Mortgage broker - ask me anything

Capri84

Her wage is £6k per year... mine is £60k

Snevets007

Can anyone please advise whether there are any mortgage companies that will provide mortgages who will accept Declaration of Trusts. My son is looking to get a mortgage and I am willing to invest half the value of the house and him cover the other half with a mortgage. Obv mortgage providers are concerned should my son default on his mortgage and they want to recoup any loss. Chances are we would cover the mortgage in this case and then look to sell the property however we are struggling to find a mortgage provider for his share

kingstreet

Snevets007 said:

Can anyone please advise whether there are any mortgage companies that will provide mortgages who will accept Declaration of Trusts. My son is looking to get a mortgage and I am willing to invest half the value of the house and him cover the other half with a mortgage. Obv mortgage providers are concerned should my son default on his mortgage and they want to recoup any loss. Chances are we would cover the mortgage in this case and then look to sell the property however we are struggling to find a mortgage provider for his share

Who will own the property and who will be the mortgagor(s)?

longtimelurker2020

1. Are 10% deposit mortgages widely available (90% LTV)? 

2. Do lenders have stringent criteria for this LTV? Can you share a few examples of the hoops applicants would have to jump through

3. Does the location or value of the property have any bearing on the lender’s decision to grant a 90% LTV mortgage? 

Thanks 

K_S

longtimelurker2020 said:

1. Are 10% deposit mortgages widely available (90% LTV)? 

2. Do lenders have stringent criteria for this LTV? Can you share a few examples of the hoops applicants would have to jump through

3. Does the location or value of the property have any bearing on the lender’s decision to grant a 90% LTV mortgage? 

Thanks 

@longtimelurker2020

1. Plenty of choice at present.

2. Generally speaking, lenders may apply "enhanced" criteria for 85%+ LTV mortgage. See here for Nationwide https://www.nationwide-intermediary.co.uk/news/2020/july/90-ltv Their "credit-score" requirements might also be tweaked to make it a bit more difficult to qualify.

3. Generally speaking, no. However, for high-value loans (500-750k+) the criteria may be tougher as an accurate valuation is often hard to pin down on expensive properties.

longtimelurker2020

Thank you @K_S I see that Nationwide’s max loan at 85%LTV or higher is £500k ...do other lenders have a similar cap? 

K_S

longtimelurker2020 said:

Thank you @K_S I see that Nationwide’s max loan at 85%LTV or higher is £500k ...do other lenders have a similar cap? 

@longtimelurker2020 Yes, depends on the specific lender and can range on a spectrum from 250k to 1m and upwards depending on their risk appetite.

ClaireE

I need quite a hefty remortgage on my property. My ex husband has a financial interest in it and wants his share asap. I have re-married and we need to combine our incomes for the repayments of the new mortgage. My new husband is self employed, a sole trader. Santander has asked for the last 3 years of his yearly net profit. His accountant has passed me the paper work but only one of the years - the last one - shows the net profit the bank Santander has said will allow the application to go through. The previous two years show much lower net profits. Can we get round this, would the bank accept the last year alone?

K_S

ClaireE said:

I need quite a hefty remortgage on my property. My ex husband has a financial interest in it and wants his share asap. I have re-married and we need to combine our incomes for the repayments of the new mortgage. My new husband is self employed, a sole trader. Santander has asked for the last 3 years of his yearly net profit. His accountant has passed me the paper work but only one of the years - the last one - shows the net profit the bank Santander has said will allow the application to go through. The previous two years show much lower net profits. Can we get round this, would the bank accept the last year alone?

@clairee Santander take latest year's net profit for affordablity purposes, presumably why you chose them I suppose? If the disparity is very high (subjective of course) - for example it's 15k, 20k and now 50k, they may query further or dig into it a bit more.

Savingupsally29

Can i ask a question please
I've seen that santander are the single provider that will allow a loan as deposit. A broker from a large company has offered to look into this for us. Payment of £500 application. 

Our circumstances are that we have 8k saved but need about 20k for a 5% deposit and fees the cost of property in our region. Based on the affordability calculators I have used we can afford the loan for the deposit alongside the mortgage. We have perfect credit scores after paying off all debt recently. Appreciate some will say just save but cirucumstances would make a 12k loan preferabe to us. gifts from family not an option. 

1. Is this a broker i should go with based on payment on application. Surely payment on approval ?! how do you find a quality broker?

2. Have you seen many of these applications accepted where deposit is loaned but good affordability and credit history?