Mortgage broker - ask me anything

K_S

@rq9292 Quick thoughts

- yes, it is possible in principle

- you need a residential/second-home mortgage

- you need a lender who is ok with her contributing to the deposit and will ignore her age for the purposes of the mortgage term or at least one which will permit a long enough term that the payments are comfortable for your mum to make.

None of this is particularly complicated with the right lender and assuming the numbers stack up. If and when you decide to take this route, I would recommend getting in touch with a mortgage broker to get a realistic idea of your chances.

K_S

jazzyja said:

When a hard check is done for a mortgage....can that come back as an instant decline? I've had a hard search done on Friday and heard nothing.....could that mean good news? Or am I just overthinking absolutely everything 🙈

@jazzyja Assuming you've had a positive soft-check DIP, a full mortgage application very very rarely comes back with an instant decline.

jazzyja

K_S said:

jazzyja said:

When a hard check is done for a mortgage....can that come back as an instant decline? I've had a hard search done on Friday and heard nothing.....could that mean good news? Or am I just overthinking absolutely everything 🙈

@jazzyja Assuming you've had a positive soft-check DIP, a full mortgage application very very rarely comes back with an instant decline.

Ahh ok yes I did get a AIP. Thankyou. Just need to be patient! 😬🙈

rq9292

Glad to hear. The total amount borrowed would probably be max 1* our combined gross income but no less than £30k. Is it a niche product and if so which major banks do second home mortgages? If you know of any where I can get an AIP online that would be very useful.
Thanks

K_S

@rq9292 Most of the high street lenders do second home mortgages though depending on the rest of the scenario, you may or may not meet their individual eligibility criteria. The small loan size and age 67 at application might rule out some. With that small a loan size, it's hard to go wrong by much whatever option you pick and you don't really need a long term at all so your mum's age might not be an issue.

Given the amount, is there no way to get a personal loan or additional borrowing on your current mortgage to make up the difference and then just buy in cash? Would be far less hassle and I daresay cheaper overall.

ShilvaA

Hi, I would like to ask whether mortgage lending criteria are completely fixed or will an underwriter exercise some discretion?

For instance, Nationwide’s criteria seems to state that if you want to include overtime in the calculations and you are paid weekly, that the lowest amount in the last 8 weeks must be keyed... I work a lot of overtime but never 8 weeks in a row. So there will always be a payslip showing 0 overtime in any 8-week run.... so doesn’t that mean I have to put 0, even though I have done overtime 6 in the last 8 weeks for instance? 

Just can’t get my head around that because I am paid weekly, they seem to expect me to do overtime every week for 2 months to be allowed to count anything more than 0, whilst if I was paid monthly and only did one extra shift every month, I would only need to do 2 OT shifts in a 2 month period and could then count that towards my income.

Or am I misunderstanding something? 

kingstreet

Nationwide has only returned to accepting overtime, bonus and commission after ignoring them during the pandemic. They are currently not back to where they were but there are other lenders who will take an average including weeks/months with £0.

ShilvaA

Thank you. OT makes up about half of my wage so I definitely need it included in a mortgage application.... I shall have another look around. 

ian1246

What is the rough timescale for a Platform mortgage from valuation to offer - mortgage application submitted via a mortgage broker.

K_S

ShilvaA said:

Thank you. OT makes up about half of my wage so I definitely need it included in a mortgage application.... I shall have another look around. 

@shilvaA Generally speaking, you will get lenders who will consider 50-60% of the average (looking back over 2-6 months) OT annualised for the affordability calculations. If you have a P60 which supports the same level of earning, some lenders will potentially consider 100%. Practically speaking, with fluctuating OT you want a lender who uses a bit of common sense in underwriting cases with variable income.