Mortgage broker - ask me anything

mjane93

I’ve just had a notification that our solicitors have requested funds from our lender but we don’t complete for 5 more weeks. Does this mean we are paying interest from now or do we start paying interest from the day we complete? 

K_S

mjane93 said:

I’ve just had a notification that our solicitors have requested funds from our lender but we don’t complete for 5 more weeks. Does this mean we are paying interest from now or do we start paying interest from the day we complete? 

@mjane93 From the day the funds hit the solicitor's bank account which is usually no earlier than the last working day prior to completion.

mjane93

@K_S thank you! I managed to get through to my Halifax broker who also said it was odd they were requested so early but I wouldn’t be charged interest from now. Phew I was worried I was gonna have one hell of a first mortgage payment! 

Dalemar

Hello

I am hoping one of the mortgage brokers on this board could give me some advice.

My situation is that I am 52 (53 next month).  I currently earn approximately 50k in the Civil Service.  I also have a Civil Service DB pension worth over 17k at the moment, which is increasing by around £1500 per annum.   My job is as secure as any job can be at present.

I am looking to buy my council property.  It is valued at 375k.  I am entitled to the maximum discount of £112,800 (in London), so it has a sale price of £262,000.  I also have a deposit of 42K, so would be looking at a mortgage of 220k.  

The flat is a top floor conversion in a Victorian street property in a good zone 2 area, so I don't foresee any issues with it being local authority.  My credit file is also excellent with no defaults, missed payments, recent hard searches or pay day loans.

My question is what is the longest possible mortgage term I am likely to be get given my age, and taking into account my DB pension (which should be a very reasonable sum at retirement age)?  I've done some sums, and monthly payments would be reasonably comfortable with a 22 year term or above.  Below 20 years and things don't look so good.  This is based on interest rates of around 1.5% on a repayment mortgage.

Also are there particular lenders who are likely to be more generous with the mortgage term given my circumstances?  And is it realistic to think that lenders would be prepared to lend 220k given my age?  The calculators say yes, but I know they only give a very broad brush answer.

One final fact, I filed for bankruptcy over 30 years ago, is this likely to cause any issues getting a mortgage?

Many thanks for any advice you can give.

K_S

Dalemar said:

Hello

I am hoping one of the mortgage brokers on this board could give me some advice.

My situation is that I am 52 (53 next month).  I currently earn approximately 50k in the Civil Service.  I also have a Civil Service DB pension worth over 17k at the moment, which is increasing by around £1500 per annum.   My job is as secure as any job can be at present.

I am looking to buy my council property.  It is valued at 375k.  I am entitled to the maximum discount of £112,800 (in London), so it has a sale price of £262,000.  I also have a deposit of 42K, so would be looking at a mortgage of 220k.  

The flat is a top floor conversion in a Victorian street property in a good zone 2 area, so I don't foresee any issues with it being local authority.  My credit file is also excellent with no defaults, missed payments, recent hard searches or pay day loans.

My question is what is the longest possible mortgage term I am likely to be get given my age, and taking into account my DB pension (which should be a very reasonable sum at retirement age)?  I've done some sums, and monthly payments would be reasonably comfortable with a 22 year term or above.  Below 20 years and things don't look so good.  This is based on interest rates of around 1.5% on a repayment mortgage.

Also are there particular lenders who are likely to be more generous with the mortgage term given my circumstances?  And is it realistic to think that lenders would be prepared to lend 220k given my age?  The calculators say yes, but I know they only give a very broad brush answer.

One final fact, I filed for bankruptcy over 30 years ago, is this likely to cause any issues getting a mortgage?

Many thanks for any advice you can give.

@dalemar Quick thoughts -   

- other than a few lenders who will not lend to ex-BRs, you should be fine on that front

- with regard to term, you should be able to get a 16/17 year term will most lenders, 21/22 with a few and (depending on the details) perhaps a bit higher. This is all based on employed income only.

- with a 50k basic and a borrowing requirement of 220k,it should be doable on a 17-22 year term assuming no excessive commitments. You won't necessarily need to show any pension income for that with the right lender.

- unless you can evidence a projected pension income of around 40-45k+, it's unlikely that you will be able to use it to support lending into retirement for the amount you are looking for.

