Houses

[Leicester_Loyal]

Just now, Langley said:

They’re nearly all are family assist mortgages or for stair casing. 

Ah that would explain it. It's a bad situation all round, people will be forced into going for the only 90% mortgage available, although I'm sure more will come about soon enough.

[ajthefox]

22 hours ago, Rob1742 said:

1. Can you let me know what the tax relief I am getting that you mention, because I am not aware of it? 

 

2. The houses I have purchased have been in large developments, and I have only purchased at the end of each phase, and any houses that first time buyers have not taken. So, the first time buyers had their chances before I did, I haven’t taken any homes they were going to buy, I have taken homes they have not wanted or been able to buy. The houses I have purchased have helped the cash flow of the builders in order for them to build elsewhere. 
 

I have been a first time buyer, I have been a renter, I have been a landlord so I am able to see all sides to this. 

 

11 hours ago, grobyfox1990 said:

The stamp duty holiday applies to landlords as well, you will now only have to pay the 3% surcharge on anything up to £500k. That's up to £15k saving. Sunak's announcement was great news for landlords, the first big tax relief in years.

1. As I said originally and grobyfox clarified - if you are buying more property you can get tax relief on it. 

 

2. All sounds reasonable and I am interested to hear different points of view, but in very simple terms the fact that you own so many properties in general terms does contribute to an inflated market. It's not a personal criticism, that's just how it works.

[Langley]

Just now, Leicester_Loyal said:

Ah that would explain it. It's a bad situation all round, people will be forced into going for the only 90% mortgage available, although I'm sure more will come about soon enough.

I don’t think they will. Not with the furlough coming to an end. Not enough margins if they have to repossess and a housing collapse. 
 

like the top one on there is Barclays is a 95% family assist. https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

 

They don’t have rates above 85% same with all the others which is why if anyone is after a 90% I can get one until 8pm tomorrow as I have done for a couple of my clients as they’re so far between 

 

[Leicester_Loyal]

19 minutes ago, Langley said:

I don’t think they will. Not with the furlough coming to an end. Not enough margins if they have to repossess and a housing collapse. 
 

like the top one on there is Barclays is a 95% family assist. https://www.barclays.co.uk/content/dam/documents/personal/mortgages/CoreRangeCustomerRateSheet.pdf

 

They don’t have rates above 85% same with all the others which is why if anyone is after a 90% I can get one until 8pm tomorrow as I have done for a couple of my clients as they’re so far between 

 

Really? You're obviously a broker or something so you'll know more than me. Might we see mortgage offers depending on the industry your in? If you need 15-20% at a minimum, that's gonna price a lot of FTBs out of the market, realistically unless you're living at home still how are you going to be able to save that much, it's almost impossible unless you earn silly money.

 

If this local lockdown gets extended, by the time I'm able to even view houses again I will have my 20% ready to go (will have it 3 weeks on Friday).

[Langley]

32 minutes ago, Leicester_Loyal said:

Really? You're obviously a broker or something so you'll know more than me. Might we see mortgage offers depending on the industry your in? If you need 15-20% at a minimum, that's gonna price a lot of FTBs out of the market, realistically unless you're living at home still how are you going to be able to save that much, it's almost impossible unless you earn silly money.

 

If this local lockdown gets extended, by the time I'm able to even view houses again I will have my 20% ready to go (will have it 3 weeks on Friday).

Yeah. I’m a mortgage broker. It’s pricing so many people out of the market. It’s killed the FTB completely. 
 

I can’t share the info with everyone as you’ll just bypass brokers like myself and go direct to them unfortunately 

[Strokes]

1 hour ago, Langley said:

Yeah. I’m a mortgage broker. It’s pricing so many people out of the market. It’s killed the FTB completely. 
 

I can’t share the info with everyone as you’ll just bypass brokers like myself and go direct to them unfortunately 

A good mortgage broker/advisor is well worth their salt imo. I’d never go direct again.

[Costock_Fox]

Pretty sure the bank I work for still has the 90% LTV on because we are getting absolutely nailed  funny one in my job because the rates and LTV don’t really have a lot of relevance as the systems do all of that so I never know what we are offering.

 

Tell a lie, we aren’t offering 90%.

Edited 14 July 2020 by Costock_Fox

[Costock_Fox]

1 hour ago, Langley said:

Yeah. I’m a mortgage broker. It’s pricing so many people out of the market. It’s killed the FTB completely. 
 

I can’t share the info with everyone as you’ll just bypass brokers like myself and go direct to them unfortunately 

Pretty shitty situation for you guys at the minute in that regard. Are you finding many lenders are being much stricter with regards to what income that you use and really questioning you to the nth degree on it all? 
 

We are having to make some very strict decisions based in something we really have no clue as to which way it’s going to go over the next 12 months at least. Crazy times.

[FoyleFox]

42 minutes ago, Costock_Fox said:

Pretty shitty situation for you guys at the minute in that regard. Are you finding many lenders are being much stricter with regards to what income that you use and really questioning you to the nth degree on it all? 
 

