Mortgage broker - ask me anything

K_S

Capri84 said:

MA did a DIP application for us that was referred to underwriters. It’s for a 95% mortgage. 

He said affordability was passed, is it normal in current times for the underwriters to take a look like this before ok-ing it? He said he expected it, but he did then ask if there’s anything in my credit history I haven’t told him about. - there isn’t. 999 on experian and 560 on equifax. 

@capri84 Quite normal for Accord 95%. Affordability doesn't have a lot to do with whether a DIP gets referred or not. 

Capri84

K_S said:

Capri84 said:

MA did a DIP application for us that was referred to underwriters. It’s for a 95% mortgage. 

He said affordability was passed, is it normal in current times for the underwriters to take a look like this before ok-ing it? He said he expected it, but he did then ask if there’s anything in my credit history I haven’t told him about. - there isn’t. 999 on experian and 560 on equifax. 

@capri84 Quite normal for Accord 95%. Affordability doesn't have a lot to do with whether a DIP gets referred or not. 

Yeah, I thought as much. So nothing to get overly worried about at the moment?

it’s with Coventry. I did wonder as the products are fresh back to market if it’s just a case of them being as cautious as possible? 

K_S

Capri84 said:

K_S said:

Capri84 said:

MA did a DIP application for us that was referred to underwriters. It’s for a 95% mortgage. 

He said affordability was passed, is it normal in current times for the underwriters to take a look like this before ok-ing it? He said he expected it, but he did then ask if there’s anything in my credit history I haven’t told him about. - there isn’t. 999 on experian and 560 on equifax. 

@capri84 Quite normal for Accord 95%. Affordability doesn't have a lot to do with whether a DIP gets referred or not. 

Yeah, I thought as much. So nothing to get overly worried about at the moment?
it’s with Coventry. I did wonder as the products are fresh back to market if it’s just a case of them being as cautious as possible? 

@capri84 Sorry, brain-fart, I thought I read Accord in your post. No idea about Coventry.

Capri84

Ahh right. Any other lenders like that then? I guess it’s not usually something that’s done? 

flyer

Not sure if this has been raised before, but I am very frustrated by lender's attitude to untaxed income. My wife and I have a substantial income by way of an adoption allowance, for which we have a contract with the Local Authority for the next 12 years, i.e. until the youngest becomes 18. To me, this is more secure than a salary income but I struggle to find lenders who will consider it. Basically, I'm looking to remortgage £160K on a house valued at £340K. Any ideas?

dil1976

flyer said:

Not sure if this has been raised before, but I am very frustrated by lender's attitude to untaxed income. My wife and I have a substantial income by way of an adoption allowance, for which we have a contract with the Local Authority for the next 12 years, i.e. until the youngest becomes 18. To me, this is more secure than a salary income but I struggle to find lenders who will consider it. Basically, I'm looking to remortgage £160K on a house valued at £340K. Any ideas?

Isnt that money meant to be for the upkeep of the person you are looking after (eg mortgage, bill, food, clothes etc) Not for you to invest for yourselves for the future?

K_S

flyer said:

Not sure if this has been raised before, but I am very frustrated by lender's attitude to untaxed income. My wife and I have a substantial income by way of an adoption allowance, for which we have a contract with the Local Authority for the next 12 years, i.e. until the youngest becomes 18. To me, this is more secure than a salary income but I struggle to find lenders who will consider it. Basically, I'm looking to remortgage £160K on a house valued at £340K. Any ideas?

@flyer There are a couple of mainstream lenders and a handful of specialist lenders who will consider LA adoption allowance as income for affordability purposes. The sticking points are usually the sustainability, size of allowance in proportion to earned income, what % of it will be taken into account, etc. I would recommend getting in touch with a broker if you haven't already. 

Terrace

Quick question please

If your child starts private school in September and you apply and get mortgage before September. 

Do you have to put that in to expenses as it will not be on bank statements yet? Income 100k Mortgage 250-300k ( no other debts) so I assume affordability should not be an issue even with school fees? 

K_S

Terrace said:

Quick question please

If your child starts private school in September and you apply and get mortgage before September. 

Do you have to put that in to expenses as it will not be on bank statements yet? Income 100k Mortgage 250-300k ( no other debts) so I assume affordability should not be an issue even with school fees? 

1. The lender would expect that you do declare the upcoming financial commitment.
2. For that level of LTI, it *shouldn't* be an issue, unless the fees were very high or you had restrictions on term for whatever reason.

flyer

K_S said:

flyer said:

Not sure if this has been raised before, but I am very frustrated by lender's attitude to untaxed income. My wife and I have a substantial income by way of an adoption allowance, for which we have a contract with the Local Authority for the next 12 years, i.e. until the youngest becomes 18. To me, this is more secure than a salary income but I struggle to find lenders who will consider it. Basically, I'm looking to remortgage £160K on a house valued at £340K. Any ideas?

@flyer There are a couple of mainstream lenders and a handful of specialist lenders who will consider LA adoption allowance as income for affordability purposes. The sticking points are usually the sustainability, size of allowance in proportion to earned income, what % of it will be taken into account, etc. I would recommend getting in touch with a broker if you haven't already. 

The allowance represents about 90% of our income. I was hoping someone might be able to recommend a broker.