Mortgage broker - ask me anything

K_S

Boardiegirl said:

We only need a £33k mortgage. Would it be better to get a personal loan? And is this even allowed, to pay the balance on a house? Also, how much would it adversely affect our credit rating if we had the loan, ie is anyone allowed to stop the purchase if they think we won’t have enough money to live on; (we will don’t worry, just rhetorically).
All advice welcome please!! Haven’t done a house move for 22yrs so not a clue these days! 

@boardiegirl If you get a personal loan and then want to use the cash to fund the balance of a cash purchase, I don't see why anyone would have a problem with that.

Dadto3Boys

Leading on from my question irrelevant of mortgage company, any pros or cons using the bank you have current account with Vs the bank you have a small mortgage with. We are increasing payments from (min) £52 per month to just over £600.

Incognito212

Hi there,
I would like some clarification regarding cash in hand income, my partner works full time and I work part-time, as an employee and recieve payslips every month.
My employer deducts NI and pays me the rest in cash, which i deposit every month matching my payslips, 
Is it possible for me to use that income towards a mortgage application and will it be considered for affordability?
Thanks in advance

Buttercup02

Hello! Sorry if this is the wrong place to ask, I'm not too au-fait with the forum. I was just hoping to get some advice from those who know better. Both first time buyers, we'd like to buy ideally in 6 months time but I'm really not sure if we'd be taken seriously for a mortgage in our circumstances.

Our situation:
33/34 yo married private renting @ 690pm (reasonable for house and area). Have 17500 (incl bonus) between our LISA'S which is ~10% for the house price we're seeking. Both permanent FT employed, one in Healthcare, one in global HR company and combined salary of £71500.
Between a personal loan each, 1 x car loan and a couple of credit cards each, we've unfortunately gathered debt which stands at approx £30,000 now (car loan ~5000, credit cards ~10000 and loans ~15000) which we're gradually paying down as much as possible whilst at same time trying to max LISA each year. No CCJs or missed payments, clearscores are both 510ish.

Oh and first baby on the way 🙈

All advice on our chances presently and what we can do to improve to be in a position within 6 months gratefully appreciated! 

K_S

Dadto3Boys said:

Leading on from my question irrelevant of mortgage company, any pros or cons using the bank you have current account with Vs the bank you have a small mortgage with. We are increasing payments from (min) £52 per month to just over £600.

@dadto3boys Nothing material that I can think of.

K_S

Incognito212 said:

Hi there,
I would like some clarification regarding cash in hand income, my partner works full time and I work part-time, as an employee and recieve payslips every month.
My employer deducts NI and pays me the rest in cash, which i deposit every month matching my payslips, 
Is it possible for me to use that income towards a mortgage application and will it be considered for affordability?
Thanks in advance

@incognito212 It *should* be possible, subject to everything adding up, taxed and the income being a reasonably small amount.

K_S

Buttercup02 said:

Our situation:
33/34 yo married private renting @ 690pm (reasonable for house and area). Have 17500 (incl bonus) between our LISA'S which is ~10% for the house price we're seeking. Both permanent FT employed, one in Healthcare, one in global HR company and combined salary of £71500.
Between a personal loan each, 1 x car loan and a couple of credit cards each, we've unfortunately gathered debt which stands at approx £30,000 now (car loan ~5000, credit cards ~10000 and loans ~15000) which we're gradually paying down as much as possible whilst at same time trying to max LISA each year. No CCJs or missed payments, clearscores are both 510ish.
Oh and first baby on the way 🙈
All advice on our chances presently and what we can do to improve to be in a position within 6 months gratefully appreciated!

@buttercup2 Looking to borrow 158k on a combined income of 71k, no adverse credit history, 30k debt. Based on the limited info in your post I don't see any obvious reasons why you wouldn't be able to get the mortgage you need at a mainstream rate.

The only potential issue could be the baby on the way - mat leave, return to work pay and conditions, childcare costs, etc.

Buttercup02

Thank you @K_S! I've tried to reply to your reply post directly but it doesn't seem to go through so trying this way, apologies if it ends up posting multiple eventually!!

Thank you for your advice. Is there any other relevant info I can provide that helps? Can I ask a couple more questions based on what you've said?
1. Will they only take mat leave pay into account then if mortgage applied for during that period? In which case need to maybe time it that we're back to full pay before application possibly?
2. Do you get the advertised rate on a mortgage or is it similar to other debt where they have the advertised rate but once you apply, the actual offered rate can be higher than what you were hoping to be offered?
Thanks again so much!! Really hope this posts this time!

Incognito212

K_S said:

Incognito212 said:

Hi there,
I would like some clarification regarding cash in hand income, my partner works full time and I work part-time, as an employee and recieve payslips every month.
My employer deducts NI and pays me the rest in cash, which i deposit every month matching my payslips, 
Is it possible for me to use that income towards a mortgage application and will it be considered for affordability?
Thanks in advance

@incognito212 It *should* be possible, subject to everything adding up, taxed and the income being a reasonably small amount.

Yes thank you for clarifying that,

I have looked on the halifax intermediary website and they accept cash in hand as an income source, 

Do you know of any other high street lenders that accept cash in hand as an income source?

Thank you

K_S

Buttercup02 said:

1. Will they only take mat leave pay into account then if mortgage applied for during that period? In which case need to maybe time it that we're back to full pay before application possibly?
2. Do you get the advertised rate on a mortgage or is it similar to other debt where they have the advertised rate but once you apply, the actual offered rate can be higher than what you were hoping to be offered?
Thanks again so much!! Really hope this posts this time!

@buttercup02

1. No you don't need to wait to be back for full pay to be considered. As long as you intend to go back full time at the same pay and can (if needed) get a letter from the employer confirming the same, it should be fine for most lenders.

2. For mainstream mortgages, you have an advertised rate for the product that you apply for and you either get that or not. There's no personalised pricing if that makes sense. If you're using a broker, when recommending a product, they will send across an illustration showing the exact rate, your monthly payments during the initial period, etc. and if your application is approved, that's what you get.