Mortgage broker - ask me anything

flashg67

clare19811 said:

Just following on from this, another potential issue has been worrying me.
A chunk of my self-employed income gets paid (via PayPal) in foreign currency, mainly USD. I obviously pay UK taxes and have been resident in the UK since birth. All employed income is UK based and paid in GBP.
How much of an issue is this likely to be? 
Thanks in advance.

Don't want to be a scaremonger, but this was big problem for Lloyds, who ended up discounting all of our USD income. I would suggest that if you can 'get away' with just showing your Inland Revenue tax stuff, then do so. We naively sent  a paypal statement showing a USD balance which scuppered us. Our next lender (we now have an offer from TSB) didn't ask where the income came from, just seemed ok that it was on the tax return as earned income. If they don't ask, don't volunteer it!

K_S

rgwhunter said:

Is the ltv based on the purchase price or the home report valuation? My wife and I have had an offer accepted for less than the home report valuation (Scotland) 

@rgwhunter Always the lower of purchase price or valuation. Hope that makes sense.

clare19811

flashg67 said:

clare19811 said:

Just following on from this, another potential issue has been worrying me.
A chunk of my self-employed income gets paid (via PayPal) in foreign currency, mainly USD. I obviously pay UK taxes and have been resident in the UK since birth. All employed income is UK based and paid in GBP.
How much of an issue is this likely to be? 
Thanks in advance.

Don't want to be a scaremonger, but this was big problem for Lloyds, who ended up discounting all of our USD income. I would suggest that if you can 'get away' with just showing your Inland Revenue tax stuff, then do so. We naively sent  a paypal statement showing a USD balance which scuppered us. Our next lender (we now have an offer from TSB) didn't ask where the income came from, just seemed ok that it was on the tax return as earned income. If they don't ask, don't volunteer it!

Thanks for that, that's really useful to know! I spoke to a broker yesterday and she said many lenders will be satisfied with just the SA302s so the USD paypal transactions wouldn't be an issue as they simply won't see them, I'm hoping if I'm as upfront with a broker as possible then they will know which lenders would be most likely to just accept the HMRC evidence!

GoingOn30

Is the availability of 90% LTV mortgages set to open up in the coming weeks? 
Have seen some reports that some banks will start offering these products again but don't know if the lending criteria will be so strict that it won't make much difference? 

IAMIAM

What does this mean for Platform Mortgages......

We do not offer mortgages on a consumer Buy to Let basis:

Consumer BTL is a type of regulated business introduced by the EUMCD to provide enhanced protections where BTL customers are not acting for business purposes. 

It is the responsibility of the mortgage intermediary to determine if a case is Consumer BTL.

Remortgage applications will be defined as Consumer BTL, where any of the following apply;

• The applicant does not own any properties that are being let out on a rental basis (the property being remortgaged is sufficient to meet this rule if it is currently let out)
• The purpose of the loan is not wholly or predominantly for business purposes
• The applicant or their relatives have lived in the property in the last 2 years and will
  not be residing in the property at any point in the future.

Does this mean if I am an existing customer who wants to switch to BTL I am unable to and have to move lenders?

K_S

GoingOn30 said:

Is the availability of 90% LTV mortgages set to open up in the coming weeks? 
Have seen some reports that some banks will start offering these products again but don't know if the lending criteria will be so strict that it won't make much difference? 

@GoingOn30 It certainly looks like it to me, at least for FTBs. The one most brokers I've been talking to are excited about is Halifax starting later this week. The lending criteria is slightly tightened with respect to how they treat debt but it's still a great development and hopefully at least some of my high-LTV FTB clients who have been shut out of the market can start reviving their home buying plans.

https://forums.moneysavingexpert.com/discussion/6221443/90-ltv-market-coming-back-to-life

K_S

IAMIAM said:

What does this mean for Platform Mortgages......

We do not offer mortgages on a consumer Buy to Let basis:

Consumer BTL is a type of regulated business introduced by the EUMCD to provide enhanced protections where BTL customers are not acting for business purposes. 

It is the responsibility of the mortgage intermediary to determine if a case is Consumer BTL.

Remortgage applications will be defined as Consumer BTL, where any of the following apply;

• The applicant does not own any properties that are being let out on a rental basis (the property being remortgaged is sufficient to meet this rule if it is currently let out)
• The purpose of the loan is not wholly or predominantly for business purposes
• The applicant or their relatives have lived in the property in the last 2 years and will
  not be residing in the property at any point in the future.

Does this mean if I am an existing customer who wants to switch to BTL I am unable to and have to move lenders?

@IAMIAM Yes, if you were to want to let out the home you have lived in, a BTL mortgage for that purpose would fall under the CBTL bracket and are thus regulated by the FCA unlike other normal BTL mortgages (say you were to buy a flat for the purpose of letting it out).

So given that Platform doesn't offer CBTL products, you would need to find another lender that does. There are plenty that do, sp that's not really a huge barrier on its own. And even if your resi mortgage was with Platform, there's no advantage to sticking with Platform for your BTL as they'll still need to do a new rental affordability assessment, etc like a new application. You can't just switch products.

Mind you I'm not talking about consent to let, I'm talking about changing from a residential mortgage product to a BTL one.

IAMIAM

K_S said:

IAMIAM said:

What does this mean for Platform Mortgages......

We do not offer mortgages on a consumer Buy to Let basis:

Consumer BTL is a type of regulated business introduced by the EUMCD to provide enhanced protections where BTL customers are not acting for business purposes. 

It is the responsibility of the mortgage intermediary to determine if a case is Consumer BTL.

Remortgage applications will be defined as Consumer BTL, where any of the following apply;

• The applicant does not own any properties that are being let out on a rental basis (the property being remortgaged is sufficient to meet this rule if it is currently let out)
• The purpose of the loan is not wholly or predominantly for business purposes
• The applicant or their relatives have lived in the property in the last 2 years and will
  not be residing in the property at any point in the future.

Does this mean if I am an existing customer who wants to switch to BTL I am unable to and have to move lenders?

@IAMIAM Yes, if you were to want to let out the home you have lived in, a BTL mortgage for that purpose would fall under the CBTL bracket and are thus regulated by the FCA unlike other normal BTL mortgages (say you were to buy a flat for the purpose of letting it out).

So given that Platform doesn't offer CBTL products, you would need to find another lender that does. There are plenty that do, sp that's not really a huge barrier on its own. And even if your resi mortgage was with Platform, there's no advantage to sticking with Platform for your BTL as they'll still need to do a new rental affordability assessment, etc like a new application. You can't just switch products.

Mind you I'm not talking about consent to let, I'm talking about changing from a residential mortgage product to a BTL one.

From experience, which lenders do allow a switch from Resi to BTL without changing lenders?

pinklady3333

There is a typo in the address of my mortgage offer. Is it a quick correction to reissue it? Or will it take weeks to reissue? 

Issued by Santander. 

Thanks 

Alibear

Hi, not sure whether this is a question for a mortgage broker (I'm new to all this!), but would it be possible to remortgage my parent's house under my name instead of their's for the remaining amount? They have a small amount left to pay but not long in which to pay it, and I'd like to help them out. I'd just like to know if this is possible in theory... I plan to get some advice from an independent advisor, but grateful for any insights you have!