Mortgage broker - ask me anything

cottontail_47

thank you we'll probably look at just having my mum on the mortgage and deeds as she is younger. We'll contact a broker when we are closer to going ahead. thanks again

Scorpiogal13

Hi, just wanted to know the amount of loan me and my partner would qualify for.

I am Self employed, my partner works part time (we have a combined income of £44,000).

We have No children, No Debts, No Credit cards, good credit scores, live a pretty frugal life and right now have a 40K deposit.

Could you tell me approx. what the maximum amount we would be able to borrow?

Just a rough guide would be great.

K_S

@Scorpiogal13 Very roughly, based on the limited info in your post, and optimistic assumptions for the unknowns, potentially between 4.25-4.75 times your income. If the LTV is low enough, perhaps even 5x.

Romualdson

Hi, when comparing deals between different lenders to advise the client, do you take into account the amount of mortgage left outstanding?

 

e.g.:

- Lender1 has higher interest rate but no initial fees and the total to be paid over 24 months is £20k;

- Lender2 has lower interest rate but an initial fee on top making the total to be paid over 24 months £20.5k.

 

But due to lower interest of Lender2 the borrower ends (after 24 month fixed rate period) with £1k of outstanding mortgage less.

 

Would you advise Lender1 (less to be paid over 24 months) or Lender2 (lower cost overall)?

Capri84

Do pension contributions affect mortgage applications? When I gave my income it was the full salary, but I salary sacrifice 4% for pensions. Can that affect the application at all? 

Already got a DIP based on income/outgoings 

K_S

Capri84 said:

Do pension contributions affect mortgage applications? When I gave my income it was the full salary, but I salary sacrifice 4% for pensions. Can that affect the application at all? 

Already got a DIP based on income/outgoings 

@capri84 A lot of lenders will ignore pension salary sacrifice deductions for affordability purposes.

K_S

Romualdson said:

Hi, when comparing deals between different lenders to advise the client, do you take into account the amount of mortgage left outstanding?

e.g.:

- Lender1 has higher interest rate but no initial fees and the total to be paid over 24 months is £20k;

- Lender2 has lower interest rate but an initial fee on top making the total to be paid over 24 months £20.5k.

But due to lower interest of Lender2 the borrower ends (after 24 month fixed rate period) with £1k of outstanding mortgage less.

Would you advise Lender1 (less to be paid over 24 months) or Lender2 (lower cost overall)?

@romualdson If comparing these two specific deals, you want to consider going with the product that is lower on a 'total cost plus amount outstanding' basis.

Capri84

K_S said:

Capri84 said:

Do pension contributions affect mortgage applications? When I gave my income it was the full salary, but I salary sacrifice 4% for pensions. Can that affect the application at all? 

Already got a DIP based on income/outgoings 

@capri84 A lot of lenders will ignore pension salary sacrifice deductions for affordability purposes.

Cheers! Any idea what coventrys stance on this is? Application is working it’s way through their system and now I’m winding myself up worrying about it. 

Terrace

Is income for affordability taken pre tax or post tax? 

K_S

Capri84 said:

K_S said:

Capri84 said:

Do pension contributions affect mortgage applications? When I gave my income it was the full salary, but I salary sacrifice 4% for pensions. Can that affect the application at all? 

Already got a DIP based on income/outgoings 

@capri84 A lot of lenders will ignore pension salary sacrifice deductions for affordability purposes.

Cheers! Any idea what coventrys stance on this is? Application is working it’s way through their system and now I’m winding myself up worrying about it. 

@capri84 Off of the top of my head, they deduct pension outgoings for affordability calcs. But unless you're on the very edge of affordability, I highly doubt a 4% deduction would make any material difference. In any case, your broker would almost certainly have accounted for that when placing you with Coventry.