Mortgage broker - ask me anything

15JM83

I had an issue with NatWest over this as my payslip showed as gross pay with pension taken off it , was also a salary sacrifice scheme. I had to go to broker in end who applied through a lender that wanted pension taken into account when doing affordability, I guess it comes down to how your payslip shows gross pay 

Owleyes00

15JM83 said:

I had an issue with NatWest over this as my payslip showed as gross pay with pension taken off it , was also a salary sacrifice scheme. I had to go to broker in end who applied through a lender that wanted pension taken into account when doing affordability, I guess it comes down to how your payslip shows gross pay 

Hi, it is shown as a deduction from gross pay so
gross pay: £3700
Tax
National Insurance
Student Loan
Pension
Net Pay £2500

K_S

Owleyes00 said:

15JM83 said:

I had an issue with NatWest over this as my payslip showed as gross pay with pension taken off it , was also a salary sacrifice scheme. I had to go to broker in end who applied through a lender that wanted pension taken into account when doing affordability, I guess it comes down to how your payslip shows gross pay 

Hi, it is shown as a deduction from gross pay so
gross pay: £3700
Tax
National Insurance
Student Loan
Pension
Net Pay £2500

@owleyes00 Given that you've used a broker, I would expect them to have taken this into account before placing you with Halifax. It's fairly common especially among applicants on higher incomes.

Owleyes00

K_S said:

Owleyes00 said:

15JM83 said:

I had an issue with NatWest over this as my payslip showed as gross pay with pension taken off it , was also a salary sacrifice scheme. I had to go to broker in end who applied through a lender that wanted pension taken into account when doing affordability, I guess it comes down to how your payslip shows gross pay 

Hi, it is shown as a deduction from gross pay so
gross pay: £3700
Tax
National Insurance
Student Loan
Pension
Net Pay £2500

@owleyes00 Given that you've used a broker, I would expect them to have taken this into account before placing you with Halifax. It's fairly common especially among applicants on higher incomes.

Thanks, I actually got hold of my MB this morning and she said it was fine - I’m just a worry wart!

IAMIAM

Are there any mainstream lenders who allow second home mortgages up to 90% LTV?
Checked, HSBC, Halifax, Barclays etc and they all seem to go up to 75/80% only on second mortgages

[Deleted User]

IAMIAM said:

Are there any mainstream lenders who allow second home mortgages up to 90% LTV?
Checked, HSBC, Halifax, Barclays etc and they all seem to go up to 75/80% only on second mortgages

Natwest at 90% and Cambridge at 95%.  Thats pretty much your options.  Lots sit at 85% but most at 75/80% to align with btl policy to stop people taking 2nd resi loans when they dont qualify for a btl mortgage on deposit levels

IAMIAM

Deleted_User said:

IAMIAM said:

Are there any mainstream lenders who allow second home mortgages up to 90% LTV?
Checked, HSBC, Halifax, Barclays etc and they all seem to go up to 75/80% only on second mortgages

Natwest at 90% and Cambridge at 95%.  Thats pretty much your options.  Lots sit at 85% but most at 75/80% to align with btl policy to stop people taking 2nd resi loans when they dont qualify for a btl mortgage on deposit levels

Thanks, I think in my scenario of wanting to buy a second property, I need to buy the second property and then move one to btl in the future. I am finding most lenders want me to have two properties first before I can convert one to btl/ltb. The problem is, I want to rent my current property out, not the forward purchase which is annoying. Plus as I am on borderline ltv’s. One will have to be consent to let for a couple of years and then moved to btl when more favourable ltv.

Karen1519

My fiancé and I are first time buyers hoping to make a joint mortgage application within the coming months however I previously had missed payments/arrears on a loan. This was from early 2015 with the loan being taken out of arrears in July 2015, all remaining payments were made on time and the loan was in fact settled early. 

Since then I have had mobile phone contracts and was accepted for Hire Purchase finance on a car last year at a pretty low interest rate of 6.9% APR. All payments have been made on time and I have a reasonably good credit score on Clearscore/Experian etc.

My partner’s credit history is excellent with no missed payments ever.
We earn approx. £50k p/a combined and will have a deposit of around £40k, looking at a house in the range of £180-£200k.

In your experience how likely are the missed payments from 2015 to affect our application? 

K_S

Karen1519 said:

My fiancé and I are first time buyers hoping to make a joint mortgage application within the coming months however I previously had missed payments/arrears on a loan. This was from early 2015 with the loan being taken out of arrears in July 2015, all remaining payments were made on time and the loan was in fact settled early. 

Since then I have had mobile phone contracts and was accepted for Hire Purchase finance on a car last year at a pretty low interest rate of 6.9% APR. All payments have been made on time and I have a reasonably good credit score on Clearscore/Experian etc.

My partner’s credit history is excellent with no missed payments ever.
We earn approx. £50k p/a combined and will have a deposit of around £40k, looking at a house in the range of £180-£200k.

In your experience how likely are the missed payments from 2015 to affect our application? 

@karen1519 At that LTV, it shouldn't have any material impact on your chances of a mortgage at a mainstream rate.

Karen1519

Thanks very much for your reply @K_SI’ve been so worried about this ruining our chances at getting a mortgage