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  • FIRST POST
    • kazzyb123
    • By kazzyb123 7th Oct 17, 2:07 AM
    • 43Posts
    • 6Thanks
    kazzyb123
    Mortgage help please
    • #1
    • 7th Oct 17, 2:07 AM
    Mortgage help please 7th Oct 17 at 2:07 AM
    Hi,

    I have spoken to two mortgage brokers about how much we could borrow as our circumstances are complicated and I have two totally different answers. Can anyone help please?

    My partner is self employed, year end 2017 income was 11262 and 2016 was 15035. He has spent a lot of time looking after our daughter/me over the last 6 years or so and so his income has dropped.

    My daughter is now a bit older so he is back to working normally and is on track for 20K this year.

    I am on long term sickness so claim ESA support group and PIP (811 pcm) and child benefit (90 pcm) and tax credits (227 pcm).

    My partner has also just turned 50 so we would need a 20 year deal.

    One broker has said that with 28K from our current property we could look at borrowing 122K. The other broker said we could only borrow 50K-ish.

    We are trying to move to get my daughter into a better school so time is running out.

    Can anyone reassure me that we could get the amount that we need?

    The other option is to sell, rent by the school for 6 months and then try for a mortgage with 2017/18 figure of 20K, but I dread then being told we cant get anywhere near enough,

    Any advice appreciated please,

    Thanks.
Page 1
    • PKaurK
    • By PKaurK 7th Oct 17, 6:22 AM
    • 52 Posts
    • 36 Thanks
    PKaurK
    • #2
    • 7th Oct 17, 6:22 AM
    • #2
    • 7th Oct 17, 6:22 AM
    I know this is not the response you are looking for, but we will not be able to answer you question here. Lenders now use an affordability model and each lender has there own model. In regards to self employed income, lenders usually take an average of the net profit over the last two years. Most lenders do not include benefit income, very few do. Because of your circumstances the loan can vary greatly from one lender to another. So only the lender can answer your question. I'm assuming each broker used a different lender's affordability calculator.
    • kingstreet
    • By kingstreet 7th Oct 17, 9:20 AM
    • 32,381 Posts
    • 17,389 Thanks
    kingstreet
    • #3
    • 7th Oct 17, 9:20 AM
    • #3
    • 7th Oct 17, 9:20 AM
    Assuming a 19 year term (70 minus age next birthday) one high street lender will lend £54,480.

    Latest year's net profit is lower than previous, so latest year is taken, not an average.

    Assumes benefit figures given are calendar monthly and not four-weekly, no credit commitments, childcare costs, nor ground rent/service charges.

    When you commit to a broker who is going to establish if any lender will offer more, pay any fee only on success, pay nothing upfront.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • PKaurK
    • By PKaurK 7th Oct 17, 10:30 AM
    • 52 Posts
    • 36 Thanks
    PKaurK
    • #4
    • 7th Oct 17, 10:30 AM
    • #4
    • 7th Oct 17, 10:30 AM
    My mistake, I mis read the figures. They will take the latest year self employed as income lower
    • kazzyb123
    • By kazzyb123 7th Oct 17, 6:24 PM
    • 43 Posts
    • 6 Thanks
    kazzyb123
    • #5
    • 7th Oct 17, 6:24 PM
    • #5
    • 7th Oct 17, 6:24 PM
    Thanks for the replies, if latest years profiles are used then we will wait until next year probably and rent in between.

    Does anyone know which lenders will accept ESA etc other than Nationwide?

    We don't have any other debts or childcare costs etc

    If we ask for a DIP and then don't use the mortgage because we wait until next year how does that affect credit ratings please, we currently both have very good ratings

    Thanks
    • csgohan4
    • By csgohan4 7th Oct 17, 9:34 PM
    • 4,018 Posts
    • 2,497 Thanks
    csgohan4
    • #6
    • 7th Oct 17, 9:34 PM
    • #6
    • 7th Oct 17, 9:34 PM
    Thanks for the replies, if latest years profiles are used then we will wait until next year probably and rent in between.

