Mortgage Application post Covid

[Saoirse7]

Are there any mortgage brokers or those who deal with them in banks on here? I'm just curious as to how you think the current situation will affect the success of mortgage applications.

We are thinking about a self build - unsure as to whether this will be deemed too risky to get a mortgage or it may be seen as favourable (as in helping to move forward economy through construction).

Thanks in advance

Best bet is to ring a broker and have a chat

(as in helping to move forward economy through construction).

My only experience in this matters is that they don’t care as long as you can pay them back

The broker I was working with isn't working at the minute. They did say we were very likely to get one but that was a couple of months before all of this.

I suppose I am just curious if anyone worked in the industry after the last recession and how it affected mortgages.

So we bought at 4 x his salary in 2007 on a 2 year fixed. At the end of the two years, could no longer remortgage at 4 times his salary and gave because of that been stuck on interest only at 4.89 meaning nothing had been paid off the capital in 13 years. Be really careful

We had an agreement in principle in Feb before Covid. Our mortgage adviser called three weeks into lock down to say it had dropped by £50k!

Nothing changed in our circumstances, both still working full time.

A lot of people i've noticed on here are super vocal about what they will offer and will accept and aren't thinking about what the banks are offering to buy they house.

The only thing that actually matters is the valuation from the bank when you are applying for the mortgage. All signs are pointing to them being cautious right now.

@pinkpepperclove - do you mind my asking what % £50,000 is please ?

AIP originally was 535k and now down to 485k.. That's about 10%

It's a decent wack of money over night! Also context wise we are full time employed, good credit scores and no kids... No real reason otherwise that the loan would drop so much.

10% is worrying, we bought in 2007 and I reckon have 20% tops

As we're in NI the house prices are considerably lower. I'd say we'd be after approx £170k a the most for a self build.

As you say CrissieKeller61 rates of interest could be poor in the long run.

PinkPepperCove, did the price drop to match the bank's valuation? Or were they preempting a slump in the market?

@pinkpepperclove if that's the case, I think it'd be worth you doing some shopping around. Or looking again as things may have changed again.

I've just done a quick online check with Halifax (who we had an AIP done with in Jan). They are still saying we can borrow the same amount as then. The interest rates on their mortgages have gone up very slightly (by 0.25%) compared to preCV levels. But they are accepting 15% mortgages. Obviously, I can only compare the one bank, but I'd be surprised if they were the only ones.

Interestingly, the reinstatement of lower LTV mortgage products has not been picked up by the mainstream media, it's obviously not as exciting a headline as when they withdrew them last month!

That was them preempting a drop. We haven't found anywhere. Just got the AIP ready to go.

We aren't in any rush, we have sold and money is in the bank. We will sit in our rented (from family) and if we need to move we can.. but I won't do anything until the mortgage and valuation sorts itself out!

@Rivergreen we were told from our advisor that a lot of 90% mortgages were withdrawn from the market also. This didn't effect us, but could be a problem for many!

@ChrissieKeller61 Why have you allowed yourself to be on an interest only deal for 13 years?

Divorce - the mortgage is in his name and I can’t move it

@ChrissieKeller61 Oh shit, sorry.

Does anyone know of any mortgage providers who’ll accept me now even though I’ve started a new job this month (not working before- SAHM, dp started a new job in September)? We had an offer accepted on a house while having an agreed in principle (87% LTV) but had to withdraw it. We really love the house and are worried about waiting another 3 months as I’m predicting the banks becoming more frugal! We’re low earners so only on the cusp of being able to afford the house we want in a cheap area.

Santander will take you from day one @Noti23

Santander currently only going to a Ltv of 85% for purchases so you'd have to increase your deposit. And most other major banks like NatWest are looking at a minimumdeposit of 20%. Just based on my experience from searching around as I too would have been a FTB. I work in mortgages (not advice) but the company I work for have so many restrictions in place on applications that they cannot do. It's just a risk they're not willing to take. Makes a change from the first recession. I've just decided to stay in my rented accommodation and see if the situation changes. Can always take my chance putting in a low ball offer but in this current climate I wouldn't feel safe moving homes.

Are any banks at all still offering 95% LTV does anyone know?

PP As far as I know most lenders aren't even offering 90% LTV it seems to be 85-70%. I'm hoping to move house and my friend is a mortgage broker, she's been keeping an eye on the sly at different rates for me! (this is for NI, not sure if elsewhere is different)

85-80% i meant**

Dp is a bank mortgage adviser. They are offering up to 96% LTV and can do advised applications, mostly over the phone with the branch adviser.
Self builds are a different kettle of fish and you need a broker. Often you won't get more than 75% of the land value to begin with. That may be even lower now.

We are hoping to get about £550k, we are putting down £400k so about a 40-45% deposit so we hope to be OK. Before the calculators were saying we could get about 599 but now it's dropped to about 520-550 but hopefully it will be OK. Just need to find somewhere.

£400k is not 40%~45% of £550k bells you need to recheck your maths, it's WAY out.

@noriim no we want to get a 550k mortgage putting down about 400k, the properties we are looking at are in the 900-950k so we are putting down about 40-45% of the overall price. So we are hoping they won't reduce our decision in principle as still lots of equity for them is what I was trying to say