Mortgage broker - ask me anything

Emmajhowe90

Hello,
Do you know if there are any mortgage providers currently offering 5.5x salary multiples at the moment? I go to providers and brokers and everyone seems to just do 5x salary multiples and barely take anything else into account! (which I always thought was an old school way of doing things these days).

We currently overpay by around double on our mortgage (on a £350k house) and have reduced the term from 35 years to 14 years in only 5 years of living here, so we are already effectively paying what the monthly payments would be on a £600k house, and we could easily afford the extra couple of hundred pounds a month it would be to move to a £650k house.

However due to the salary multiples barrier, and how much our house is likely to sell for, it looks like we'll only be able to get a £610-620k house. This is ruling out a lot of houses we're seeing which have been put on the price point of £650k, even though we can prove we already don't pay far off this monthly! Is there any way around this, or any other circumstances that providers will take into account? It sounds like salaries are the only things being looked at (which we're not really in control to change!) rather than equity, outgoings, current payments and proof of affordability from that perspective. 

TIA for your help

haras_n0sirrah

Emmajhowe90 said:

Hello,
Do you know if there are any mortgage providers currently offering 5.5x salary multiples at the moment? I go to providers and brokers and everyone seems to just do 5x salary multiples and barely take anything else into account! (which I always thought was an old school way of doing things these days).

We currently overpay by around double on our mortgage (on a £350k house) and have reduced the term from 35 years to 14 years in only 5 years of living here, so we are already effectively paying what the monthly payments would be on a £600k house, and we could easily afford the extra couple of hundred pounds a month it would be to move to a £650k house.

However due to the salary multiples barrier, and how much our house is likely to sell for, it looks like we'll only be able to get a £610-620k house. This is ruling out a lot of houses we're seeing which have been put on the price point of £650k, even though we can prove we already don't pay far off this monthly! Is there any way around this, or any other circumstances that providers will take into account? It sounds like salaries are the only things being looked at (which we're not really in control to change!) rather than equity, outgoings, current payments and proof of affordability from that perspective. 

TIA for your help

There are ways around this - cannot put on here but officially yes 5x is the maximum but may be able to get more

Emmajhowe90

haras_n0sirrah said:

Emmajhowe90 said:

Hello,
Do you know if there are any mortgage providers currently offering 5.5x salary multiples at the moment? I go to providers and brokers and everyone seems to just do 5x salary multiples and barely take anything else into account! (which I always thought was an old school way of doing things these days).

We currently overpay by around double on our mortgage (on a £350k house) and have reduced the term from 35 years to 14 years in only 5 years of living here, so we are already effectively paying what the monthly payments would be on a £600k house, and we could easily afford the extra couple of hundred pounds a month it would be to move to a £650k house.

However due to the salary multiples barrier, and how much our house is likely to sell for, it looks like we'll only be able to get a £610-620k house. This is ruling out a lot of houses we're seeing which have been put on the price point of £650k, even though we can prove we already don't pay far off this monthly! Is there any way around this, or any other circumstances that providers will take into account? It sounds like salaries are the only things being looked at (which we're not really in control to change!) rather than equity, outgoings, current payments and proof of affordability from that perspective. 

TIA for your help

There are ways around this - cannot put on here but officially yes 5x is the maximum but may be able to get more

Thank you - am I able to PM you for more details?

GN2020

Hiya,
I’m in a bit of a panic at the moment.
Full application went in for a 90% LTV Nationwide mortgage last week (18th) through a broker. 

The DIP was sent to a manual underwriter on the 11th September as I know that’s the process at the moment. 

I’m hoping that’s a good sign!? 

My partner and I are, very thankfully, both in very stable and secure employment in the public sector with a good wage each (combined total of 82k per year, gross) 

I don’t have any debts, my partner has one loan and his car on finance. 

He had a credit card of around £18k and the interest was high so he took out a loan with a much lower interest rate and paid off that credit card, hence the loan he has, which is totally manageable. 

He did have a couple of other debts so we used some savings to pay off those debts which were a credit card of around £2,300 and an authorised overdraft of a £1000 limit, so they’re both clear, gone and closed down. 

