Mortgage broker - ask me anything

lisa1012

Hi,

 We are first time buyers. My husband is full time employed with earning around £28,000 and I am also full time employed with earning around £22,0000. However I am also a director of a limited company with 100% share but I do not take any income/profits from the company. 

We have really good deposit of 10-15%

So my question is while applying for a joint mortgage will the lender make a decision based on our incomes from our full time jobs as well as the fact that I am a company director?

will wait for your response.

thanks 

KGL65S

Hi I was just wondering if anyone can offer some advice. I’ve got a mortgage application in with natwest, we had a DIP before it went in and it’s being done via a broker. The valuation on the house we want to buy has been done and is fine but NatWest have requested our pay slips from last year that proves the annual bonus which we sent over last Thursday and still waiting to hear! Is this normal and if the valuations been done does that mean it’s likely to be approved? Starting to get nervous as the broker expected to have the offer by now as the valuation was done last Thursday! Thanks. 

DumplingfromDevonshire

Hello everyone

Could anyone tell us how to find a broker who can help getting a shared ownership mortgage please. It seems to be a niche area and I understand not all brokers deal with this type of mortgage so any help would be very appreciated.

Many thanks

K_S

DumplingfromDevonshire said:

Hello everyone

Could anyone tell us how to find a broker who can help getting a shared ownership mortgage please. It seems to be a niche area and I understand not all brokers deal with this type of mortgage so any help would be very appreciated.

Many thanks

@dumplingfromdevonshire It's not really a niche area anymore. The reason why a lot of brokers do not do it is because the loan sizes are very small, which means that a broker fee needs to be charged to make it viable and customers are often unwilling to pay.

For example, I charge £250 upon offer for non-adverse SO mortgages over 100k. And £500 below 100k. Other than the free brokers listed on the MSE page, I don't know of any brokers who do SO mortgages for free.

K_S

KGL65S said:

Hi I was just wondering if anyone can offer some advice. I’ve got a mortgage application in with natwest, we had a DIP before it went in and it’s being done via a broker. The valuation on the house we want to buy has been done and is fine but NatWest have requested our pay slips from last year that proves the annual bonus which we sent over last Thursday and still waiting to hear! Is this normal and if the valuations been done does that mean it’s likely to be approved? Starting to get nervous as the broker expected to have the offer by now as the valuation was done last Thursday! Thanks. 

@KGL65S It's normal for bonuses to check the track record if it's been factored in for affordability.

K_S

lisa1012 said:

Hi,

 We are first time buyers. My husband is full time employed with earning around £28,000 and I am also full time employed with earning around £22,0000. However I am also a director of a limited company with 100% share but I do not take any income/profits from the company. 

We have really good deposit of 10-15%

So my question is while applying for a joint mortgage will the lender make a decision based on our incomes from our full time jobs as well as the fact that I am a company director?

will wait for your response.

thanks 

@lisa1012 Depends on what you want, how much you need to borrow and the specific lender. At 85% LTV, you have lenders who will consider your PAYE income at 100% and 100% of your company net-profit (as it looks like you retain profits in the company without taking it out as salary or dividends).

At 90% LTV a few lenders will not consider the Ltd.Co. income.

If you intend to maximise your borrowing, then this is definitely one for an experienced broker.

K_S

Rebecca01 said:

As a Broker how long does it take you or admin to fill in a full application on the mortgage portal? 

@rebecca01 God, don't ask. Filling in a DIP and FMA can be a nightmare, depending on the lender.

Every lender asks different questions (for example, for a gifted deposit, some even ask for full name and date of birth of giftor at DIP stage or the name and date of birth of a dependent, etc) so you sometimes have a lot of to and fro with the client.

And like different bank's online banking systems, some are great, intuitive and user friendly while others are maddeningly frustrating (page not found, doesn't save the DIP at each page, etc etc).

Sorry I didn't answer your specific question but how long is a piece of string!

lisa1012

K_S said:

lisa1012 said:

Hi,

 We are first time buyers. My husband is full time employed with earning around £28,000 and I am also full time employed with earning around £22,0000. However I am also a director of a limited company with 100% share but I do not take any income/profits from the company. 

We have really good deposit of 10-15%

So my question is while applying for a joint mortgage will the lender make a decision based on our incomes from our full time jobs as well as the fact that I am a company director?

will wait for your response.

thanks 

@lisa1012 Depends on what you want, how much you need to borrow and the specific lender. At 85% LTV, you have lenders who will consider your PAYE income at 100% and 100% of your company net-profit (as it looks like you retain profits in the company without taking it out as salary or dividends).

At 90% LTV a few lenders will not consider the Ltd.Co. income.

If you intend to maximise your borrowing, then this is definitely one for an experienced broker.

Thanks for your response.

Our LTV is actually around 60% with 40% deposit. 

As you have mentioned the profits from the company is quite low therefore I am not taking out any income from it. Thus I am working full time. 

The lender we were considering was Halifax.

K_S

Walesgirl said:

Hi, do the mortgage lender require proof of 3 months mortgage payments on application like Kensington? 

@walesgirl Depends on the specific lender but it can differ from no statements, 1 month, 3 months or even 6 months. Generally speaking, adverse lenders ask for more upfront than (say) mainstream lenders like Halifax or Accord.

DumplingfromDevonshire

K_S said:

DumplingfromDevonshire said:

Hello everyone

Could anyone tell us how to find a broker who can help getting a shared ownership mortgage please. It seems to be a niche area and I understand not all brokers deal with this type of mortgage so any help would be very appreciated.

Many thanks

@dumplingfromdevonshire It's not really a niche area anymore. The reason why a lot of brokers do not do it is because the loan sizes are very small, which means that a broker fee needs to be charged to make it viable and customers are often unwilling to pay.

For example, I charge £250 upon offer for non-adverse SO mortgages over 100k. And £500 below 100k. Other than the free brokers listed on the MSE page, I don't know of any brokers who do SO mortgages for free.

Thank you for the quick reply, that explains why it has been difficult and quite understand that people need to be paid for their time and that seems fair, so does that mean the fee would be paid upon the successful offer of a mortgage. Just a bit wary about paying perhaps £500 and having nothing to show at the end, difficult balance to attain.