Mortgage broker - ask me anything

K_S

Stvo8 said:

K_S said:

Stvo8 said:

haras_n0sirrah said:

Thought I would start a thread where people can ask the brokers opinion on things @ACG @LRmortgage @kingstreet @Deleted_User (any other brokers want to chip in - these were the main other brokers who came to mind.
It is definately an interesting market - probably the busiest I have ever been but at the same time lenders are sooo slow. 
Anyone got a question? Ask away

Hi, Sorry this is a little long winded but I didn't know how often you check the thread and didn't want to leave anything out.

I am currently awaiting a consultation with a Solicitor but I would be very grateful of a bit of info/help.

I will try and breakdown the key facts;

Not married or in a civil partnership but have been cohabiting for 10 years+ in England

Now separating (I moved out 4 months ago and have continued to pay all the household bills whilst I stay elsewhere)

We share an 11 year-old child together (CSA not an issues as this is black and white financially)

Almost 9 years into the mortgage, due to remortgage in 2 months time.

Ex wants to stay in the family home until our son is 18 (in 7 years) which she says her solicitor has said I have to continue paying the mortgage for the duration of this time. She is willing to split the mortage payments in half which is a bonus for me as up until this point I paid the mortgage alone, it is a joint mortgage in both our names.

I will be needing to find(purchase) my own home shortly and have no deposit so my issues is this.

I will be needing to use my half of the equity as my deposit.

Do I;

A - need to sort this through our remortgage on the current property and release equity from the property which will obviously increase our payments which she will not be happy about.

Or

B (obviously the preferred option) – Can I remortgage the property now and at a later date when I find a suitable house for myself use my half of the equity as a ‘deposit’/collateral on my new house that will still form part of the equity towards my Exs home home?

 

Some basic numbers for easy calculation

House Purchased for £150,000

Currently worth £200,000

Mortgage owed £100,000ish (51% LTV)

Thanks in advance.

@stvo8 I hope I haven't misunderstood your question. You will not be able to use your equity in House 1 as a deposit to purchase House 2.

Generally speaking, your income will need to be able to support (as per the lender calculations) two mortgages which is usually the stumbling block in these cases.

Thanks for the response, so I will need to release equity from my current home/borrow more against it to use as a deposit for my own home?

@stvo8 It isn't necessarily that black and white unfortunately. Releasing more equity from House 1 may mean that it accordingly reduces your max borrowing for House 2. Again, it depends on your income primarily.

Try playing around with a couple of lender affordability calculators, make sure you input the background mortgage numbers (for House 1) accurately in the approriate places. This should hopefully give you some insight into how much you may be able to borrow. Good luck!

https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

https://nationwide-intermediary.co.uk/calculators/affordability-calculator

RicardoKlement39

K_S said:

RicardoKlement39 said:

Hi. Crystal ball question. In 2024 I’ll be drawing some pension and we have decided to use it for a deposit on a home, how likely is it a 55 yr old get a mortgage? 

@RicardoKlement39 Your age by itself will not stop you from getting a mortgage or necessarily limit the term. For example there are mainstream lenders who will consider offering a 55 year old a 19 year term (up to 75) based on their employment income at 55. If you have a post-retirement pension income that you can evidence, then you can go beyond 75 as well.

Thanks for taking the time to reply, much appreciated. Another crystal ball one is any idea what the deposit would be required on say a £120 - £140 K home? 

K_S

RicardoKlement39 said:

K_S said:

RicardoKlement39 said:

Hi. Crystal ball question. In 2024 I’ll be drawing some pension and we have decided to use it for a deposit on a home, how likely is it a 55 yr old get a mortgage? 

@RicardoKlement39 Your age by itself will not stop you from getting a mortgage or necessarily limit the term. For example there are mainstream lenders who will consider offering a 55 year old a 19 year term (up to 75) based on their employment income at 55. If you have a post-retirement pension income that you can evidence, then you can go beyond 75 as well.

Thanks for taking the time to reply, much appreciated. Another crystal ball one is any idea what the deposit would be required on say a £120 - £140 K home? 

