Mortgage broker - ask me anything

jbn84

Hi, I'm currently considering a property that is next door to a commercial property (an outdoor equipment shop). It has a flying freehold with part of the property being over part of the commercial property. It is also opposite a pub and about 100m down the road from a petrol station.

None of these would be a significant negative for us initially living there, the pub and shop seem nice and the bulk of the property is the well away from the street, with only the front door and bathroom window opening onto the main street. However, I'm concerned that these features may make it difficult to get a mortgage, either now or in the future (especially if the commercial property was to change) and effect the ability to remortgage or sell.

Any thoughts? Many thanks.

MFrancis1987

haras_n0sirrah said:

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?

Thanks for your reply.
We haven't checked with other lenders yet, but we were recommended Natwest and we are hoping to hear back from them efore exploring this.
If it turns out that we are just short when using Natwest, then we would be more than happy to put down a bigger deposit and request a lower amount to borrow. Is this something that can normally be discussed when an application is on hold, or do we have to wait for a decision first?

jojogirly

We have an DIP for 200,000, we have seen a house but he wont move from 205000 - do we have to get another DIP?  Thanks 

kellycable06

My husband and I own our our house and have sold but I am applying for a mortgage in my name only due to husband recently changing jobs and previous dmp.
I am applying for £35000 and the house we are purchasing is £405000, 
application and documents uploaded 9 October 
house valuation completed and assessed last week and house has been valued at £405000
we are currently still awaiting other details to be assessed and learned from the broker today they have put me in the complex category. Broker informed me last week that natwest were happy with income etc but now natwest are saying no record of it.
i am just wondering if there is likely to be issues as my monthly income is roughly £2400 a month, loans I am responsible for are 
car £495
2 small loans for items like new doors and carpets we had fitted totalling £60 a month
my husbands wages covers the rest of the household bills but I am wondering as this is a single application but bank statements are of our joint account if natwest will question husbands income or other regular dd that are paid for out of my husbands wage. (His income Roughly a further £2500 per month).
broker is confident I will get the mortgage as they say they wouldn’t pursue if they weren’t confident as they wouldn’t get paid.
further to this I have no missed payments , no ccjs etc and credit report is clear, I fact the credit report that natwest do on their banking app states I am a responsible spender etc and all payments are kept up to date.
apparently we should now hear by Wednesday Thursday but I feel sick with worry now after thinking last week they were happy with income to now be told the underwriters haven’t even checked it yet. 

haras_n0sirrah

debtfreefrom2020 said:

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.

Some lenders will use your extra income, some won't (some lenders are basic only at the moment) so depending on how much you need to borrow will determine which is the best way to go (at the moment I tend to go the path of least resistance - if we don't need additional income I don't use it)
10% deposit is sparse at the moment but they do exist. Some lenders offer professional products at better income multiples so that would be something to explore. The training contract won't be too much of an issue given there is more than 6 months left. Most of us who are independent brokers and have been around a good while (15 years in my case) have seen plenty of nhs staff contracts so I don't think you need a specialist. Myself or the other brokers who post here can be contacted by pm if you don't have your own broker

haras_n0sirrah

mowgliisaG said:

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

They would look at your last 3 months transactions and compare them to your turnover pre covid. Some industries have been devastated by the pandemic (events for example) so they are trying to see who has been badly affected and who is back up and running.

haras_n0sirrah

jbn84 said:

Hi, I'm currently considering a property that is next door to a commercial property (an outdoor equipment shop). It has a flying freehold with part of the property being over part of the commercial property. It is also opposite a pub and about 100m down the road from a petrol station.

None of these would be a significant negative for us initially living there, the pub and shop seem nice and the bulk of the property is the well away from the street, with only the front door and bathroom window opening onto the main street. However, I'm concerned that these features may make it difficult to get a mortgage, either now or in the future (especially if the commercial property was to change) and effect the ability to remortgage or sell.

Any thoughts? Many thanks.

The lenders will pass this off as 'subject to valuers comments' - some lenders do give us a number for the valuers to run the address past them but the main issue is going to be the pub due to a concern over anti social behaviour
I would run it past the valuations department of a lender who is sympathetic to lending near commercial

haras_n0sirrah

MFrancis1987 said:

haras_n0sirrah said:

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?

Thanks for your reply.
We haven't checked with other lenders yet, but we were recommended Natwest and we are hoping to hear back from them efore exploring this.
If it turns out that we are just short when using Natwest, then we would be more than happy to put down a bigger deposit and request a lower amount to borrow. Is this something that can normally be discussed when an application is on hold, or do we have to wait for a decision first?

Wait to see what comes back

haras_n0sirrah

jojogirly said:

We have an DIP for 200,000, we have seen a house but he wont move from 205000 - do we have to get another DIP?  Thanks 

You should be able to amend the existing dip

haras_n0sirrah

kellycable06 said:

My husband and I own our our house and have sold but I am applying for a mortgage in my name only due to husband recently changing jobs and previous dmp.
I am applying for £35000 and the house we are purchasing is £405000, 
application and documents uploaded 9 October 
house valuation completed and assessed last week and house has been valued at £405000
we are currently still awaiting other details to be assessed and learned from the broker today they have put me in the complex category. Broker informed me last week that natwest were happy with income etc but now natwest are saying no record of it.
i am just wondering if there is likely to be issues as my monthly income is roughly £2400 a month, loans I am responsible for are 
car £495
2 small loans for items like new doors and carpets we had fitted totalling £60 a month
my husbands wages covers the rest of the household bills but I am wondering as this is a single application but bank statements are of our joint account if natwest will question husbands income or other regular dd that are paid for out of my husbands wage. (His income Roughly a further £2500 per month).
broker is confident I will get the mortgage as they say they wouldn’t pursue if they weren’t confident as they wouldn’t get paid.
further to this I have no missed payments , no ccjs etc and credit report is clear, I fact the credit report that natwest do on their banking app states I am a responsible spender etc and all payments are kept up to date.
apparently we should now hear by Wednesday Thursday but I feel sick with worry now after thinking last week they were happy with income to now be told the underwriters haven’t even checked it yet. 

The complex queue is 13 working days longer than the standard queue. We aren't told if cases are diverted until it gets to the front of queue the normal queue and we call for an update to be told it is in queue 2. It may be that they have financially linked you to your husband and his dmp is causing it (complex queue is self employed, adverse etc)