This was all disclosed to the broker of course before we even applied for the DIP, and we explained what is current and what has been paid off. 

What I’m panicking about it though, is, although we paid off his overdraft early on in August, and he doesn’t have one anymore, he was in it each month pretty much up to the limit and on one occasion a few days before it was paid off in full, he went £41 and 50 pence over the agreed limit but on that same day I transferred some money into his account (his bank called him and said if he got some more money into the account by 1pm that day he wouldn’t go overdrawn) but it shows on the statement that on the same day he went £41 over but then it was brought back under the limit straight away. I’m petrified this will show up on the credit report when it updates this month!! 

I’m panicking like no-body’s business now that NW will see that on the statement and decline the mortgage based on that and ignore all the good things we’ve got going for us. 

I’m hoping beyond all hope that they have only asked for one months bank statement (as per the usual criteria) but I’m petrified that they’ll see July’s statement and decline it immediately. 

Sorry for rambling on. 

I’ve been in contact with my broker so much recently I don’t want to pester him too much, and it’s outside of the working hours now. 

What are your thoughts on this please? 

Thank you in advance. 

haras_n0sirrah

GN2020 said:

Hiya,
I’m in a bit of a panic at the moment.
Full application went in for a 90% LTV Nationwide mortgage last week (18th) through a broker. 

The DIP was sent to a manual underwriter on the 11th September as I know that’s the process at the moment. 

I’m hoping that’s a good sign!? 

My partner and I are, very thankfully, both in very stable and secure employment in the public sector with a good wage each (combined total of 82k per year, gross) 

I don’t have any debts, my partner has one loan and his car on finance. 

He had a credit card of around £18k and the interest was high so he took out a loan with a much lower interest rate and paid off that credit card, hence the loan he has, which is totally manageable. 

He did have a couple of other debts so we used some savings to pay off those debts which were a credit card of around £2,300 and an authorised overdraft of a £1000 limit, so they’re both clear, gone and closed down. 

This was all disclosed to the broker of course before we even applied for the DIP, and we explained what is current and what has been paid off. 

What I’m panicking about it though, is, although we paid off his overdraft early on in August, and he doesn’t have one anymore, he was in it each month pretty much up to the limit and on one occasion a few days before it was paid off in full, he went £41 and 50 pence over the agreed limit but on that same day I transferred some money into his account (his bank called him and said if he got some more money into the account by 1pm that day he wouldn’t go overdrawn) but it shows on the statement that on the same day he went £41 over but then it was brought back under the limit straight away. I’m petrified this will show up on the credit report when it updates this month!! 

I’m panicking like no-body’s business now that NW will see that on the statement and decline the mortgage based on that and ignore all the good things we’ve got going for us. 

I’m hoping beyond all hope that they have only asked for one months bank statement (as per the usual criteria) but I’m petrified that they’ll see July’s statement and decline it immediately. 

Sorry for rambling on. 

I’ve been in contact with my broker so much recently I don’t want to pester him too much, and it’s outside of the working hours now. 

What are your thoughts on this please? 

Thank you in advance. 

I would say dont panic. If you are within your overdraft limit i dont think this will be too much of an issue 

GN2020

haras_n0sirrah said:

GN2020 said:

Hiya,
I’m in a bit of a panic at the moment.
Full application went in for a 90% LTV Nationwide mortgage last week (18th) through a broker. 

The DIP was sent to a manual underwriter on the 11th September as I know that’s the process at the moment. 

I’m hoping that’s a good sign!? 

My partner and I are, very thankfully, both in very stable and secure employment in the public sector with a good wage each (combined total of 82k per year, gross) 

I don’t have any debts, my partner has one loan and his car on finance. 

He had a credit card of around £18k and the interest was high so he took out a loan with a much lower interest rate and paid off that credit card, hence the loan he has, which is totally manageable. 

He did have a couple of other debts so we used some savings to pay off those debts which were a credit card of around £2,300 and an authorised overdraft of a £1000 limit, so they’re both clear, gone and closed down. 

This was all disclosed to the broker of course before we even applied for the DIP, and we explained what is current and what has been paid off. 

