Mortgage broker - ask me anything

K_S

cosh25 said:

Well the last time I posted I was furloughed at the start of the November lockdown. I went back to work on Monday, full time (actually doing overtime this weekend!). I won’t get my first full months pay until Feb as this months will be a small furlough and rest full salary. I have seen a house I like and have my deposit I’m just wondering how lenders are at the moment with payslips as my previous 2 will be just furlough. Will I need anything extra or is it just a no go at the moment? TIA

@cosh25 Your widest choice of lenders/rates will be if you can wait for your full Feb payslip. You should still have options with just the Jan payslip now that you've rejoined full time.

fizzgog

Cris872 said:

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.

I have Paypal Credit on my credit file with approx £800 balance .... and I pay it monthly with my Debit card, around about £80 per month. It was not queried by broker or bank and received mortgage offer last week.

Smifthy1234

Hi!!

Sorry in advance, probably bit a complicated one here…

I have inherited a property in Spain (around £70k value) and money 10K of which I’d like to use for a deposit. Ideally, I’d like to rent out the Spanish property and buy our first property in the UK. I have two questions: 1) is there a way I can use some of the equity in in the Spanish property to use towards a deposit / mortgage here? 2) Am I no longer considered a first time buyer in the UK and therefore lose any related incentives?

We were looking at properties in the UK around the £110k – £130k region.

My income is £26k, no debts, clean credit history. Have been in the same role for 4+ yrs. We are currently renting (£615 per month) and have been in the same property for 15 yrs. We have a two year old daughter.

I understand that’s probably quite a brief description, but my 3rd question was also are we also likely to get approved for a mortgage based on the above?

Many thanks in advance.

K_S

@smifthy1234

1) There might be specialist lenders (in the UK or Spain) to release equity from the Spanish property but its likely to be a costly endavour.

2) Afaik, you are no longer an FTB as per the government definition as it's "an individual who has never owned an interest in a residential property in the UKingdom or anywhere else in the world" so you probably aren't eligible for schemes such as Help2Buy, etc. and liable to pay the 3% (assuming England) stamp duty surcharge.

Going by the limited info in your post and the numbers you've shared, you *should* be able to borrow in the region of 100-110k. But with a 10% deposit, at present the choice of lenders/products will be limited.

lf93

Currently in the process of applying with Newcastle Building Society - valuation done, hard search on 31/12 and it is now with underwriter. 

They asked for employer references, and had a bit of an issue with mine - I work in healthcare and the way my pay is structured is I have 'basic pay' plus 'enhancements' for nights/weekends/out of hours. Apparently my HR contact said this was not 'guaranteed'. Which is funny because last time I checked my nights weren't optional, ha...! So I spoke to someone in HR and apparently according to Newcastle BS if this is termed a 'shift allowance' they will approve it, rather than 'overtime' (which it isn't).

Obviously I am not allowed to see the reference form so I don't alter it in some way. HR have said they have redone it and sent some sort of covering letter. Now I'm worried that because of the wording Newcastle BS will reject it and decline our application. 

Any advice on this matter? 

K_S

@lf93 Unfortunately, it's one of those things which are subject to what your HR has said and how the underwriter interprets it. You've done all you can.

Your colleague was right, Newcastle takes guaranteed shift-allowance at 100%.

lf93

K_S said:

@lf93 Unfortunately, it's one of those things which are subject to what your HR has said and how the underwriter interprets it. You've done all you can.

Your colleague was right, Newcastle takes guaranteed shift-allowance at 100%.

Fingers crossed whatever they have sent is enough. Our broker said this happens with some lenders and their interpretation of our pay structure. 

Am I right in thinking if we have to go for another lender, we start the application process from scratch and have to pay another valuation survey plus application fee...? 

IAMIAM

Are there any buy to let lenders who do 75% LTV or maybe 80% LTV interest only, with option to switch between interest and repayment when wanted? Also does it make a difference if you have a BTL mortgage and return to Iive in the property for a while (12-18 months) then return to letting it out in terms of the lenders view and being on a BTL Mortgage vs Residential?

K_S

lf93 said:

K_S said:

@lf93 Unfortunately, it's one of those things which are subject to what your HR has said and how the underwriter interprets it. You've done all you can.

Your colleague was right, Newcastle takes guaranteed shift-allowance at 100%.

Fingers crossed whatever they have sent is enough. Our broker said this happens with some lenders and their interpretation of our pay structure. 

Am I right in thinking if we have to go for another lender, we start the application process from scratch and have to pay another valuation survey plus application fee...? 

@lf93 Yes, if you go with another lender you'll have to pay a val fee (if there is one) and a product fee if it comes with one.

Generally speaking I always recommend to my clients that they add the product fee (if any) to the loan and if they want to, pay it off on day 1 post completion.

K_S

IAMIAM said:

Are there any buy to let lenders who do 75% LTV or maybe 80% LTV interest only, with option to switch between interest and repayment when wanted? Also does it make a difference if you have a BTL mortgage and return to Iive in the property for a while (12-18 months) then return to letting it out in terms of the lenders view and being on a BTL Mortgage vs Residential?

@iamiam I don't know of any lenders who offer a seamless option to switch between i/o and repayment. 

Under the terms of a BTL mortgage, you're not supposed to occupy the property. But assuming we're talking about BTL properties in your personal name (not ltd co), you can remortgage to resi if you need to move back in.