Mortgage broker - ask me anything

StevenHunnid

So I have been back and forth with the lenders and MB advises that it's about 15K under what we need... we have asked the MB to accept this but would the lenders need a proof of gifted deposit? Lender is Santander 

Many thanks! 

Percy06

With regard to my previous request for help about remortgaging my town centre flat above restaurants, I tried stepchange as suggested, but other than tell me that lenders have tightened their lending restrictions due to covid, and perhaps I should contact the Money and Pension Service, they had no idea how to help. Anyone else able to help?

[Deleted User]

Could you advise how long Barclays are taking from key in ( via broker ) and decision in principle to instructing the surveyor - thanks 

UniqueUser1

I’m currently looking at a few high street providers like HSBC, NatWest & Leeds Building Society. Do you know if they’re all happy with having a % of pension salary sacrificed away? For example, they all take into considering the salary before sacrifice.

K_S

UniqueUser1 said:

I’m currently looking at a few high street providers like HSBC, NatWest & Leeds Building Society. Do you know if they’re all happy with having a % of pension salary sacrificed away? For example, they all take into considering the salary before sacrifice.

@uniqueuser1 Can't comment on specific lender policy as it depends on the details so I can't risk giving you incorrect information unfortunately.

But generally speaking, there are plenty of mainstream lenders who will consider the pre-sacrifice gross for reasonably sized pension payments. If it's a ridiculous amount (I've seen some!) then it may be queried.

dfwprincess

Hoping for some advice please. this thread has been super useful, currently me and my partner earn 51k between us soon to go up to 52-53k, we do have debts but we’ve  never missed a payment, no defaults and was us being stupid but have realised where we’ve gone wrong and are lowering them each month above the minimum

we are aiming to have an about £12k in hopefully 10 months which would be above a 5% deposit for the house so we’re looking at (between 185-210) my parents may be able to gift us another 10k but it’s not for def (there’s three siblings a so not as simple)  were aware that would put us in the next bracket which would be better but we can’t rely on that.

we’ve worked our debt would be about £15k then if not even less between the two us by that time

do we stand a chance? A mortgage would be the same price as what we’re  currently renting and once we had a house we’d swap to clearing the the debt ASAP. We’ve had to move once recently due to landlord selling and this l/l is indicating he is considering the same in the next year or so else we’d  just try to plough through the debts first as we were before we had to move.

K_S

dfwprincess said:

Hoping for some advice please. this thread has been super useful, currently me and my partner earn 51k between us soon to go up to 52-53k, we do have debts but we’ve  never missed a payment, no defaults and was us being stupid but have realised where we’ve gone wrong and are lowering them each month above the minimum

we are aiming to have an about £12k in hopefully 10 months which would be above a 5% deposit for the house so we’re looking at (between 185-210) my parents may be able to gift us another 10k but it’s not for def (there’s three siblings a so not as simple)  were aware that would put us in the next bracket which would be better but we can’t rely on that.

we’ve worked our debt would be about £15k then if not even less between the two us by that time

do we stand a chance? A mortgage would be the same price as what we’re  currently renting and once we had a house we’d swap to clearing the the debt ASAP. We’ve had to move once recently due to landlord selling and this l/l is indicating he is considering the same in the next year or so else we’d  just try to plough through the debts first as we were before we had to move.

@dfwprincess With a combined basic income of 50k+, looking to borrow around 170-200k, the 15k debt should not (by itself) stop you from a mortgage with the right lender.

As I'm sure you're aware, 95% LTV mortgages are still in their post Covid infancy, so it's hard to predict how strict their credit scoring and affordability assessment will be in general. The couple of 95% DIPs I've done with one of them were all referred and then downgraded to 90%, but that's just one lender and it's still very early days.

Plus, how things will be in a year's time is anyone's guess.

So to summarise - yes you do stand a chance. But your chances will be disproportionately improved by going up one LTV band.

dfwprincess

K_S said:

dfwprincess said:

Hoping for some advice please. this thread has been super useful, currently me and my partner earn 51k between us soon to go up to 52-53k, we do have debts but we’ve  never missed a payment, no defaults and was us being stupid but have realised where we’ve gone wrong and are lowering them each month above the minimum

we are aiming to have an about £12k in hopefully 10 months which would be above a 5% deposit for the house so we’re looking at (between 185-210) my parents may be able to gift us another 10k but it’s not for def (there’s three siblings a so not as simple)  were aware that would put us in the next bracket which would be better but we can’t rely on that.

we’ve worked our debt would be about £15k then if not even less between the two us by that time

do we stand a chance? A mortgage would be the same price as what we’re  currently renting and once we had a house we’d swap to clearing the the debt ASAP. We’ve had to move once recently due to landlord selling and this l/l is indicating he is considering the same in the next year or so else we’d  just try to plough through the debts first as we were before we had to move.

@dfwprincess With a combined basic income of 50k+, looking to borrow around 170-200k, the 15k debt should not (by itself) stop you from a mortgage with the right lender.

As I'm sure you're aware, 95% LTV mortgages are still in their post Covid infancy, so it's hard to predict how strict their credit scoring and affordability assessment will be in general. The couple of 95% DIPs I've done with one of them were all referred and then downgraded to 90%, but that's just one lender and it's still very early days.

Plus, how things will be in a year's time is anyone's guess.

So to summarise - yes you do stand a chance. But your chances will be disproportionately improved by going up one LTV band.

Thank you so much for the quick reply, we’re  hoping my parents will be able to help off needs be but we understand it’s not just us they'd have to help.

will keep saving and paying as much as we can

Terrace

I have got a question please. 

Lets say you get DIP for 95% LTV then you lets say take 2-3month to find a house and already saved up for 10% deposit. Can you them make a full application for 90% LTV mortgage? I assume it would be even better. Or I am missing something?
TY

K_S

Terrace said:

I have got a question please. 

Lets say you get DIP for 95% LTV then you lets say take 2-3month to find a house and already saved up for 10% deposit. Can you them make a full application for 90% LTV mortgage? I assume it would be even better. Or I am missing something?
TY

@terrace Setting aside the mechanics of it, in principle, you could do that.