Mortgage broker - ask me anything

ftbuk05

Hi, I need to apply for a new AIP as my salary has increased but now that I've done more research into lending criteria and which lenders accept yearly bonuses, I've narrowed down a couple lenders that I know will take my bonus into consideration. So with that said, with whom do I do my AIP? I obviously want to go for the lender that offers me the best rate however if lender X offers me Y amount but has terrible rates when I come to actually selecting my mortgage product, is there any point doing the AIP now? Or should I wait until I have a better idea re how much my property will cost and how much I will need to borrow? Or is it best to do simulations based on different scenarios in the price bracket I'm looking at and see which lenders offer me the best rate and do an AIP with one of them? To be clear, I've not found or made an offer on a property yet but have some viewings lined up.

K_S

@ftbuk05 Imho, DIPs should only be used judiciously and only when actually needed. Having one in hand is sometimes useful for qualifying offers as some Estate Agents insist on it. Multiple DIPs are rarely necessary.

But otherwise, you may be better off waiting till you have an offer accepted to narrow it down to one lender.

stocksy6

Not sure if the right forum to ask on but what advice for someone completely new to all this? Sounds so bad and I feel stupid and I also know I am nowhere near ready for a mortgage but...
I have rented since I was 18...I'm 36. Thousands upon thousands paid out in rent. Wasn't really able to save during my 20s due to personal circumstances. I probably have max a couple of grand savings and very, very slowly topping it up. Problem is rent is a higher proportion of salary so makes it difficult (appreciate this is probably a common problem!) It seems like an eternity if I was ever able to get to even the 5% deposit needed. I also appreciate there will be plenty of fees on top! Any help or advice would be appreciated so i'm not potentially renting for the rest of my life! 

lis1320

@K_S thank you for answering my previous questions.

Another query I have is regarding documents needed for a mortgage application. I read utility bills are needed, however I’m still living at home with my parents in order to save up, and only pay them £200 as rent. I don’t pay any utilities other than my phone bill. Would this be an issue? 

K_S

lis1320 said:

@K_S thank you for answering my previous questions.

Another query I have is regarding documents needed for a mortgage application. I read utility bills are needed, however I’m still living at home with my parents in order to save up, and only pay them £200 as rent. I don’t pay any utilities other than my phone bill. Would this be an issue? 

@lis1320 You may need some form of address proof, it doesn't have to be a utility bill.

K_S

stocksy6 said:

Not sure if the right forum to ask on but what advice for someone completely new to all this? Sounds so bad and I feel stupid and I also know I am nowhere near ready for a mortgage but...
I have rented since I was 18...I'm 36. Thousands upon thousands paid out in rent. Wasn't really able to save during my 20s due to personal circumstances. I probably have max a couple of grand savings and very, very slowly topping it up. Problem is rent is a higher proportion of salary so makes it difficult (appreciate this is probably a common problem!) It seems like an eternity if I was ever able to get to even the 5% deposit needed. I also appreciate there will be plenty of fees on top! Any help or advice would be appreciated so i'm not potentially renting for the rest of my life! 

@stocksy6 Limited to the mortgage aspect of it - you will need some form of deposit, even if it is a small one for a shared ownership mortgage. Or else family that can assist in some way.

MFWannabe

ftbuk05 said:

Hi, I need to apply for a new AIP as my salary has increased but now that I've done more research into lending criteria and which lenders accept yearly bonuses, I've narrowed down a couple lenders that I know will take my bonus into consideration. So with that said, with whom do I do my AIP? I obviously want to go for the lender that offers me the best rate however if lender X offers me Y amount but has terrible rates when I come to actually selecting my mortgage product, is there any point doing the AIP now? Or should I wait until I have a better idea re how much my property will cost and how much I will need to borrow? Or is it best to do simulations based on different scenarios in the price bracket I'm looking at and see which lenders offer me the best rate and do an AIP with one of them? To be clear, I've not found or made an offer on a property yet but have some viewings lined up.

Consider using a broker, they will know who to apply with based on your circumstances 

MFWannabe

stocksy6 said:

Not sure if the right forum to ask on but what advice for someone completely new to all this? Sounds so bad and I feel stupid and I also know I am nowhere near ready for a mortgage but...
I have rented since I was 18...I'm 36. Thousands upon thousands paid out in rent. Wasn't really able to save during my 20s due to personal circumstances. I probably have max a couple of grand savings and very, very slowly topping it up. Problem is rent is a higher proportion of salary so makes it difficult (appreciate this is probably a common problem!) It seems like an eternity if I was ever able to get to even the 5% deposit needed. I also appreciate there will be plenty of fees on top! Any help or advice would be appreciated so i'm not potentially renting for the rest of my life! 

Go through all credit files and make sure they’re squeaky clean and you’re on electoral register
Go through all finances and see if you can get better deals on insurances, utilities etc 
See where you can make cutbacks and stop any unnecessary spending 
Start studying the market; see what prices properties go for in your area to see what you could afford and how much deposit you will need and how much you’ll need for fees etc 
There is a House Buying section on the forum if you need to ask questions, ask as many questions as you wish x 
Good Luck 🤞 

Redwino222

Another stupid question.  My credit report is clean, I am looking at a mortgage just under three times my salary and I have a £100k deposit.  Not first time buyer.

I have no personal loans and no credit card debt.  will they look at My savings?  At my salary level I should have a lot more saved😩

K_S

Redwino222 said:

Another stupid question.  My credit report is clean, I am looking at a mortgage just under three times my salary and I have a £100k deposit.  Not first time buyer.

I have no personal loans and no credit card debt.  will they look at My savings?  At my salary level I should have a lot more saved😩

@Redwino222 Generally speaking, outside the requirement for a deposit, for the purposes of a mortgage, lenders aren't concerned about your savings or lack thereof.