Mortgage broker - ask me anything

sk101

K_S said:

sk101 said:

Hi 
Would love some advice please. Combined income of 60,000. No loans or credit cards. Aged 47 and 44. House Price 610,000. Deposit 370,000. Borrowing of 240,000 over 20 years ideally on a lifetime tracker (First Direct)? Would this amount be agreed? How much could we realistically borrow based on these terms?  How long would an application/mortgage take to sort? Would we be best off going with a broker (whole of market) to push the process along? I would be very grateful for your advice and expertise. Thanks

@sk101 Can't speak for FD as they're a direct only lender. Based on the limited info in your post and assuming the 60k is basic PAYE income
Yes this is correct. 

- borrowing of 240-300k should be achievable at mainstream rates

- timelines depend on the specific lender. But assuming a straightforward scenario, with PAYE income most of my cases are coming through inside 2 weeks from app to offer for properties that need physical valuations.

- if you're set on FD, you'll need to go direct as they don't offer intermediary products. But if you're not tied to FD and want a quick turnaround, I'd recommend using a whole of market broker.

Yes, the income is basic PAYE income. 24,000 + 34,000. I mention FD because I don't seem to be able to find many lifetimetrackers around. Do you know of others with around the same rate approx 1.99? We have our existing mortgage with HSBC on a lifetime tracker but they will only lend based on the current term (less than 6 years) and only seem to offer a 2 year lifetime tracker. So, the figures are doable then? It's so much more than we've ever thought of borrowing so its an unknown for us. 

K_S

sk101 said:

K_S said:

sk101 said:

Hi 
Would love some advice please. Combined income of 60,000. No loans or credit cards. Aged 47 and 44. House Price 610,000. Deposit 370,000. Borrowing of 240,000 over 20 years ideally on a lifetime tracker (First Direct)? Would this amount be agreed? How much could we realistically borrow based on these terms?  How long would an application/mortgage take to sort? Would we be best off going with a broker (whole of market) to push the process along? I would be very grateful for your advice and expertise. Thanks

@sk101 Can't speak for FD as they're a direct only lender. Based on the limited info in your post and assuming the 60k is basic PAYE income
Yes this is correct. 

- borrowing of 240-300k should be achievable at mainstream rates

- timelines depend on the specific lender. But assuming a straightforward scenario, with PAYE income most of my cases are coming through inside 2 weeks from app to offer for properties that need physical valuations.

- if you're set on FD, you'll need to go direct as they don't offer intermediary products. But if you're not tied to FD and want a quick turnaround, I'd recommend using a whole of market broker.

Yes, the income is basic PAYE income. 24,000 + 34,000. I mention FD because I don't seem to be able to find many lifetimetrackers around. Do you know of others with around the same rate approx 1.99? We have our existing mortgage with HSBC on a lifetime tracker but they will only lend based on the current term (less than 6 years) and only seem to offer a 2 year lifetime tracker. So, the figures are doable then? It's so much more than we've ever thought of borrowing so its an unknown for us. 

@sk101

- I don't think FD has any competition on that product.

- Not sure how FD calculates affordablity but 4.5-4.75x borrowing should be possible with other mainstream lenders. FD is unlikely to be too far off. You only need a bit than 4x, I would assume it's fine.

sk101

Thank you. That's great. I really appreciate you help. 

[Deleted User]

Are there any lenders who will consider people who have been in their job for less than 6 months, with a gap of 4 weeks between this and the previous job?

K_S

[DELETED USER] said:

Are there any lenders who will consider people who have been in their job for less than 6 months, with a gap of 4 weeks between this and the previous job?

@[DELETED USER] very generally speaking, yes, there are. 4 weeks is not an unreasonably long gap. It's usually only when you get into the months that lenders start getting more difficult.

