Looking for a 5 year fix

ChasingButterflies

Hi,

Our situation is that we are going to view a few houses over the next few days and we need to sort out an AIP (I think that is what we need before our solicitor can offer?)

DH is employed - his salary is 40k per year with a non- guaranteed bonus. Since 07/08 he has received a 40k bonus annually.

We have 210k deposit (from selling our previous home and savings) by the end of the month we should have additional funds to cover Stamp duty/solicitors fees/mortgage product fee and removal costs, but no more to add to the deposit as we need an emergency fund.

We are looking to purchase a property at a maximum of 440k.

However I am a SAHM to 4 children so DH has 5 dependents...

We are looking for a 5 year fixed rate, preferably interest only, with the ability to repay 10% pa without penalty.

Initially we had contacted Santander as they were our previous mortgage provider. However for Interest only they will only match our deposit (which is fair enough) For a repayment mortgage the best rate I could find was 3.89%.

So I then found 5 yr fix with Britannia @ 3.39%. In some of the blurb I found that they will take into account bonuses, although I am not sure how dependents would affect this? Also I couldn’t see any info about overpayments.

There was also 3.69% 5 year fix with RBS who allow up to 10% overpayments p.a. We bank with them and have had a mortgage with them in the past, I know they were ok with 4 dependents then but not sure if this has changed...

So basically (if you are still awake!) the Britannia deal looks most appealing but I am worried that they won’t take into account either DH’s bonus or dislike the number of dependents he has. Does this seem likely? I have no experience of them and don’t think anyone I know does either. Or is there another product/provider that I have completely missed?

I wanted to do my own research before we contacted a broker, as we didn’t do this last time and felt later that we should have.

I think this all seems do-able, I just wanted to check there wasn’t something I had over-looked.

Apologies for the epic post, any feedback is much appreciated.

ACG

I think yo have gone into far too much detail.

Some lenders will allow upto 50% of non guaranteed bonuses....some wont. Having never used britania i couldnt say for sure.

Why not speak to Britania, check and see if on the face of it they would accept you (without getting an AIP) then if they will, take it to a broker. See if they can beat it (this doesnt always mean it will be cheaper etc).

Then go from there?

I could search 5 year fixed mortgages in a matter of minutes, its all the other things that need to be take into account so whilst somene here may be able to say oh such and such do a 5 year fix...it doesnt mean they will accept you.
I havnt looked over the figures in any great detail, however it would seem you could be running close to the wire but i could be wrong.

kingstreet

Is this purchase in Scotland?

I think that is what we need before our solicitor can offer?

Does Britannia lend up there?

ChasingButterflies

ACG wrote: »

I think yo have gone into far too much detail.

I have tried to slim it down

Some lenders will allow upto 50% of non guaranteed bonuses....some wont. Having never used britania i couldnt say for sure.

Why not speak to Britania, check and see if on the face of it they would accept you (without getting an AIP) then if they will, take it to a broker. See if they can beat it (this doesnt always mean it will be cheaper etc).

I guess this sounds like the best idea, I just didn't want to end up with lots of "footprints" on DH's credit report. Due to the hours he works I need to do the leg work on this and then point him in the right direction.

Then go from there?

I could search 5 year fixed mortgages in a matter of minutes, its all the other things that need to be take into account so whilst somene here may be able to say oh such and such do a 5 year fix...it doesnt mean they will accept you.
I havnt looked over the figures in any great detail, however it would seem you could be running close to the wire but i could be wrong.

Running close to the wire is my concern... Mortgage calculators in most cases have a problem with the number of dependants from what I can tell. So I understand what you are saying.

Thanks for taking the time to read and reply.

ChasingButterflies

kingstreet wrote: »

Is this purchase in Scotland?

Yes, sorry I should probably have mentioned that.



Does Britannia lend up there?

They have branches in Glasgow and Edinburgh.

ACG

You can speak to them before you get an agreement in principle...this means there are no footprints, just dont give them a name/dob or atleast a correct one and that way you know they cant do anything with it.

asandwhen

Im just going through a re mortgage with Britannia now.

They will accept bonus but they will want a reference from your employer and they will have to state that it is guarenteed.

They will only count 50% of it.

ChasingButterflies

asandwhen wrote: »

Im just going through a re mortgage with Britannia now.

They will accept bonus but they will want a reference from your employer and they will have to state that it is guarenteed.

They will only count 50% of it.

Thanks for this, at least we can knock them off the list!

liubeliu

asandwhen wrote: »

Im just going through a re mortgage with Britannia now.

They will accept bonus but they will want a reference from your employer and they will have to state that it is guarenteed.

They will only count 50% of it.

I'm also with Britannia and when I applied 2 years ago they wanted HR to confirm in writing that the bonus was guaranteed.

draiggoch

When does your other half get his bonus? I bank with Natwest and when I applied for my mortgage with them they checked my bank account for the last three months to get an average wage to work out the mortgage. So if your husband has been paid the bonus in the last three months then you might be in luck and they calculate affordability on this evidence. If he hasn't had the bonus yet then it may be better to wait until he has had it paid this year.
D.