FTB 85% LTV Payslips and Bank Statements? Which Companies to use?

Gareth83

What companies are just accepting payslips for the application?

I am a first time buyer with a 15% deposit, my broker has advised using Abbey as they are just requiring payslips and give a free valuation.

I am looking for a 2yr fixed with either interest only or repayment, haven't decided yet..

They aren't the cheapest but he suggests as a bigger corporation they will be easier to apply with.

Reason I ask is I get paid via cheque and don't have a salary credited bank account.

What recommendations do you guys suggest?

Should I apply myself for Yorkshire or Britannia or is he genuinely advising Abbey for my benefit or are they paying good commission hence why he's advising them?

He is whole of market...

koexelek

Gareth83 wrote: »

Should I apply myself for Yorkshire or Britannia or is he genuinely advising Abbey for my benefit or are they paying good commission hence why he's advising them?

He is whole of market...

Yorkshire & Britannia do not deal with brokers.

Gareth83

Do they use payslips or both?

Any cheaper alternatives than the Abbey?

koexelek

No idea what sort of service they give I'm afraid. I could not see a lender having an issue with taking payslips though, as long as they look genuine enough and have the proper deductions on them

Abbey are pretty good at the moment though. Nationwide have products that are very similar

Conrad

Be aware all those funny payslips you can buy online are easy to spot and often constructed by total muppets that do not input correct Tax and so on.
Best of luck, mmmmmmm

Gareth83

Conrad wrote: »

Be aware all those funny payslips you can buy online are easy to spot and often constructed by total muppets that do not input correct Tax and so on.
Best of luck, mmmmmmm

? I hope you're not insinuating what I think you are?

Advice on lenders please

Gareth83

I have just come off the phone with Yorkshire and they are happy to just have payslips but may require an employer's reference.

However, having spoke to my adviser the Yorkshire deal was an offset mortgage, their first time buyer specific deal is a 5yr fix so he said to avoid.

We are going to go with the Abbey still for several reasons

a) They are happy with just payslips
b) They give a free valuation should I face any problems there is no loss incurred

We are going to go for the repayment option over 35yrs. Although this may sound a long period it wont make much difference over the 2yr deal.

Can someone check my calculations for me:

£98,000 with a £14,700 deposit

24 payments @ £471.62 = £11,318.88
Land Registry Charge = £100
- £250 Cashback on completion
= £11,168.88 over 2yrs

I would have repaid £1559 which brings it to £9609.88
Over 24mths that equates to £400.41 a month if it were interest only

If I used the same calculations but with a 25 or 30yr term with repayments of £534.90 and £496.75 respectively and would have repaid £3166 or £2197 off the mortgage amount then I get:

£396.74 per month for 25yr term
£398.96 per month for 30yr term

So by choosing the 35yr option I'm only paying an extra £80 over 2yrs but not having to outlay £535 a month is a bonus.

Any opinions?

_Andy_

As mentioned on another thread, Abbey aren't going to do interest only without a proper repayment vehicle.

Gareth83

Gareth83 wrote: »

We are going to go for the repayment option over 35yrs.

We are going for repayment as mentioned...

NickDurham

Gareth83 wrote: »

I have just come off the phone with Yorkshire and they are happy to just have payslips but may require an employer's reference.

However, having spoke to my adviser the Yorkshire deal was an offset mortgage, their first time buyer specific deal is a 5yr fix so he said to avoid.

We are going to go with the Abbey still for several reasons

a) They are happy with just payslips
b) They give a free valuation should I face any problems there is no loss incurred

We are going to go for the repayment option over 35yrs. Although this may sound a long period it wont make much difference over the 2yr deal.

Can someone check my calculations for me:

£98,000 with a £14,700 deposit

24 payments @ £471.62 = £11,318.88
Land Registry Charge = £100
- £250 Cashback on completion
= £11,168.88 over 2yrs

I would have repaid £1559 which brings it to £9609.88
Over 24mths that equates to £400.41 a month if it were interest only

If I used the same calculations but with a 25 or 30yr term with repayments of £534.90 and £496.75 respectively and would have repaid £3166 or £2197 off the mortgage amount then I get:

£396.74 per month for 25yr term
£398.96 per month for 30yr term

So by choosing the 35yr option I'm only paying an extra £80 over 2yrs but not having to outlay £535 a month is a bonus.

Any opinions?

Why did he recommend not going for the 5yr deal? I'm surprised you're going for a 2yr deal. The general thought at the moment - certainly on these boards - seems to be that longer term fixed is better. In 2yrs time, interest rates could well be a lot higher and you'll have problems remortgaging at a good rate. 5yrs at least gives you more time to repay more capital and improve your LTV.

Gareth83

Well I don't want an offset mortgage anyway

Should I get the 3yr deal that Abbey offer instead then?