Mortgage broker - ask me anything

Wantabeautifulhouse

How much does reducing your mortgage period by 5 years decrease your purchasing power? I.e. if someone can usually borrow 4.5x their salary on a 25 year mortgage, how much can someone borrow on a 20 year mortgage. 

Annual salary is 41600.
No loans.
No dependants.
Ok credit.
No pension.
50% LTV.

Approaching 50 and therefore may have to take a reduced mortgage term and would like to know how the multiplier is affected by reducing the mortgage term when approaching 50.

K_S

Wantabeautifulhouse said:

How much does reducing your mortgage period by 5 years decrease your purchasing power? I.e. if someone can usually borrow 4.5x their salary on a 25 year mortgage, how much can someone borrow on a 20 year mortgage. 

Annual salary is 41600.
No loans.
No dependants.
Ok credit.
No pension.
50% LTV.

Approaching 50 and therefore may have to take a reduced mortgage term and would like to know how the multiplier is affected by reducing the mortgage term when approaching 50.

@Wantabeautifulhouse What impact a reduced term might have on your affordability depends on the details. To get a very very general idea, play around with a couple of lender affordability calculators here and see if there's a difference.

https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

FWIW, based on the limited info in your post, I don't think your max borrowing will get impacted until you hit the 15-16 years term mark.

At 60% LTV or less and a 20 year term, you may potentially be able to borrow up to 5x your income with an appropriate lender.

GeorgianaCavendish

Is there a budgeting tool / SOA / questionnaire that you would recommend prospective buyers take a look at to run their figures for affordability? Or maybe a better way of asking, is there something like this that prospective lenders would want to see from us? 

K_S

GeorgianaCavendish said:

Is there a budgeting tool / SOA / questionnaire that you would recommend prospective buyers take a look at to run their figures for affordability? Or maybe a better way of asking, is there something like this that prospective lenders would want to see from us? 

@GeorgianaCavendish Generally speaking, only specialist/adverse lenders go into that level of detail or ask for a breakdown of monthly expenditure, etc.

Other than regular commitments (credit card debt, loans, childcare, maintenance, etc), most mainstream lenders will make assumptions for expenditure and these will be built in to their affordability calculators, like the ones in my post above.

Jillmoneysaver

Is it possible to apply with another lender while another mortgage application is underway, but taking ages (over 9 weeks) to process? Or will this impact either application or both?

K_S

Jillmoneysaver said:

Is it possible to apply with another lender while another mortgage application is underway, but taking ages (over 9 weeks) to process? Or will this impact either application or both?

@Jillmoneysaver It is possible.

For the new application, it shouldn't have any impact beyond the 9 week old hard-check, potentially (depending on the lender) asnwering a question about any other "in-flight" applications, etc.

For the old appplication, I can't really give a generic answer unfortunately.

rose_T

Apart from building regulations etc what other common title indemnity policy’s does Halifax accept? 

Would they accept Standard security indemnity  policy for an old un-discharged mortgage dated on the title deeds from 1983 and has been fully paid? 

Thanks 

GeorgianaCavendish

K_S said:

GeorgianaCavendish said:

Is there a budgeting tool / SOA / questionnaire that you would recommend prospective buyers take a look at to run their figures for affordability? Or maybe a better way of asking, is there something like this that prospective lenders would want to see from us? 

@GeorgianaCavendish Generally speaking, only specialist/adverse lenders go into that level of detail or ask for a breakdown of monthly expenditure, etc.

Other than regular commitments (credit card debt, loans, childcare, maintenance, etc), most mainstream lenders will make assumptions for expenditure and these will be built in to their affordability calculators, like the ones in my post above.

Thank you, that is really helpful! 

scoey8

Do you know if there are any high street lenders that don't check bank statements? Thanks

K_S

scoey8 said:

Do you know if there are any high street lenders that don't check bank statements? Thanks

@scoey8 There are lenders who may not ask for bank statements as part of their "minimum packaging" requirements for application submission for standard cases. But there's no guarantee that they won't ask for it after the initial assessment or during underwriting.