Mortgage broker - ask me anything

lpscrl

K_S said:

lpscrl said:

Hello,

We have our current mortgage with Nationwide so we will be looking to port our current mortgage over to eliminate any Early Repayment Charges. With this in mind, we obtained a Decision in Principle (albeit deferred) for our requested amount £261,000.00, based on a combined income of £69k.

All seems fairly straight forward at the minute but my concern and worry comes from the fact my partner had significant debt across a loan and credit cards (c.£17k) and I have paid over £10k off these over the past week to reduce the debt ready for the mortgage application, as I included within the Decision in Principle. (the first DIP was rejected with current levels of debt).

I understand when applying for a mortgage application, Nationwide look at the maximum debt in the past 4 weeks and what the debt will be when the mortgage starts but I can’t help but worry it is all too late in terms of clearing the debt etc.

Any help would be appreciated.

Thanks.

@lpscrl What was the DIP referred for? And what did Nationwide ask for before they gave you an Accept on the DIP?

They didn't ask for everything to approve the DIP, the status went from Refer to Approved overnight with no documents issued. They stipulated that as part of the Mortgage Application they requested sight 1 months payslips and 3 months bank statements.

trackboy

Hi to all brokers who can help me. My base salary is 51k PA but because I am shift worker working on railway we get sunday allowance for working which pushes my income further plus we always get to do overtime which can prove to be 85k PA. Do we have any lender that will accept that without full year. I can prove it on my last 3 payslip if not 3 I can wait anothet 2 months and provide 5 payslips to prove that. 
I am looking to get atleast 380k to 385k from lender. I have no debt credit history spot on. Only thing I pay for is student loan which is calculated automatically. 

K_S

lpscrl said:

K_S said:

lpscrl said:

Hello,

We have our current mortgage with Nationwide so we will be looking to port our current mortgage over to eliminate any Early Repayment Charges. With this in mind, we obtained a Decision in Principle (albeit deferred) for our requested amount £261,000.00, based on a combined income of £69k.

All seems fairly straight forward at the minute but my concern and worry comes from the fact my partner had significant debt across a loan and credit cards (c.£17k) and I have paid over £10k off these over the past week to reduce the debt ready for the mortgage application, as I included within the Decision in Principle. (the first DIP was rejected with current levels of debt).

I understand when applying for a mortgage application, Nationwide look at the maximum debt in the past 4 weeks and what the debt will be when the mortgage starts but I can’t help but worry it is all too late in terms of clearing the debt etc.

Any help would be appreciated.

Thanks.

@lpscrl What was the DIP referred for? And what did Nationwide ask for before they gave you an Accept on the DIP?

They didn't ask for everything to approve the DIP, the status went from Refer to Approved overnight with no documents issued. They stipulated that as part of the Mortgage Application they requested sight 1 months payslips and 3 months bank statements.

@lpscrl I don't know what a direct DIP looks like. But as long as you've keyed in the data correctly and got a DIP accept, it's positive for now. Nothing more you can do.

If the debt is picked up at manual underwriting, there may be more questions but you can cross that bridge when you come to it. In the grand scheme of things, 17k debt isn't hugely excessive with an income of 69k and I wouldn't ordinarily expect this to be queried (unless it's a 90% LTV app) or a showstopper.

lpscrl

K_S said:

lpscrl said:

K_S said:

lpscrl said:

Hello,

We have our current mortgage with Nationwide so we will be looking to port our current mortgage over to eliminate any Early Repayment Charges. With this in mind, we obtained a Decision in Principle (albeit deferred) for our requested amount £261,000.00, based on a combined income of £69k.

All seems fairly straight forward at the minute but my concern and worry comes from the fact my partner had significant debt across a loan and credit cards (c.£17k) and I have paid over £10k off these over the past week to reduce the debt ready for the mortgage application, as I included within the Decision in Principle. (the first DIP was rejected with current levels of debt).

I understand when applying for a mortgage application, Nationwide look at the maximum debt in the past 4 weeks and what the debt will be when the mortgage starts but I can’t help but worry it is all too late in terms of clearing the debt etc.

Any help would be appreciated.

Thanks.

@lpscrl What was the DIP referred for? And what did Nationwide ask for before they gave you an Accept on the DIP?

They didn't ask for everything to approve the DIP, the status went from Refer to Approved overnight with no documents issued. They stipulated that as part of the Mortgage Application they requested sight 1 months payslips and 3 months bank statements.

@lpscrl I don't know what a direct DIP looks like. But as long as you've keyed in the data correctly and got a DIP accept, it's positive for now. Nothing more you can do.

