Mortgage broker - ask me anything

Adam200

Hi My partner and I are hoping to start purchase of a house within the next few weeks. Only concern is i am a civil servant on a 2 year fixed term contact (a lot of contracts are like that with the government at the moment) i have a probation period of 12 months; after which Passing I will become permanent and will get a pay rise of 4K. I am currently 8 months into the contract. It’s basically a guarantee the contact will become permanent ( they run all their contracts like this and make everyone permanent unless the person wishes to leave ) my previous job was in policing for 3 years permanent contract. 

My partner is on a permanent contract and has been working at the same company for 3 years.

We have a 10% deposit for £600k house. Total income £121k 

How will this affect us ? Would this hinder our options with lenders? We will most likely get a mortgage broker but wanted to get your advice first please ? Thanks ! 

K_S

Adam200 said:

Hi My partner and I are hoping to start purchase of a house within the next few weeks. Only concern is i am a civil servant on a 2 year fixed term contact (a lot of contracts are like that with the government at the moment) i have a probation period of 12 months; after which Passing I will become permanent and will get a pay rise of 4K. I am currently 8 months into the contract. It’s basically a guarantee the contact will become permanent ( they run all their contracts like this and make everyone permanent unless the person wishes to leave ) my previous job was in policing for 3 years permanent contract. 

My partner is on a permanent contract and has been working at the same company for 3 years.

We have a 10% deposit for £600k house. Total income £121k 

How will this affect us ? Would this hinder our options with lenders? We will most likely get a mortgage broker but wanted to get your advice first please ? Thanks ! 

@adam200 On its own, the employment situation described in your post should not cut down your lender options in a significant way.

Rebecca01

Another question is it normal for a broker to go through taking all details for an hour and a half then book another appointment for a week later ? (Easter weekend so this maybe the reason) not got an AIP yet so estate agent won't take the house off the market. 

Also I was off work for a couple of weeks in Jan. We get full pay for six months anyway so income wasn't affected but shows on my payslip as off set ssp. Would this affect anything? My last payslip is all standard again. 

K_S

Rebecca01 said:

Another question is it normal for a broker to go through taking all details for an hour and a half then book another appointment for a week later ? (Easter weekend so this maybe the reason) not got an AIP yet so estate agent won't take the house off the market. 

Also I was off work for a couple of weeks in Jan. We get full pay for six months anyway so income wasn't affected but shows on my payslip as off set ssp. Would this affect anything? My last payslip is all standard again. 

@rebecca01 Is this a mortgage broker or a bank mortgage advisor? I wouldn't say it's normal for any of the good brokers I know, especially if you have had an offer accepted (as it looks like is the case). One, you shouldn't be spending 90 mins to do a fact find and you shouldn't be letting the client hang for a week. But of course, different brokers work to different customer service standards.

As an example, my client viewed a property on Good Friday and put in an offer. The Estate Agent (EA) would not take the property off the market until their finances were confirmed so I dropped the EA an email confirming that my client's finances were in place to back up the offer of xxx, that solicitors were on standby to be instructed soon as the offer was accepted.The EA accepted that and marked the property as SSTC. Some insist on an AIP, if that had been the case I would have run one for the clients asap, latest by Saturday and secured the offer.

If your latest payslip is normal, it shouldn't be an issue.

Rebecca01

Thanks  for your reply,its a broker. I initially applied with l and c. They gave me their DIP which I think the estate agent will accept. ( but know this isn't official). However they could not get me an appointment until 2 weeks time. So I found a broker fairly local. Sent the admin all of my docs then had the appointment. He said he would ring me back in half an hour. He didn't. I emailed him after 3 hours. He said don't panic and he was in a meeting. He said I fit most affordability calcs and we would have an appointment next week to go through it and the insurances.

I emailed again as the estate agent had requested which solicitors I was using. I asked him if I should use a local one and he sent me details and asked if I wanted to use them and he would put the request in.  

The appointment is not until Wednesday so I am going out of my mind. Think I would feel better even if I had an AIP. I don't want to come actually as harrasing either. 