What I’m panicking about it though, is, although we paid off his overdraft early on in August, and he doesn’t have one anymore, he was in it each month pretty much up to the limit and on one occasion a few days before it was paid off in full, he went £41 and 50 pence over the agreed limit but on that same day I transferred some money into his account (his bank called him and said if he got some more money into the account by 1pm that day he wouldn’t go overdrawn) but it shows on the statement that on the same day he went £41 over but then it was brought back under the limit straight away. I’m petrified this will show up on the credit report when it updates this month!! 

I’m panicking like no-body’s business now that NW will see that on the statement and decline the mortgage based on that and ignore all the good things we’ve got going for us. 

I’m hoping beyond all hope that they have only asked for one months bank statement (as per the usual criteria) but I’m petrified that they’ll see July’s statement and decline it immediately. 

Sorry for rambling on. 

I’ve been in contact with my broker so much recently I don’t want to pester him too much, and it’s outside of the working hours now. 

What are your thoughts on this please? 

Thank you in advance. 

I would say dont panic. If you are within your overdraft limit i dont think this will be too much of an issue 

Thank you for replying so quickly! 

It was the £41 going over the actual agreed limit that tipped me over the edge today. 

Do you think because it’s such a small amount and nothing extreme, that will be ok? Even though the bank said the agreed limit was £1000 and he ended up going to £1041? 

Sorry for all the questions, I just thought that any amount over the agreed limit was a definite no no. 

haras_n0sirrah

I don't think it will be a killer - it is a small amount and a 1 off
If it were habitual it would be more of an issue. 

GN2020

haras_n0sirrah said:

I don't think it will be a killer - it is a small amount and a 1 off
If it were habitual it would be more of an issue. 

Just going off your experience, could it put a spanner in the works at all? As in, prepare to be grilled about it? 

moz86

Great thread, thanks!

I have a scenario, and I appreciate it's a fortunate position to be in, so please no urgency, just a bit of a brain twister: Our house is worth 670k, we have 345k outstanding on two mortgages.  One of the mortgages ported over from our old house is fixed until Oct 2023 (1.99%), and the other is fixed until 2024 (1.89%).

We are looking to extend the house, and we have all the money we need for the project, however, I am thinking we could leave two of our ISA's intact in S&S and take a third mortgage for 40-50k instead at around 1.74% interest.

If we take out a third mortgage with our current provider they only do 2 year or 5 year fixes at the moment, meaning we have 3 mortgages all out of sync on their fixing period. (2023, 2024, 2025).

We could alternatively move our two mortgages over to the cheapest provider and take out an extra 50k at the same time (Halifax @ 1.29% 5yr fixed on 60% LTV) and paying early repayment charges (about 7k) be 1200 out of pocket based on the next 5 years because of the cheaper rate but then just have one clean mortgage to sort out.

Could we have two different lenders and take the 50k out with another provider (Halifax?)

Any suggestions on anything I'm missing, or another option entirely? 

haras_n0sirrah

moz86 said:

Great thread, thanks!

I have a scenario, and I appreciate it's a fortunate position to be in, so please no urgency, just a bit of a brain twister: Our house is worth 670k, we have 345k outstanding on two mortgages.  One of the mortgages ported over from our old house is fixed until Oct 2023 (1.99%), and the other is fixed until 2024 (1.89%).

We are looking to extend the house, and we have all the money we need for the project, however, I am thinking we could leave two of our ISA's intact in S&S and take a third mortgage for 40-50k instead at around 1.74% interest.

If we take out a third mortgage with our current provider they only do 2 year or 5 year fixes at the moment, meaning we have 3 mortgages all out of sync on their fixing period. (2023, 2024, 2025).

We could alternatively move our two mortgages over to the cheapest provider and take out an extra 50k at the same time (Halifax @ 1.29% 5yr fixed on 60% LTV) and paying early repayment charges (about 7k) be 1200 out of pocket based on the next 5 years because of the cheaper rate but then just have one clean mortgage to sort out.

Could we have two different lenders and take the 50k out with another provider (Halifax?)

Any suggestions on anything I'm missing, or another option entirely? 

Who is your current lender?