    Does anyone know which lenders will accept ESA etc other than Nationwide?

    We don't have any other debts or childcare costs etc

    If we ask for a DIP and then don't use the mortgage because we wait until next year how does that affect credit ratings please, we currently both have very good ratings

    Thanks
    Originally posted by kazzyb123


    Brokers will have an idea of the whole of market
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • YHM
    • By YHM 7th Oct 17, 9:38 PM
    • 303 Posts
    • 98 Thanks
    YHM
    • #7
    • 7th Oct 17, 9:38 PM
    • #7
    • 7th Oct 17, 9:38 PM
    As above. You need a broker to guide you on which lender will be best for you and your circumstances.

    I would suggest sitting down with one
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • kazzyb123
    • By kazzyb123 8th Oct 17, 1:19 PM
    • 43 Posts
    • 6 Thanks
    kazzyb123
    • #8
    • 8th Oct 17, 1:19 PM
    • #8
    • 8th Oct 17, 1:19 PM
    I have tried two brokers, any advice on how to find a reliable one please? Thanks
    • Richey_
    • By Richey_ 8th Oct 17, 7:34 PM
    • 287 Posts
    • 323 Thanks
    Richey_
    • #9
    • 8th Oct 17, 7:34 PM
    • #9
    • 8th Oct 17, 7:34 PM
    From MSE forum terms and conditions

    8. Forum/ Social Media

    8.1 We encourage debate and the sharing of information between our users. However, we do require that your use of our Forum, Social Media and any other communication systems that we provide is lawful and in accordance with these Terms and Conditions and our Forum Rules.

    8.2 You may not use the Forum, Social Media or any other communication systems for any illegal purpose and in particular you may not:

    8.2.1 post or transmit material that infringes the intellectual property or other rights of others, or post or transmit any material that contains extremist views, appears to incite or promote terrorist activities, is unlawful, obscene, libellous, threatening, harassing, abusive, hateful, or embarrassing to any other person as determined by us in our sole discretion;

    8.2.2 post or transmit advertisements for or solicitations of business (whether openly, or under the false guise of an unconnected party);


    If you were my broker I would worry about your inability to read the terms and conditions and worry what else you could get wrong.........
    • YHM
    • By YHM 8th Oct 17, 8:02 PM
    • 303 Posts
    • 98 Thanks
    YHM
    As covered on my signature, I follow the MSE Mortgage Adviser Code of Conduct that states:

    Mortgage Advisers should not tout for business on the boards or in PMs. There should be no posts or unsolicited PMs offering mortgage adviser services. Nor should advisers ever say ‘see my profile for who I work for’ or make any other such comment.

    However if a user requests their service either via PM or forum post then I have no objection to that and the business generated. Yet if someone requests the service by a post on the board, the broker should simply post to say “I will PM you” rather than posting details there.


    Kazzyb was requesting the service of a 'reliable' broker. This is a service I can provide, contrary to your beliefs.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • Richey_
    • By Richey_ 8th Oct 17, 8:04 PM
    • 287 Posts
    • 323 Thanks
    Richey_
    She didn’t request your services. She asked for advice on where she could find on a reliable broker.

    You solicited her her directly for business, she did not request your services.

    Again your lack of attention to detail is worrying......
    Last edited by Richey_; 08-10-2017 at 8:08 PM.
    • amnblog
    • By amnblog 8th Oct 17, 8:50 PM
    • 10,071 Posts
    • 3,926 Thanks
    amnblog
    You have said how much you need to borrow Kazzy.

    How one of your Brokers got a figure of £120,000 lending on the figures you state is a mystery.

    If your husband will generate £20,000 profit this tax year that would clearly be a major help.

