Mortgage broker - ask me anything

K_S

sunshune said:

Hi, I hope someone can help. I’ve had my ltd for just over a year and I’m due to have my accountant file my year account and complete a SA03 as I want to buy a house. I was impacted by covid but now have contracts in place, earning upwards of £80k. I also work through an umbrella company as a consultant ( I receive payslips) giving me a bit more money monthly.
My questions are, I would like to apply for a mortgage. Will I be able to use the figures from the umbrella company and those from the LTD? Do I need 2 years accounts or is there a lender that will go by what I have at the moment.
Also, what is the criteria for an interest only mortgage?
thank you in advance 

@sunshune

- There are lenders who may consider applicants with only 1 full year's accounts (some may need an accountant's projection for current year) and have been trading for less than 2 years.

- If you had been working in the same field prior to starting the ltd.co., that's a big positive

- you *may* be able to use the consultant income as well, it'll depend on the specifics

- interest only criteria differs from lender to lender but you will likely need a minimum 25% deposit and meet a lot of other qualifying criteria as well. you can get a general idea in this post here

K_S said:

I don't do a lot of IO or part-and-part (part IO and part repayment) mortgages, perhaps one every 1 or 2 months or so on average. The "wealthy" who get them often do so because they have far more productive places to use the money than paying down a sub 1.5% mortgage. 
We don't make the rules. Generally speaking, as per the lender criteria in the market for IO resi mortgages, it is aimed at 
- people who can afford to borrow the same amount on a capital repayment basis

- high income (usually 75k single or 100k joint)

- have an existing, viable repayment vehicle such as another mortgage-free property, a large pension, etc.
- who are buying a property at the higher end of the market and so will have a high £££ equity in the property 
So to sum up, you usually can get an IO mortgage only if you can prove that you absolutely don't need one

sunshune

K_S said:

sunshune said:

Hi, I hope someone can help. I’ve had my ltd for just over a year and I’m due to have my accountant file my year account and complete a SA03 as I want to buy a house. I was impacted by covid but now have contracts in place, earning upwards of £80k. I also work through an umbrella company as a consultant ( I receive payslips) giving me a bit more money monthly.
My questions are, I would like to apply for a mortgage. Will I be able to use the figures from the umbrella company and those from the LTD? Do I need 2 years accounts or is there a lender that will go by what I have at the moment.
Also, what is the criteria for an interest only mortgage?
thank you in advance 

@sunshune

- There are lenders who may consider applicants with only 1 full year's accounts (some may need an accountant's projection for current year) and have been trading for less than 2 years.

- If you had been working in the same field prior to starting the ltd.co., that's a big positive

- you *may* be able to use the consultant income as well, it'll depend on the specifics

- interest only criteria differs from lender to lender but you will likely need a minimum 25% deposit and meet a lot of other qualifying criteria as well. you can get a general idea in this post here

K_S said:

I don't do a lot of IO or part-and-part (part IO and part repayment) mortgages, perhaps one every 1 or 2 months or so on average. The "wealthy" who get them often do so because they have far more productive places to use the money than paying down a sub 1.5% mortgage. 
We don't make the rules. Generally speaking, as per the lender criteria in the market for IO resi mortgages, it is aimed at 
- people who can afford to borrow the same amount on a capital repayment basis

- high income (usually 75k single or 100k joint)

- have an existing, viable repayment vehicle such as another mortgage-free property, a large pension, etc.
- who are buying a property at the higher end of the market and so will have a high £££ equity in the property 
So to sum up, you usually can get an IO mortgage only if you can prove that you absolutely don't need one

Thank you both, that is very helpful. Sounds like IO is out of the question, which is a shame.

I was told that the payslips from an umbrella company can always be used as proof of income as I am employed, is that not the case?

What’s the best way to find brokers? Are there certain criteria’s I should be looking for? Someone mentioned trinity to me but they look like they deal with million pound plus properties.

 I understand you both are but are unable to provide your details as it’s classed as advertising.

thanks

Firsttime2021

We’ve just had our broker say our mortgage with Santander has been agreed and to hopefully be in receipt of offer in the next few days. Does this mean it’s been approved but hasn’t been t the mortgage process centre yet and they are sending the offer out in the post? Thanks 

ukri

sunshune said:

K_S said:

sunshune said:

Hi, I hope someone can help. I’ve had my ltd for just over a year and I’m due to have my accountant file my year account and complete a SA03 as I want to buy a house. I was impacted by covid but now have contracts in place, earning upwards of £80k. I also work through an umbrella company as a consultant ( I receive payslips) giving me a bit more money monthly.
My questions are, I would like to apply for a mortgage. Will I be able to use the figures from the umbrella company and those from the LTD? Do I need 2 years accounts or is there a lender that will go by what I have at the moment.
Also, what is the criteria for an interest only mortgage?
thank you in advance 

@sunshune

- There are lenders who may consider applicants with only 1 full year's accounts (some may need an accountant's projection for current year) and have been trading for less than 2 years.

- If you had been working in the same field prior to starting the ltd.co., that's a big positive

- you *may* be able to use the consultant income as well, it'll depend on the specifics

- interest only criteria differs from lender to lender but you will likely need a minimum 25% deposit and meet a lot of other qualifying criteria as well. you can get a general idea in this post here

K_S said:

I don't do a lot of IO or part-and-part (part IO and part repayment) mortgages, perhaps one every 1 or 2 months or so on average. The "wealthy" who get them often do so because they have far more productive places to use the money than paying down a sub 1.5% mortgage. 
We don't make the rules. Generally speaking, as per the lender criteria in the market for IO resi mortgages, it is aimed at 
- people who can afford to borrow the same amount on a capital repayment basis

- high income (usually 75k single or 100k joint)

- have an existing, viable repayment vehicle such as another mortgage-free property, a large pension, etc.
- who are buying a property at the higher end of the market and so will have a high £££ equity in the property 
So to sum up, you usually can get an IO mortgage only if you can prove that you absolutely don't need one

Thank you both, that is very helpful. Sounds like IO is out of the question, which is a shame.

