Local Mortgage Broker vs Online Brokers

mrsmortgage

I think we have not very straightforward case in our hands and looking fro some advice.

Our joint income is of £40k and we have a deposit of £25k, wanting to buy a £200k property. My partner is a FTB but I had property in my name up to September last year.

This is where it gets complicated...

I get rent income from a property overseas, which adds up to £8200 pa. This rent has been taxed in its country of origin so HRMC has no involvement with it.

Our take home/ after tax income is of about £3350 a month (which can be proven with bank statements).

In terms of children, we have three between the two of us and a baby due in November. None of the three children live with us FT. I only pay for food for my daughter, and my partner pays maintenance for his two.

I’ve found contradictory advice about declaring them as dependants, we don’t receive any Child Benefit for any of them and we’re not the primary Carers for any of them either.

L&C will lend us some but not enough (same for H!bito). Others (Penvest and Albany Park) seem to think we’ll definitely get enough.


Both our Experian scores are in the 980’s.

We’re thinking we might be better off with a local one, but my first mortgage was with L&C and had no issue, but it was very straightforward.


Thanks for your advice!

ACG

You have been to 2 online/call centre brokers who can not get you what you want and 2 local brokers who say they can.

You THINK you might be better off with a local broker?

Here are 6 lottery numbers which will definitely not win.
Here are 6 lottery numbers which might win.

Which ticket do you take?

amnblog

A broker that knows what they are doing will give you the right advice whether online or local.

Your differing responses here suggest someone has in wrong.

If you are paying maintenance on a child, that child is not listed as dependent. The maintenance payment is factored into affordability instead.

I cannot see the rental income untaxed in the UK being allowed in the affordability calculation.

You are not ‘first time buyers’ so I hope you have allowed for stamp duty land tax.

mrsmortgage

All brokers have been online, I still haven't consulted a local one but I'm worried at the disparaging answers I get. I believe for a house of that price stamp duty is of £1500 which is absolutely fine.

L&C said they wouldn't take the rental as income, but would take take it as "affordability" for my maternity leave.

ACG

amnblog wrote: »

I cannot see the rental income untaxed in the UK being allowed in the affordability calculation.

There are lenders who will take foreign income in to account, I have never had to research a case where it is foreign rental income but I would like to think some quirky little building society might take a view on it.

I recall meeting a lender 2-3 months ago who said they quite like the foreign income or complicated income cases.

mrsmortgage

ACG wrote: »

There are lenders who will take foreign income in to account, I have never had to research a case where it is foreign rental income but I would like to think some quirky little building society might take a view on it.

I recall meeting a lender 2-3 months ago who said they quite like the foreign income or complicated income cases.

Some brokers seem to think it can be taken into consideration as it's been coming into my account for 3+ years. However, the property is in Mexico and they don't seem to like the original currency is the Mexican Peso .

Money is not transferred from Met either, instead it looks like cash deposits (as that's the cheapest way to do it for me).

SonOf

Factory line brokers are targetted to deal with x number of people and have to move on to the next one as quickly as they can. They then usually pass your case to a non-qualified clerical worker to do the work.

Experienced brokers are not going to want to work for a factory line service. However, it is seen as an entry point for new mortgage advisers. Many of whom will build their experience and get their qualifications there before moving on to become a "local" broker.

Local brokers tend to be more experienced and deal with the whole process from beginning to end.

The factory line services like easy cases. This forum is littered with threads where people have found the factory line services let them down when things are not simple. When things are simple, then they tend to do what you would expect.

amnblog

Yet, there is nothing complex here.

Two earned incomes.

No ‘dependent children’ but two maintenance payments.

Overseas income which will be ignored.

None of us have seen the detail. But it is clear than half the brokers consulted have it ‘wrong’ by definition.

The problem may simply be that the affordability does not ‘fit’ at £175,000 no matter how experienced or keen the Broker.

mrsmortgage

There's actually just one maintenance payment, as It's a 50/50 arrangement for one of the three children. Plus the maternity leave that some seemed to think it was a problem and other didn't.

scottishblondie

mrsmortgage wrote: »

I believe for a house of that price stamp duty is of £1500 which is absolutely fine.

Was the property you sold last year your main residence? If it was then you are correct, but if not and the property abroad is worth more than £40k you will need to factor in the additional property surcharge, which would bring your stamp duty up to £7.5k.

mrsmortgage

I ha ent sold any property. I got divorced and my exH kept the family home. There's currently a charge on that house that will be nullified once he give me the money he owes me (and thus get my deposit that way). For the property abroad it's not in my name but my mum's. It won't go to my name for a while (as described in a will), but I can benefit from its income. Has been that way for a long time, and because it's not in my name no lawyer has had any issue with stamp duty. We certainly didn't have any 5 years ago.