We are having to make some very strict decisions based in something we really have no clue as to which way it’s going to go over the next 12 months at least. Crazy times.

We've been doing our remortgage and everything they were happy with at the beginning of March was questioned in April and they requested lots more documents. The whole back and forth added 5 weeks delay. I'm not sure if that was all the bank, the mortgage broker certainly didn't help there, all they did was forward the questions. First time we've used one and it'll certainly be the last. Sorry Langley 😞 

[Costock_Fox]

5 minutes ago, FoyleFox said:

We've been doing our remortgage and everything they were happy with at the beginning of March was questioned in April and they requested lots more documents. The whole back and forth added 5 weeks delay. I'm not sure if that was all the bank, the mortgage broker certainly didn't help there, all they did was forward the questions. First time we've used one and it'll certainly be the last. Sorry Langley 😞 

To be honest that’s pretty much what happened. It’s unprecedented times with things developing rapidly and it’s definitely meant one day things are ok and the next they aren’t. Which provider did you go with if you don’t mind me asking? 

[FoyleFox]

Santander. We understood the situation changed and I wouldn't have minded but they were repeatedly asking the same questions but ignoring the answers. The primary reason I wish I could've dealt directly with them. 

Edited 14 July 2020 by FoyleFox

[z-layrex]

Contraversial opinion here but the 15% deposits turned out to be a godsend for us living in the south east in a commuter town. When we first tried to sell our flat and get a house before the world ended, every house we wanted we would just be beaten to it by the chain free first time buyers coming from London, as the houses we can afford are still within that range.

 

With the higher deposits the competition was way less. It was the perfect time to move for us.

[Costock_Fox]

8 hours ago, FoyleFox said:

Santander. We understood the situation changed and I wouldn't have minded but they were repeatedly asking the same questions but ignoring the answers. The primary reason I wish I could've dealt directly with them. 

Sounds about right although we do have to be really particular with what evidence we get and it wouldn’t surprise me if the broker didn’t full provide something we needed, it happens on about 30% of cases.

Edited 15 July 2020 by Costock_Fox

[Wolfox]

On 10/07/2020 at 11:17, Rob1742 said:

Got a new solicitor, and again just shows you the difference between good and normal. 

 

So I asked for a quote from a Leicester firm as my usual local one is closed, and the email came back saying something like “ we usually answer queries within 2-3 days, as we prioritise our work” . Three days later I get my quote as per what they say, THREE days. I thought if that is how they work I’m going to be in bother. 

 

So I ring another one up who I have done some other work with. It’s not in Leicestershire, but they have been incredible getting money back for me from non paying tenants so thought I would give the conveyancing team a ring.

 

I kid you not, the guy comes back within 15 minutes of any email you send. He emails you and asks if he can call you, and if you ring him you get him straight away.

 

Yesterday I asked for the contracts to sign as I might be engaged for a few weeks, they were done and with me half hour later.

 

I once purchased a house within 4 days, so this again shows you the difference between good and average solicitors. 

I (hopefully) would be looking for a solicitor soon… I had a living nightmare with one 6 years ago…. So very happy to take a good recommendation of you can advise who they are?

[rachhere]

Whilst it might be more challenging to get a mortgage for some, there's some good rates around at the moment. Our mortgage was up for renewal and just got 1.34% on a 5 year fixed rate. Reduced the term of the mortgage and still paying less than I was before (same provider), so happy with that. 

[Langley]

10 hours ago, FoyleFox said:

We've been doing our remortgage and everything they were happy with at the beginning of March was questioned in April and they requested lots more documents. The whole back and forth added 5 weeks delay. I'm not sure if that was all the bank, the mortgage broker certainly didn't help there, all they did was forward the questions. First time we've used one and it'll certainly be the last. Sorry Langley 😞 

It’s the underwriters and the changing in the criteria. Believe me we want you to get the mortgage because we want to get paid, obviously. 
 

it’s going to be a delay because of offices shut/remote working. Something that would have taken hours is taking days and weeks. I wouldn’t write brokers off just yet. I’d cut him some slack with the whole COVID thing. 

[Langley]

11 hours ago, Costock_Fox said:

Pretty shitty situation for you guys at the minute in that regard. Are you finding many lenders are being much stricter with regards to what income that you use and really questioning you to the nth degree on it all? 
 

We are having to make some very strict decisions based in something we really have no clue as to which way it’s going to go over the next 12 months at least. Crazy times.

Massively stricter. Not really taking bonuses into account which makes sense which is the problem. Like car salesmen that new car sales went down 97%. They’ve got to make sure

its affordable to you regardless of what happens.  It’s going to be crazy over the next couple of months. 

[Costock_Fox]

10 minutes ago, Langley said:

Massively stricter. Not really taking bonuses into account which makes sense which is the problem. Like car salesmen that new car sales went down 97%. They’ve got to make sure

its affordable to you regardless of what happens.  It’s going to be crazy over the next couple of months. 

Its crazy isn’t it, can’t imagine it’s fun for you guys being stuck in the middle with customers not fully understanding. 

