Mortgage broker - ask me anything

K_S

@Bobthebuildercanyoufixit If you scroll to the bottom of this page, you can see their current average time to offer. https://www.intermediary.natwest.com/intermediary-solutions/Service_Levels.html

K_S

lisa1012 said:

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.

@lisa1012 Apologies, I thought you mentioned a 10-15% deposit.

Halifax is unlikely to consider the ltd.co. profits. For company directors, they normally go by salaries+dividends.

lisa1012

K_S said:

lisa1012 said:

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.

@lisa1012 Apologies, I thought you mentioned a 10-15% deposit.

Halifax is unlikely to consider the ltd.co. profits. For company directors, they normally go by salaries+dividends.

Hi sorry for the confusion.

many thanks for your response.

As I said our deposit is 40%.

Also I do not take any income from the company as it’s not doing much profits. 

So will the lender base their decision on my partners and my full time employment income or will they take my company’s profit/loss into consideration as well.

K_S

lisa1012 said:

K_S said:

lisa1012 said:

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.

@lisa1012 Apologies, I thought you mentioned a 10-15% deposit.

Halifax is unlikely to consider the ltd.co. profits. For company directors, they normally go by salaries+dividends.

Hi sorry for the confusion.

many thanks for your response.

As I said our deposit is 40%.

Also I do not take any income from the company as it’s not doing much profits. 

So will the lender base their decision on my partners and my full time employment income or will they take my company’s profit/loss into consideration as well.

@lisa1012 Depends on the lender. It's not clear whether you want the ltd.co. profits to be considered or not?

lisa1012

K_S said:

lisa1012 said:

K_S said:

lisa1012 said:

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.

@lisa1012 Apologies, I thought you mentioned a 10-15% deposit.

Halifax is unlikely to consider the ltd.co. profits. For company directors, they normally go by salaries+dividends.

Hi sorry for the confusion.

many thanks for your response.

As I said our deposit is 40%.

Also I do not take any income from the company as it’s not doing much profits. 

So will the lender base their decision on my partners and my full time employment income or will they take my company’s profit/loss into consideration as well.

@lisa1012 Depends on the lender. It's not clear whether you want the ltd.co. profits to be considered or not?

I am really sorry for any confusion.

I do not want the lender to consider the profits/loss of the company.

can we just show our evidence from the employment? And do we have to tell the lender I am a director of a company? 

K_S

lisa1012 said:

K_S said:

lisa1012 said:

K_S said:

lisa1012 said:

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.

@lisa1012 Apologies, I thought you mentioned a 10-15% deposit.

Halifax is unlikely to consider the ltd.co. profits. For company directors, they normally go by salaries+dividends.

Hi sorry for the confusion.

many thanks for your response.

As I said our deposit is 40%.

Also I do not take any income from the company as it’s not doing much profits. 

So will the lender base their decision on my partners and my full time employment income or will they take my company’s profit/loss into consideration as well.

@lisa1012 Depends on the lender. It's not clear whether you want the ltd.co. profits to be considered or not?

I am really sorry for any confusion.

I do not want the lender to consider the profits/loss of the company.

can we just show our evidence from the employment? And do we have to tell the lender I am a director of a company? 

@lisa1012 Unfortunately, there isn't a black and white answer to this as it depends on the specifics. If your (and your husband's) PAYE income is separate and from an unconnected company, and the profit/loss on your ltd.co. is small or the company is new, it may be ok to Ieave it out. But if your losses are significant and being fed from your personal income, that's another matter. You have to keep in mind that as a Company Director, there is a huge amount of public information out there on Companies House. I'm afraid I can't really go into this any deeper.

Bobthebuildercanyoufixit

Hi again,

Do mortgage lenders prefer someone who is happy to do a fixed rate for 5years than if they went for 2years especially if there circumstance isnt the best so if you have PDL or a high DTI etc.
for instance the 2year fixed rate has a smaller APR than the 5year fixed.
For some reason i heard somewhere that your more likely to get the mortgage if your fixed rate term is higher. 
is this true? Or have i just made this up lol. If it isnt true i guess going with the 2year fixed is better because the APR is lower and also in 2years time it could be that the interest rates decrease.

Many thanks,

AFScot

Hi. Keen to hear the view of a broker. Between me and my husband we have a yearly income of £170k. However due to us both being through quite horrid divorce situations we have a collective debt of 40k mainly on cards, some loans and no assets. We are renting at the moment and had planned on saving for a deposit over the next year while paying off debts. Current rent is more than we'd look for in a mortgage (sights set on properties around the 250K mark). However just been serviced notice from the landlord, have 3 months to move. This is the third rental property we'd need to leave in 3 years, I've had enough. However I don't think we'd get a mortgage as we only have 10K saved and still have debts to pay down, even though our income is high. Worth trying and getting a 'no' on our files or should we just move and rent again for another year?

K_S

AFScot said:

Hi. Keen to hear the view of a broker. Between me and my husband we have a yearly income of £170k. However due to us both being through quite horrid divorce situations we have a collective debt of 40k mainly on cards, some loans and no assets. We are renting at the moment and had planned on saving for a deposit over the next year while paying off debts. Current rent is more than we'd look for in a mortgage (sights set on properties around the 250K mark). However just been serviced notice from the landlord, have 3 months to move. This is the third rental property we'd need to leave in 3 years, I've had enough. However I don't think we'd get a mortgage as we only have 10K saved and still have debts to pay down, even though our income is high. Worth trying and getting a 'no' on our files or should we just move and rent again for another year?

@afscot £170k joint income, have a 10k deposit and looking to buy around 250k.

Assuming your credit history is clean, if you can muster up a 12.5k deposit (plus money to cover buying costs) you may be able to get a 95% LTV mortgage. 

With a 10k deposit, you're limited to a 200k property price for a standard purchase.

40k of debt between you at your stated income levels shouldn't necessarily be a problem with the right lender, but it will depend on the specifics.

Dee_100

Hi,

I'm hoping someone can help me / offer guidance. I have been in my current full time job for the last 15 years. I am aiming to buy my first house hopefully by the end of this year. However I am also looking to move jobs as my current job has no more career progression, no pay rises, low morale etc. 

Given that I have a pretty good employment history with my existing employer is it worth applying for a mortgage whilst I am in my current job and then moving jobs 6-12 months later once I have purchased a house, or moving jobs first and then applying for a mortgage some time after.

My understanding is that the longer you have been with your existing employer the better your chances of getting accepted for a mortgage and getting a good deal. I have seen some good job opportunities online though not sure if moving jobs before applying for a mortgage is the best move?

Any advice would be much appreciated.

Thanks!