Mortgage broker - ask me anything

justwondering25

K_S said:

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.

Thank you for your reply, how do we go about getting in touch with you and are you a independent mortgage advisor? Do you charge a fee, if so is it only upon successful application of obtaining a mortgage and the mortgage going live after a house purchase? 

lonibra

justwondering25 said:

K_S said:

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.

Thank you for your reply, how do we go about getting in touch with you and are you a independent mortgage advisor? Do you charge a fee, if so is it only upon successful application of obtaining a mortgage and the mortgage going live after a house purchase? 

They can't contact you or encourage you to contact them as per forum rules. You can click on their profile name and drop them a PM if you wish to.

anjyeah

K_S said:

anjyeah said:

K_S said:

anjyeah said:

Hi, got another question. 

I am in the process of getting all my information in order before I start the process of looking for homes to buy. 

At present, it is still full mortgage versus SO, sadly. 

However, what are your thoughts of having my family member (over 65) who is still full time, looking to retire in maybe 2-3 years, joining on the application? She earns more than me but obviously the disadvantage is some lenders may be looking at age etc. 

@anjyeah It's not clear why you want her on the application? Is it to boost affordability?

Oops sorry, I should have mentioned that. 
Boost affordability, yes, and she will be living with me when she transitions to part-time work before fully retiring. 

I also have this impression that applying alone isn't going to get me much these days. 

@anjyeah If it's to boost affordability, it's not going to work as the max term on employed income will be based on her retirement age / 70. If she has sufficient post-retirement income that can be evidenced (pension) then you may be able to go beyond that on the term.

You need to start off with getting a realistic budget of what borrowing can be achieved on your sole income and your potential options, it may be higher than you imagine.

Hi again and to everyone else. I just decided to quote my previous question for background but you guys were right. We went for an affordability assessment for a shared ownership London flat (seemed like a good deal with subsidised Me and mum as joint  purchasers. In terms of joint income and guidance, we fit the bill, however, as noted previously, her age was our downfall so we failed the assessment. You can see where my dilemma is. Alone, my income won't suffice to meet the minimum guidance needed for a 2-3 bed property. I was advised to either pair up with a sibling or partner to reapply in the future in a bid to boost affordability. 

We are all renting at the moment and this just kind of blew our hopes up in a bid. I guess my question will be: What's next for me? Get saving and boost affordability as a sole income purchaser on a cheaper property in the future? Get mum to save and focus for her retirement anyway and leave the property dream to me, hopefully, with in time. 

With all the bubble of people relocating and the market being the market these days, I do seriously think time will be my friend. It's been a learning curve. 

mamabuddah

Wanting to buy in a different area of the U.K. , what way is renting cost taken into account for mortgage applications?

Selling up here, will have about £120k to put towards buying in a different area of U.K. , I’m 67, currently working p/t and in receipt of state pension, (total gross about £16k) , other half on work pension £18k (due to get state pension in 6months about £7k) , firstly what are the chances of getting a £40k mortgage at our age and will the fact we’ll be renting for 6months while we look, hamper our application, we’ve been mortgage free for 12 years and have no significant debt apart from a car payment.

AmexReferrals

Hello! I am a first time buyer looking for a buy to let mortgage. I understand this limits my options but I’m trying to go through brokers and banks directly to see who will offer me a good deal but I was just wondering if you had any advice to help speed this along, or to point me in the right direction. I plan on putting down a deposit of over 40%, leaving the mortgage to cover the remaining 60%. Income for the apartment is estimated to be around 5% of the cost of the apartment itself. It is a newbuild too with completion due in Sept. The best I can find right now is 1.8% for 5 years fixed. Is this the best I will be able to get? Thanks in advance!

