Mortgage broker - ask me anything

Housetohouse

K_S said:

@housetohouse Referring to what you've said "My profits have nose dived wiith the last 3 months being the worst ever", every lender is going to look at the most recent business income when assessing a self-employed application. Unfortunately, you will need to be able to show a return to normal trading before a lender will consider your self-employed income.

My reference to the future pension was that it may come into play if you need a longer term to meet affordability requirements or perhaps qualify for a short term mortgage to be paid off from the pension lump sum.

I don't know the details so can't say for sure that you absolutely cannot get a circa 35k mortgage but it certainly looks like a complex scenario.

Thanks K S, man so bloody difficult. Yes I was thinking of paying off the mortgage with the lump sum at 60.
I am considering going down the loan avenue because the conditions on self employed people are so strict now.
My SA302 for 20-21 will show approx £12000 profits but the scrutiny of the last 3 months is just an added pressure to be honest.The bank statements will not make it, I have taken a week off over Christmas and two week break to sort house ready to sell plus sales have been poor.
Thank you for answering so quickly though,I appreciate it.

MWT

peppapigsnan said:

Hi, what would your advice be for newly retired couple with home with 135k, mortgage of 12k, secured loan 16k and debt of 16k. Sell and down sized or consider RIO to clear current mortgage and debt to stay in home?

You will probably want to repost this in your own thread to get a wider group of people responding as this isn't one the brokers in this thread can answer directly.

They certainly can't give you anything described as 'advice' based on the limited details, and it goes into the territory of more general financial advice as well.

If you repost it, consider adding a little more detail, ages would help and since you are considering a RIO, does your guaranteed retirement income meet the affordability tests for the sort of sum you want to borrow?

What type is your current mortgage (repayment, interest only...) and how much longer does it have to go... are there any early redemption penalties..?

Similarly is down-sizing an option in the area where you would want to buy? - looks like you'd be left with around £85k or so after costs if that £135k valuation is right...

Dazzie

Hi guys I have been offered a mortgage from Nationwide for our new house but on there is a condition that states our existing mortgage with them is changed to a buy to let.
My question is will they let my new residential mortgage go through before the buy to let is done on the old house.  If not sadly I will lose the property and will end up with a buy to let mortgage on my residential property. 

Hope this makes sense

many thanks in anticipation 

K_S

Dazzie said:

Hi guys I have been offered a mortgage from Nationwide for our new house but on there is a condition that states our existing mortgage with them is changed to a buy to let.
My question is will they let my new residential mortgage go through before the buy to let is done on the old house.  If not sadly I will lose the property and will end up with a buy to let mortgage on my residential property. 

Hope this makes sense

many thanks in anticipation 

@dazzie This let-to-buy scenario is very common and usually involves simultaneous completion of the BTL remo and the onward purchase. So, generally speaking, if one doesn't happen, the other doesn't either. Just to be clear this is a general comment on how let2buy usually works.

Is the BTL mortgage with TMW?

Dazzie

No our broker is going with a different company for buy to let mortgage not tmw 

_AandL_

Quick question. If you’re self employed and have a date for opening/going back to normal income, how much proof would lenders want? Would a month suffice or would they need more? 

OliverTw

Considering making an offer on a flat in London with 990 year lease with share of freehold. There are around 100 flats in the block, all share of freehold. Do any mainstream lenders offer mortgages at usual rates on these properties, was thinking of applying to Santander.

K_S

_AandL_ said:

Quick question. If you’re self employed and have a date for opening/going back to normal income, how much proof would lenders want? Would a month suffice or would they need more? 

@_AandL_ A month of normal trading is unlikely to be enough. Personally, I would be very reluctant to place a self-employed case without seeing at least 3 months of normal trading figures. I'm not saying it's impossible as the rest of the scenario also matters, but it's highly unlikely imho.

K_S

OliverTw said:

Considering making an offer on a flat in London with 990 year lease with share of freehold. There are around 100 flats in the block, all share of freehold. Do any mainstream lenders offer mortgages at usual rates on these properties, was thinking of applying to Santander.

@olivertw The flat is still leasehold. It's just that you as the leaseholder will also own a share of the freehold. There could be other complications in the background though. Is there any reason why you think mainstream lenders would have a problem with the property?

OliverTw

On the House buying forum someone asked "share of freehold - worth it? - I'm looking at flats, many are leasehold but some say they have a share of the freehold - this seemed like an advantage but now I'm not so sure. I've also been hearing that share of freehold might also include a lease and am baffled. Have I heard this correctly? Can it be both?

A mortgage broker responded to  a reply saying "really good response to the lease and freehold bit. However, this is just slightly incorrect.  Very few lenders mortgage them but there are some high street lenders who would do it.
The point stands though, the nature of them being hard to mortgage will have an impact on the value

I am a Mortgage Adviser"

I had no reason to think I couldn't get a mortgage on the leasehold flat, with share of freehold, until I read the post.