Mortgage broker - ask me anything

Mrs_Bood

Hi, I’d like some input on whether I’m pie-in-the-sky or actually have a shot at a mortgage. 

Short version: What at the chances of getting a joint 95% mortgage over 22 years, when one partner will be 72 when it’s paid off? 

Long version: Civilly partnered couple, FTB, no dependents, excellent credit histories, looking at a 95% mortgage.  Both have a civil service pension, his built up over 21 years, and we both make additional contributions to them.

My partner is 50 (I’m younger) so we have been looking at 18 yr mortgages up to his retirement, and 20 yr mortgages up to age 70. In either case the monthly repayments get eye-watering pretty quickly. We’re looking at properties around £60k less than our top lending amount, so not maxing out the budget. 

Things would be very much more comfortable if we could stretch the repayments over 22 years, 4 years into my partner’s retirement, but I’m concerned that will be unlikely given the 95% lend. 

K_S

@mrs_bood There isn't enough information to say. Are there options that will take you beyond 70? Yes, with the right lender and subject to the numbers and scenario stacking up.

Is the mortgage affordable (as per lender calculations) on your CSP projections? What kind of job does your partner do?

Mrs_Bood

Thanks K_S. He works in information management, dealing with the digital records and is middle-management. 

So if I run partner’s CSP retirement modeller calculations I can apply his projected retirement income to the lenders’ affordability criteria to get a better idea?

K_S

@mrs_bood With that kind of desk-based role, if he intends to work till 72, it should be deemed plausible for some lenders to allow term up to that age. That would be much simpler as it would be based on current employed income and the pension wouldn't come into the picture.

If you do wish to get an even longer term stretching into retirement, then some lenders will consider pension projections to model affordablity. You could plug in the CSP projections and see what it returns on affordablity.

Mrs_Bood

Fab, thank you. 

GeorgianaCavendish

Assuming we have a deposit in place, how far in advance should we start discussing with mortgage brokers / looking for a decision in principle? (We are using LISAs to fund part of deposit, and cannot access funds in one of them until Jan 2022 so wouldn't be able to proceed before then). 

K_S

@GeorgianaCavendish If the earliest you can actually access your deposit is Jan 2022, perhaps around November-December would be a good time to start thinking about viewings and a mortgage broker to get a realistic idea of your borrowing options.

GeorgianaCavendish

Thank you @K_S - that is very helpful! 

superblade

Hi all, anyone know how long Accord take to respond to queries they sent? Valuation came back OK on the 11th, they've asked a query on a bank statement which was straight forward and responded to straight away on the 11th and we've not heard anything since.
Appreciate its only been a couple of days but the not knowing and having no idea where it is in the process is driving me crazy! haha

K_S

superblade said:

Hi all, anyone know how long Accord take to respond to queries they sent? Valuation came back OK on the 11th, they've asked a query on a bank statement which was straight forward and responded to straight away on the 11th and we've not heard anything since.
Appreciate its only been a couple of days but the not knowing and having no idea where it is in the process is driving me crazy! haha

@superblade To get a rough idea of where they're at, just look at the 'Document processing' from the top of this page. https://www.accordmortgages.com/index.html Responses to queries are currently taking about 3-5 working days to get looked at.