Fast Track Mortgages

Honeyzee

I have just recently split from my partner and am looking to buy him out.

I have been advised that I can do this with a 'fast track mortgage'. In which as long as I can prove affordability (ie... with my current salary, renting a room and parental support) I should be able to do this.

I will be looking for an interest only package when it comes to remortgaging, and as I will be asking for 6 times my actual salary in order for me to do this. I feel its the right thing to do, especially as the housing market is low and its a good time for me to buy, though not sell... Yes I will be stretching myself... but if I struggle then I will have to look to sell or rent the whole house totally.

Is there anyone out there who could offer me advise on remortgage packages for the situation I have mentioned above?

minimike2

Who has told you that? They are telling you to commit mortgage fraud. You cannot just declare income that a lender does not accept just because it fits thier fast track criteria.

6 Times your salary is crazy.

Sell the house. Find somewhere smaller that you can afford, or rent. Dont take on a rediculous mortgage for the sake of it.

payless

fast track is a useful service IF you declare the truth and can prove it if requested. If however you are inflating your salary ( by bringing in other lements that would not usually be taken into account by lender) then yes as Mike says - thats fraud.

Honeyzee

The mortgage advisor will be declaring the affordibility based on Salary, rental of room and parental support. This will be declared as part of mortgage application and that will be proved.

minimike2

Impossible under fast track - rental of room and parental support are not acceptable forms of income of any lender that I know. Which lender is this broker looking at?

_Andy_

Honeyzee wrote: »

The mortgage advisor will be declaring the affordibility based on Salary, rental of room and parental support. This will be declared as part of mortgage application and that will be proved.

As minimike has stated, this isn't the case. Your 'advisor' is recommending a fraudulent application as those forms of income aren't acceptable.
What he's banking on is the lender not asking for proof of income.
If they do then your application will fall to pieces straight away.

If you're happy with a fraudulent mortgage application then go ahead.

silvercar

I thought that there were lenders who would allow parents to act as guarantors for their children, provided the parents had sufficient spare income to do so?

_Andy_

There are but that's not what the advisor is suggesting here. What he's doing is bundling all the income up (even though the lender won't accept those as acceptable sources) as earned income, as the lender won't be looking for proof.
Typical mis-use of fast-track.

Honeyzee

Surely there is an agreement between the Lender and advisor to say that, the client I have put forward is able to keep up mortgage payments based on (Income, Room rental and parental guarantor)? Otherwise the Broker would lose credibility.. wouldn't he?

_Andy_

No, the income they're declaring must be income the lender accepts.

What I'd suggest you do is give the lender a call and they'll confirm this isn't an acceptable application. As stated above, your broker is mis-using the fast-track facility and the application is fraudulent.

minimike2

You broker has already lost his crediability. He is abusing a fast track system.

Room rental and parental support are not valid forms of income, even for adverse lenders. Gurantor is slightly different, but then the case could not possibly be fast tracked.

The application will be fraudulent if it goes ahead on the fast track basis without declaring the seperate sources of income.

I say name and shame your broker.