Mortgage broker - ask me anything

Housetohouse

K_S said:

@housetohouse It may be doable but it's definitely tricky

- is there any kind of written agreement on the informal child maintenance of £600 pm? When is it scheduled to end?
- what exact profit figure does your 2019/2020 SA302 show? What do you expect it to show for 2020/21?
- what's the annual pension income going to be from 60?
- what's your trade and how long have you been doing it

Thank you for responding.
No written agreement, we are amicable and my dc dad has paid every month for 15 years.All shown on bank statements,no CSA involved. He will stop when DC is 21 yrs old.
My income for 2019/2020 was £7557 profit.
Roughly for 2020/21 between £10 - 11,000 accountant has estimated,due to be finalised soon.
I sell on ebay as a sole trader.
I have been running since April 2017.
My annual pension will be if I am honest no idea as I cannot fathom it. I do download the statements every year.
However my accountant has some one on her books that has offered to go through it with me.

mrseff_2

K_S said:

mrseff_2 said:

Hi there - this thread has been an absolute life line over the last couple of months - thank you!
I will ask my MB tomorrow but was just pondering on whether this would be a wise move or not... I have a mortgage offer through Precise so obviously have some adverse. I have been working through Dave Ramsey's baby steps and really want to get started on paying off credit cards - I have two cards with a total balance across the two of £4,400 - the interest rate on them though is disgusting! I am desperate to start really throwing some money at these with the hope of getting them cleared down fast (it's not a condition of the mortgage offer). If I got one of the virgin 0% credit cards and transferred balance to it (or as much as I could) would this be a risky move in terms of any further credit check before completion? My house is likely to be ready end June so I have a few months to go but really want to get started now. Any thoughts appreciated!

@mrseff_2 The standard advice is to not make any new credit apps between offer and completion, as far as practically possible.

Thank you - will hold fire til I have the keys!

manager1000

I'm sure this has been asked before but cant find the details. My house sale has fallen through, I now need a new mortgage for another property. However I now have furlough on my pay slip. I'm being paid 80% of my current pay.  I need a mortgage for around £200k with a deposit of £265k with a joint income of £55k or £75k on full pay what banks would be my best option if any.
Thank you  

K_S

AJG_ said:

Hi everybody, first time poster looking for some advice.
At the end of this year or early next year (anywhere between Dec - Feb) I will be in a position to start looking for a mortgage.   I will be living alone and earn £43k per annum and when the time comes I will have between 15-20% saved for a deposit depending on the property value.
My queries come around my previous financial behaviour - in the past when I wasn't earning so much I did run into some difficulty and didn't manage my money well at all, completely my own fault but a great learning curve for me.  On my credit file I have a default with Halifax (later sold to Cabot) that was settled in September last year and when I look for a mortgage it will be over 4 years since it was applied.  I also have a few missed payments going back to 2018 and up to March 2019 as well as various high cost sub prime loans over the last 6 years with Mr Lender, My Jar, Avant and Sunny.
My credit file will also show that I have missed no payments anywhere for 2.5 years and have cleared c.£15k of debt since the beginning of 2020.   I'll have around £1k outstanding on a credit card when I come to look for a mortgage and no other outstanding debt with anybody.
I am very much aware that because of my past behaviour I will not be able to use a high street lender, but from experience, am I  likely to be able to find a lender if I use a sub prime broker or will I likely have difficulty in securing this too?
Any guidance will be greatly appreciated and please let me know if there's any information that I haven't included that will help you assess my situation.
Thank you.

@ajg_ Based on the limited info in your post -

- Nothing suggests that you won't be able to get a mortgage.

- If your credit history has been clean for 2.5 years by the time you apply for a mortgage, with one 4+ year old default and a 15-20% deposit, I would not automatically put you in the "sub-prime" category. Of course it depends on the specifics.

K_S

Housetohouse said:

K_S said:

@housetohouse It may be doable but it's definitely tricky

- is there any kind of written agreement on the informal child maintenance of £600 pm? When is it scheduled to end?
- what exact profit figure does your 2019/2020 SA302 show? What do you expect it to show for 2020/21?
- what's the annual pension income going to be from 60?
- what's your trade and how long have you been doing it

Thank you for responding.
No written agreement, we are amicable and my dc dad has paid every month for 15 years.All shown on bank statements,no CSA involved. He will stop when DC is 21 yrs old.
My income for 2019/2020 was £7557 profit.
Roughly for 2020/21 between £10 - 11,000 accountant has estimated,due to be finalised soon.
I sell on ebay as a sole trader.
I have been running since April 2017.
My annual pension will be if I am honest no idea as I cannot fathom it. I do download the statements every year.
However my accountant has some one on her books that has offered to go through it with me.

@housetohouse

- The SE income *should* be considered based on what you've said.

- The CTC is a tough one as your child is 15+ and most lenders will ignore CTC beyond a certain age

- The lack of a formal agreement for the child maintenance will rule out most lenders. However, as long as you can evidence a steady track record, there should be lenders who may consider it. The issue will be how they assess sustainability.

All said and done it's a relatively small mortgage at a low LTV so should be placeable with the right lender over a 15 year term who will tick 2 of the 3 boxes above. If the pension income is decent, your chances should improve further. Imho, definitely one for a broker.

K_S

manager1000 said:

I'm sure this has been asked before but cant find the details. My house sale has fallen through, I now need a new mortgage for another property. However I now have furlough on my pay slip. I'm being paid 80% of my current pay.  I need a mortgage for around £200k with a deposit of £265k with a joint income of £55k or £75k on full pay what banks would be my best option if any. Thank you  

@manager1000 There are only a couple of lenders who may consider lending to applicants on furlough with no return to work date. If they accept the application, they will only consider the actual pay that you are receiving while on furlough, which looks like 55k in your case. Unfortunately, as a regulated advisor, I can't name the lenders but this has been discussed on the forum a few times recently so you should be able to find it. Good luck!