If the debt is picked up at manual underwriting, there may be more questions but you can cross that bridge when you come to it. In the grand scheme of things, 17k debt isn't hugely excessive with an income of 69k and I wouldn't ordinarily expect this to be queried (unless it's a 90% LTV app) or a showstopper.

Fingers crossed. Thanks for your insight.

K_S

trackboy said:

Hi to all brokers who can help me. My base salary is 51k PA but because I am shift worker working on railway we get sunday allowance for working which pushes my income further plus we always get to do overtime which can prove to be 85k PA. Do we have any lender that will accept that without full year. I can prove it on my last 3 payslip if not 3 I can wait anothet 2 months and provide 5 payslips to prove that. 
I am looking to get atleast 380k to 385k from lender. I have no debt credit history spot on. Only thing I pay for is student loan which is calculated automatically.

@trackboy With only 3 months of history (and no P60), most lenders will only consider 50-60% of the OT unfortunately.

There are a couple of lender who *may* consider taking at 100% if it's a strong case and at low LTV. But these won't be high-street rates. What LTV are you looking at?

trackboy

K_S said:

trackboy said:

Hi to all brokers who can help me. My base salary is 51k PA but because I am shift worker working on railway we get sunday allowance for working which pushes my income further plus we always get to do overtime which can prove to be 85k PA. Do we have any lender that will accept that without full year. I can prove it on my last 3 payslip if not 3 I can wait anothet 2 months and provide 5 payslips to prove that. 
I am looking to get atleast 380k to 385k from lender. I have no debt credit history spot on. Only thing I pay for is student loan which is calculated automatically.

@trackboy With only 3 months of history (and no P60), most lenders will only consider 50-60% of the OT unfortunately.

There are a couple of lender who *may* consider taking at 100% if it's a strong case and at low LTV. But these won't be high-street rates. What LTV are you looking at?

I am looking at 85% LTV. My experian credit score is 999 I don't if that means anything to lenders. What are the interest rate I am looking for?

K_S

trackboy said:

K_S said:

trackboy said:

Hi to all brokers who can help me. My base salary is 51k PA but because I am shift worker working on railway we get sunday allowance for working which pushes my income further plus we always get to do overtime which can prove to be 85k PA. Do we have any lender that will accept that without full year. I can prove it on my last 3 payslip if not 3 I can wait anothet 2 months and provide 5 payslips to prove that. 
I am looking to get atleast 380k to 385k from lender. I have no debt credit history spot on. Only thing I pay for is student loan which is calculated automatically.

@trackboy With only 3 months of history (and no P60), most lenders will only consider 50-60% of the OT unfortunately.

There are a couple of lender who *may* consider taking at 100% if it's a strong case and at low LTV. But these won't be high-street rates. What LTV are you looking at?

I am looking at 85% LTV. My experian credit score is 999 I don't if that means anything to lenders. What are the interest rate I am looking for?

@trackboy

- 85% LTV is good. That means you *may* get 4.75x income (or potentially 5-5.5x if you are a qualified professional in the railway such as an Engineer)

- Lenders don't use the Experian credit score. As long your credit history is clean, contains accurate details, with no more than reasonable levels of debt, that part should be ok.

- As things stand, you will likely struggle to borrow more than 4.75x of the sum of : 100% of basic, 100% of Sunday allowance, 50-60% of consistent OT over last 3 months. Does that get you to 385k?

- For those few lenders who *may* consider taking 100% of your OT without a P60, the rates for 85% LTV is 4.5% upwards.

SpencerH

We have an application in with NatWest. Have all docs submitted bar my payslip. I was waiting for my latest payslip as I left the workplace childcare voucher salary sacrifice scheme which was costing £243 per month. However I’ve just discovered payroll have made the deduction regardless despite assurances it would not be on my March payslip. I’m trying to find out if it can be refunded, but if not, would NatWest accept anything from my employer along with the payslip admitting the mistake and confirming there would be no further payments? Obviously it’s a big dent in affordability and I’m pretty devastated at the !!!!!! up.

boringgit

Hi, I have a mortgage with about 10 years left on it but thanks to overpayments since interest rates have been low I now have a relatively small amount left which I could pay off with savings. Savings are earning no interest and I would still have a few quid for a contingency.
However, we live in a small flat and need to move - I have some idea that having a mortgage is a good thing for your credit rating so I need to make sure not to pay it off before applying for a new one in order to move?

Advice appreciated!
Thanks

K_S

@boringgit Imho, it won't make any material difference to your chances of getting a mortgage when you move.