Mortgage broker - ask me anything

Ameba

Hello,
Many thanks for your helpful advice on here! 
What type of protection do you usually recommend for 1st time buyers when it comes to mortgage application? 
Life, Life + critical illness, mortgage or payment protection, or other? 

Miarenee2004

Hi there. My partner and I have old defaults which are due to come off this year and next.
we have a 10% deposit. What are the chances of obtaining a 90% mortgage? We have hardly any debt. Thanks

K_S

Miarenee2004 said:

Hi there. My partner and I have old defaults which are due to come off this year and next.
we have a 10% deposit. What are the chances of obtaining a 90% mortgage? We have hardly any debt. Thanks

@Miarenee2004 Based purely on having defaults that are all 4+ years old, your chances of a 90% mortgage are decent.

K_S

Ameba said:

Hello,
Many thanks for your helpful advice on here! 
What type of protection do you usually recommend for 1st time buyers when it comes to mortgage application? 
Life, Life + critical illness, mortgage or payment protection, or other? 

@ameba It very much depends on the applicant/s overall scenario and what benefits you already have through work, your union, etc.

A few very crude examples -

Life - If you passed away, would your family be able to retain the home.

CIC - If you fell critically ill and couldn't work, how would you meet expenses, would your partner be able to take time off work to look after you, etc.

Income protection (IP) - If you fell ill or had an accident which meant you couldn't work, how would you pay your bills.

It tough to give generic advice as it's very scenario specific. But very very generally speaking, as long as the applicant has people that depend on their income, some form of Life, CIC and IP would usually be advisable.

Ameba

K_S said:

Ameba said:

Hello,
Many thanks for your helpful advice on here! 
What type of protection do you usually recommend for 1st time buyers when it comes to mortgage application? 
Life, Life + critical illness, mortgage or payment protection, or other? 

@ameba It very much depends on the applicant/s overall scenario and what benefits you already have through work, your union, etc.

A few very crude examples -

Life - If you passed away, would your family be able to retain the home.

CIC - If you fell critically ill and couldn't work, how would you meet expenses, would your partner be able to take time off work to look after you, etc.

Income protection (IP) - If you fell ill or had an accident which meant you couldn't work, how would you pay your bills.

It tough to give generic advice as it's very scenario specific. But very very generally speaking, as long as the applicant has people that depend on their income, some form of Life, CIC and IP would usually be advisable.

Thanks for your reply. It almost feels like one should take out all of them! Except the premiums are quite high, and I'm guessing COVID-19 is not helping!
Is there any general rule/requirements with regards to lenders' criteria? 

Miarenee2004

Thank you. Fingers crossed 

K_S

Ameba said:

K_S said:

Ameba said:

Hello,
Many thanks for your helpful advice on here! 
What type of protection do you usually recommend for 1st time buyers when it comes to mortgage application? 
Life, Life + critical illness, mortgage or payment protection, or other? 

@ameba It very much depends on the applicant/s overall scenario and what benefits you already have through work, your union, etc.
A few very crude examples -
Life - If you passed away, would your family be able to retain the home.
CIC - If you fell critically ill and couldn't work, how would you meet expenses, would your partner be able to take time off work to look after you, etc.
Income protection (IP) - If you fell ill or had an accident which meant you couldn't work, how would you pay your bills.
It tough to give generic advice as it's very scenario specific. But very very generally speaking, as long as the applicant has people that depend on their income, some form of Life, CIC and IP would usually be advisable.

Thanks for your reply. It almost feels like one should take out all of them! Except the premiums are quite high, and I'm guessing COVID-19 is not helping!
Is there any general rule/requirements with regards to lenders' criteria? 

@ameba Sorry, I should have made that clear - NONE of these (life, CIC or IP) are a requirement for taking out a mortgage.

nge101

Hi, was wondering if someone could point me in the direction of a good excel amortisation calculator which allows for lump sum payments? My situation is that I had a £470,000 mortgage with HSBC, taken out over 30 years in March 2017. The fixed rate of 2.49% runs out in December 2026 and until then there is the standard HSBC overpayment charges of 1% of the overpaid amount for each year of the fixed rate remaining, up until cap of 5 years. Through over payments we have our mortgage down to £309,000 and now have an additional circa £200,000 in cash. I'm trying to work out the differential between paying the whole £200,000 into the mortgage now and taking the ERC of £10,000 vs slow paying the money in and taking advantage of the annual 10% overpayment allowance. 
Any pointers to a good mortgage spreadsheet would be appreciated, i found one but it only accounted for regular overpayments, not ad hoc lump sum ones.

justwondering25

Will we have difficulty obtaining a mortgage? Married, sold the house, but self employed, took grant 1, grant 2 and the business rate grant, no business loans, no personal loans, no credit card debt, no car loans etc

No bad credit history for either of us.

My wife is in full time employment. 
We have no dependants. 
Although I'm nearly 50, wife is 40.

looking to borrow around 100k to 150k, we have around 60 percent deposit. 

K_S

justwondering25 said:

Will we have difficulty obtaining a mortgage? Married, sold the house, but self employed, took grant 1, grant 2 and the business rate grant, no business loans, no personal loans, no credit card debt, no car loans etc
No bad credit history for either of us.
My wife is in full time employment. 
We have no dependants. 
Although I'm nearly 50, wife is 40.
looking to borrow around 100k to 150k, we have around 60 percent deposit. 

@justwondering25 The grants might rule out a few lenders but if the business is up and running, and this can be evidenced in the recent business bank statements, that by itself should not stop you from getting a mortgage with the right lender.