Mortgage broker - ask me anything

K_S

Kendowned said:

@K_S Thanks! I don't know if it would help but I'm looking to try and get a mortgage next year after all 7 of my defaults are over 2 years old. I understand that only a few specialist lenders will probably look at me and interest rates will be high to start with.

I could probably settle 3 of these accounts (i am confident they would settle for 50%-70% of the owed amount in the next month) so they would be settled for over a year when I apply for the mortgage but only partially settled, would this likely be worth it? if not I would rather keep the money towards a deposit and keep paying the DMP. 

@kendowned Sorry if I sound like a broken record, but there just isn't enough information to say unfortunately. Plus, the adverse lending environment in a year's time could be whole lot different to today.

dhokes

I've currently got a fixed rate mortgage and I used the help to buy equity loan scheme to purchase a house a few years ago. In that time, I've increased my income and saved some money that I could use to pay off the loan amount borrowed directly. The earliest I can remortgage without incurring a fee is around October 2022 and the interest kick in on my equity loan around June 2023.

I'm considering using that money to just overpay my mortgage right now and then borrow more to repay the equity loan when my fixed rate comes towards the end. Is that the most sensible approach?

Also, when it comes to remortgaging, do the providers look at your gross pay or net pay? I'm considering whether to make additional pension contributions from my gross pay and I was wondering if this would impact me when it comes to remortgaging.

Any other advice/suggestions would be much appreciated.

daffodil02

Question regarding adverse lenders - do you know if they require proof of income past retirement age? I’ve looked through websites on Bluestone etc and they seem to have a self-declaration form for borrowing age 70- 75. Partner is almost 50 and ideally a 25 year term would help us rather then 20 year. Not too worried about long-term affordability as due to our age gap I have a hefty 35 years until state pension age so will be able to cover any remaining mortgage if he ever retires. 

if they are going to ask for his proof of retirement income (private pension and so on) to go past age 70 then I don’t think we’ll have much.

Thankful for any experience or comments.

K_S

daffodil02 said:

Question regarding adverse lenders - do you know if they require proof of income past retirement age? I’ve looked through websites on Bluestone etc and they seem to have a self-declaration form for borrowing age 70- 75. Partner is almost 50 and ideally a 25 year term would help us rather then 20 year. Not too worried about long-term affordability as due to our age gap I have a hefty 35 years until state pension age so will be able to cover any remaining mortgage if he ever retires. 

if they are going to ask for his proof of retirement income (private pension and so on) to go past age 70 then I don’t think we’ll have much.

Thankful for any experience or comments.

@daffodil02 There's no one answer to that question. It depends on the lender and will max out at stated retirement age. For example, Bluestone will consider lending beyond 70 on a case by case basis, Aldermore will not lend beyond 70 based on employed income, etc.

From experience, if relying on employed income beyond 70, they want to see that it's plausible and not just so the applicant can meet affordablity. To give a very crude example, if you're a forklift driver or JCB operator and claim to intend to retire at 75, that's less likely to be taken into account than an accountant or someone doing a non-manual job sat in front of a laptop. 

daffodil02

That does make sense. Thank you I appreciate the quick response. 

ts21

dhokes said:

I've currently got a fixed rate mortgage and I used the help to buy equity loan scheme to purchase a house a few years ago. In that time, I've increased my income and saved some money that I could use to pay off the loan amount borrowed directly. The earliest I can remortgage without incurring a fee is around October 2022 and the interest kick in on my equity loan around June 2023.

I'm considering using that money to just overpay my mortgage right now and then borrow more to repay the equity loan when my fixed rate comes towards the end. Is that the most sensible approach?

Also, when it comes to remortgaging, do the providers look at your gross pay or net pay? I'm considering whether to make additional pension contributions from my gross pay and I was wondering if this would impact me when it comes to remortgaging.

Any other advice/suggestions would be much appreciated.

I'm not a mortgage advisor, but presumably if you overpay your mortgage this will just build up as equity anyway, so when  you get to remortgage those overpayments will be part of the equity you have and you can use this to pay off your loan? That's my understanding from when I was looking at HTB - I'd have wanted to have enough equity in the property after 5 years to be able to get a new mortgage with 10% "deposit" from the equity, as well as paying off the loan.

CCF2108

Good morning, 
I have been following this forum closely and thank the MB's for all there advice on it.
Looking for some reassurance really, our MA had sought a AIP from Santander and nationwide both of which were declined. They secured an AIP with Kensington at 75% LTV. However I did apply for an AIP with Yorkshire building society and was successful. My query is really how confident in the AIP with YBS can I be that it will result in a successful offer given they have already ran a soft credit check on myself and my OH?
Any advice or direction would be greatly appreciated. 

Randomreader

hi I would like to ask about possibility of a mortgage.  I need to buy out my ex.  I will put relevant details and hope I cover everything!

56 years old
2 children, one at uni, one starting in Sept
House currently owned as joint tenants with no mortgage
value £165000
need mortgage of £75000
public sector worker salary £21122 pa
pension contributions from salary £971.64 pa

I would like to know if there are interest only
mortgages available as I’m dropping income (loss of CB, CTC & maintenance) so would like a couple of years interest only (while kids at uni) and then move to repayment.  

I also co-own a property left when my dad died with proviso my mum live out her life there and I have a lump sum payment due on retirement. 

Randomreader

Sorry hit button before I said

thanks I’m advance for any help.

I’m using my phone and can’t see how to edit 

marko18

Hi, would appreciate some advice on how to tackle my current situation.
Our current house is valued at £330k and we have £175k left on the mortgage with Santander. We are currently in a 5 year fixed mortgage with an £8.5k early repayment charge in place until the the end of the 5 years - May 23. We will be looking to relocate late this year for work reasons, but also wish to let our current house to a family member. In theory, would it be possible to port our mortgage onto a new property to avoid the early repayment charge and set up an interest only mortgage on our current property? We have approx. £100k in savings to go toward this. Any pointers would be appreciated, thanks.