Mortgage broker - ask me anything

K_S

Matty1111 said:

K_S said:

@matty1111 If you aren't able to evidence receipt of regular income from your S&S portfolio (usually through dividends or income distributing products), you will struggle to find a lender willing to consider it as income for affordability purposes. Income through banking profit is unlikely to meet their 'sustainability' requirement.

If your income is from trading stocks and you have been doing it profitably for 2+ years, there may be options.

Thanks that is a shame since dividend paying stocks aren't often the best way to create an income. Selling down a growth portfolio at say 4% is basically the same thing but time will tell if I can find a lender who will see it the same way 

@matty1111 Out of professional interest, if you do find a lender willing to consider this as income, please do feedback on this thread. Good luck!

K_S

muswellblue said:

Hi. My mum passed away and left her house 50:50 between myself and my brother. I have been living in the house and want to buy my brothers half. The house is worth approximately £380000. I also have £110000 in stocks and shares, so am looking at a mortgage of about £80000. 

I earn £31000/year, have no debts, clear credit score and have had my job almost 26 years. The problem I may have applying for a mortgage maybe my costs commuting which are £6500/year. 

I am a first time buyer and do not have a great knowledge of mortgage applications. What sort of mortgage would I be looking for and will it go in my favour that I already own half the house and have a large deposit? Thanks. 

@muswellblue Based on the limited info in your thread, it sounds fairly straightforward. With most lenders, what you are lookingfor is a 'remortgage' (even if you don't have a mortgage currently).

You are looking to borrow 80k with a 'deposit' of 300k (110k S&S plus your 190k equity). With 31k income and no debt, even with high commuting costs, you should be fine on affordability as long as your age doesn't overly restrict the length of the term.

muswellblue

Thanks for the info. I’m 48 years old (not sure how much that will effect things). The house was inherited mortgage free. 

Loo44

Hi there, please could someone point me in the right direction? We have an interest only mortgage (£226,000) with no way of paying it off in the next 4 years (when mortgage is due).  Our property is worth around £530,000. Do we downsize (and move to a completely new area as we couldn’t afford the prices around here) or take on a lifetime mortgage?  Me 55, hubby 62. I don’t work due to ill health, and husband is retired on a private pension.  Not sure where to go for help and advice. Can anyone help please?  Thank you. 

Lowe_Queen

Hi please can you tell me what it means when a mortgage lender has completed their ‘initial assessment’? We applied with Barclays through a broker 26th Aug and was informed on Friday that the lender had done their initial assessment. We asked for an update today and was told it was still with the underwriters. Im terrible at waiting so just wondered whether we would have known by now if we were going to be refused? Thank you 

K_S

Loo44 said:

Hi there, please could someone point me in the right direction? We have an interest only mortgage (£226,000) with no way of paying it off in the next 4 years (when mortgage is due).  Our property is worth around £530,000. Do we downsize (and move to a completely new area as we couldn’t afford the prices around here) or take on a lifetime mortgage?  Me 55, hubby 62. I don’t work due to ill health, and husband is retired on a private pension.  Not sure where to go for help and advice. Can anyone help please?  Thank you. 

@loo44 There are potentially a lot of different options in the market. Like a lot of other brokers, I don't advise on specialist retirement products due to the regulatory boxes to tick.

It's a complex decision to make with many important ramifications based on your personal circumstances and preferences. I would recommend getting in touch with someone like Age UK https://www.agepartnership.co.uk/mortgages/ or similar. Good luck!

TweetyUK

Hi everybody, hope you're all well..I'm at a loss as to what is available to me so any help anyone could give me, I would be so grateful for.

Long story short - I paid cash, just short of £65k in March for 35% of a shared ownership new build. I only had £43k myself from a previous house sale so I was short £22k so my mum 'gifted' me this amount. I couldn't get the mortgage at the beginning of the year as I was on furlough and the fact my wages which was 14k for the year consisted of 20hr contract and overtime but Barclays who gave me a aip through my broker would only consider 50% of the overtime so I couldn't have the mortgage. So my mum really helped me out when I needed it so as not to lose the house.

She also bought the house next door but 1 to mine at 35% shared ownership at the same time and she is wanting to staircase hers when it becomes available for her to do so after a year. But she really needs the £22k she loaned me back to be able to do the staircasing.

I really don't know what my options are to be able to get the money together for her. Is there an option for me to get a small mortgage now so that I don't have the worry of how she can move forward with her plans? 

Nutmeg95

Hi. I am wondering if mortgage lenders are happy to lend to someone who has 2 part time jobs instead of 1 full time? They are both well paid and in good companies, no risk etc. It would be a sole application no other wages to take into consideration. 
Is it more difficult to find good rates, are companies unwilling to lend in situations like this? Would you still have X amount times the total earned or only against one earning? 

Thanks for your help. 

K_S

Nutmeg95 said:

Hi. I am wondering if mortgage lenders are happy to lend to someone who has 2 part time jobs instead of 1 full time? They are both well paid and in good companies, no risk etc. It would be a sole application no other wages to take into consideration. 
Is it more difficult to find good rates, are companies unwilling to lend in situations like this? Would you still have X amount times the total earned or only against one earning? 

Thanks for your help. 

@nutmeg95           

- as long as they're both in the same line of work, perm contracts and you have had both jobs for at least 6 months, your options shouldn't be materially different to the ones you would have if in one full time job

- if both incomes are considered, the affordability will be calculated in the same way as one full time income

bhhm3

Morning!

I wonder if I could get your opinion on my situation —

First time buyer based in London, relocating to the North East.

£50K annual salary. 2.5 years in perm role. Work remote. 48% debt to income ratio. Proven credit history (8+ years, numerous active and settled accounts, no missed payments, no ccjs, on electoral roll, squeaky clean)

Offer accepted at £71K. Deposit at 5%. Borrowing £67450.

Would the relatively high existing debt (although properly managed) stop me from getting an approval?