Mortgage broker - ask me anything

haras_n0sirrah

MFrancis1987 said:

Hi, there seems to be no information available on whether lenders who currently accept applicants on furlough, will continue to accept these applicants if they are moved on to the new job support scheme. Would you expect lenders to provide an update on this soon?
Our mortgage application is being held up because the underwriter is waiting for Natwest to confirm if they can use my partner's income (who is currently supported by furlough and moving on to the JSS) in the affordability checks. We only need a very small percentage of my partner's salary to be included in order to pass the affordability checks, and we have provided a letter from her employer to show that her job security is not at risk. However, it has been over a week since our application was put on hold and is making us slightly nervous. Would be great to get your thoughts on this, thanks.

I have to be honest I haven't got any clients who are still furlowed so I haven't looked into this. I know lenders have got increasingly unwilling to use any income for people furlowed. Are there any lenders who would lend enough on just your income it you only need a small amount of your partners?

haras_n0sirrah

mowgliisaG said:

Hi another quick question - banks wanting to see 3 months statements for business - what kind of turnover revenue are they looking for? Mine is back to about 85% pre Covid. But that is not due to Covid but a loss of a contract way before Covid. Are they just looking to see a good income now?

They are wanting to see income is roughly where it was compared to your tax assessment figures. 

haras_n0sirrah

misscaraxo said:

haras_n0sirrah said:

misscaraxo said:

Me and my partner have just put in our mortgage application to Barclays, help 2 buy so mortgage is 75% LTV. Both our credit scores are good but my concern is that on my credit report I have 3 late payments in the last 2 years on 1 store card. (All paid and only show as 1month) Do you think we’re likely to be declined? 

If you have had an accepted aip you should be ok. If it goes wrong and you need help let me know

Thank you very much. We do have an AIP. I was concerned because I looked at their lending criteria and it says ‘ Any adverse credit identified, as detailed below, must be declined

• Arrears of 2 or more months on any one account in the last 6 months
• Arrears of 3 or more secured or unsecured in the last 2 years.’

I don’t know if that means 3 separate accounts or 1 account 3 times or 3 months arrears? 

It means if you have 3 instances of arrears (either 1x3 or 3x1) in the last 2 years they will decline.

jrrrrj

haras_n0sirrah said:

jrrrrj said:

Hi all,

I had an offer accepted on a house on 22/10. My mortgage advisor, Trussle, have recommended Halifax as the lender of choice.

I had some late payment on a PayPal and Next store card accounts earlier this year (March). They were late by one month and are now up to date and I closed the Next account. Embarrassingly it was down to not setting up direct debits!

My Experian credit score is 999, their top score. I’ve closed lots of random credit cards this year that I wasn’t using and I don’t have any loans, debt etc.

in February 2019 I resigned as a director and majority share holder of the company I work for. I have a contract of employment in place, payslips to evidence my £40k pa income and companies house reflects the resignation etc. No dodgy dealings. Just didn’t want to be a director any longer. 

Trussle said they think this should all be ok. The AIP from Halifax came back ok on 23/10. My deposit is 15%. The valuation has been paid for and awaiting scheduling due to the Wales lockdown. 

If there are any professionals here that could offer insight into likelihood of proceeding that would be great. 

What employee number is on your payslip? If you have a low employee number it may prompt them to look at companies house which may open up some questions. Do you hold any shares in the company and if so what %?

Hello,

I am employee number 7 and this is on my payslip, I have no shares so a 0% shareholding.

james 

haras_n0sirrah

jrrrrj said:

haras_n0sirrah said:

jrrrrj said:

Hi all,

I had an offer accepted on a house on 22/10. My mortgage advisor, Trussle, have recommended Halifax as the lender of choice.

I had some late payment on a PayPal and Next store card accounts earlier this year (March). They were late by one month and are now up to date and I closed the Next account. Embarrassingly it was down to not setting up direct debits!

My Experian credit score is 999, their top score. I’ve closed lots of random credit cards this year that I wasn’t using and I don’t have any loans, debt etc.

in February 2019 I resigned as a director and majority share holder of the company I work for. I have a contract of employment in place, payslips to evidence my £40k pa income and companies house reflects the resignation etc. No dodgy dealings. Just didn’t want to be a director any longer. 

