Mortgage broker - ask me anything

flyer

dil1976 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?

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?

Seriously? Of course that's what the money is for. How did you jump to the conclusion we're using it to invest for ourselves? For your information, I left a very well salaried job (more than the allowance) to adopt 2 young children who had significant needs. Pretty sure we were putting them ahead of us. We need to remortgage as our current deal is ending this month. But thanks for your constructive advice anyway.

Bonniepurple

flyer said:

dil1976 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?

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?

Seriously? Of course that's what the money is for. How did you jump to the conclusion we're using it to invest for ourselves? For your information, I left a very well salaried job (more than the allowance) to adopt 2 young children who had significant needs. Pretty sure we were putting them ahead of us. We need to remortgage as our current deal is ending this month. But thanks for your constructive advice anyway.

I totally agree Flyer.  This is investing in their future, providing a secure home that is suitable for their needs.  That’s should be the aim of every parent, especially those who foster or adopt children who haven’t experienced this.

MWT

flyer said:

 We need to remortgage as our current deal is ending this month. But thanks for your constructive advice anyway.

Just because a current deal is ending does not usually mean you 'need' to remortgage...

Doesn't your current lender have any retention products available for you to switch to without the need for a full remortgage exercise?

Generally a product switch like that wouldn't require affordability assessment...

For the brokers, the ones who post here cannot approach you directly, but if you see one posting helpfully and knowledgeably in answer to your questions, you are of course able to message them directly to make contact.

flyer

MWT said:

flyer said:

 We need to remortgage as our current deal is ending this month. But thanks for your constructive advice anyway.

Just because a current deal is ending does not usually mean you 'need' to remortgage...

Doesn't your current lender have any retention products available for you to switch to without the need for a full remortgage exercise?

Generally a product switch like that wouldn't require affordability assessment...

For the brokers, the ones who post here cannot approach you directly, but if you see one posting helpfully and knowledgeably in answer to your questions, you are of course able to message them directly to make contact.

The only "deal" our current lender can do is 2.1%, but the real issue is I wanted to increase by £20K to do a small extension, which is when our current provider informed me they could not count on untaxed income. I will look through older posts. Thanks

IAMIAM

Hi, Once you do a rate switch, how long do you have to wait until an additional borrowing application. HSBC say I cannot apply until the rate is effective (in two months time), otherwise I will have all my lending on 75% LTV even though I have paid the booking fee for the 60% rate switch, is this correct? 

Rebecca01

Hello I was wondering if anyone could help me. I spoke to a broker on Thursday then he said he would call me back on Tuesday after the bank holiday to look at options. I am so nervous I was just wondering if anyone could put my mind at rest as to how much I could borrow.

Sole applicant. Child nearly 13. Salary is 34k. I also receive child benefit of 1096 a year and maintenance of 400 pcm. However this is a personal agreement dating back 5 years. So Broker was checking which lenders maybe ok with this. 

I have a student loan of 110 pcm but no other debts. 

I have 10 percent deposit saved and would like to borrow. £148k is this possible?

K_S

Rebecca01 said:

Hello I was wondering if anyone could help me. I spoke to a broker on Thursday then he said he would call me back on Tuesday after the bank holiday to look at options. I am so nervous I was just wondering if anyone could put my mind at rest as to how much I could borrow.

Sole applicant. Child nearly 13. Salary is 34k. I also receive child benefit of 1096 a year and maintenance of 400 pcm. However this is a personal agreement dating back 5 years. So Broker was checking which lenders maybe ok with this. 

I have a student loan of 110 pcm but no other debts. 

I have 10 percent deposit saved and would like to borrow. £148k is this possible?

@rebecca01 Assuming you're not term-restricted for whatever reason, and based on the limited info in your post, you *should* potentially be able to borrow 145-150k based solely on your basic income of £34k. I highly doubt you'll even need to take the informal child maintenance into account. The CB might be iffy due to your child's age, lenders start dropping off from 14 onwards. But again, you probably won't need it to be considered.

Rebecca01

Thank you for your quick reply @K_S

Do you mean my age for term restricted? I am 40 if that makes a difference? 

K_S

Rebecca01 said:

Thank you for your quick reply @K_S

Do you mean my age for term restricted? I am 40 if that makes a difference? 

@rebecca01 Sorry I should have been clearer 40 should be absolutely fine, still means a maximum term of 29-34 years if you need to stretch it to meet affordablity.

With the numbers you've shared, it's only when you get to 20 year terms and below that it hits your max borrowing figures. I hope that makes sense.

Rebecca01

Yes thank you so much.