Mortgages

Surrey123_2

Afternoon,


I and my husband recently had a mortgage agreed inprincipal for £316k approx. 10 days ago by Halifax bank. Since then Halifax has advised us that theyhave now reduced this amount to £241k due to the fact that part of my husband’swages is made up of expenses (mileage allowance as he does over 10k miles ayear). They have explained that this isa non-taxable income and therefore cannot include it in their calculation –although they did for his first mortgage. My husband is in receipts of p60’s however does not complete any tax self-assessments.

We both have checked our Experian reports and both showing as 'Excellent', our combined wages is a total of £70k. £241k seems very low....


We are both home owners for two other properties (we have consent to lease in place on these properties) which are both currently rentedout. One of those properties waspurchased for £175k and is now valued at £275k.

My questions are:

1. Doesanyone know of any mortgage lenders who do take into account yourexpenses? Is it even possible?

2. Isthere some way I can release the equity in one of the properties despite beingunder the age of 55 (I have read in many articles that you must be at least 55,minimum retirement age).

Any help is much appreciated.

Many thanks in advance everyone.

kingstreet

Expenses refund money you pay out, they aren't income so they won't be take as such by any lender.

Are the let properties viewed as self-financing by Halifax?

If they aren't, your affordability will be reduced as you will be seen to be subsidising them.

Dependents, childcare, ground rent & service charges, maintenance, existing credit etc will all further reduce what you can borrow, as will a shorter mortgage term.

"Releasing equity" is not the right term here. Equity release is a product for the elderly designed to help someone asset-rich and income poor to use the value of their home to improve their lifestyle.

You need to look at a Buy To Let remortgage, or "Let To Buy" as it's known.

I suggest you speak to an experienced independent mortgage broker to establish the best way to approach this. It sounds like trying to fit your round peg circumstances into a single lender's star-shaped hole is tying you in knots.

Surrey123_2

Thank you.

I do understand the issue with the expenses, just thought it was strangethat they were taken into account with my husband’s first mortgage - probablyan error.

Both of our current mortgages are with Halifax. with the rental income weonly break even on one property of the other the we make a profits of just over£600 - that has been taken into account with Halifax.

We both have credit cards however with no outstanding debt, no dependants, andcurrently living rent free until we can find a property to purchase. As previouslymentioned our credit scores are showing as excellent.

The underwriters cannot give us any further information about our quote untilwe have an offer accepted on a property but where we live and with our 15%deposit plus our mortgage you don't get a lot for your money so won't be makingany offers.

I will research into Let to buy and as suggested see an broker - although Iam not happy with the fee's many of them have introduced, as well as thecommission from the banks!

Thank you for your help.