Sigh

Fkhan95

Hi,
I’m in the process of applying for a mortgage. I have been lending £700-£750 a month to a friend for the last few months. I haven’t done that since I decided to buy a house but that was only last month, so I haven’t had that outward transfer in March bank statement, but it’s present for Jan and Feb. Is this something lenders would look upon negatively, and is there any way of proving to them it’s just lending friend money? Or would I just have to wait out another two months without this outward transfer and have 3 months of clean bank statements? 

Thanks

K_S

Fkhan95 said:

Hi,
I’m in the process of applying for a mortgage. I have been lending £700-£750 a month to a friend for the last few months. I haven’t done that since I decided to buy a house but that was only last month, so I haven’t had that outward transfer in March bank statement, but it’s present for Jan and Feb. Is this something lenders would look upon negatively, and is there any way of proving to them it’s just lending friend money? Or would I just have to wait out another two months without this outward transfer and have 3 months of clean bank statements? 

Thanks

@fkhan95 If it's just a normal BACS bank transfer that's now stopped, it should be fine. Not all lenders ask for 3 months bank statements, or indeed any bank statements at all at the initial submission stage, though of course it could be requested for at underwriting.

yummymummy79

I jointly own a property with my fiancé but we’ve decided to live apart (but stay ‘together’).
Neither of us can move until we sell this house and release the equity.

trouble is, when I live on my own I will get UC of about £700 a month (as well as wages etc) but can’t get this until I move.

This will mean that the income I have at the time of the mortgage application will be £700pm lower than it will be when I actually start paying the mortgage! I’m anticipating this will mean I can only get a property that won’t be especially suitable (it’ll likely have to be a 2 bed for me and 2 children anyway but there is a range!) even though I will realistically be able to afford a much higher mortgage (and therefore a better house) once I actually live in it.

Any suggestions or ways round it?

K_S

yummymummy79 said:

I jointly own a property with my fiancé but we’ve decided to live apart (but stay ‘together’).
Neither of us can move until we sell this house and release the equity.

trouble is, when I live on my own I will get UC of about £700 a month (as well as wages etc) but can’t get this until I move.

This will mean that the income I have at the time of the mortgage application will be £700pm lower than it will be when I actually start paying the mortgage! I’m anticipating this will mean I can only get a property that won’t be especially suitable (it’ll likely have to be a 2 bed for me and 2 children anyway but there is a range!) even though I will realistically be able to afford a much higher mortgage (and therefore a better house) once I actually live in it.

Any suggestions or ways round it?

@yummymummy79 It's not fully clear but it looks like you're asking if future UC figures can be taken into account for affordability when looking for a mortgage. The answer to that is likely no.

For my clients who've used UC (some components, not all are considered), lenders usually require an award letter (or the online equivalent), statement for X months and corresponding credit to bank statements.

yummymummy79

K_S said:

yummymummy79 said:

I jointly own a property with my fiancé but we’ve decided to live apart (but stay ‘together’).
Neither of us can move until we sell this house and release the equity.

trouble is, when I live on my own I will get UC of about £700 a month (as well as wages etc) but can’t get this until I move.

This will mean that the income I have at the time of the mortgage application will be £700pm lower than it will be when I actually start paying the mortgage! I’m anticipating this will mean I can only get a property that won’t be especially suitable (it’ll likely have to be a 2 bed for me and 2 children anyway but there is a range!) even though I will realistically be able to afford a much higher mortgage (and therefore a better house) once I actually live in it.

Any suggestions or ways round it?

@yummymummy79 It's not fully clear but it looks like you're asking if future UC figures can be taken into account for affordability when looking for a mortgage. The answer to that is likely no.

For my clients who've used UC (some components, not all are considered), lenders usually require an award letter (or the online equivalent), statement for X months and corresponding credit to bank statements.

That was pretty much it, yes. That’s rather annoying then :-(

I suppose options may be short term rent to be able to get proof of UC and then buy at that point, or see if able to pay off fiancé the money he will get from the sale and then get a few months UC proof and buy then. Both of which incur lots of extra costs so aren’t hugely appealing :-(

Any other suggestions I haven’t thought of?