Mortgage broker - ask me anything

Bobthebuildercanyoufixit

Hi All,

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,

NiaBrown

K_S said:

@niabrown If you work on FTCs, this is what you need to meet for TSB

- 12 months contract history

- no gaps exceeding 6 weeks

- at least 3 months remaining

- current contract ending in less than 3 months, a future contract of minimum 3 months will be required

Thank you! Unfortunately not FTCs though (it's a weird life) - usually 2 or 3 PTCs running concurrently to make FT hours. So for instance, right now I have one PTC due to finish at the end of June 2021 (currently negotiating a contract to take over from that one) but another until March 2022... 

The job I'm waiting to hear about is a nice permanent FT job in the civil service - much easier!!

K_S

NiaBrown said:

K_S said:

@niabrown If you work on FTCs, this is what you need to meet for TSB

- 12 months contract history

- no gaps exceeding 6 weeks

- at least 3 months remaining

- current contract ending in less than 3 months, a future contract of minimum 3 months will be required

Thank you! Unfortunately not FTCs though (it's a weird life) - usually 2 or 3 PTCs running concurrently to make FT hours. So for instance, right now I have one PTC due to finish at the end of June 2021 (currently negotiating a contract to take over from that one) but another until March 2022... 

The job I'm waiting to hear about is a nice permanent FT job in the civil service - much easier!!

@niabrown Sorry I meant fixed term contracts. If you have multiple part-time fixed term contracts and need all to be considered for your income, do make sure your broker is clear on this as it could be tricky to place. Good luck!

K_S

Bobthebuildercanyoufixit said:

Hi All,

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,

@Bobthebuildercanyoufixit Generally speaking, I wouldn't say that this is the case.

K_S

simone82 said:

Evening all, hope someone can help

My partner has just started a new role where he does shifts, gets paid weekly and each day of the week is paid at a different rate depending on the day start time of shift (eg a mon morning would be a different rate to a sunday afternoon or evening)

How do I reflect this when trying to work out our total income as I cant predict his annual salary as he gets paid differently each week?

Also if I have a lifetime Isa aswell as a help to buy isa will I be charged for taking the money out of the H2B isa when it comes to buying, as we will use the LISA as part of the mortgage process and just take out the H2B and use towards as a seperate amount?

Thank you

@simone82 What kind of contract does he have - fixed hours or zero hours? And on his payslip does he get a basic hourly rate plus a shift variable rate or simply different hourly rates for different shifts?

NiaBrown

K_S said:

NiaBrown said:

@niabrown Sorry I meant fixed term contracts. If you have multiple part-time fixed term contracts and need all to be considered for your income, do make sure your broker is clear on this as it could be tricky to place. Good luck!

Thank you! 

T_J_A_8691

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

Good morning DumplingfromDevonshire,

L&C (fee free) sorted our mortgage and placed us with  Newbury building society. Rates were comparable with other SO mortgages ive seen. 

hope this helps

BabyStepper

Hi there
I wondered if you have any info about how SEISS grants are effecting mortgage applications? Just to explain, my OH is permanently employed PAYE and his income is our main household income at the minute. I'm self-employed, still working but with a reduced income since the pandemic. As I was eligible, I have taken all 3 SEISS grants to date and will probably be able to claim the next one too. 
We're trying to figure out what our budget for a new home will be and wondered if SEISS grants are being accepted as income? 
Many thanks for any insight you can offer. I understand this situation might be changing all the time. 

Scorpiogal13

Just wanted to know how lenders look upon deposits that have been made up of Savings plus money from selling some of your personal belongings/assets?

Do they frown upon this, if the deposit hasn't all come from your actual Savings?

K_S

Scorpiogal13 said:

Just wanted to know how lenders look upon deposits that have been made up of Savings plus money from selling some of your personal belongings/assets?

Do they frown upon this, if the deposit hasn't all come from your actual Savings?

@scorpiogal13 If you're referring to things like proceeds of selling your car, furniture, electronic equipment, etc, none of that is likely to be an issue as long as there's something to back up the larger bank credits (eg: car sold for £15k, some form of proof of the sale) if queried. I hope that makes sense.