K_S

mamabuddah said:

Wanting to buy in a different area of the U.K. , what way is renting cost taken into account for mortgage applications?
Selling up here, will have about £120k to put towards buying in a different area of U.K. , I’m 67, currently working p/t and in receipt of state pension, (total gross about £16k) , other half on work pension £18k (due to get state pension in 6months about £7k) , firstly what are the chances of getting a £40k mortgage at our age and will the fact we’ll be renting for 6months while we look, hamper our application, we’ve been mortgage free for 12 years and have no significant debt apart from a car payment.

@mamabuddah Quick thoughts -

- Your post-retirement income is the one that will be considered

- Assuming your OH will be on 18k+7k pension income by the time you apply, which is good

- renting in between should not have any significant adverse impact on your chances

- Based on the limited info in your post, you should have options to borrow the amount you need

K_S

AmexReferrals said:

Hello! I am a first time buyer looking for a buy to let mortgage. I understand this limits my options but I’m trying to go through brokers and banks directly to see who will offer me a good deal but I was just wondering if you had any advice to help speed this along, or to point me in the right direction. I plan on putting down a deposit of over 40%, leaving the mortgage to cover the remaining 60%. Income for the apartment is estimated to be around 5% of the cost of the apartment itself. It is a newbuild too with completion due in Sept. The best I can find right now is 1.8% for 5 years fixed. Is this the best I will be able to get? Thanks in advance!

@amexreferrals The comparison sites should give you what the "best rates" are in the market. What the best rates available to you are, the brokers you have spoken to should have given you a good idea. To speed things along, find one whole-of-market BTL broker that you trust, get a recommendation and go with that.

AmexReferrals

K_S said:

AmexReferrals said:

Hello! I am a first time buyer looking for a buy to let mortgage. I understand this limits my options but I’m trying to go through brokers and banks directly to see who will offer me a good deal but I was just wondering if you had any advice to help speed this along, or to point me in the right direction. I plan on putting down a deposit of over 40%, leaving the mortgage to cover the remaining 60%. Income for the apartment is estimated to be around 5% of the cost of the apartment itself. It is a newbuild too with completion due in Sept. The best I can find right now is 1.8% for 5 years fixed. Is this the best I will be able to get? Thanks in advance!

@amexreferrals The comparison sites should give you what the "best rates" are in the market. What the best rates available to you are, the brokers you have spoken to should have given you a good idea. To speed things along, find one whole-of-market BTL broker that you trust, get a recommendation and go with that.

I’m currently going through L&C as they’re free and look to eat highly reputable. Do you have an opinion of them? Thanks!

MJathome

Thanks for all the free advice on here, I did search but couldn't find an answer to my question.
We are lucky to own our current home outright. We need a mortgage to buy a second home in Scotland.  We plan to sell our current home after a year or two, pay off the mortgage and move permanently to Scotland.  We have cash savings so only need a mortgage for 55-60% of the new home value.  Despite that, our current pensions (at 60 years old) are insufficient for a mortgage of that size.
Question is, are there specialist mortgages (without early exit penalties) that would take account of our owned home to allow us to borrow more than normally allowed?  The value of our current home and savings are 30% more than the value of the new home so the risk seems low for the lender.
Thanks in advance.

K_S

MJathome said:

Thanks for all the free advice on here, I did search but couldn't find an answer to my question.
We are lucky to own our current home outright. We need a mortgage to buy a second home in Scotland.  We plan to sell our current home after a year or two, pay off the mortgage and move permanently to Scotland.  We have cash savings so only need a mortgage for 55-60% of the new home value.  Despite that, our current pensions (at 60 years old) are insufficient for a mortgage of that size.
Question is, are there specialist mortgages (without early exit penalties) that would take account of our owned home to allow us to borrow more than normally allowed?  The value of our current home and savings are 30% more than the value of the new home so the risk seems low for the lender.
Thanks in advance.

@mjathome To answer your question - no, lenders will not usually take into account equity in a second property to meet affordability requirements.

The usual solution to your kind of scenario is an I/O mortgage on the new property with a lender who will consider sale of the existing mortgage free property as a repayment vehicle. Whether that may be an option available for you or not depends on the specific numbers and the rest of the scenario.