Mortgage broker - ask me anything

ffeindadifyr

Are there any mortgage companies that will lend an amount based on what we have paid each month for our rental with track record over several years? We are both SE but have paid over 1400p/m for several years and managed to save up a decent deposit- we were wondering if we could borrow more based on that evidence?

K_S

ffeindadifyr said:

Are there any mortgage companies that will lend an amount based on what we have paid each month for our rental with track record over several years? We are both SE but have paid over 1400p/m for several years and managed to save up a decent deposit- we were wondering if we could borrow more based on that evidence?

@ffeindadifyr Unfortunately not. Lender affordablity calculations are based on factors like income, term of loan, LTV, debt, financial commitments, etc.

marvelman1985

K_S said:

marvelman1985 said:

@K_S So strange, I used your example figures and found the same - no difference no matter where I put the CB.
However, when I changed the LTV to our 53% level, it started exhibiting the ~£3k difference in the offer when attributing it to each applicant in turn.
(Sorry, perhaps I should have mentioned that LTV rate!)
Also, something I just noticed, I’m seeing a much larger offer figure when using 32 years as the term (which is our plan) versus when I left 25 in there, is that to be expected? Changing the term in this way didn’t make any difference at 80% LTV.
I’m guessing low LTV is the culprit, is it just that lenders are more relaxed at this level due to lower risk involved?

@marvelman1985 The longer term increasing max borrowing is normal as that makes the monthly payment more affordable.

The difference <75% LTV is likely a bug more than anything else.

Ah, I see, obvious now you say it re. the borrowing term 🤦

The really frustrating thing with the weird changing offer amount ‘bug’ is that I don’t really know what the ‘true’ figure is in order to go forward with our budget!

Also, it appears the difference is not a standard amount each time e.g. at a 32 year term, moving the CB income to applicant 2 adds £3.3k to the offer, but only adds £1.5k when doing so at a 35 year term. Very odd.

Do you think it’s worth send the NatWest intermediary tech support team a message to get to the bottom of it, or at least make them aware?

Also, are you aware of anyone/who is best that I could ask about the crazy ~£12k discrepancy between the DIP figure and intermediary calculator - it would make a huge difference to our house hunt to know we had an extra £12k in the budget. I guess NatWest’s mortgage sales team, just not sure how much they’ll really know vs. brokers or underwriters?!

K_S

@marvelman1985 If you're confident that the direct DIP has been keyed in correctly and as per NatWest criteria, then there's no reason for it to be incorrect I suppose.

I don't know how the direct system works but perhaps there is an option to do a DIP over the phone so you can make sure the data is being keyed in correctly?

SwipernoSwiping

Hi. Looking for a bit of clarity if I may, via a few questions because every time we get to a point where we can move, or thought we were in the right place - the market shifts.

We were recommended a broker by our accountant - at the time we were only looking for a residential, but it turns out the broker doesn't cover business lending/BTL, that same accountant suggested selling over renting, because its less stress.

Generalised info:

2 properties with 100% equity. Parents reside both of the properties.

We also had an agreement in principle (Self Employed)

Originally the plan was to sell both, + mortgage. (3 + years of accounts)

SEISS & Covid has, and a serious family illness, of course, changed everything.

The last time we talked to the broker, our offer dropped to 50,000 because of SEISS. They were also reluctant to lend against the properties as the income wouldn't cover the repayments, naturally, nor would they consider the proposed rental incomes. (Inc, allowing for voids) There's no current evidence & need to move out first.

Questions:

As the SEISS are considered income, are we still unlikely to get the higher mortgage? Our accounts show improvement, but we did take the 4th grant. 

We've been advised that the best return would be to rent the pair. Aside from expensive bridging loans is there any other way to leverage the assets to purchase another larger property (before renting)- that is the equivalent value?

Hopefully that makes sense, the whole thing is complex.

marvelman1985

@K_S That’s a good shout, just to be safe I think!
Apologies for all the questions, just so confused by the different results.
For the umpteenth time, thank you for sparing the time to answer, it really is massively appreciated.

BekahLeaDee

Long story short (ish)
Putting an offer in on a property in which we require a mortgage. I have recently started a new job but I do not have a probationary period to get through (have worked there before and they wanted me back).
We have been approved for a mortgage in the past for a similar amount to what we need to borrow this time (were buying last year but it fell through) and I will now be earning more money than I was. 
Just want to know what are our chances of finding a provider? 
Thank you in advance! 

K_S

BekahLeaDee said:

Long story short (ish)
Putting an offer in on a property in which we require a mortgage. I have recently started a new job but I do not have a probationary period to get through (have worked there before and they wanted me back).
We have been approved for a mortgage in the past for a similar amount to what we need to borrow this time (were buying last year but it fell through) and I will now be earning more money than I was. 
Just want to know what are our chances of finding a provider? 
Thank you in advance! 

@BekahLeaDee Based on the limited information in your post, I don't see anything in particular that will stop you from getting a mortgage. A few lenders who need a minimum x months in current employment might not consider, but that's not reflective of the rest of the market.

K_S

SwipernoSwiping said:

Hi. Looking for a bit of clarity if I may, via a few questions because every time we get to a point where we can move, or thought we were in the right place - the market shifts.

We were recommended a broker by our accountant - at the time we were only looking for a residential, but it turns out the broker doesn't cover business lending/BTL, that same accountant suggested selling over renting, because its less stress.

Generalised info:

2 properties with 100% equity. Parents reside both of the properties.

We also had an agreement in principle (Self Employed)

Originally the plan was to sell both, + mortgage. (3 + years of accounts)

SEISS & Covid has, and a serious family illness, of course, changed everything.

The last time we talked to the broker, our offer dropped to 50,000 because of SEISS. They were also reluctant to lend against the properties as the income wouldn't cover the repayments, naturally, nor would they consider the proposed rental incomes. (Inc, allowing for voids) There's no current evidence & need to move out first.

Questions:

As the SEISS are considered income, are we still unlikely to get the higher mortgage? Our accounts show improvement, but we did take the 4th grant. 

We've been advised that the best return would be to rent the pair. Aside from expensive bridging loans is there any other way to leverage the assets to purchase another larger property (before renting)- that is the equivalent value?

Hopefully that makes sense, the whole thing is complex.

@swipernoswiping Quick thoughts -

- Regarding how much you can borrow using the SE income, it depends on whether the last 2-3 months of trading shows that you are trading at/close to normal levels.

- There is no easy way to leverage the two unencumbered properties currently occupied by parents for the purpose of buying a residential property to live in. If you had paying non-family tenants in or at least vacant properties, there might be options.

BekahLeaDee

K_S said:

BekahLeaDee said:

Long story short (ish)
Putting an offer in on a property in which we require a mortgage. I have recently started a new job but I do not have a probationary period to get through (have worked there before and they wanted me back).
We have been approved for a mortgage in the past for a similar amount to what we need to borrow this time (were buying last year but it fell through) and I will now be earning more money than I was. 
Just want to know what are our chances of finding a provider? 
Thank you in advance! 

@BekahLeaDee Based on the limited information in your post, I don't see anything in particular that will stop you from getting a mortgage. A few lenders who need a minimum x months in current employment might not consider, but that's not reflective of the rest of the market.

Thank you taking the time to reply 😊