Mortgage broker - ask me anything

Jillmoneysaver

Wow, thanks for this K_S. You are so incredibly generous to help ease worries! 
Solicitor plans to offer an indemnity policy covering the lender even though we are Shareholders of the private freehold development. 
Any particular experience with Santander?
I doubt the estate will alter the clause

K_S

AnnaLMLH said:

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!!!

@annaLMLH You need to tick quite a few criteria boxes - ok with married couple applying in sole name due to adverse history, recent multiple missed payment markers, etc.

If you haven't already, I would recommend engaging the services of a broker.

K_S

Jillmoneysaver said:

Wow, thanks for this K_S. You are so incredibly generous to help ease worries! 
Solicitor plans to offer an indemnity policy covering the lender even though we are Shareholders of the private freehold development. 
Any particular experience with Santander?
I doubt the estate will alter the clause

@jillmoneysaver No experience with Santander+rentcharges and tbh it's not really my area of expertise Rent charges rarely come up until conveyancing and there are so many different variations of it that it's hard to generalise.

moatmeister

My wife is working towards a situation where she can apply for her first residential mortgage. However recently she was offered the opportunity to buy the business premises her limited company operates out of and this has thrown a spanner in the works. Doing this would absorb all the cash she has saved up for the residential mortgage. I assume this would have to be a commercial mortgage as it is definately a non residential property. However she is interested in doing this to secure the future of the business and with the possibility to convert the upstairs into a self contained flat to rent out but how would that impact a future residential mortgage application in terms of affordability (the mortgage repayment would broadly be the same as the rent currently paid by the limited company). Would she still be a first time buyer etc?  Thanks.

K_S

moatmeister said:

My wife is working towards a situation where she can apply for her first residential mortgage. However recently she was offered the opportunity to buy the business premises her limited company operates out of and this has thrown a spanner in the works. Doing this would absorb all the cash she has saved up for the residential mortgage. I assume this would have to be a commercial mortgage as it is definately a non residential property. However she is interested in doing this to secure the future of the business and with the possibility to convert the upstairs into a self contained flat to rent out but how would that impact a future residential mortgage application in terms of affordability (the mortgage repayment would broadly be the same as the rent currently paid by the limited company). Would she still be a first time buyer etc?  Thanks.

@moatmeister Assuming that it's her ltd. Co. buying the property using a commercial mortgage, it should not by itself have an impact on her FTB status or a future residential mortgage in her personal name.

AnnaLMLH

K_S said:

AnnaLMLH said:

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!!!

@annaLMLH You need to tick quite a few criteria boxes - ok with married couple applying in sole name due to adverse history, recent multiple missed payment markers, etc.

If you haven't already, I would recommend engaging the services of a broker.

Hi Im a little lost as to what you mean about needing to tick quite a few criteria boxes,

he has a broker west brom said no because of the association to me

would the broker be better waiting for experian to update on the 3rd august as itll show another month green on the card that had jan a 2 marker, march a 1 marker april a 1 marker (which is all in the last six months till it updates this week which should show a green marker for july and then a paid in full too)

will it be better to wait forthe update as currently the last updates are showing eq 1st july, ex 4th july , tu 30th june

thank you for all your help its really appreciated

K_S

AnnaLMLH said:

K_S said:

AnnaLMLH said:

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!!!

@annaLMLH You need to tick quite a few criteria boxes - ok with married couple applying in sole name due to adverse history, recent multiple missed payment markers, etc.

If you haven't already, I would recommend engaging the services of a broker.

Hi Im a little lost as to what you mean about needing to tick quite a few criteria boxes,

he has a broker west brom said no because of the association to me

would the broker be better waiting for experian to update on the 3rd august as itll show another month green on the card that had jan a 2 marker, march a 1 marker april a 1 marker (which is all in the last six months till it updates this week which should show a green marker for july and then a paid in full too)

will it be better to wait forthe update as currently the last updates are showing eq 1st july, ex 4th july , tu 30th june

thank you for all your help its really appreciated

@annalmlh I don't want to give any misleading suggestions based on the limited info in your posts. Your broker, who has the whole picture should be able to advise more usefull. Good luck!

tommydog40

I have my eye on some farmland in Scotland with a barn on the land that has planning permission to convert into a dwelling.  The price is 120k for the land and barn and I have around 30k in cash.  This would mean I need to raise 90k (my employer will pay for any solicitor fees etc)  Are there any mortgage products that would fund just the purchase of the land / barn and not tie it to building milestones?  Once I pay off the land, I would then fund the build myself in my own time.  The only self build mortgages I can find are all tied to building milestones.

K_S

tommydog40 said:

I have my eye on some farmland in Scotland with a barn on the land that has planning permission to convert into a dwelling.  The price is 120k for the land and barn and I have around 30k in cash.  This would mean I need to raise 90k (my employer will pay for any solicitor fees etc)  Are there any mortgage products that would fund just the purchase of the land / barn and not tie it to building milestones?  Once I pay off the land, I would then fund the build myself in my own time.  The only self build mortgages I can find are all tied to building milestones.

@tommydog40 If you want a mortgage simply to purchase the land with no further obligations/stages, then you're looking at a land mortgage, typically only offered by specialist lenders. You may struggle with a 25% deposit, typically you need a bit more. Rates are likely to be much higher than standard resi mortgages as well.

tommydog40

K_S said:

If you want a mortgage simply to purchase the land with no further obligations/stages, then you're looking at a land mortgage, typically only offered by specialist lenders. You may struggle with a 25% deposit, typically you need a bit more. Rates are likely to be much higher than standard resi mortgages as well.

From my understanding, don't land mortgages require you to own property or land to secure it against?  Or are there products out there that do not require this?  I also imagine land mortgages are targeted at farmers / people with a commercial business plan for the land.  In my situation, I simply want to convert the barn to a dwelling and live on the land.  I will be doing all the building work myself alongside a full time job and don't want the pressure of timescales (plus I want a social life!).  I would rather pay for the land and then complete the build in my own time over many years.  If I only had a couple of years to complete, I would have to get professional builders in, which would not make financial sense and the build is actually something I would enjoy as a long term project.  Are there any product on the market which would be suitable for me?