pulled them.
They will be reintroduced at some point but we don’t know when. So As it stands you would need to find the extra deposit or pay the hefty ERC out of equity, if that leaves you enough for 10%.

A friend has just had the same issue, they had to off and sell a car/beg borrow steal and try to renegotiate price

There are a few 90% deals around but they are limited, come and go quickly and have limited funds per daily allocation so you need a switched on broker who can access them for you. As mentioned further up the thread, your only hope is to redeem current mortgage, pay the ERCs and move to a different lender. Just be aware that affordability calculations are looking different following COVID - very few, if any, lenders taking overtime, commission etc into account; income multiples changing etc.