Mortgage broker - ask me anything

K_S

Elisabetheyre said:

Thinking about trying to get a joint mortgage with my partner, he has perfect credit and is currently selling his house so will have a deposit of around £50,000 after. Unfortunatly my credit score is very poor, I have a ccj from 4 years ago which has just been paid off in full, and 3 missed payments on my credit card last year, and high credit utilization on my credit card, which I'm slowly paying off.

Does it sound like a lost cause trying to get a joint? best for him to do it solo?

@Elisabetheyre Very generally speaking, based on the limited info in your post

- You should have options for a joint mortgage but the lenders/products available are likely to be at higher than mainstream rates

- If you don't need your income to be considered for sufficient borrowing, then it might indeed be cheaper and easier to get it in his sole name

simone82

Good evening this question is for everyone  )

Can I have recommemdation of lenders to do my DIP, with adverse credit history (defaults from 2016 and 2018 all fully paid off). And also high street banks if any would touch us.

We really want to start the ball rolling, and see if we would actually have a chance of being accepted

Thank you

KD24

Hi All,

My partner and me are would be first time buyers. We currently have a 10% mortgage but house prices are crazy high at the minute. My partner wants to buy now and get on with it and I want to wait on a little and see what happens. We are looking for a house in Wakefield. 

I think the mortgage rates aren’t favourable at the moment and house prices high, I’m only looking at this house as a 5 - 8 year house and not a forever home. so what is everyone’s thoughts? 

Also we opened a joint bank account which I didn’t realise would affect my credit score but actually knocked it down by 60 points , it’s still good but it was excellent, how much of a issue would this cause?

Thank you all for any help have a great day 

K_S

@kd24 You can safely ignore the movement in the Experian/Clearscore/CreditKarma credit score, that has no bearing on your mortgage chances. 

If you feel that house prices may come down, then it might make sense to wait. Of course it could just as well turn out to be the opposite. 

K_S

simone82 said:

Good evening this question is for everyone  )

Can I have recommemdation of lenders to do my DIP, with adverse credit history (defaults from 2016 and 2018 all fully paid off). And also high street banks if any would touch us.

We really want to start the ball rolling, and see if we would actually have a chance of being accepted

Thank you

@Simone82 Brokers are unlikely to be able to name any lenders, as it could be seen as advice given on the basis of little to no information.

It depends on the specifics of the adverse history, but generally speaking, if the defaults are more than 3 years old and the credit history has been clean since then, you should have options with a 10% deposit. 

julicorn

Hi all, 

Thanks so much for running this 'AMA', it is super useful.
I have a question which has come up before on this forum, but seems to have received very different answers over time (I assume guidelines change as well, so that's not too surprising).

Can pension contributions pose an issue when it comes to affordability? For example, if I were to pay 30% of my income into a company pension scheme, would that affect the amount I can borrow, or is that not really taken into account because pension contributions can be stopped at any time?

Many thanks in advance!

K_S

julicorn said:

Hi all, 

Thanks so much for running this 'AMA', it is super useful.
I have a question which has come up before on this forum, but seems to have received very different answers over time (I assume guidelines change as well, so that's not too surprising).

Can pension contributions pose an issue when it comes to affordability? For example, if I were to pay 30% of my income into a company pension scheme, would that affect the amount I can borrow, or is that not really taken into account because pension contributions can be stopped at any time?

Many thanks in advance!

@julicorn If it shows on your payslip as a post-tax deduction, most lenders will ignore it for affordablity calculations. If it shows as pre-tax (salary sacrifice) a few more lenders may not like it.

On the whole, as long as it's discretionary, it shouldn't overly impact your options.

julicorn

K_S said:

julicorn said:

Hi all, 

Thanks so much for running this 'AMA', it is super useful.
I have a question which has come up before on this forum, but seems to have received very different answers over time (I assume guidelines change as well, so that's not too surprising).

Can pension contributions pose an issue when it comes to affordability? For example, if I were to pay 30% of my income into a company pension scheme, would that affect the amount I can borrow, or is that not really taken into account because pension contributions can be stopped at any time?

Many thanks in advance!

@julicorn If it shows on your payslip as a post-tax deduction, most lenders will ignore it for affordablity calculations. If it shows as pre-tax (salary sacrifice) a few more lenders may not like it.

On the whole, as long as it's discretionary, it shouldn't overly impact your options.

Thank you! It's the NEST scheme which I'm pretty sure is 'relief at source' / post tax. 

Thanks again, that's really helpful. 

cottontail_47

Hi, I'm looking at buying a house jointly with my parents (65 and 58, I'm 31). I will own 50% of the house and they will own the rest. I will need a mortgage for my share of the house but they will be paying cash for theirs. We will all be living in the house together. 

Can I get the mortgage in just my name or will they need to be on it?

If they are on the mortgage will it impact the length of term I can borrow for if mine is the main income used?

Thanks in Advance

K_S

cottontail_47 said:

Hi, I'm looking at buying a house jointly with my parents (65 and 58, I'm 31). I will own 50% of the house and they will own the rest. I will need a mortgage for my share of the house but they will be paying cash for theirs. We will all be living in the house together. 

Can I get the mortgage in just my name or will they need to be on it?

If they are on the mortgage will it impact the length of term I can borrow for if mine is the main income used?

Thanks in Advance

@cottontail_47 Generally speaking, you can have 3 people on the mortgage and only 1 on the deeds but not 1 on the mortgage and 3 on the deeds. I hope that makes sense.

If they absolutely need to be on the deeds, and if your income stacks up to meeting affordability for the loan amount on its own, then what you are looking for is a mortgage/lender which 

- meets affordability on your sole income

- allows 3 people on the mortgage

- allows your parents to be on the mortgage application (with zero income)

- allows your parents to contribute to the deposit

- disregards your parents' ages for the term

Most lenders will go by the age of the oldest applicant, so that will probably not work for your needs. I would recommend getting in touch with a broker to get a realistic idea of what options may be available to you.