Mortgage broker - ask me anything

KGL65S

Hi! Mortgage app was submitted on Tuesday with NatWest (we’re porting if that makes a difference), valuation took place today and have just had a call asking for pay slip including our annual bonuses from last year which I’ve just sent over, is this a good sign? I hoped because the valuation had been done it had already been through underwriting? 

Thanks 

dil1976

How badly does a hard search on your credit file affect you AIP? As recently took out a loan to consolidate other debts and help keep all my payments in one place. I went to a broker and they told me I could get about £100,000 with the following.
Wages £33,000
Overtime £12,000 ( Been paid this on average fortnightly since November so wage slips back this up)
Out goings £721 a combination of loan and child maintenance. There are some credit cards with debt on them at present but these will be clear by the time I apply so shouldn't be considered? or would they affect a soft search?

K_S

@dil1976 One hard search, on its own, is unlikely to have a material impact on your chances.

How current debt will be considered (for affordability) depends on the lender. Some will assume it as ongoing even if you intend to pay it off by/on completion, others will take the amount at completion. When I key in a DIP I put in the figures shown on the latest credit report and (where applicable) mention that it will be paid off by/on completion.

sammyj84

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

K_S

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

sammyj84

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

K_S

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

dil1976

K_S said:

@dil1976 One hard search, on its own, is unlikely to have a material impact on your chances.

How current debt will be considered (for affordability) depends on the lender. Some will assume it as ongoing even if you intend to pay it off by/on completion, others will take the amount at completion. When I key in a DIP I put in the figures shown on the latest credit report and (where applicable) mention that it will be paid off by/on completion.

Do the figures I have put seem about with how much I could get with my income and outstanding debts?

K_S

dil1976 said:

K_S said:

@dil1976 One hard search, on its own, is unlikely to have a material impact on your chances.

How current debt will be considered (for affordability) depends on the lender. Some will assume it as ongoing even if you intend to pay it off by/on completion, others will take the amount at completion. When I key in a DIP I put in the figures shown on the latest credit report and (where applicable) mention that it will be paid off by/on completion.

Do the figures I have put seem about with how much I could get with my income and outstanding debts?

@dil1976 Based on the limited info in your post, that figure should be achievable though it looks like on the lower end of the range. But I'm sure your broker has done their numbers and looked at the whole scenario, hence the lower number.

sammyj84

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

Yes they did. 
She said they was Halifax was the only one that would accept Deck access (we wasnt aware this was an issue when we applied with Nationwide)