Mortgage broker - ask me anything

Mark_1986

We want to buy a new build house which won't be completed until beginning of next year, but looking to exchange contracts around June/July. Will I need to prove that I have sufficient funds for Stamp Duty (£18k approx.) at the time of exchange?

K_S

coxsimon said:

My wife can afford the repayments as sole applicant. Problem has been lenders are reluctant to have my mother in laws name on mortgage due to her age. Are there lenders for whom age is not an issue?

@coxsimon There are lenders who *may* consider it, but it will depend on the details and the numbers stacking up. You're unlikely to get mainstream rates though.

K_S

Mark_1986 said:

We want to buy a new build house which won't be completed until beginning of next year, but looking to exchange contracts around June/July. Will I need to prove that I have sufficient funds for Stamp Duty (£18k approx.) at the time of exchange?

@mark_1986 From my experience, no.

K_S

Lummoxley said:

Hi, firstly, thanks to contributing Mortgage Brokers for helping us laymen. 
My question is; I have a mortgage which is about 40% LTV and want to borrow £75k which would bring the LTV up to 55%. The money would be gifted to help a friend. What purpose should I say to my lender i.e. would this be a valid reason or would I have to fabricate another purpose?   

@lummoxley You shouldn't fabricate a reason, that is mortgage fraud. There are lenders who allow you to capital raise for any reason except for certain specific ones. If you are tied to the current lender, they will only permit capital raising for the reasons they permit as per policy.

K_S

Bjdp said:

I am looking buy around Aug when some money is released from a share of property. I am interested on the kind of property I would be able to afford before looking. My deposit would be £30k my salary is £26,500 plus I have a self employed job also for 2 years with last years income £8k. Would my self employed income be taken into account on mortgage applications? And is this based on profit or income Any? Any help much appreciated. 

@bjdp

- Whether or not your SE income will be considered depends on what evidence you can provide and which lender it is. It's usually based on net profit figures.

- Very roughly speaking, assuming you have no excessive debt or financial commitments, roughly speaking you can expect to be able to borrow a max of around 4.5-4.75x your income. Potentially 5x at low LTVs. To get a more realistic/accurate figure, you could consider talking to a broker.

James-may

I'm looking at buying, Ill have around 4500 to 6000 saved by 1st may depending on bonuses.
Looking at buying somewhere between 70k-90k.
I'm hoping to use the new scheme announces for 5%.
I earn 23k pa before tax and not including bonuses (last year got 6k after tax)
Does the affordability calculator work on house Cost or the total cost after interest is added?
Also I had a dro in April 2015 and should drop off my file around may, should I wait til that drops off or would it being 6 years ago make a huge difference.
Equifax says my credit is fair/good, I'd guess that's because it had the dro ccj on it.
Thanks for any advice.

Penguin_

K_S said:

Penguin_ said:

My current 5 year fixed with Natwest ends on the 30th June & as per what I can see on my online account, I am eligible to switch 3 & 1/2 months prior to this which would be on or around the 16th March. My question is, if I switch on the 16th to a better deal (which given my current interest rate it will be!!) does it take effect from then or would it be on the first payment after the 30th June?

@penguin_ Off of the top of my head, Natwest PTs take will effect only when the current deal ends, so from 1st July.

NatWest used to do differential pricing (cheaper switch rates through brokers than direct) so do check that out as well before going ahead https://www.intermediary.natwest.com/content/dam/natwest_com/Intermediary/NWIS_Rates/20210302NWISExistingCustomerSRV01.00.pdf

Most brokers don't charge for carrying out switches and the process is the same as, no affordability checks, credit checks, etc.

My LTC has just dropped, due to Natwest revaluing my property, to 67% from 73%. Do I assume then that I would be looking at the 70% band in the link you very kindly provided me?

K_S

Penguin_ said:

K_S said:

Penguin_ said:

My current 5 year fixed with Natwest ends on the 30th June & as per what I can see on my online account, I am eligible to switch 3 & 1/2 months prior to this which would be on or around the 16th March. My question is, if I switch on the 16th to a better deal (which given my current interest rate it will be!!) does it take effect from then or would it be on the first payment after the 30th June?

@penguin_ Off of the top of my head, Natwest PTs take will effect only when the current deal ends, so from 1st July.

NatWest used to do differential pricing (cheaper switch rates through brokers than direct) so do check that out as well before going ahead https://www.intermediary.natwest.com/content/dam/natwest_com/Intermediary/NWIS_Rates/20210302NWISExistingCustomerSRV01.00.pdf

Most brokers don't charge for carrying out switches and the process is the same as, no affordability checks, credit checks, etc.

My LTC has just dropped, due to Natwest revaluing my property, to 67% from 73%. Do I assume then that I would be looking at the 70% band in the link you very kindly provided me?

@penguin_ That is correct.

Pepod

My wife and I are looking to move but are both on some form of furlough. She is furloughed one day a week out of 5 and I am completely furloughed. My employer is topping up my salary and neither of our jobs are at risk, but neither employer would be able to commit to a date to return to completely 'unfurlough' us. Is this a non starter or is it possible but with reduced choice/increased difficulty?

K_S

Pepod said:

My wife and I are looking to move but are both on some form of furlough. She is furloughed one day a week out of 5 and I am completely furloughed. My employer is topping up my salary and neither of our jobs are at risk, but neither employer would be able to commit to a date to return to completely 'unfurlough' us. Is this a non starter or is it possible but with reduced choice/increased difficulty?

@pepod On the face of it, it doesn't look like a non-starter but that will depend on the details, the numbers and how much you need to borrow.