Mortgage broker - ask me anything

K_S

Incognito212 said:

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

@incognito212 There are multiple high street lenders that will consider cash in hand as long as it ticks a few boxes (different from lender to lender). The criteria pages should mention any specific requirements and give you an idea of their approach. Good luck!

daniel_owen_uk

Just about to buy a property with the girlfriend who owns a house already (and is keeping it).
From a stamp duty perspective, it appears beneficial to purchase the house in my own name and not in joint names (added her would incur a cost due to it being a 2nd residential purchase).
Other than ensuring I have the affordability is there anything else to consider?

K_S

daniel_owen_uk said:

Just about to buy a property with the girlfriend who owns a house already (and is keeping it).
From a stamp duty perspective, it appears beneficial to purchase the house in my own name and not in joint names (added her would incur a cost due to it being a 2nd residential purchase).
Other than ensuring I have the affordability is there anything else to consider?

@daniel_owen_uk Is she contributing to the deposit?

cjv

K_S said:

cjv said:

Can brokers currently access cheaper rates for product transfers with Halifax, compared to the rate I could get going direct? 

@cjv Starting a couple of months ago, Halifax no longer publishes their intermediary PT rates.

We have to go in to the system and enter the customer's mortgage account number to see what broker PT rates are available for the client. So the answer to your question is I'm not sure unfortunately.

That's helpful thank you, I will contact a broker and see what they can do.

daniel_owen_uk

K_S said:

daniel_owen_uk said:

Just about to buy a property with the girlfriend who owns a house already (and is keeping it).
From a stamp duty perspective, it appears beneficial to purchase the house in my own name and not in joint names (added her would incur a cost due to it being a 2nd residential purchase).
Other than ensuring I have the affordability is there anything else to consider?

@daniel_owen_uk Is she contributing to the deposit?

No, full deposit coming from sale of my previous property

K_S

daniel_owen_uk said:

K_S said:

daniel_owen_uk said:

Just about to buy a property with the girlfriend who owns a house already (and is keeping it).
From a stamp duty perspective, it appears beneficial to purchase the house in my own name and not in joint names (added her would incur a cost due to it being a 2nd residential purchase).
Other than ensuring I have the affordability is there anything else to consider?

@daniel_owen_uk Is she contributing to the deposit?

No, full deposit coming from sale of my previous property

@daniel_owen_uk In that case, there shouldn't be any issues as long as you go with a lender who considers applications with a non-borrower partner and is happy with the reason for leaving her off the mortgage.

eclipse17

I'm a bit confused about the process of applying for a mortgage when a substantial portion of the deposit will be coming from the sale of my current property (which is not yet on the market). Can I only apply for a mortgage when I have an offer on my current place, and therefore know how much the sale of this will be contributing to the deposit?

simone82

I seem to have confused myself can anyone advise......
Can me and my partner buy a new build using HTB costing £450k of our combined salary is £61k?
A 5% deposit means we only need to put down £22.5k but we have a deposit of £40k.  The only way we can afford to buy at the moment is by HTB however these are the prices we are looking at because of where we live (south east)

Any advice appreciated

K_S

eclipse17 said:

I'm a bit confused about the process of applying for a mortgage when a substantial portion of the deposit will be coming from the sale of my current property (which is not yet on the market). Can I only apply for a mortgage when I have an offer on my current place, and therefore know how much the sale of this will be contributing to the deposit?

@eclipse17 Do you have an offer accepted on the onward purchase? If yes, then you can put in a mortgage application with a reasonable conservative estimate of the deposit that you will have. Later, if the estimate was wildly inaccurate (I've rarely seen that happen) you could always modify the offer if needed.

K_S

simone82 said:

I seem to have confused myself can anyone advise......
Can me and my partner buy a new build using HTB costing £450k of our combined salary is £61k?
A 5% deposit means we only need to put down £22.5k but we have a deposit of £40k.  The only way we can afford to buy at the moment is by HTB however these are the prices we are looking at because of where we live (south east)
Any advice appreciated

@simone82 Very very roughly speaking. House price of 450k, equity loan of 90k (20%), deposit of 40k - that leaves a mortgage requirement of 320k which is about 5.2 times income which exceeds the 4.5x cap which is prescribed in the H2B equity loan guidance. I hope that makes sense. Next time you want to crunch some more accurate H2B numbers it might help to check out a lender calculator and/or the official H2B one

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/842374/Published_Outside_Lond_HTB_Equity_Loan_Calc_20_UPLOAD.xlsm