I am complicated lookinng for a mortgage with a good credit rating

iaxgls

Hi all,
I am currently trying to buy a new place with my fiance, and just about every part of our situation is complicated!
1. I currently own and am living in a flat in central London, which has a mgge on, and i wish to keep it and let it out, when i move out (the bank has agreed to let me do so).
2. I have cash for about a 24% deposit on our dream home, very annoying as if we had 25% it would be fine, so we are looking for an 80% LTV.
3. I want to borrow a lot of money (>£600k)
4. We are both under 30 and high earners. We also earn significant bonuses relative to our incomes, but not all banks seem to be willing to accept them as earnings.
5. We have a perfect credit score.
6. She is here on a working visa, which has 18 mths left to expiry (we will be married before it expires in any case).

Any tips on banks that could look favourable on us? as some wont ignore the flat until it is rented out, and we cant rent it out until we have bought a house... I have had 6 agents round to value rental, and we would comfortably get 50% more rent than the mgge + budgeted costs would be a mth.

The comparison sites dont seem to let you filter very well, so you cant see only LTV >75% or max loan of >£600k.

I really appreciate any help.

Thanks

herbiesjp

There are indeed a few complications in this scenario.

How long has your fiance been in the UK and working?

To be honest, there are lots more details that would be needed, before hazarding any recommendation on lenders for this scenario.

I would suggest speaking to a good broker, in order to make sure you do not fall outside of criteria in any area of the above areas ( or others that may come up in discussion).

Crinz

I too am not going to say a particular lender but I do have a few questions to see if anyone can help.

1. Can you take additional borrowing against your flat to bring your new purcahse's LTV under 75%
2. What are your incomes and how is it made up? any debts?
3. if you have pushed yourself to 24% deposit, have you accounted for stamp duty?

luckyfool

Depending on the overall profile of the case I can think of at least one lender that would consider, though as has been mentioned elsewhere if you can somehow get it to 75% it will improve your rates.

Who do you bank with?

iaxgls

Thanks,
Our incomes combined are about £150k.

As for the stamp duty, i had accounted for 5% of the property purchase price for costs ie. 4% + other costs (my sister is my lawyer so costs will be limited there).

Crinz

when you say income, is that including the bonuses you mentioned earlier? How much are your salaries and how much bonus do you get?

kb070857

In your initial comments you mentioned that your fiance has 18 months left to run on her work permit, so to help me understand your situation further please provide the following information.

1. When did the Visa/Work permit commence?
2. How long exactly has she officially been working in this country?
3. How long has she working with her current employer?
4. Are you both paid in sterling?
5. How long has she been resident in this country?
6. What is the actual Basic Income & Commission/Bonus breakdown for each of you?
7. What Nationality are you both?

I look forward to your response.

I am a Mortgage Adviser

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.

Thrugelmir

iaxgls wrote: »

(my sister is my lawyer so costs will be limited there).

You will be required to pay your lenders legal fees even if you employ your own.

iaxgls

I am British, she has been here for 5.5yrs (on an HSMP Visa, worked 7mths for her current employer), we are both paid in sterling. i dont see there being any issue with her leaving, we will be getting married next yr, it works out that she would get a british passport on her own quicker than through me, as her next applicaiton is for indefinite leave to remain.

The pay includes commission at £20k.

Conrad

iaxgls wrote: »

i dont see there being any issue with her leaving,

You are not seeing this from a lenders view point.

1) If you later got into arrears because she was forced to leave the UK, the hearing judge would decree the lender had leant irresponsibly and as such may not allow a repossession.

2) The regulator would also state the lending was irresponsible as it could not be proved FOR CERTAIN at application that she would remain here and therefore the application would fail the SUSTAINABILITY test

There are many other reasons lenders will need to consider this carefuly.

Lenders good in this situation include HSBC, Nationwide and Halifax.

Not all of your'e income will be allowed in full.

silvercar

According to an article I read in the Sunday Times, private banks are more flexible and more interested in very large loans. The normal lenders get uncomfortable above 500k.