@RicardoKlement39 As per today's market, based on the limited info in your post and assuming this will be the only property you own - at least 5%, so 6-7k.

artermissy

Hi- we have a mortgage offer from NatWest and in the process of buying a house. As we’re putting as much as we can aside each pay to make sure we have a pot of money to cover things like removals, potential rent overlap and any other costs that may arise we’ve been spending on our credit cards (mainly food shops). Will the bank check credit utilisation again after offer? We haven’t added a crazy amount vs what was on application but just have first time buyer nerves!

YoungBlueEyes

I'd appreciate some advice/pointers - I'm completely ignorant on all this. We have an appointment with a whole of market broker but it's not for a while.

I own my house outright. Other half moved in a year ago. We'd now like to buy a bigger house together. 

For round figures let's say my house is worth £120k. Looking at houses around £200k. Is it possible for me to put say £100k down as the deposit and then Himself get a mortgage on his own for the remaining £100k. He earns plenty and wouldn't struggle with repayments. 

I'm mid 40's, he's 10 years older. I only have a little part time job and would definitely struggle to pay a mortgage if anything happened, so I'd rather just pay 50% as the deposit and call it even.

Is this possible? Or am I way off beam? 

Lindley246

Hello,

I'm hoping you can help me please. I have separated from my girlfriend and we own a house together (bought in December 2020). I am looking to take over the property as a BTL. The property was £250,000 when we bought and now valued at £275-280,000. My mother has recently gifted me money that could contribute towards the deposit of taking over a BTL. 

Would it be manageable to do do you think?

A few other questions I have are:
- Would it have to be 75% LTV?
- Would a gifted deposit be accepted for BTL?
- Would I need to pay LTT if re-mortgaging / changing to myself only?

Many thanks,

K_S

Lindley246 said:

Hello,

I'm hoping you can help me please. I have separated from my girlfriend and we own a house together (bought in December 2020). I am looking to take over the property as a BTL. The property was £250,000 when we bought and now valued at £275-280,000. My mother has recently gifted me money that could contribute towards the deposit of taking over a BTL. 

Would it be manageable to do do you think?

A few other questions I have are:
- Would it have to be 75% LTV?
- Would a gifted deposit be accepted for BTL?
- Would I need to pay LTT if re-mortgaging / changing to myself only?

Many thanks,

@lindley246 To answer your questions -

1. Not necessarily, you could potentially go up to 80% LTV if the rental income supports it or you have sufficient personal income to use top-slicing with an appropriate lender. Going over 75% will severely limit the lender pool and there'll be a big jump in rate 

2. Not all lenders will accept gifted deposits for BTL but it shouldn't be a show stopper.

3. In most cases, the answer is no. Can't comment on your particular case as it's not my area of expertise.

Generally speaking, based on the limited information in your post, there's nothing you've mentioned that makes the case un-placeable but there are certainly a lot of aspects that may limit potential options.

House13

I am looking to move house and also buying a property to let out. In which order should I purchase and how long should I leave between mortgage applications.

K_S

House13 said:

I am looking to move house and also buying a property to let out. In which order should I purchase and how long should I leave between mortgage applications.

@house13 It doesn't make a huge difference, but for ease of process, generally speaking it's likely to be smoother to complete on the resi purchase first and then do the BTL purchase.

Normally, there's no reason to wait between the two purchases. Even if your new address hasn't updated yet, that doesn't stop you from applying unless there are other significant factors in the background.

Just to be clear, these are generic comments based on the very limited info in your post, the specifics of your circumstances/requirements might mean that it's better to do it one way or the other.

goodwithsaving

Hello! I currently have 1 x fixed rate on 1.94% and 1 x variable rate - I moved and ported one, and took out the top up. 
I am soon into year 4 of the 5 year deal and am considering switching early. This is because going down to a 0.9% product will save me £105/month (also combining them) and ensure I am fixed for 5 years, at a time when the other bills are going up.
I have a 52% LTV in the current market, although it is only me and only my income. 

I can put the saved £105/month into an investment plan I have where the interest rate is significantly better than the mortgage. 

My ERC is £1400, which is 13 months of £105 savings, and then I have 47 months where the £105 is extra savings (£4935).

Financially it seems to make sense, and for the peace of mind too. I'm not overstretched, but I am concerned that everything is going to go up. 

As a broker, do you think I'm barking mad or looking at it the right way?

Thank you soooo much