[Langley]

7 minutes ago, Costock_Fox said:

Its crazy isn’t it, can’t imagine it’s fun for you guys being stuck in the middle with customers not fully understanding. 

Absolutely. Criteria changes daily or hourly. And it’s different for every lender. It’s not just mortgages but also pensions and investments. 

[FoyleFox]

4 minutes ago, Langley said:

It’s the underwriters and the changing in the criteria. Believe me we want you to get the mortgage because we want to get paid, obviously. 
 

it’s going to be a delay because of offices shut/remote working. Something that would have taken hours is taking days and weeks. I wouldn’t write brokers off just yet. I’d cut him some slack with the whole COVID thing. 

We were receiving emails asking have x or x been impacted by Covid. We would reply no, with accompanying proof.  Then a week later we'd receive another email asking have x and y been impacted by Covid.

A further week later, can you explain how x and y are impacted by Covid. Arggh!

Frustrating to say the least. And I can say the broker didn't contribute anything during this period. 

I understand that people's income could've been impacted, like a sales person mentioned above but half of ours is a pension payment! The other half is fixed too. That's in no way impacted. 

Our LTV is 25% so it wasn't like we are borderline on affordability. 

[Langley]

2 minutes ago, FoyleFox said:

We were receiving emails asking have x or x been impacted by Covid. We would reply no, with accompanying proof.  Then a week later we'd receive another email asking have x and y been impacted by Covid.

A further week later, can you explain how x and y are impacted by Covid. Arggh!

Frustrating to say the least. And I can say the broker didn't contribute anything during this period. 

I understand that people's income could've been impacted, like a sales person mentioned above but half of ours is a pension payment! The other half is fixed too. That's in no way impacted. 

Our LTV is 25% so it wasn't like we are borderline on affordability. 

that’s the underwriter. They don’t use common sense. Problem is people coming on and off furlough. 
 

some brokers are rubbish though 
 

I had one for a client who couldn’t have a loan over 8 years but could do over 21 years but then make overpayments to make it 8 years 

[Costock_Fox]

56 minutes ago, Langley said:

that’s the underwriter. They don’t use common sense. Problem is people coming on and off furlough. 
 

some brokers are rubbish though 
 

I had one for a client who couldn’t have a loan over 8 years but could do over 21 years but then make overpayments to make it 8 years 

The problem is even if we are told people are impacted and we believe they will be we have to go back and then get evidence.

 

LTV wise it doesn’t really come into it as if we lend money out when we think their job could be impacted and then the house is repossessed a year later we wouldn’t have been fair to the customer.

 

I guess back in April it was very much finger in the air where as now we at least have a bit more of an idea what’s happened to some industries now retail etc is back open. Either way it’s a nightmare for all, joys of my job haha

[FoyleFox]

Common sense was definitely not applied. Furlough wasn't applicable to us, although they kept asking about it, you're not furloughed from a pension. Why didn't the broker confirm details like this to the lender?

I understand the need for caution to protect the lender and customer - I was in Finance and Mortgages through the 2008/2009 crash.  You can't be commiting people to a £1000 or £2000 a month morthage payment if you're not sure their circumstances are sound and it's affordable.That's exactly how we ended up in such a mess in 2008.  A bit different if the payment is £80 a month though, it's not exactly high risk lending. If you were a lender looking for a very safe, low risk customer, I'm it. Small loan, low monthly payment, guaranteed income.

I dread to imagine the pain if your circumstances had any risk. Especially frustrating it it's a re-mortgage, you're only reborrowing existing debt and most likely it's to get a better product which makes the payments more affordable.

 

In the not too distant future, when we move, we'll have to go through it all again to port it. Joy. (That's assuming that they've actually completed this remortgage before that).

[Langley]

18 minutes ago, FoyleFox said:

Common sense was definitely not applied. Furlough wasn't applicable to us, although they kept asking about it, you're not furloughed from a pension. Why didn't the broker confirm details like this to the lender?

I understand the need for caution to protect the lender and customer - I was in Finance and Mortgages through the 2008/2009 crash.  You can't be commiting people to a £1000 or £2000 a month morthage payment if you're not sure their circumstances are sound and it's affordable.That's exactly how we ended up in such a mess in 2008.  A bit different if the payment is £80 a month though, it's not exactly high risk lending. If you were a lender looking for a very safe, low risk customer, I'm it. Small loan, low monthly payment, guaranteed income.

I dread to imagine the pain if your circumstances had any risk. Especially frustrating it it's a re-mortgage, you're only reborrowing existing debt and most likely it's to get a better product which makes the payments more affordable.

 

In the not too distant future, when we move, we'll have to go through it all again to port it. Joy. (That's assuming that they've actually completed this remortgage before that).

It’ll be because it’s a new lender and they have to go through it all again and it’s a “new loan” to them. 
 

you think it’s painful, try doing it for a living! 

[FoyleFox]

6 minutes ago, Langley said:

It’ll be because it’s a new lender and they have to go through it all again and it’s a “new loan” to them. 
 

you think it’s painful, try doing it for a living! 

Thanks but no you're grand, I've served my time in that sector and am now out for good behaviour