Mortgage broker - ask me anything

K_S

merudy said:

Hi. Me and my partner are hoping to buy a house. We have a 10% deposit and are looking at houses at around £320k. Our income is £80k and we have one credit card with 3k and a loan for 9k.

We've got our credit files and my partner has a default from July 2018. Will this stop us from being able to get a mortgage?

Thanks

@merudy With a 10% deposit, you will likely need to wait for the default to be 3 years old from registration (unless it's for a small amount), so July/August. At that point you should have a couple of options. Based on the limited info in your post, and assuming the 80k is basic employed income, the affordability looks fine.

K_S

jallen1984 said:

Hi,
I'm looking for some advice. We are due to remortgage at the end of the year and want to put ourselves in the best position financially to get the best deal. We will have about 75-80% LTV by the time our current deal ends. In addition I have an outstanding training loan of approximately £20k. We also have car on finance. 
We are able to pay off the loan with savings, but wouldn't leave us with a huge amount left over (doing this we would then be putting the loan repayment money back into savings).
We were wondering which is really our best option that would put us in line for the best mortgage rate:
a) Pay off outstanding loan, which reduces savings and have 75-80% LTV
b) Put savings into mortgage, which would give us about 70-74% LTV, but then still have the loan and small savings 
c) Keep things as they are and leave the savings untouched
Any advice is greatly appreciated

@jallen1984 There isn't enough info to say. What's the income and outstanding mortgage size please?

philng

Further update on daughter and future son in law Mortgage app with Halifax. Net Profit Figure is £70k but SA302 is what Halifax use to confirm income but is significantly lower due to one off capital expenditure in moving business premises.

As it stands draft SA302 would be insufficient for mortgage but this is one off expenditure.

Is the accountant able to split this expenditure over more than one tax year so it is not all deducted off NP figure for this year and so SA302 shows sufficient for mortgage? Appreciate will pay more tax on the higher SA302 figure?

K_S

philng said:

Further update on daughter and future son in law Mortgage app with Halifax. Net Profit Figure is £70k but SA302 is what Halifax use to confirm income but is significantly lower due to one off capital expenditure in moving business premises.

As it stands draft SA302 would be insufficient for mortgage but this is one off expenditure.

Is the accountant able to split this expenditure over more than one tax year so it is not all deducted off NP figure for this year and so SA302 shows sufficient for mortgage? Appreciate will pay more tax on the higher SA302 figure?

@philng This is accounting/tax territory and definitely one for your kids' accountants. Generally speaking, afaik businesses can choose to not use the FYA/AIA and instead use the normal written-down allowances. https://www.gov.uk/capital-allowances/annual-investment-allowance But, I'm not an accountant so this may or may not apply to your business or be relevant to your question.

Do seek tax advice or dyor.

jallen1984

K_S said:

jallen1984 said:

Hi,
I'm looking for some advice. We are due to remortgage at the end of the year and want to put ourselves in the best position financially to get the best deal. We will have about 75-80% LTV by the time our current deal ends. In addition I have an outstanding training loan of approximately £20k. We also have car on finance. 
We are able to pay off the loan with savings, but wouldn't leave us with a huge amount left over (doing this we would then be putting the loan repayment money back into savings).
We were wondering which is really our best option that would put us in line for the best mortgage rate:
a) Pay off outstanding loan, which reduces savings and have 75-80% LTV
b) Put savings into mortgage, which would give us about 70-74% LTV, but then still have the loan and small savings 
c) Keep things as they are and leave the savings untouched
Any advice is greatly appreciated

@jallen1984 There isn't enough info to say. What's the income and outstanding mortgage size please?

@K_S thanks for the response. Our combined income is about £100k and our outstanding mortgage size at the end of the year will be around £320k 

Scorpiogal13

I asked this in another post, but had no replies. so hoping you might know!

I've read that Agreements in principle expire after 60 or 90 days. Just wanted to know what happens if you haven't found your home by then, what's the process of reapplying for it? Would i (or my Mortgage Broker) have to submit all the paperwork/information again etc?

Second question: Say i have a 30K deposit when i apply for a mortgage [in principle], what happens if 2 months later i've found a house but i've acquired an additional 10K.

Is it a matter of being able to just add that addtional 10K to the deposit? Or is it not that simple?

How does it work? I'm new to all this, so don't have a clue! Lol

K_S

@scorpiogal13

1. It's a fairly straightforward process and usually would involve submitting a fresh DIP. As a broker, most lender systems will allow me to copy over most of the information, not sure how it works direct.

2. I can modify the DIP and re-run it with the new numbers. Most lenders will allow 2-3 re-runs before a fresh credit-check is required.

Bobthebuildercanyoufixit

Hi all,
could someone please clarify how payday loans effect mortgage application please?
My broker has put an application through via Natwest regardless of my wife and I having payday loans present on our credit file.
my broker asvised that the payday loans where used and paid off in full before the last 3 months so this would not really matter with Natwest (as this is within the lending criteria)-
is this true? Do Natwest overlook payday loans if it is more than 3months ago and paid in full?
Also can someone recommend a lender that would be fine with payday loans on credit file.
many thanks,

K_S

Bobthebuildercanyoufixit said:

Hi all,
could someone please clarify how payday loans effect mortgage application please?
My broker has put an application through via Natwest regardless of my wife and I having payday loans present on our credit file.
my broker asvised that the payday loans where used and paid off in full before the last 3 months so this would not really matter with Natwest (as this is within the lending criteria)-
is this true? Do Natwest overlook payday loans if it is more than 3months ago and paid in full?
Also can someone recommend a lender that would be fine with payday loans on credit file.
many thanks,

@bobthebuildercanyoufixit Paid off in full (and updated on the credit report), DIP passed, it will be considered, hence why your broker has placed you with Natwest.

Bobthebuildercanyoufixit

@K_S our payday loans have all been pqid off and wer paid off immediately within a month each time they had been taken out. We do not have any defaults nor missed payments. The payday loans usage was approximately 4 each within the last 2years from lending stream and just the one from quickquid. 

We are looking to give a 10% deposit. Our household income is 56k and the property is £225000. We have a high DTI of 42. Our credit score is 'good' on check my file we both have a score of 812

With all this information Do you think Natwest is a good option???