Concessionary mortgage

sc2018

Hi all,

Firstly thank you for looking at my post, if you can help it would be fantastic. I've searched the forum and Google to try to find answers but whilst there is some helpful advice available I still have a stumbling block that I hope someone is able to help with.

I'm purchasing a house from a family member at a discount, I'm also depositing some cash myself and I'm a first time buyer. Combining the discount and deposit reduces the LTV to somewhere between 75-80%.

I'm having some problems obtaining enough of a mortgage to cover the 75-80% because of some outstanding finance, albeit I have an unblemished and diverse credit profile as I have actively managed my finances well over the years. I am easily able to afford the mortgage repayments and my credit commitments, even stress tested to a BoE rate of 5%. However mortgage providers are cagey at present.

Essentially what I am asking for is advice on which mortgage providers are best to contact. So far routine mortgage brokers have been of no help at all and I feel a more specialist approach is necessary. Although I am quite confident in approaching and applying to lenders directly and I have lost confidence in brokers, if anyone has any brokerage contacts I would appreciate it.

I understand there may be some reluctancy amongst financial professionals to "recommend" products or services, any guidance would be greatly appreciated. Maybe I am using the wrong search term in Google?

Thanks in advance for any help.

kingstreet

sc2018 wrote: »

I'm having some problems obtaining enough of a mortgage to cover the 75-80% because of some outstanding finance

What exactly is the problem?

All we can do is point you at lender affordability calculators and if they suggest you can't borrow enough you're going to have to have a look at your credit commitments.

Blueoctopus

Hi,
It must be affordability that is a problem rather than concessionary purchase as we are first time buyers buying from family and using the equity they are gifting us as our deposit we are not putting in any cash at all.
We went through a broker and were advised that there are high street lenders who lend on this basis we then secured a mortgage offer from one of them.
In terms of affordability the stress test went up to 8.8% more than doubling what the current payment will be - could you have been too optimistic in this respect?

Thrugelmir

sc2018 wrote: »

because of some outstanding finance, .

Quantify "some". Is this your achilles heel?

sc2018

Thank you for your replies. Affordability is the key issue, however a third of my income is made up from guaranteed bonus that brokers aren't paying much attention to. If that bonus were deemed salary I would exceed the mortgage I require. I only have one unsecured loan to consider. All credit cards are paid off in full every month and my monthly spending/commitments are very modest. It is simply my income structure that is the issue not the true monetary amounts. I work for the NHS so both my job, salary and bonus are guaranteed and set to increase by 6.5% over 3 years.

What I'm trying to find is a lender that will consider guaranteed bonus as salary and work on a concessionary purchase basis. Without ruining my credit profile with multiple searches from multiple lenders.

I'm only 15% off what I need to borrow based on brokers affordability. So one lender that views guaranteed bonus or my job security in a more generous way and I'm sorted. Unfortunately I can't find the extra 15% as a deposit.

So close, yet so far.

kingstreet

If your employer will guarantee the bonus in writing* and you have two annual payslips showing it being paid, there are lenders who will take 100% into account.

Keep looking for a broker with half a brain as you seem to be struggling to find one so far.

*BTW don't bother obtaining a letter saying "To Whom It May Concern" as your broker will tell you the lender's exact requirements for the evidence which will be needed.

SimonW90

Halifax took all of my overtime, bonuses, call outs etc and divided them over 12 months, they were then included in affordability. We were also a concessionary purchase. Our application actually got pulled for audit and was checked by a senior underwriter and was completely fine.

Applied in October and completed in January, in branch with no broker etc needed.