Trussle said they think this should all be ok. The AIP from Halifax came back ok on 23/10. My deposit is 15%. The valuation has been paid for and awaiting scheduling due to the Wales lockdown. 

If there are any professionals here that could offer insight into likelihood of proceeding that would be great. 

What employee number is on your payslip? If you have a low employee number it may prompt them to look at companies house which may open up some questions. Do you hold any shares in the company and if so what %?

Hello,

I am employee number 7 and this is on my payslip, I have no shares so a 0% shareholding.

james 

You should be ok then. 

jrrrrj

haras_n0sirrah said:

jrrrrj said:

haras_n0sirrah said:

jrrrrj said:

Hi all,

I had an offer accepted on a house on 22/10. My mortgage advisor, Trussle, have recommended Halifax as the lender of choice.

I had some late payment on a PayPal and Next store card accounts earlier this year (March). They were late by one month and are now up to date and I closed the Next account. Embarrassingly it was down to not setting up direct debits!

My Experian credit score is 999, their top score. I’ve closed lots of random credit cards this year that I wasn’t using and I don’t have any loans, debt etc.

in February 2019 I resigned as a director and majority share holder of the company I work for. I have a contract of employment in place, payslips to evidence my £40k pa income and companies house reflects the resignation etc. No dodgy dealings. Just didn’t want to be a director any longer. 

Trussle said they think this should all be ok. The AIP from Halifax came back ok on 23/10. My deposit is 15%. The valuation has been paid for and awaiting scheduling due to the Wales lockdown. 

If there are any professionals here that could offer insight into likelihood of proceeding that would be great. 

What employee number is on your payslip? If you have a low employee number it may prompt them to look at companies house which may open up some questions. Do you hold any shares in the company and if so what %?

Hello,

I am employee number 7 and this is on my payslip, I have no shares so a 0% shareholding.

james 

You should be ok then. 

That’s great, thank you! And I’m assuming that the couple of missed payments, now they’re up to date and that I have closed those accounts, shouldn’t be too much of an issue?

This world of mortgages is nerve wracking haha.

Nile_E_Coyote

haras_n0sirrah said:

Nile_E_Coyote said:

Do you know if lenders take pension contributions as committed spending? 

And is there any who don't, to your knowledge?

There are lenders who do not factor pension payments into affordability

Thanks, do you know if RBS/Natwest do?

haras_n0sirrah

Nile_E_Coyote said:

haras_n0sirrah said:

Nile_E_Coyote said:

Do you know if lenders take pension contributions as committed spending? 

And is there any who don't, to your knowledge?

There are lenders who do not factor pension payments into affordability

Thanks, do you know if RBS/Natwest do?

Natwest ask for Net pay on the application

[Deleted User]

This thread is such a great resource, thank you 

I'm a FTB, buying alone, and in a secure job as a junior doctor. I have a 10% deposit and am debt free. I am paid a good base salary and then get certain top ups to account for my on call work and also unscheduled overtime that I've been doing during the pandemic. This adds a further £2-3k to my gross monthly salary each month depending on how many additional hours I did the prior month. My training contract finishes in August 2022 and all being well I will take a consultant job at that point.

Some questions:

1. Am I likely to get a 10% LTV mortgage given my low risk status? Or is it best for me to keep saving to reach a higher deposit?

2. Will lenders take into account the monthly salary supplements when working out how much to lend to me / my affordability? Or will the base figure alone be used?

3. Would it be worth finding a specialist broker who deals with NHS staff with similar pay structures/may be more aware of products better suited to my circumstances? Or am I best going with a generalist?

4. Will the fact that my training contract terminates in August 2022 be detrimental to my application? I stand a really good chance of getting a Consultant post, but obviously this can't be guaranteed to the lender.

Many thanks in advance.

mowgliisaG

haras_n0sirrah said:

mowgliisaG said:

Hi another quick question - banks wanting to see 3 months statements for business - what kind of turnover revenue are they looking for? Mine is back to about 85% pre Covid. But that is not due to Covid but a loss of a contract way before Covid. Are they just looking to see a good income now?

They are wanting to see income is roughly where it was compared to your tax assessment figures. 

Hi Sarah,

im a LTD, so what would they be comparing the number too? I assume turnover? My application is based on salary and dividends which never stopped during Covid..

thanks