When do you apply for a mortgage?

ACG

This isnt a debate about brokers, I do not hide the the calculation so its not my fault (or any other brokers), its the lenders themselves who do not publish it. (EDIT: I have just read that back, I do not mean that to sound as grumpy as it probably reads).

You are wrong though, the calculators are accurate. There are and always will be exceptions as they can not cater for every single circumstance but I can not remember the last time I had an argument with a lender about a calculator saying one figure but the lender reducing the maximum loan amount. They used to be shocking but now a days I find them reliable.

Some examples of where people go wrong:
- They put in all of their tax credits - where as certain lenders only accept certain benefits and they may have age restirictions on the kids.
- They put down child maintenance - again, sometimes it needs to be court ordered or through the CSA.
- Lenders may deduct the student loan or pension payments from payslips and clients may not enter it on the calculator as they do not see it as an expense.

If the calculators are used correctly in conjunction with the lenders criteria (both of which are publicly available information for most lenders) there is no reason for the calculators to be wrong. It can be time consuming if you do not know what you are doing or have complicated circumstances.

smallblueplanet

ACG wrote: »

Some examples of where people go wrong:
- They put in all of their tax credits - where as certain lenders only accept certain benefits and they may have age restirictions on the kids.
- They put down child maintenance - again, sometimes it needs to be court ordered or through the CSA.
- Lenders may deduct the student loan or pension payments from payslips and clients may not enter it on the calculator as they do not see it as an expense.

If the calculators are used correctly in conjunction with the lenders criteria (both of which are publicly available information for most lenders) there is no reason for the calculators to be wrong. It can be time consuming if you do not know what you are doing or have complicated circumstances.

So I can find out from each lenders publicly available criteria which ones will deduct pension payments from payslips? That would be useful...


Edit: I wasn't blaming the brokers either.

ACG

I dont know whether every lender has it on their website, but I know some do. As an example (as I am on their site) Woolwich:

The monthly amount to be paid towards the following commitments must be deducted from the applicant/s net income to prove affordability:

Regular Pension Payments – including any additional voluntary payments (eg AVCs) being paid regularly from income. ‘One-off’ contributions, for example from an annual bonus, can be disregarded.

If its not on their website, a phone call would get the answer.

kingstreet

If you'll forgive a language analogy, brokers speak fluent lender.

Some borrowers can speak a smattering of lender and can/do go direct.

Those who don't can use a broker like an interpreter to ensure their circumstances do translate into the lender's requirements.

That said, we will also call and make sure our understanding of something is 100% clear before we commit to an application.

Back on topic, as a newbuild specialist we aim to have a new enquirer affordability and HTB checked, illustrations provided and an agreement in principle done, ready for a reservation to be taken with two working hours, seven days a week.

Grenage

Hi guys, thank you for all your input. I did go for an AIP before reading the further replies, but good information about not showing the EA our top end information. No point giving too much away!