Mortgage pulled at last minute

haras_n0sirrah

I mean that they release a limited number of 90% rate mortgages every weekday morning at 8am. The system crashes immediately and by the time you can get back in the rates have gone. It is a very frustrating experience for those of us in the business. 

caw379

haras_n0sirrah said:

I mean that they release a limited number of 90% rate mortgages every weekday morning at 8am. The system crashes immediately and by the time you can get back in the rates have gone. It is a very frustrating experience for those of us in the business. 

Ah thank you, I had read an article about this, but was concerned that criteria had changed somehow. I bet its extremely frustrating when you are trying to get people a service that is limited elsewhere as well! 

jamesm5094

When I phone HSBC on Friday the lady told me that they are doing 10% deposit mortgage and that they haven’t been taking into account overtime for the past 2 months. 

If we can’t borrow enough without overtime why has a valuation and everything else been done. 

And also I understand pulling 10% deposit mortgages for new applications but if a valuation and everything has been done why suddenly cancel it? 

haras_n0sirrah

It sounds as though your broker has messed up here. If your application depends on use of overtime or bonus and you do not work for the NHS that income cannot be used. If it is not affordable on just your basic with HSBC then they will not give you a mortgage. Unfortunately there is little available at 90% currently. Those lenders who come in at 90 tend to get swamped and withdraw. HSBC have managed the numbers by restricting them on a daily basis. Is there any chance of getting to 15? There are some lenders who accept a bank loan towards your deposit. I have a few clients who have done that as we couldn't get them a 10% mortgage. 

jamesm5094

But if HSBC have cancelled my application because I cannot borrow enough surely that should be what my mortgage broker should be telling me?

Unfortunatly we can not afford a 15% deposit, and we wouldn’t want to go down the route of a loan.

NatalieAGC

I would be worried if affordability on a mortgage was passed on additional income such as overtime And not basic income. 

Maybe a blessing in disguise and try to save abit more.

haras_n0sirrah

If you had secured a 10% rate they wouldn't take it off you. I am guessing the additional income is the problem but your broker should be being honest with you. Unfortunately there really aren't many options at 10% deposit in the current market 

jamesm5094

Can you advise how they work out how much we can borrow? I am employed and my partner is self employed so would they add up salary’s for year and multiply it by a certain amount ?

if you can help would be great as my mortgage broker is unreliable.

haras_n0sirrah

essentially at the moment it is the average of the last 2 years tax assessments (if they have taken the seiss grant the underwriters may just use that x4 as it would be a declaration that your income has been affected by covid but it is down to underwriter. Yours would be basic only x 12
at the moment it is 4.49x salary
I hope that helps

jamesm5094

Thank you, we probably won’t be able to lend enough without them taking into account overtime then. We first went to mortgage advisor in December/January and we could borrow like 50-60k more than we can now so coronavirus has definetly ruined everything!