Sound Ok

bunahilga

I am a first time buyer. I am a self employed cabbie. I have a mortgage advisor who has advised me to declare £65,000 net this year to qualify me for a £250,000 mortgage (£42,000 last year. Multiple of 5). I am going for a help to buy 95% mortgage. I have an AIP from nat west fixed for 5 years at 5.39%. The advisors fees are £2660 which is 'payable on application and may be refundable if the mortgage does not proceed'. My question is does this all sound about right? And what does MAY be refundable mean? Is it or isn't it? I know ill have a big tax bill and big repayments. Thats fine,its the rest I'm not sure about. Thanks.

kingstreet

I've just run NatWest's affordability calculator and at 95%, the maximum income multiple is 4x.

https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

I've used no existing credit, no dependents, a thirty and thirty five year term and different income levels.

None give more than 4x.

On HTB - Mortgage Guarantee, the bulk of lenders are now adhering to the Treasury's loan to income cap of 4.5 x.

I would be thinking very carefully about my chances of getting that very large and unreasonable fee back when the mortgage offer arrives and it's based on only 4x income!

amnblog

These brokers fees are equivalent to you charging me £100 to take me to the High Street this morning.


Think again.


'May be refundable' means - bad news

stephenni1971

I have a mortgage advisor who has advised me to declare £65,000 net this year to qualify me for a £250,000 mortgage (£42,000 last year. Multiple of 5).

Why would the adviser 'tell' you what to declare. Your income is your income.

amnblog

Without such instruction £2,660 is at risk Steph!

nubbins

You are not seriously thinking of paying £2660 in broker fees? You will be able to get the same service in the hundreds!!

Let_Us_See

stephenni1971 wrote: »

Why would the adviser 'tell' you what to declare. Your income is your income.

If he has set up his business as a limited company, he can decide his level of income by retaining profit within company. Profit does not necessary have to correspond to declared income.

Thrugelmir

Little point is setting yourself up to fail. There's only going to be one loser in all of this. Not only that but your personal reputation may also be left in tatters.

bunahilga

Thanks all. Any recommendations?