Mortgage broker - ask me anything

K_S

angelkay said:

Hi
My husband and have a joint income of £61k, he has £350 on a credit card with a 2k limit, and 10k loan with a 5 year term that has just under 4 years left to run, i have no loans and a credit card with a limit of 4k with £2,600 on it to pay. We have no other loans or credit  no bad credit history of late or unpaid bills. 
Neither of us have been affected by furlough as we are both health n social care workers. We have 3 children. 2 live with us as their dad pays maintenence of £600 per month and step son stays with his mum and child maintenece paid out  is £240
We have found a house we love at £160k and have saved over a 10% deposit (currently we have saved 20k)  Is it likely we can get a 90% mortgage on the above? We could save more to get a 15% deposit but this would take appox 3/4 months more (making sure we will have enough to also cover solicitors fees and movung costs) but we are worried that the house will have been sold by then and my huband will then have turned 46 (im 42) 
I just dont want to get too excited if its not a possibility right now. And we know to save for an extra few months crossing everything that the house will still be on the market 
I know you cant give me a definate yes/no but it would deffo give me an idea if the stress or applying  is going to be worth it if a mortgage is a possibility  
Many thanks in advance for any replies

@angelkay Based on the limited info in your post, it should be fairly straightfoward for you to be able to meet affordability for a 140k mortgage. Whether you'll qualify for a 90% LTV product will also depend on credit scoring but as long as your credit history is clean you stand a good chance. If you can wait till you have a 15% deposit, the market will open up a whole and become significantly less expensive.

When it's time to buy I would recommend getting in touch with a broker who can look at the whole circumstances and recommend an appropriate product and lender for your circumstances. Good luck!

Shoppadolley

Hello!

Do you know how much notice Accord need to provide mortgage funds?

Thanks

K_S

Shoppadolley said:

Hello!
Do you know how much notice Accord need to provide mortgage funds?
Thanks

@shoppadolley I don't know about Accord specifically but generally speaking it's 3-5 working days notice for mainstream lenders.

angelkay

Thanks ks much appreciated  

BjB

Hey,

Are 5% shared ownership mortgages available right now through brokers? As every home advert I see still seems to state this.

Also, I have a vehicle lease of £185pm which ends later this year. Declaring this on mortgage affordability calculators drastically reduces the amount they will lend me. The thing is, the lease doesn’t show on any of my credit reports, and I won’t be leasing again when it’s over. Can this be overlooked if I apply before the lease is over? Do I need to declare it?

Thanks!

Trigosi

I had a mortgage offer from HSBC 10 days ago and today I find out that it’s been declined. Does this happen very often? I have no information as to why it’s been declined and unsure how to proceed.

K_S

Trigosi said:

I had a mortgage offer from HSBC 10 days ago and today I find out that it’s been declined. Does this happen very often? I have no information as to why it’s been declined and unsure how to proceed.

@trigosi No it doesn't happen very often. Are you using a broker, did they give you any indication at all as to the reason?

Cris872

K_S said:

Cris872 said:

I'm planning to apply for a mortgage in around 1-2 years time. I'll also like to make a product purchase using paypal credit, which will give me the possibility of repaying the loan in either 12 or 24 fixed monthly payments with 0% APR. My question is if this kind of credit will affect my mortgage application in any way, as i know that sometimes BNPL schemes are being flagged in people's mortgage applications. Thank you

@chris872 I can't recall ever having come across Paypal credit on my clients' bank statements or credit reports so can't comment on that specifically. Hopefully someone else who has will comment.

I couldn't find much info on it myself, probably because PayPal credit is still not widely used in the UK. 
I'll try to ask different: Does having an ongoing monthly installment for a purchase on your credit history can affect your mortgage application? Something like ao finance or Currys finance, as I find their terms to be a bit similar to the one I'm planning to use.

Trigosi

K_S said:

Trigosi said:

I had a mortgage offer from HSBC 10 days ago and today I find out that it’s been declined. Does this happen very often? I have no information as to why it’s been declined and unsure how to proceed.

@trigosi No it doesn't happen very often. Are you using a broker, did they give you any indication at all as to the reason?

Yeah, I used a mortgage broker and he said that there was no indication as to why HSBC have now declined. 
Cliffs:
First time buyers and a joint application with my partner who has been employed by my company since April 2020. She started on 18k as it was just when the Covid started and increased to 30k in Sept when we had a clearer idea of work. In her 2018-2019 financial year, there were gaps in her employment due to personal issues, re training etc. 
1st Application with Accord 10% LTV was rejected as they were not happy with her salary increase
2nd Application with HSBC 15% LTV mortgage offered, paperwork received and declined 10 days later.

If the application has got this far and something has flagged it at this stage, is there any point trying to apply with someone else?

I appreciate your time to answer in advance.

K_S

@trigosi Assuming that the loan size requires your partner to earn 30k, they probably are worried that the partner's salary is artificially inflated for the purpose of a mortgage because she's working for your company. Or the plausibility of the job itself.

As I don't have the whole picture, I can't say for sure whether there's any point in applying again now, but generally speaking if you need her pay to be taken at 30k, I would recommend waiting till she's been earning that amount for at least 6 months.