Mortgage broker - ask me anything

ScottL45

Being self-employed and being in a smallish chain of three properties, I am standing firm on a simultaneous exchange and completion.  Others in the chain want to exchange before, I do not, all to do with the latest restrictions and a major concern that lenders will make last minute check/enquiries in-between exchange and completion that could scupper things and leave me up s*** creek.  To the extent that I would probably pull out if forced to exchange in advance.  Am I being unreasonable?  I understand the concerns of others regarding packing and moving but with me buying by far the most expensive property in the chain, I deem myself by far the highest risk.

K_S

@scottl45 You have to do what you are comfortable with. Having said that, among my clients almost all the same day exchange & completion cases have been no-chain transactions.

MissMia60

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Hello thank you!! I have few questions. I was release from IVA 2016. I got in that situation due to stupidity and ex. Any how I've managed to get myself out of that situation and now would like to buy myself my own house.  

I am single. I work full time time. I am slowly saving. What are my chances of getting a mortgage? I live in Northern Ireland. I don't know if that makes any difference?

tigerlily74

ScottL45 said:

Being self-employed and being in a smallish chain of three properties, I am standing firm on a simultaneous exchange and completion.  Others in the chain want to exchange before, I do not, all to do with the latest restrictions and a major concern that lenders will make last minute check/enquiries in-between exchange and completion that could scupper things and leave me up s*** creek.  To the extent that I would probably pull out if forced to exchange in advance.  Am I being unreasonable?  I understand the concerns of others regarding packing and moving but with me buying by far the most expensive property in the chain, I deem myself by far the highest risk.

It depends on the circumstances of the other parties. We exchanged and completed on the same day for the sale of our property, it kept getting pushed back and delayed so we couldn’t plan our lives and it was extremely stressful, even though we had moved in with my mum. For our onward purchase we are selling my mum’s house then buying our new house, in a chain of about 5. We would have to pack up and put everything into storage and go into short term accommodation for an unknown period of time with two small children, three cats and a dog. It’s a lot to ask for us. If someone in our chain insists on this I will probably cry.

House2021

Hi, we have put a researvation fee on a new build and all is in train. My brother just told us he wants to return money to us that we gave him last year and he had promised to pay it back. Can we use this towards our deposit? Do you know what would be needed from him? We have evidence of Western Union transfers to him and he can write something saying this is returning a loan.

Thanks

K_S

House2021 said:

Hi, we have put a researvation fee on a new build and all is in train. My brother just told us he wants to return money to us that we gave him last year and he had promised to pay it back. Can we use this towards our deposit? Do you know what would be needed from him? We have evidence of Western Union transfers to him and he can write something saying this is returning a loan.

Thanks

@House2021 It's your money and there's no reason you can't use it for the deposit.

Having said that, the broker/lender/solicitor may want to satisfy themselves that this is indeed the case so I'd just go by the evidence they require. If it's from overseas (only mentioning because you said Western Union) then they may require a bit more than otherwise.

In any case, the longer it's been since the funds hit your bank, the less onerous any requirements will be.

dazzaofdagenham

dazzaofdagenham said:

My mortgage is 64k against a property of 300k.
So with no upfront fees and staying with same lender. I thought it was a good deal.
1.44 with westbrom...( I was only with them initially because I was sub-prime)..fixed for 2 years....uncertainly with brexit and interest rates in general ....

wanted a 2nd opinion..

many thanks 

So I’ve gone with the 1.44 from my existing lender ...westbrom for 2 years.

looking at best buy tables in papers etc...this is a good deal...I always associated westbrom as a subprime lender and expected rates to be higher..so I’m happy.
fixed for 2 years....30 pounds less per month and no worries for next 2 years 

Anne_X1

K_S said:

Anne_X1 said:

K_S said:

Anne_X1 said:

Hi, I reference this forum a lot but never signed up or posted before, so please be gentle
I have been trying to get a self employed mortgage for a few months now. I used a broker who strung me along and finally said he can't help. I run a succesful business and only want to borrow four times my profit but he said I need 3 years of accounts to stand a chance. Can anyone help?

@anne_x1 With 2 years of accounts, you should have a good range of options, barring any other nasties in the background. Did the broker give you more details as to why you need 3 years of accounts? The usual reasons for 2 years being insufficient is the first set of accounts not showing a full year of trading, or a huge jump in profits/activity from year 1 to 2, etc. Does any of that apply to your case?

Hi. Thanks for your reply. I did have a much better second year than the first, but isn't that normal? Can you or someone else reading help? I'm now down to needing about 3.5 times profit as I have added to the deposit.

Are there any broker specialists in self employed mortgages?

@Anne_X1 Tbh, self-employed mortgages aren't particularly specialist anymore. Based on what you have said, your chances depend on the specifics and numbers in years 1 and 2. There'll be some lenders who won't look beyond them but also others who may approach it a bit more pragmatically. It could just be that you did have a good broker but it isn't placeabIe, but you've nothing to lose by trying another broker if you feel that the broker didn't do a good job. In any case, do make sure your new broker has all the info about any previous DIPs, applications, etc. Good luck!

Hi KS, thank you for your advice, I have sent you a PM.

K_S

MissMia60 said:

Hello thank you!! I have few questions. I was release from IVA 2016. I got in that situation due to stupidity and ex. Any how I've managed to get myself out of that situation and now would like to buy myself my own house.  
I am single. I work full time time. I am slowly saving. What are my chances of getting a mortgage? I live in Northern Ireland. I don't know if that makes any difference?

@MissMia60 I rarely ever arrange mortgages for NI clients so my thoughts are purely based on the IVA part. The good news is that with an IVA that was discharged more than 3 years ago (assuming you have had a squeaky clean credit history since then), that on its own should not stop you from getting a mortgage.

K_S

Anne_X1 said:

K_S said:

Anne_X1 said:

K_S said:

Anne_X1 said:

Hi, I reference this forum a lot but never signed up or posted before, so please be gentle
I have been trying to get a self employed mortgage for a few months now. I used a broker who strung me along and finally said he can't help. I run a succesful business and only want to borrow four times my profit but he said I need 3 years of accounts to stand a chance. Can anyone help?

@anne_x1 With 2 years of accounts, you should have a good range of options, barring any other nasties in the background. Did the broker give you more details as to why you need 3 years of accounts? The usual reasons for 2 years being insufficient is the first set of accounts not showing a full year of trading, or a huge jump in profits/activity from year 1 to 2, etc. Does any of that apply to your case?

Hi. Thanks for your reply. I did have a much better second year than the first, but isn't that normal? Can you or someone else reading help? I'm now down to needing about 3.5 times profit as I have added to the deposit.

Are there any broker specialists in self employed mortgages?

@Anne_X1 Tbh, self-employed mortgages aren't particularly specialist anymore. Based on what you have said, your chances depend on the specifics and numbers in years 1 and 2. There'll be some lenders who won't look beyond them but also others who may approach it a bit more pragmatically. It could just be that you did have a good broker but it isn't placeabIe, but you've nothing to lose by trying another broker if you feel that the broker didn't do a good job. In any case, do make sure your new broker has all the info about any previous DIPs, applications, etc. Good luck!

Hi KS, thank you for your advice, I have sent you a PM.

@Anne_X1 I've responded to your message.