I was told that the payslips from an umbrella company can always be used as proof of income as I am employed, is that not the case?

What’s the best way to find brokers? Are there certain criteria’s I should be looking for? Someone mentioned trinity to me but they look like they deal with million pound plus properties.

 I understand you both are but are unable to provide your details as it’s classed as advertising.

thanks

They can’t advertise but you can direct message them if you want to use them.

JD88

Hi - Hoping you can provide some guidance.

We have a current mortgage with Natwest and are currently looking to move home. When enquiring with Natwest for the further lending, they've confirmed they'd reject us due to a settled CCJ on my file.

The CCJ was registered and settled last year but outside of the 30 day limit. I'm currently working on getting the CCJ removed due to never receiving the notice.

In the meantime, our MB is working on getting an AIP with Halifax. Have you had any experience with them in terms of approving a mortgage with a settled CCJ?

Thanks 

K_S

JD88 said:

Hi - Hoping you can provide some guidance.
We have a current mortgage with Natwest and are currently looking to move home. When enquiring with Natwest for the further lending, they've confirmed they'd reject us due to a settled CCJ on my file.
The CCJ was registered and settled last year but outside of the 30 day limit. I'm currently working on getting the CCJ removed due to never receiving the notice.
In the meantime, our MB is working on getting an AIP with Halifax. Have you had any experience with them in terms of approving a mortgage with a settled CCJ?
Thanks 

@JD88 LTV?

Sophiemcskimmings

Hoping someone can help a verrryyy anxious FTB! 

In January my partner and I put in an offer on a house and started out mortgage application direct with Barclays. At the time Barclays was one of the only high street lenders doing 10%LTV Which is why we went for them. We had the phone meeting to put the application in and I told the advisor I was very worried about credit as my husband has had some missed payments in the passed but is now debt free. We were told on the phone the credit was fine and we were approved for the mortgage, however the next week we got a call to say they had decided to decline us due to ‘bad/lack of credit’ (that’s all that was said!) we were absolutely devastated and looked into our credit reports, discovering an old debt from o2 on my husbands file that was incorrect. He has managed to dispute this and get it removed from the report. 

We have since put in an offer on another house and are using a mortgage advisor... we have 10%LTV, and the money we need (£135,000) is about x4 salary. We’ve applied with HSBC and our advisor is positive put I’m just absolutely petrified that we are going to be denied again and let everyone down. Is there anything anyone can tell me about HSBC current timelines or anything that may help me be less anxious I would really appreciate it! 

hopeful_2021

Good morning,
Seeking any financial advice and guidance please. I'm sorry it's bit lengthy...
Husband and I would like to buy our first home towards the end of the year or next year, working towards at least £210k mortgage budget with £40k deposit My credit report with "check my file" shows 'Fair' while his 'Good'. Although we both have adverse points on our credit report, latest one was late payment in May 2020:
Mine :  7 in total (4 with closed accounts and 3 with opened credit cards latest one was in May 2020)
His: 2 late payments Oct 2016 and latest one was in May 2020.

I have 8 credit cards totalling £33,300 with zero balance
He has 1 Credit card of £2000 with zero balance

Between us we have 8 current and 3 savings account spread out between 3 banks we probably should close down a few as they are not being used.  We have 3 joint current accounts; 1st- for our wages and 2nd is for our bills direct debits and each have another account for weekly/monthly expenses for work ie fuel, food and accommodation for him.

Salary: 
Me: £24968
His: £65,700 

I'm not 100% confident that our joint application will be successful because of my late/missed payment history.

Should I close down some of the credit cards if it will help with my credit?
If we cancel his financial links to mine will it help boost any chance if he was to apply as a sole applicant?
Are we on the right track? what else can we do to help us towards our goal? 

Grateful for any advice. 
 

K_S

hopeful_2021 said:

Should I close down some of the credit cards if it will help with my credit?
If we cancel his financial links to mine will it help boost any chance if he was to apply as a sole applicant?
Are we on the right track? what else can we do to help us towards our goal?

@hopeful_2021

- Assuming that you don't have any defaults, CCJs, etc. and your credit history has been clean since mid 2020, it shouldn't stop you from accessing mainstream rates with a 15%+ deposit at the end of 2021 or early 2022.

- leaving cards open/closed is unlikely to make any significant difference. But if you don't need all that credit, best to close a few of them.

- Generally speaking, the agencies will only let you remove a financial association if you can prove that your financial connection has ended. So I'm not sure if that will be possible with you being married and living in the same house.

The only things I would suggest that you keep an eye one is avoiding any more late payments as you may unncessarily miss out on a few mainstream lenders/rates because of that. Make sure all your Direct Debits are set up. Also, just to keep your finances clutter free, you could consider closing any current accounts and credit cards that you don't really need.

Dadto3Boys

Just posted a separate thread, yet looks like you are pretty awesome at responses ... 
We currently have a mortgage with HSBC but bank with Nationwide.
The have almost identical deals on mortgages, would they be pretty much the same in terms of speed to process the mortgage?
We are moving house.