Mortgage broker - ask me anything

clare19811

We’re trying to get everything in order ready for a mortgage application next Spring/Summer. I’ve already had a great conversation with one of the brokers on here but had a couple of questions I forgot to ask.

My income is partially self employed. I will have three years accounts by the time we apply. But I don’t have a business bank account, most of my transactions go through PayPal and I then withdraw to our joint current account. I have also always done my own accounts rather than use an accountant. Will either of these be an issue?

Thanks in advance!

K_S

@clare19811
The short answer to your question is -
- a separate bank account would be much preferable

- as long as you can evidence your tax returns, the lack of accountant certified accounts should not be a showstopper, though it may eliminate a few lenders who require it

clare19811

K_S said:

@clare19811
The short answer to your question is -
- a separate bank account would be much preferable

- as long as you can evidence your tax returns, the lack of accountant certified accounts should not be a showstopper, though it may eliminate a few lenders who require it

Thanks. That’s frustrating but doable. If I set up a new bank account it would just be full of money coming in from PayPal as that’s the way clients tend to pay so I’m guessing I would then need to send PayPal statements too?

K_S

clare19811 said:

K_S said:

@clare19811
The short answer to your question is -
- a separate bank account would be much preferable

- as long as you can evidence your tax returns, the lack of accountant certified accounts should not be a showstopper, though it may eliminate a few lenders who require it

Thanks. That’s frustrating but doable. If I set up a new bank account it would just be full of money coming in from PayPal as that’s the way clients tend to pay so I’m guessing I would then need to send PayPal statements too?

The most important thing is that your SA302s are in order. As long as you have the rest to hand (PayPal statements, personal bank statements, etc) in case your broker or lender needs it, it should be fine.

clare19811

K_S said:

clare19811 said:

K_S said:

@clare19811
The short answer to your question is -
- a separate bank account would be much preferable

- as long as you can evidence your tax returns, the lack of accountant certified accounts should not be a showstopper, though it may eliminate a few lenders who require it

Thanks. That’s frustrating but doable. If I set up a new bank account it would just be full of money coming in from PayPal as that’s the way clients tend to pay so I’m guessing I would then need to send PayPal statements too?

The most important thing is that your SA302s are in order. As long as you have the rest to hand (PayPal statements, personal bank statements, etc) in case your broker or lender needs it, it should be fine.

Wonderful, thanks for your help!

tiger1957

Hello. Thank you for this thread, it's really interesting.  I'd like to ask the following. I've applied for a remortgage, my current mortgage deal has ended so I'm currently  on the SVR of 4.75. Before moving onto a better rate with my current  provider  I've requested  additional borrowing,  through a brokerage service, they advise another mortgage  provider, and I've spent 6 weeks so far providing financial information,  employment information etc etc..  I've a small mortgage at 42k, property value 200,000k,  but currently  large consumer debts of 35k  at 0% interest. .  I've just been informed that the provider is only prepared to offer an additional 20,000 , so total mortgage  would be 62k, . I had  requested  an additional  50,000, over 11 years . What is the best  way forward?  Take the additional  borrowing  as offered?.( It's at a rate of 1.17% fixed for two years. ) Or decline the offer, bide my time until Spring next year and start the process again? Or return to my current  provider whose initial conversation (,pre checks etc etc), would go to 40k additional  lending, similar rate of 1.20% but over 7 years. I've had a hard credit search done as part of the original request,  and I'd expect, if I try another lender, a further hard search.  Unsure of the best way forward at present, whether to accept the additional 20k,or decline. If I decline, what impact does this have going forward?. If I pursue with my current  provider, and not be successful,  then what impact will that have?  If one lender declines or doesn't  offer the amount requested,  does this mean that most lenders will do the same and I should revisit next year? Any thoughts? Thank you.

K_S

@tiger1957 Debt con remos (especially at the 50k levels you are aiming for) are complicated at the best of times due to the responsibility on the broker to recommend and arrange debt consolidation only after assessing that this is the right option for the customer and appropriate for them. Currently lenders have tightened debt con underwriting a lot and a lot of questions for such an application during underwriting are normal.

If your broker has done their job decently, they should have considered the possibility of debt con through your own provider as well and recommended a product that best meets your requirements.

50k is usually the top end limit permitted for debt con remos by many lenders. With regards to 0% promotional cc balances, some lenders will not permit those to be added to the mortgage.

MFWannabe

tiger1957 said:

Hello. Thank you for this thread, it's really interesting.  I'd like to ask the following. I've applied for a remortgage, my current mortgage deal has ended so I'm currently  on the SVR of 4.75. Before moving onto a better rate with my current  provider  I've requested  additional borrowing,  through a brokerage service, they advise another mortgage  provider, and I've spent 6 weeks so far providing financial information,  employment information etc etc..  I've a small mortgage at 42k, property value 200,000k,  but currently  large consumer debts of 35k  at 0% interest. .  I've just been informed that the provider is only prepared to offer an additional 20,000 , so total mortgage  would be 62k, . I had  requested  an additional  50,000, over 11 years . What is the best  way forward?  Take the additional  borrowing  as offered?.( It's at a rate of 1.17% fixed for two years. ) Or decline the offer, bide my time until Spring next year and start the process again? Or return to my current  provider whose initial conversation (,pre checks etc etc), would go to 40k additional  lending, similar rate of 1.20% but over 7 years. I've had a hard credit search done as part of the original request,  and I'd expect, if I try another lender, a further hard search.  Unsure of the best way forward at present, whether to accept the additional 20k,or decline. If I decline, what impact does this have going forward?. If I pursue with my current  provider, and not be successful,  then what impact will that have?  If one lender declines or doesn't  offer the amount requested,  does this mean that most lenders will do the same and I should revisit next year? Any thoughts? Thank you.

If the 35k is at 0% why do you want to add it to your mortgage? You’re turning unsecured debt into secured.
When do the 0% deals end? 

tiger1957

Thank you for your replies. Would you advise stopping this process, and  pursuing through my current mortgage provider then? Thats not been proposed by my MB, as yet.  Thank you again 

Mrsjy

Hi, just wondering if any brokers know when Vida Homeloans will be bringing back all help to buy tiers? It says on their website ‘ We will launch a new and fully invigorated product range in the New Year’. How likely do you reckon this is for January? I’ve early bird reserved a plot and they want me to put the mortgage application in endnof dec/beginning of jan. But until March I will only be able to get a mortgage with bluestone, or with precise and vida if they bring back all their tiered htb products. Thank you