arranging a mortgage via a 'broker'.

homer_j_3

TangentMan wrote:

Brokers can find those lenders with the most flexible affordability rules, or perhaps help with self certification if your friends want to go that way.

I hope that a broker would not help with self certification in this situation if they can clearly prove their income. Self-Certs are not there to help navigate affordabilty /income multiple rules.

I am sure that the comment was innocent but "Obtaining funds through deception" is ringing bells in my head.

regularsaver1

some lenders allow a third person but will only take 2 of the incomes into consideration

the £800 a month from the investment can not always be used

they really need to think about what they are doing here - as they need to maintain their lifestyle to go with their house

David_Dean

A self cert is not necessarily needed. I regularly deal with lenders who do not use the traditional income multiple calculation, instead they use upto 50% of gross earned monthly income and as long as the mortgage payment is below this figure they may beable to offer them a mortgage.

free4440273

David_Dean wrote:

A self cert is not necessarily needed. I regularly deal with lenders who do not use the traditional income multiple calculation, instead they use upto 50% of gross earned monthly income and as long as the mortgage payment is below this figure they may beable to offer them a mortgage.

sorry to sound daft, but would you mind expanding on this if i provide a few details. on a 400k house, they have a deposit of 60k = 340k mortgage, which at 5.5 per cent (assuming a ten year fix) is £1559 per month. there are three salaries at £20k x 3. they have a no-risk building society bond which pays them an income of £800 per month (and no, they do not want to 'dip into' this bond). given this, would a broker of any kind arrange a mortage for them without extortionate interest rates? i have based the ten year fix on Nationwide's who are actually quoting 5.01. they don't want a variable discount rate or tracker, they want the certainty of a fix. I should point out also that it was nationwide who recommended to them to go to a broker, as nationwide as a high-street lender could in no way give them a mortgage, given their salaries and the cost of the property. i know i am asking you to go out on a limb here - i just want as much impartial advice as possible, the consequences i will obviously deal with. thanks all

homer_j_3

Nationwide would have said goto a broker because they can only provide information on their own products and not other peoples.

Brokers, where multi-tied or whole of market, have the facility to view more than one product and therefore will be able to see if what you are doing is physicaly possible.

I would just tell your friends that this is what they need to do. Either go and sit face to face with one or give a telephone based broker.

free4440273

homer_j wrote:

Nationwide would have said goto a broker because they can only provide information on their own products and not other peoples.

Brokers, where multi-tied or whole of market, have the facility to view more than one product and therefore will be able to see if what you are doing is physicaly possible.

I would just tell your friends that this is what they need to do. Either go and sit face to face with one or give a telephone based broker.

ok thanks. i get the idea (that you might have had enough of me) .

homer_j_3

free4440273 wrote:

ok thanks. i get the idea (that you might have had enough of me) .

No - not had enough of you but we can only give you generic information and with your friends circumstances being slighty different then it will need someone to gather all the information and source on that information. For us to say x lender and y product - this would be costrude as advice and it may not be the most suitable advice, which we have to give.

Sorry if the tone of my response was short and to the point

free4440273

homer_j wrote:

No - not had enough of you but we can only give you generic information and with your friends circumstances being slighty different then it will need someone to gather all the information and source on that information. For us to say x lender and y product - this would be costrude as advice and it may not be the most suitable advice, which we have to give.

Sorry if the tone of my response was short and to the point

no, seriously i do appreciate your advice. i just want to know if what i have said is 'physically possible' as you rightly said. i know they are buying a relatively 'expensive' property; i know a high street lender (ie nationwide)would not even let them through the door; but they do have a decent deposit. what i am essentially saying is: if a broker arranged a mortage for them at say 5.10 per cent, then they could pay the monthly installments (in addition to their monthly salaries, they have an extra £800 per month from their bond). they do not lead an extravagent life-style, nor do they wish to, but, yes, i take people's point - they need to eat!! they do not have any debts at all also, which i see as a plus. thanks all and i would still appreciate any further advice, so please don't consider this thread closed

Vincenzo

On the issue of brokers - I have taken out several mortgages in the past few years and can say it is ALWAYS worth speaking to brokers before taking out a mortgage through any bank or building society.

Most do not charge you a fee for their advice and those that do will often waive it (they get a commission from the lender anyway). They are far better placed to know the best lenders to approach depending on your circumstances and occasionally they have mananged to get deals that lenders would not have given me direct.