CLJ2986

Another quick question from me cause I've been stressing all night (should find out from my ma later though) my partner has a direct debit from his account for 10 a month and he has no idea what it's for, and after googling I think it's a charity payment he forgot existed and we have now cancelled (he doesn't use online banking etc I set it up for him recently for the mortgage application!) Is it going to look bad that he didn't know about it? Past making sure he doesn't go into his overdraft he doesn't really pay much attention to his account and he just didn't notice such a small amount each month 😳 

K_S

CLJ2986 said:

Another quick question from me cause I've been stressing all night (should find out from my ma later though) my partner has a direct debit from his account for 10 a month and he has no idea what it's for, and after googling I think it's a charity payment he forgot existed and we have now cancelled (he doesn't use online banking etc I set it up for him recently for the mortgage application!) Is it going to look bad that he didn't know about it? Past making sure he doesn't go into his overdraft he doesn't really pay much attention to his account and he just didn't notice such a small amount each month 😳 

@clj2986 At £10 a month for a non-credit account, I wouldn't worry about it.

CLJ2986

@K_S thank you for the quick response!

tommyt-saver

K_S said:

tommyt-saver said:

Hi all, 

Me and my girlfriend are first time buyers, and currently looking for properties. 

I used L+C’s online tool to get an idea, and i’ve also just spoken with Countrywide after an estate agent suggested it. I know they are selective on their lenders, so I’m curious how people find their mortgage brokers? I’ve received a MIP from Halifax to get me going, but we are are a mix of employed and self employed... and i’d prefer to go with a whole market broker who could help us along the way. We’ve taken SEISS too in the past year, as well as using LISA for deposit, so those would need to be taken into consideration by an expert. 
We live in East London, so would you suggest going with someone local? Neither of us are from here, so dont have any local knowledge or recommendations. 
Be great to get any experience here! 

Thanks
Tom 

@tommyt-saver Imho, whether a broker is local or not makes no difference at all. Everything is done over the phone and online anyway. What's important is that the broker is whole of market, someone you're comfortable with and (in your scenario) can afford to take the time needed to place your case with an appropriate lender.

Online tools are notoriously over optimistic on how much you can borrow. The Halifax AIP (if filled in correctly) is definitely a much better indication. To get a realistic idea of how much you may be able to borrow, I would recommend getting in touch with a broker who can look at the whole scenario and give you a number. Good luck!

PS: I have very fond memories of life in Leytonstone during younger and more carefree times  

Thanks so much for your thoughts here @K_S. I'll start to look for reputable whole market brokers. Presume sights like Vouchedfor would be a good start if you don't have a family/friend recommendation? 

K_S

tommyt-saver said:

K_S said:

tommyt-saver said:

Hi all, 

Me and my girlfriend are first time buyers, and currently looking for properties. 

I used L+C’s online tool to get an idea, and i’ve also just spoken with Countrywide after an estate agent suggested it. I know they are selective on their lenders, so I’m curious how people find their mortgage brokers? I’ve received a MIP from Halifax to get me going, but we are are a mix of employed and self employed... and i’d prefer to go with a whole market broker who could help us along the way. We’ve taken SEISS too in the past year, as well as using LISA for deposit, so those would need to be taken into consideration by an expert. 
We live in East London, so would you suggest going with someone local? Neither of us are from here, so dont have any local knowledge or recommendations. 
Be great to get any experience here! 

Thanks
Tom 

@tommyt-saver Imho, whether a broker is local or not makes no difference at all. Everything is done over the phone and online anyway. What's important is that the broker is whole of market, someone you're comfortable with and (in your scenario) can afford to take the time needed to place your case with an appropriate lender.

Online tools are notoriously over optimistic on how much you can borrow. The Halifax AIP (if filled in correctly) is definitely a much better indication. To get a realistic idea of how much you may be able to borrow, I would recommend getting in touch with a broker who can look at the whole scenario and give you a number. Good luck!

PS: I have very fond memories of life in Leytonstone during younger and more carefree times  

Thanks so much for your thoughts here @K_S. I'll start to look for reputable whole market brokers. Presume sights like Vouchedfor would be a good start if you don't have a family/friend recommendation? 

@tommyt-saver Sorry, I don't know anything about vouchedfor or other similar lead generation sites. Most self-employed brokers I know generate most of their new business from referrals. If you are using such sites, only thing I'd recommend is using as large a radius as you can in the search. Good luck!