Mortgage broker - ask me anything

Redwino222

Thank you for your help.  I have previously only bought new builds, so it seems odd not to plough all my equity into the purchase to keep the mortgage small😊.

dgoodban

At the moment I don’t have a mortgage or any other debts, and we have a house which is worth somewhat more than 600K. I’m retired and have a joint income of around 40K. Can you tell me if, rather than taking out a loan or equity release, I can take out a small mortgage on our house to raise some capital? 

K_S

@dgoodban Based on the limited information on your post, you should be able to raise some capital through a mortgage on your currently unencumbered property. Whether it'll be cost effective will depend on how small the amount is that you want to take out and the purpose for the cash.

Walesgirl

haras_n0sirrah 

Hi,

My husband and I are looking to buy a house. My credit is excellent but his is really poor. CCJ due to drop off March 2021 but has one from Vodafone for £3k in January 2019. I was fuming when I found out and paid it off straight away. We have £30k between us (£15k each in LISA). I have been doing some research, looking into lending criteria and most lenders want 20-25% deposit due to CCJ's but the interest rates are 4-5%+.  We saw a broker last July who recommended we saved 15% deposit.

I'm now thinking, do we get a smaller house in my own name for 3 years or so until my husband's CCJ drops off his credit file? 

I earn £25k. I can see from online calculators I'll be able to borrow approx £110k.  We can continue to save for another year or so around £2k a month.  My husband pays all his wages except bills to me then I manage the money due to his poor past experience.  Will this affect the mortgage application? All the spare money will get saved? I'm guessing he will need to say he's gifting me the money (he's fine with this). 

Thanks  

K_S

Walesgirl said:

I earn £25k. I can see from online calculators I'll be able to borrow approx £110k.  We can continue to save for another year or so around £2k a month. My husband pays all his wages except bills to me then I manage the money due to his poor past experience. Will this affect the mortgage application? All the spare money will get saved? I'm guessing he will need to say he's gifting me the money (he's fine with this).

@Walesgirl Some lenders are not ok with non-borrower occupiers. Other lenders are fine with that but can't have them contributing to the deposit. But there are also a few lenders who are fine with both. In any case, even as a solo applicant, for most lenders you will need to pass "credit scoring", and if you have a financial association with your husband on your credit history, his poor credit could still have some impact. I hope that makes sense.

Walesgirl

K_S said:

Walesgirl said:

I earn £25k. I can see from online calculators I'll be able to borrow approx £110k.  We can continue to save for another year or so around £2k a month. My husband pays all his wages except bills to me then I manage the money due to his poor past experience. Will this affect the mortgage application? All the spare money will get saved? I'm guessing he will need to say he's gifting me the money (he's fine with this).

@Walesgirl Some lenders are not ok with non-borrower occupiers. Other lenders are fine with that but can't have them contributing to the deposit. But there are also a few lenders who are fine with both. In any case, even as a solo applicant, for most lenders you will need to pass "credit scoring", and if you have a financial association with your husband on your credit history, his poor credit could still have some impact. I hope that makes sense.

Thanks for your advice.  We have no financial link at the moment. Only a savings account in joint names due to a cheque given to us for our wedding. I'm very cautious about being financially linked and his credit rating affecting mine. 

I'll have a look into lenders that will accept him contributing to the deposit 

Thanks again for your advice

ukri

K_S said:

@ukri Assuming the rest of your circumstances stack up, this should be possible. Given that it's 50k, depending on the lender you may need to provide quotes etc for the proposed work. 

Thanks! Is it too early to start looking for a remortgage to complete in April?

teleport3

Is it possible to get a 10% Mortage in this climate as a non first buyer?

I keep being offered 10% mortages in comparison sites, with my details, but once I. Go through to the bank mortage checker it keeps saying sorry we can only give you x amount provided I give a 15% deposit. Is my situation completely hopeless? 

K_S

ukri said:

K_S said:

@ukri Assuming the rest of your circumstances stack up, this should be possible. Given that it's 50k, depending on the lender you may need to provide quotes etc for the proposed work. 

Thanks! Is it too early to start looking for a remortgage to complete in April?

@ukri No, not at all. Given the plugged up conveyancing pipeline across the country and the high volume of activity expected in the first quarter (stamp duty deadline coming up in March), it would be wise to start sooner rather than later. Next time, keep a reminder for 6 months prior to the end of the fix. Good luck!

K_S

teleport3 said:

Is it possible to get a 10% Mortage in this climate as a non first buyer?
I keep being offered 10% mortages in comparison sites, with my details, but once I. Go through to the bank mortage checker it keeps saying sorry we can only give you x amount provided I give a 15% deposit. Is my situation completely hopeless? 

@teleport3 For those looking to purchase a non-new-build house, there are a small number of 90% LTV products available for non-FTBs.

I'm not sure what you mean when you say "bank mortgage checker" but whether you will be eligible for any of the above products will depend on the whole of your circumstances.