Mortgage broker - ask me anything

K_S

Definite said:

Hi
QQ please. We have a mortgage offer in place and are moving towards completion in the next month or two. My solicitor is satisfied with our evidence of deposit and the mortgage offer does not mention evidencing our deposit. However, our liaison person with the MA keeps requesting evidence of our deposit and rejecting what I send because a portion of it is a USD share statement (significantly more value than is needed) and the other is a Paragon Bank Notice Account. She wants the share statement in GBP and three months statements from the bank account that I transferred money to Paragon from (in September). Before I spend ages trying to work out how my US Share trading company can give me a GBP statement and digging out old statements, I thought I should check if I need to provide this evidence to the Broker? I am happy to comply in any way necessary, but would prefer to avoid lots of effort if it is not needed. 

@Definite The process is probably to do with the compliance requirements of the broker. If you don't provide it, it could mean that they aren't able to serve you. It's hard to say for sure without knowing where these questions are originating from - the broker, their compliance team or the lender itself.

For the shares account, I'm not sure why they are insisting on GBP statements, all they need to apply is an approximate USD-GBP conversion which anyone can do, it's hardly an unstable or exotic currency. I would talk to the actual broker and ask about this. Out of interest, I assume this is cash sitting in the US shares account? Or is it actual shares that you'll sell to raise the cash for the deposit?

K_S

yousnorkmaiden said:

If during application you state you intend to clear any credit balances before completion, but when the mortage offer is received there is no mention of this in special conditions, are you still expected to clear the balances? 

@yousnorkmaiden If your broker or lender adviser told you during the advice stage that you need to clear the debt prior to completion, yes you are expected to do so.

yousnorkmaiden

K_S said:

yousnorkmaiden said:

If during application you state you intend to clear any credit balances before completion, but when the mortage offer is received there is no mention of this in special conditions, are you still expected to clear the balances? 

@yousnorkmaiden If your broker or lender adviser told you during the advice stage that you need to clear the debt prior to completion, yes you are expected to do so.

Thanks - other way around. We told them we could clear the balance - but now offer has come back with no mention of that. 

K_S

yousnorkmaiden said:

K_S said:

yousnorkmaiden said:

If during application you state you intend to clear any credit balances before completion, but when the mortage offer is received there is no mention of this in special conditions, are you still expected to clear the balances? 

@yousnorkmaiden If your broker or lender adviser told you during the advice stage that you need to clear the debt prior to completion, yes you are expected to do so.

Thanks - other way around. We told them we could clear the balance - but now offer has come back with no mention of that. 

@yoursnorkmaiden In that case your question is best directed to your lender adviser/broker. It's hard to give an opinion without the full context.

helpme2020

Hi, 

I have been gifted a monthly amount of money from my dad for the last few years and it qualifies under 'normal expenditure out of income' (section 21 of the Inheritance Tax Act 1984).

I was just wondering if I am able to boost my salary by adding this monthly gift to it? and in turn apply for a larger mortgage?

 

for example; I have been gifted £500 per month, for the last 7 years from my dad ('normal expenditure out of income'). 

Can I add this to my main salary of £2500, to boost my salary to £3000 and receive a larger mortgage?

Cheers

Definite

K_S said:

Definite said:

Hi
QQ please. We have a mortgage offer in place and are moving towards completion in the next month or two. My solicitor is satisfied with our evidence of deposit and the mortgage offer does not mention evidencing our deposit. However, our liaison person with the MA keeps requesting evidence of our deposit and rejecting what I send because a portion of it is a USD share statement (significantly more value than is needed) and the other is a Paragon Bank Notice Account. She wants the share statement in GBP and three months statements from the bank account that I transferred money to Paragon from (in September). Before I spend ages trying to work out how my US Share trading company can give me a GBP statement and digging out old statements, I thought I should check if I need to provide this evidence to the Broker? I am happy to comply in any way necessary, but would prefer to avoid lots of effort if it is not needed. 

@Definite The process is probably to do with the compliance requirements of the broker. If you don't provide it, it could mean that they aren't able to serve you. It's hard to say for sure without knowing where these questions are originating from - the broker, their compliance team or the lender itself.

For the shares account, I'm not sure why they are insisting on GBP statements, all they need to apply is an approximate USD-GBP conversion which anyone can do, it's hardly an unstable or exotic currency. I would talk to the actual broker and ask about this. Out of interest, I assume this is cash sitting in the US shares account? Or is it actual shares that you'll sell to raise the cash for the deposit?

Thank you so much. The USD is in shares, which I will sell closer to the time as they are gaining value consistently. Also, there is significantly more share value available than what is needed. 

K_S

helpme2020 said:

Hi, 

I have been gifted a monthly amount of money from my dad for the last few years and it qualifies under 'normal expenditure out of income' (section 21 of the Inheritance Tax Act 1984).

I was just wondering if I am able to boost my salary by adding this monthly gift to it? and in turn apply for a larger mortgage?

for example; I have been gifted £500 per month, for the last 7 years from my dad ('normal expenditure out of income'). 

Can I add this to my main salary of £2500, to boost my salary to £3000 and receive a larger mortgage?

Cheers

@helpme2020 Unless your father is legally obliged to make this monthly payment and it can be evidenced, I'm afraid it's very very unlikely that any lender would accept that regular gift income to boost your affordability.

jkscordini

Hi, hoping you can at least set my mind at ease. I 100% trust my broker. He’s been my broker for years. I am in the process of buying a new house, the whole chain is now waiting on me, I’ve been waiting weeks for the mortgage offer from Skipton. AIP was no problem, but the offer seems to be taking forever. I asked Skipton direct what was happening and they said they asked broker for further info. I provided my broker with the info and not had any response. Should I be worried? Is this quite standard? My broker doesn’t think there’s anything to worry about, but I am besides myself.  You probably can’t answer my question but im just asking in your experience ( my existing mortgage deal is being ported and lending extra  top with sizeable equity from my property) thanks for your time. 

K_S

@jkscordini I would trust the broker to guide you. Almost all lenders are highly stretched at the moment so long delays (especially when there's manual intervention involved or self employed income is used) are not uncommon at all. Good luck!

Gareth1985

Hi, could you advise how far back lenders take into consideration adverse credit? I'm aware it remains on file for 6 years, but some lenders criteria mention things like "no missed payments within the past 12 / 24 months", etc.

One file has only ever had 2 missed payments in the past 15 years (both 2018), whereas the other has a default accout (£335 settled Dec 2018) and various arrears and missed payments before that.

There has been no adverse credit throughout 2019 and 2020, and there will be none throughout 2021!

Will we still struggle to find a lender with this history when we apply for our first mortgage late this year / early next year?