Dalemar

K_S said:

Dalemar said:

Hello

I am hoping one of the mortgage brokers on this board could give me some advice.

My situation is that I am 52 (53 next month).  I currently earn approximately 50k in the Civil Service.  I also have a Civil Service DB pension worth over 17k at the moment, which is increasing by around £1500 per annum.   My job is as secure as any job can be at present.

I am looking to buy my council property.  It is valued at 375k.  I am entitled to the maximum discount of £112,800 (in London), so it has a sale price of £262,000.  I also have a deposit of 42K, so would be looking at a mortgage of 220k.  

The flat is a top floor conversion in a Victorian street property in a good zone 2 area, so I don't foresee any issues with it being local authority.  My credit file is also excellent with no defaults, missed payments, recent hard searches or pay day loans.

My question is what is the longest possible mortgage term I am likely to be get given my age, and taking into account my DB pension (which should be a very reasonable sum at retirement age)?  I've done some sums, and monthly payments would be reasonably comfortable with a 22 year term or above.  Below 20 years and things don't look so good.  This is based on interest rates of around 1.5% on a repayment mortgage.

Also are there particular lenders who are likely to be more generous with the mortgage term given my circumstances?  And is it realistic to think that lenders would be prepared to lend 220k given my age?  The calculators say yes, but I know they only give a very broad brush answer.

One final fact, I filed for bankruptcy over 30 years ago, is this likely to cause any issues getting a mortgage?

Many thanks for any advice you can give.

@dalemar Quick thoughts -   

- other than a few lenders who will not lend to ex-BRs, you should be fine on that front

- with regard to term, you should be able to get a 16/17 year term will most lenders, 21/22 with a few and (depending on the details) perhaps a bit higher. This is all based on employed income only.

- with a 50k basic and a borrowing requirement of 220k,it should be doable on a 17-22 year term assuming no excessive commitments. You won't necessarily need to show any pension income for that with the right lender.

- unless you can evidence a projected pension income of around 40-45k+, it's unlikely that you will be able to use it to support lending into retirement for the amount you are looking for.

Many thanks for that.  Very useful advice.

AnnaLMLH

Hi

Im married and my husband has a mortgage on the house we live in, we want to move and have another mortgage in just his name again (my credit files not great) he got turned down at west brom because of a financial association to me (on a account in perfect order) he also made two consecutive late payments on a card in the last six months but this card is now up to date and paid in full. deposit it 25% of house. will our broker have trouble finding a mortgage for him that doesnt just say no because of the association to me? he passes all the affordability etc etc

K_S

AnnaLMLH said:

Hi

Im married and my husband has a mortgage on the house we live in, we want to move and have another mortgage in just his name again (my credit files not great) he got turned down at west brom because of a financial association to me (on a account in perfect order) he also made two consecutive late payments on a card in the last six months but this card is now up to date and paid in full. deposit it 25% of house. will our broker have trouble finding a mortgage for him that doesnt just say no because of the association to me? he passes all the affordability etc etc

@AnnaLMLH 

- With a 25% deposit and applying in his sole name, your financial association should not by itself stop him from getting a mortgage with the right lender. As I'm sure you are aware, not all lenders with allow married applicants to leave off one spouse because of credit issues.

- the status '2' marker within the last 6 months might cause issues depending on the lender but again shouldn't be a show stopper

Your broker shouldn't have issues placing your case.

dil1976

I have recently had to isolate due to having Covid and employed full time. Now my employers put me on Furlough for the days I was isolating but wasn't aware of that until I got my wage slip which now has that on it.  I contacted payroll who said that was what the guidelines were and that if there was any issues getting a mortgage due to this they would be willing to inform my lender. Is this the case or will lenders just look negatively at this and deem my job insecure? 

K_S

dil1976 said:

I have recently had to isolate due to having Covid and employed full time. Now my employers put me on Furlough for the days I was isolating but wasn't aware of that until I got my wage slip which now has that on it.  I contacted payroll who said that was what the guidelines were and that if there was any issues getting a mortgage due to this they would be willing to inform my lender. Is this the case or will lenders just look negatively at this and deem my job insecure? 

@dil1976 Once you are back at work and have a full-payslip (with no mention of furlough on it), you should not have any problems due to that one stint.