    What is important here is how much you need to spend, and when you need to buy.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • gassa91
    • By gassa91 8th Oct 17, 9:36 PM
    • 4 Posts
    • 0 Thanks
    gassa91
    Mortgage term!
    Hi does anyone have a nationwide mortgage that they are overpaying to reduce the term?
    We have been told that the amount we are overpaying won't reduce the term by what they claim!
    It's short by 1yr,3months! We checked with nationwide advisor first, then used their online mortgage calculator, we have overpayed £16,000! our mortgage redemption date was Oct 2022! it is now September 2019! Both advisor and online mortgage calculator say £100 per month over 5yrs will reduce the term by 2yrs! Which eqautes to £6000! We overpayed by a further £10,000! And the term is now reduced to 2yrs,9 mth!
    I spoke to nationwide and they say it all depends on interest rates etc! But interest rates haven't changed! We don't pay early redemption charges etc! They offered us £200 as an apology which we refused! We are waiting for financial ombudsman to give their decision!
    Anyone overpaying should check directly with nationwide and ask for redemption date!
    • glosoli
    • By glosoli 8th Oct 17, 9:47 PM
    • 675 Posts
    • 388 Thanks
    glosoli
    Don't know why you have posted that here, but I highly doubt the FOS will side with you. Should have taken the £200 when you had the chance.
    • kazzyb123
    • By kazzyb123 8th Oct 17, 11:41 PM
    • 43 Posts
    • 6 Thanks
    kazzyb123
    Thanks amnblog we would need to borrow about 120 to buy something worth about 150 ( we have some equity in our current house)

    The broker took an average over the three years and added my benefits then came up with that figure, I don't know what to believe.
    • glosoli
    • By glosoli 9th Oct 17, 12:58 AM
    • 675 Posts
    • 388 Thanks
    glosoli
    Seems to me he has grossed up all of the benefits (£13,536), and taken an average of the past two years net profit (£13,148) totalling £26,684 and multiplying this by 4.5 to achieve a figure of £120,078.

    Bare in mind generally 4.5x is the maximum multiple most lenders can allow to the regular applicant. The broker advising you of this figure and getting your hopes up appears to be reckless, for several reasons, including:

    1) Multiples do not work well with relatively shorter terms. Generally the shorter the term, the lower the borrowing, as the repayments are higher. Furthermore, the mortgage runs beyond your husbands state pension age of 67, is this really a good idea?

    2) The broker is assuming lenders will take all of the benefit income sources into consideration. They might but probably won't. Furthermore, there is an assumption that if they do take them, they will take 100% of it into consideration, which they may or may not.

    3) Lenders will take an average of the past 2-3 years of net profit, however as discussed in this thread if the most recent year is lower then they will work from that, and if they did so, it would be over the 4.5x multiple which lenders generally permit.

    £120,000 is in excess of x10 the regular employed income. Amounts of around £50,000 appear much more realistic.
    • csgohan4
    • By csgohan4 9th Oct 17, 7:36 AM
    • 4,018 Posts
    • 2,497 Thanks
    csgohan4
    As covered on my signature, I follow the MSE Mortgage Adviser Code of Conduct that states:

    Mortgage Advisers should not tout for business on the boards or in PMs. There should be no posts or unsolicited PMs offering mortgage adviser services. Nor should advisers ever say ‘see my profile for who I work for’ or make any other such comment.

    However if a user requests their service either via PM or forum post then I have no objection to that and the business generated. Yet if someone requests the service by a post on the board, the broker should simply post to say “I will PM you” rather than posting details there.


    Kazzyb was requesting the service of a 'reliable' broker. This is a service I can provide, contrary to your beliefs.
    Originally posted by YHM


    I will PM you, I need some advice from a broker
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • YHM
    • By YHM 9th Oct 17, 9:52 AM
    • 303 Posts
    • 98 Thanks
    YHM
    I will PM you, I need some advice from a broker
    Originally posted by csgohan4
    Would love to help
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • kazzyb123
    • By kazzyb123 9th Oct 17, 5:32 PM
    • 43 Posts
    • 6 Thanks
    kazzyb123
    I've just spoken to Nationwide and they stand by what their online mortgage calculator says, that they will lend a max of 111400.

    Hopefully they know better than the mortgage broker as it's their product.
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