Mortgage broker - ask me anything

dil1976

K_S said:

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.

K_S said:

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.

Cheers K_S would I need just the one or 2 or 3 saying that?

Mark_1986

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? 

That's just wrong, your employer should have put something in writing to you beforehand. Personally, I would raise this with HR

mrsnonsmoker

I'm nearly 59 and my husband is 64. We have about 5 years left on our (mostly) interest only mortgage but still owe £108k; I'd like to move the mortgage and get a longer term so that we can put it onto repayment and aim to actually pay it off - say until I'm 70?  We both have salaries and pensions that we are drawing so we have income totalling £45k a year and our jobs can continue beyond normal retirement age. What sort of mortgage are we looking for?  Every time I google it comes up with equity release or later life and I don't think that's the right term for it?

K_S

mrsnonsmoker said:

I'm nearly 59 and my husband is 64. We have about 5 years left on our (mostly) interest only mortgage but still owe £108k; I'd like to move the mortgage and get a longer term so that we can put it onto repayment and aim to actually pay it off - say until I'm 70?  We both have salaries and pensions that we are drawing so we have income totalling £45k a year and our jobs can continue beyond normal retirement age. What sort of mortgage are we looking for?  Every time I google it comes up with equity release or later life and I don't think that's the right term for it?

@mrsnonsmoker Looks like you're looking for a normal residential capital-repayment mortgage. If you can evidence sufficient income to meet affordablity (as per lender calculations and criteria), it should be fairly straightforward to get a longer term.

K_S

dil1976 said:

K_S said:

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.

K_S said:

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.

Cheers K_S would I need just the one or 2 or 3 saying that?

@dil1976 One should be fine for most lenders.

Jillmoneysaver

Our mortgage offer has been approved. We are close to exchange, but our solicitor let us know that they need to let our lender know that the property carries a rentcharge. It's freehold. Currently, there are 15 properties on the small private estate (built in 1990s so not a 'New build') and it's just under £300 pa. (this year, but it's service fees, so can rise - just outside of London). Once we purchase the property, we would be shareholders (management company owned by residents). However, section 121 of LPA has not been excluded from the rentcharge clause. The plan is to purchase an indemnity insurance to protect the lender. 
I am fully aware of the risks to us, etc. if we didn't pay the rentcharge. 
What I am anxious about is if the lender will accept the indemnity policy. 

AnnaLMLH

refused for a mortgage in first instance

theres 5 late payments on one card in the last year up to date last three months but that 3rd one not showing yet as only showing to june payment and july has been payed too unsure when that updates (i ALSO PAID THAT CARD COMPLETELY OFF YESTERDAY)

and thats all the adverse apart from the financial association to me

mortgage 250k deposit 70k

we are married but I am not on existing mortgage and I arnt on the new one

affordability checks are a pass

but completely worried now that everything will fall through!!!

mrsnonsmoker

K_S said:

mrsnonsmoker said:

I'm nearly 59 and my husband is 64. We have about 5 years left on our (mostly) interest only mortgage but still owe £108k; I'd like to move the mortgage and get a longer term so that we can put it onto repayment and aim to actually pay it off - say until I'm 70?  We both have salaries and pensions that we are drawing so we have income totalling £45k a year and our jobs can continue beyond normal retirement age. What sort of mortgage are we looking for?  Every time I google it comes up with equity release or later life and I don't think that's the right term for it?

@mrsnonsmoker Looks like you're looking for a normal residential capital-repayment mortgage. If you can evidence sufficient income to meet affordablity (as per lender calculations and criteria), it should be fairly straightforward to get a longer term.

Thanks KS, this is what I thought but we are with the Halifax and they have an age limit of 80, I'm asking for 70 and 75, and they turned it down point blank a few months ago. I think I'll go back to them and find out more but its good to know it should be straightforward if we meet affordability.

K_S

Jillmoneysaver said:

Our mortgage offer has been approved. We are close to exchange, but our solicitor let us know that they need to let our lender know that the property carries a rentcharge. It's freehold. Currently, there are 15 properties on the small private estate (built in 1990s so not a 'New build') and it's just under £300 pa. (this year, but it's service fees, so can rise - just outside of London). Once we purchase the property, we would be shareholders (management company owned by residents). However, section 121 of LPA has not been excluded from the rentcharge clause. The plan is to purchase an indemnity insurance to protect the lender. 
I am fully aware of the risks to us, etc. if we didn't pay the rentcharge. 
What I am anxious about is if the lender will accept the indemnity policy. 

@jillmoneysaver It depends on the lender and what the rent charge actually says.

I've done 3 new builds in the past month with 3 different lenders. All of them came with a rent charge and all of them were drafted in a manner acceptable to lenders.

The problems usually come up when the rent charge clause is not acceptable to the lender and the builder/developer is unwilling to agree to a variation to make it compatible.

Generally speaking (not saying this is for ALL lenders), it's one/more of these that need to be met by the rent charge clause -

1. The provisions under section 121 of the Law of Property Act have been excluded under the estate rent charge clause.
2. The estate rent charge clause includes a mortgagee protection clause, which states that notice of at least 28 days is to be given to the mortgagee prior to any enforcement action being taken by the owner of the estate rent charge.
3. The owner of the estate rent charge is a management company comprising of the residents, who are the shareholders of a private freehold development.

Given that this appears to managed by residents, I would expect it to be ok. But obviously your solicitor is the person who will know best as to what the entire scenario is. Hopefully it'll work out, good luck!

K_S

mrsnonsmoker said:

K_S said:

mrsnonsmoker said:

I'm nearly 59 and my husband is 64. We have about 5 years left on our (mostly) interest only mortgage but still owe £108k; I'd like to move the mortgage and get a longer term so that we can put it onto repayment and aim to actually pay it off - say until I'm 70?  We both have salaries and pensions that we are drawing so we have income totalling £45k a year and our jobs can continue beyond normal retirement age. What sort of mortgage are we looking for?  Every time I google it comes up with equity release or later life and I don't think that's the right term for it?

@mrsnonsmoker Looks like you're looking for a normal residential capital-repayment mortgage. If you can evidence sufficient income to meet affordablity (as per lender calculations and criteria), it should be fairly straightforward to get a longer term.

Thanks KS, this is what I thought but we are with the Halifax and they have an age limit of 80, I'm asking for 70 and 75, and they turned it down point blank a few months ago. I think I'll go back to them and find out more but its good to know it should be straightforward if we meet affordability.

@mrsnonsmoker Sorry if I wasn't clear. I didn't mean to imply that every lender would be ok with your case. What I meant was that there should be a good number of lenders ok to consider assuming you meet their affordability and criteria.

Off of the top of my head, Halifax will not consider earned income beyond the age of 70 years. If they turned you down I expect that you didn't meet their affordability calcs on your retirement income. They're not going to relax or change their criteria/policy for one case.