Mortgage broker - ask me anything

K_S

@susanneblue Affordability is pretty black and white (specific to each lender) so there's not a lot of room to manoeuvre.

When you're applying on the basis of your sole income, the important bits are -
- your income: £13,500 basic

- your current debt

- how much are you looking to borrow (in total ie 30k borrowing plus outstanding balance)
- what's the maximum term avaliable (usually dependent on your age)

susanneblue

K_S said:

@susanneblue Affordability is pretty black and white (specific to each lender) so there's not a lot of room to manoeuvre.

When you're applying on the basis of your sole income, the important bits are -
- your income: £13,500 basic

- your current debt

- how much are you looking to borrow (in total ie 30k borrowing plus outstanding balance)
- what's the maximum term avaliable (usually dependent on your age)

so will they not look at that my husband sends me this money each month at all?

my loan is £3.350 piad off in may 2022

my current mortgage is sitting at £40,000 at £208pm, extra £133 is completely affordable, so £70,000 in total, halifax do say they offer mortgage up to the age of 80, but i just applied over the term of what i had left on my current mortgage. can i apply over a longer term?

Smegasaurus

K_S said:

@Smegasaurus There are a few lenders who will consider stipend income subject to the specifics. You *should* have a few options assuming your partner's SE income is considered.

Thanks. Nice to know we may not get laughed out of the building!! 

K_S

susanneblue said:

K_S said:

@susanneblue Affordability is pretty black and white (specific to each lender) so there's not a lot of room to manoeuvre.

When you're applying on the basis of your sole income, the important bits are -
- your income: £13,500 basic

- your current debt

- how much are you looking to borrow (in total ie 30k borrowing plus outstanding balance)
- what's the maximum term avaliable (usually dependent on your age)

so will they not look at that my husband sends me this money each month at all?

my loan is £3.350 piad off in may 2022

my current mortgage is sitting at £40,000 at £208pm, extra £133 is completely affordable, so £70,000 in total, halifax do say they offer mortgage up to the age of 80, but i just applied over the term of what i had left on my current mortgage. can i apply over a longer term?

@susanneblue Halifax is unlikely to lend anywhere close to what you need. Even your current mortgage of £40,000 is likely to be only barely affordable (as per Halifax's affordability calcs) with the details in your post.

Term wise, Halifax won't go above 70 without sufficient retirement income that can be evidenced. Even if you were able to stretch term up to max 40 years, it still would not meet affordability as per Halifax.

Unfortunately, Halifax (and most other lenders) are unlikely to consider income from husband and daughter for affordability purposes.

okcreating

We have a slightly complicated situation.

My new husband own a house with his ex. We would like to buy her out, which she agrees to, but there are a couple of obstacles:

1) I am a newcomer to the UK with no credit history whatsoever. Also being a foreign national, I only have a 5 year partner visa for the UK
2) his sole income is not sufficient from the affordability perspective, therefore his brother agreed to be a joint borrower, but ideally doesn’t want to go on the deeds not to lose his 1st time buyer status for the future.

That way there will be 3 applicants, 2 with good credit history and sufficient joint income, and 1 (the wife) with no credit history, but the wife’s income is not required for affordability, just needs to be on the mortgage and deeds, as it’s a family home.

The house value is £200k, and outstanding loan is £170k, making the LTV in the region of 15%. We can top up the “equity” a little if this can help.

I understand our biggest problem is me, being a foreign national with no credit history and very new to the UK, but the income of two “good” applicants is more than enough for the requirements.

Thank you in advance for your help.

K_S

@okcreating If you absolutely need to be on the mortgage, your options are likely limited at 85% LTV. At 75% your options may widen up depending on the rest of the scenario. I would recommend getting in touch with a broker who can look at the whole scenario and give you a realistic idea of your options.

Gibbbaaa

My partner and I are looking to purchase a property in the near future - we have a deposit but was advised by a broker that due to my poorer credit rating and prior use of payday loans that we should wait a year ensuring we don’t use any payday loans again in that period. This was around June last year and since then my credit rating has improved substantially. 

However, I currently have a loan with Likely Loans, £3500 over 5 years at 14.9% APR. I don’t believe they are considered a payday loan company but nevertheless is it likely having this loan will hinder our chances of acceptance? We can clear the loan if necessary but wanted to ask advice before we eat into our deposit. 

Thanks!

K_S

Gibbbaaa said:

My partner and I are looking to purchase a property in the near future - we have a deposit but was advised by a broker that due to my poorer credit rating and prior use of payday loans that we should wait a year ensuring we don’t use any payday loans again in that period. This was around June last year and since then my credit rating has improved substantially. 

However, I currently have a loan with Likely Loans, £3500 over 5 years at 14.9% APR. I don’t believe they are considered a payday loan company but nevertheless is it likely having this loan will hinder our chances of acceptance? We can clear the loan if necessary but wanted to ask advice before we eat into our deposit. 

Thanks!

@gibbbaaa Generally speaking, Likely loans is not classed as a payday lender but the way that some lenders define "high-interest finance" may cover the kind of APRs they advertise on their website (~60% from a quick look).

It's hard to say if or how much of an impact keeping/paying it off may have on your mortgage chances as that depends on the rest of the scenario including how the numbers stack up.

Gibbbaaa

@K_S Thanks for the quick reply - I am of course relieved this wouldn't fall into the payday lender bracket, although still a little cautious around having it on my file, something to ponder for now.  Thanks again.

Nervouslywaiting

Is underwriting usually done before valuation? Our case has been with Saffron for over a month with various documents requested from the underwriters, all of which we have provided. Today we were told the valuation has been instructed. I know things can still go wrong, but can I take this as a good sign that the underwriters are happy with the affordability and we are now just waiting to make sure the house itself is worth lending for? Or is it still totally up in the air? 

We've been waiting in limbo for so long, I need a reason to relax! 🤣