AJG_

K_S said:

AJG_ said:

Hi everybody, first time poster looking for some advice.
At the end of this year or early next year (anywhere between Dec - Feb) I will be in a position to start looking for a mortgage.   I will be living alone and earn £43k per annum and when the time comes I will have between 15-20% saved for a deposit depending on the property value.
My queries come around my previous financial behaviour - in the past when I wasn't earning so much I did run into some difficulty and didn't manage my money well at all, completely my own fault but a great learning curve for me.  On my credit file I have a default with Halifax (later sold to Cabot) that was settled in September last year and when I look for a mortgage it will be over 4 years since it was applied.  I also have a few missed payments going back to 2018 and up to March 2019 as well as various high cost sub prime loans over the last 6 years with Mr Lender, My Jar, Avant and Sunny.
My credit file will also show that I have missed no payments anywhere for 2.5 years and have cleared c.£15k of debt since the beginning of 2020.   I'll have around £1k outstanding on a credit card when I come to look for a mortgage and no other outstanding debt with anybody.
I am very much aware that because of my past behaviour I will not be able to use a high street lender, but from experience, am I  likely to be able to find a lender if I use a sub prime broker or will I likely have difficulty in securing this too?
Any guidance will be greatly appreciated and please let me know if there's any information that I haven't included that will help you assess my situation.
Thank you.

@ajg_ Based on the limited info in your post -

- Nothing suggests that you won't be able to get a mortgage.

- If your credit history has been clean for 2.5 years by the time you apply for a mortgage, with one 4+ year old default and a 15-20% deposit, I would not automatically put you in the "sub-prime" category. Of course it depends on the specifics.

Thank you for the reply - this is very reassuring for me.

What information would you require to give you a wider understanding of my situation?

Another question - I have been looking into opening a second bank account.  Would it best to hold fire on this until my mortgage situation is sorted?  I have read that any hard searches within 12 months of an application could be bad for your application so as it's not critical I would be happy to wait until next year if needs be.

Thanks again,

FutureGirl

When is the best time to speak with a mortgage adviser? When we’re ready to apply for a mortgage? Is there any point discussing things with an adviser before we’re ready to make an application? IE before we have the full deposit amount we need saved? 

Sophie8916

I have a question please!!
Firstly - please no judgements

I took out some money on my mortgage a couple of years ago to consolidate debt, I ran it up again so took a second charge out. Guess what? Done it again during Covid. I’ve started debt counselling so won’t happen again.

My annual salary is £34,000, my current provider accepts £185,000 as a instant valuation.

I want to consolidate as much as possible (33k 2nd charge and about £15k of the rest, leaving me with £3k ish to do myself)

I have car on finance at £250 a month.

my broker has been lovely as had a lot of other brokers saying my case isn’t worth taking on as I have a low salary.

my broker has put an app in with Halifax for an advance and I’m waiting to hear back. She said she rang them before and they were happy and said “subject to credit score”

when I did my own calculator on the site it said I couldn’t borrow that much... can there be differences? 

Also, my bank statements will show my stupid spending but once this is sorted I’ll be able to start again - are bank statements heavily scrutinised?

any general thoughts appreciated I’m very anxious about the situation so no judging please x

K_S

AJG_ said:

K_S said:

AJG_ said:

Hi everybody, first time poster looking for some advice.
At the end of this year or early next year (anywhere between Dec - Feb) I will be in a position to start looking for a mortgage.   I will be living alone and earn £43k per annum and when the time comes I will have between 15-20% saved for a deposit depending on the property value.
My queries come around my previous financial behaviour - in the past when I wasn't earning so much I did run into some difficulty and didn't manage my money well at all, completely my own fault but a great learning curve for me.  On my credit file I have a default with Halifax (later sold to Cabot) that was settled in September last year and when I look for a mortgage it will be over 4 years since it was applied.  I also have a few missed payments going back to 2018 and up to March 2019 as well as various high cost sub prime loans over the last 6 years with Mr Lender, My Jar, Avant and Sunny.
My credit file will also show that I have missed no payments anywhere for 2.5 years and have cleared c.£15k of debt since the beginning of 2020.   I'll have around £1k outstanding on a credit card when I come to look for a mortgage and no other outstanding debt with anybody.
I am very much aware that because of my past behaviour I will not be able to use a high street lender, but from experience, am I  likely to be able to find a lender if I use a sub prime broker or will I likely have difficulty in securing this too?
Any guidance will be greatly appreciated and please let me know if there's any information that I haven't included that will help you assess my situation.
Thank you.

@ajg_ Based on the limited info in your post -

- Nothing suggests that you won't be able to get a mortgage.

- If your credit history has been clean for 2.5 years by the time you apply for a mortgage, with one 4+ year old default and a 15-20% deposit, I would not automatically put you in the "sub-prime" category. Of course it depends on the specifics.

Thank you for the reply - this is very reassuring for me.

What information would you require to give you a wider understanding of my situation?

Another question - I have been looking into opening a second bank account.  Would it best to hold fire on this until my mortgage situation is sorted?  I have read that any hard searches within 12 months of an application could be bad for your application so as it's not critical I would be happy to wait until next year if needs be.
Thanks again,

@ajg_ Apologies, I can't really speak any more specifically than that as there are far too many variables involved and the lending scenario in a year's time could be a whole lot different (for better or for worse) than now.

I can't imagine that a new account a few months before an application would have any significant impact.