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Mad mortgage application process!
bluep
Posts: 1,302 Forumite
Just had a mad call with a mortgage manager at a major bank today to get a decision in principle!
I'm 35 and my husband is 46. He's in a steady job and earns in the 40s k per year. I earn in the 60s and expect to move up career wise in the future. But.. For the next few years we'd like smaller payments and the option to overpay so were looking for a 25 year mortgage. We will definitely not be in the same house in 5-10 years time.
The bank could not understand that he will probably not be working in the future once my income gets significantly above above 100k so whether he intends to retire at 65 or 70 doesn't really matter. Neither do his pension projections because we won't be relying on his income to pay the mortgage.
This is where it gets mad. They will offer me a 25yr mortgage (100k above what we want to apply for) on my own, just based on my income but if joint, they say his income after 19yrs is too unreliable and we might not be able to pay it bacK?!
Huh? If I can afford a 25 year term on my own without his input at all, why on earth would I struggle for years 19-25 without his income if he had been sharing the mortgage all along. We both have pretty perfect credit records so there's nothing detrimental to adding him into the equation - it is purely his age. They couldn't answer why I couldn't buy joint with him but declaring only my income i.e. what if he was an unearning house-husband?
It's not a huge problem - I can just buy in my name but that feels wierd.
I'm 35 and my husband is 46. He's in a steady job and earns in the 40s k per year. I earn in the 60s and expect to move up career wise in the future. But.. For the next few years we'd like smaller payments and the option to overpay so were looking for a 25 year mortgage. We will definitely not be in the same house in 5-10 years time.
The bank could not understand that he will probably not be working in the future once my income gets significantly above above 100k so whether he intends to retire at 65 or 70 doesn't really matter. Neither do his pension projections because we won't be relying on his income to pay the mortgage.
This is where it gets mad. They will offer me a 25yr mortgage (100k above what we want to apply for) on my own, just based on my income but if joint, they say his income after 19yrs is too unreliable and we might not be able to pay it bacK?!
Huh? If I can afford a 25 year term on my own without his input at all, why on earth would I struggle for years 19-25 without his income if he had been sharing the mortgage all along. We both have pretty perfect credit records so there's nothing detrimental to adding him into the equation - it is purely his age. They couldn't answer why I couldn't buy joint with him but declaring only my income i.e. what if he was an unearning house-husband?
It's not a huge problem - I can just buy in my name but that feels wierd.
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Comments
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I'd use retirement age 70 for him and do a 23 year term.
I presume this is HSBC. Find another lender if not happy with what's on offer.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
It doesnt seem unreasonable to me - what if something happens to you and you cannot earn?0
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It's not a huge problem - I can just buy in my name but that feels wierd.
The lender doesn't have a crystal ball to predict the future. Any decision is based on the application now on the facts stated. Not what you say might happen. As of course there's nothing legally binding in your words.0 -
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yes but they do put maximum ages for borrowing in ?0
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yes but they do put maximum ages for borrowing in ?
I don't think maximum age is an issue with the OP they are both quite young
some lenders will loan up to age 80 , providing they have the funds to cover ,
again "what if" does not apply
"what if's" are why we have insurance policy's0 -
They put them in it seems but very haphazardly - I would suggest that this example shows they are skirting very close to an age discrimination suit or does the lack of an implemented EC directive on discrimination in goods and services save them right now? Just because some kind of age limit has been applied in the dark ages, doesn't mean it is right to continue the practice unchanged into the light of an age of enlightened equality.yes but they do put maximum ages for borrowing in ?From the late great Tommy Cooper: "He said 'I'm going to chop off the bottom of one of your trouser legs and put it in a library.' I thought 'That's a turn-up for the books.' "0 -
State pension age is now 67/68 and will increase to 70 in the next 10 years, in my opinion.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thanks for the responses. I think the crazy bit for me was that they were willing to lend me the whole amount for a 25-30 year morgage on my income but put my husband's name on the deeds too (even if we didn't count ANY income for him going towards mortgage/living expenses etc...), they would only lend it over a 19 year period. They would consider a longer term but only if we provided detailed pension income projections for him.
As it happens, I'm insured up to the hilt so if something happened to me, the mortgage would be paid off a couple of times over (heh. I'd better be careful near the top of any cliffs!!).
It was Halifax but I have an appointment with my bank this week (HSBC) to see what their approach is.0 -
Has anyone in the UK yet read this ? I have a feeling it marks a big change that actually occurred a year ago but has been unheralded and untested !From the late great Tommy Cooper: "He said 'I'm going to chop off the bottom of one of your trouser legs and put it in a library.' I thought 'That's a turn-up for the books.' "0
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