Mortgage broker - ask me anything

K_S

rainbowrooms said:

Hi I need help with a mortgage query please;
im 57 female, post divorce [ex has bought me out of the house as i couldnt afford the mortgage here] ] I have a large cash deposit but live in an expensive area and looking for a 3 bed house for myself and 2 teens been looking for 2 years and just want to get on with my life.  I need to raise approx 150k on a mortgage to stay where i live as my children are in education here.  my salary is only approx 22-24k on the last 4 years p60s, im employed as a contract support worker in higher education so my monthly wage varies each month, I work semesters so earn less int he summer.  ive been employed here for 6 years.  Ive been told i can only raise approx 100k.  Lifetime mortgages have been muted but Im worried as i need to understand these more and i want to leave inheritance for my kids.  Would you have any ideas how i can raise more? or would a LTM be the solution?  thanks

@rainbowrooms As you've seen, with mainstream resi mortgages, it's very unlikely that you'll be able to stretch all the way to 150k with your income, income type, age and dependents.

I can't comment usefully on the retirement products as it's a complicated area and you would be best off speaking to a mortgage broker specialising in later-life lending or an advisor with one of the larger lenders like L&G or Nationwide to get a realistic idea of your options.

With normal lending, you could potentially consider -
- shared-ownership properties
- Joint Borrower Sole Proprietor mortgages if you have someone who would be able to go on the mortgage but not on the deeds

jonk524

Thank you very much K_S for your advice, one further question please. Would it be possible for me to have the
£50000 as a interest only mortgage to be paid in full from my remaining pension pot when I pass away.
Many thanks  John

K_S

jonk524 said:

Thank you very much K_S for your advice, one further question please. Would it be possible for me to have the
£50000 as a interest only mortgage to be paid in full from my remaining pension pot when I pass away.
Many thanks  John

@jonk524 With mainstream lending, you will need to specify a term. With the right lender, it could be as long as 80-85+ years on interest-only so in your mid-60s it doesn't need to be a barrier to a long enough term. 

For mortgage options which are paid off after the borrower passes away, it all comes under later-life lending. It's a complicated area with a wide variety of potential options so I can't really add anything useful on that. You would be best off speaking to a mortgage broker specialising in later-life lending or an advisor with one of the larger later-life lenders like L&G or Nationwide to get a realistic idea of your interest-only options. Good luck!

jonk524

Thank you for your help K_S, I really do appreciate it 

Hodge58

It is interesting to hear from Brokers who have the Stockholm syndrome and have started to repeat all they have been trained to say. It takes 10 hours to process. Wrong its digitally transmitted. We have to pay for xyzzy. Most ,if not all brokers are tied to a life provider who pays for brochures etc ditto regulatory costs.  IT such as mortgage brain is peanuts pa.
I have been in the industry for over 35 years mostly (30) years at Director level from being an IFA and tied as well as Independent reg by FCA.   The problem is that many brokers dont know life outside of their own bubble and so repeat what they have been told.
I worked for one Company that told all their staff how good their training was and they believed it.  They had an induction course and that was it!
Dont pay a broker a penny and find one that is recommended.
Many ex colleagues of mine are doing the own thing a milking it.

Amatrix

Having trouble being placed with a lender but one "broker" was tied and the other was a bit hopeless - he suggested Accord and I had to explain to him myself why they wouldn't do it. (Any broker recommendations also welcome folks!)

Purchase with my partner (who is FTB). Combined income £104k with substantial pay rise in the pipeline. O/s credit is £296pm car lease and £17k on credit cards which could be repaid in full or in part. I have historic arrears due to Covid/work situation. All 12m+ ago. Previous mortgage paid late by a week in Feb20. Car and credit cards late at various points 15-24 months ago due to not working in previous job, two were status 3 which I don't believe but that's what the credit file says until I can fight to correct it.

Thinking Platform/TSB/Kensington? The latter wants me to pay credit cards in full before they will offer over £350k. Hoping for £450k, 85% LTV.

Any suggestions on lender or broker please?

K_S

Amatrix said:

Having trouble being placed with a lender but one "broker" was tied and the other was a bit hopeless - he suggested Accord and I had to explain to him myself why they wouldn't do it. (Any broker recommendations also welcome folks!)

Purchase with my partner (who is FTB). Combined income £104k with substantial pay rise in the pipeline. O/s credit is £296pm car lease and £17k on credit cards which could be repaid in full or in part. I have historic arrears due to Covid/work situation. All 12m+ ago. Previous mortgage paid late by a week in Feb20. Car and credit cards late at various points 15-24 months ago due to not working in previous job, two were status 3 which I don't believe but that's what the credit file says until I can fight to correct it.

Thinking Platform/TSB/Kensington? The latter wants me to pay credit cards in full before they will offer over £350k. Hoping for £450k, 85% LTV.

Any suggestions on lender or broker please?

@amatrix Well, tbf even though Accord criteria says "no missed payments <24m", it's not black and white and both their automated credit-scoring system and underwriters can and do override it if the case is otherwise strong. I have had such clients go through even at 90% LTV during peak-covid.

Based on the very limited info in your post, and assuming the covid issues are all demonstrably over, I would expect you to have access to mainstream/mainstream-ish rates at 85% LTV. If your credit file is especially poorly and you simply aren't getting past the DIP stage, then one of the building societies that doesn't credit score might be an option.

Just to be clear, none of the above comments take into account affordability numbers as it isn't clear to me how much you're looking to borrow and whether you're term restricted or not.

Good luck!

pinki-88

Hi I was wondering if you could give me a bit of advice?

im looking to buy a house very soon and was wondering if it’s possible to get a mortgage with my circumstances?

I want to buy as a single person. My salary is 24000 a year but I also earn about 20000 in overtime and another 2000 in bonus. 

I don’t owe any debt and my credit score is high.

I want a buy a house that is roughly 140000 and put down approx 9000.

Do you think it would be possible to get a 5% mortgage? 

K_S

pinki-88 said:

Hi I was wondering if you could give me a bit of advice?

im looking to buy a house very soon and was wondering if it’s possible to get a mortgage with my circumstances?

I want to buy as a single person. My salary is 24000 a year but I also earn about 20000 in overtime and another 2000 in bonus. 

I don’t owe any debt and my credit score is high.

I want a buy a house that is roughly 140000 and put down approx 9000.

Do you think it would be possible to get a 5% mortgage? 

@pinki-88 Assuming your credit history is clean and your latest P60 reflects the overtime/bonus, you should have options at 95% LTV.

pinki-88

Would it have to be a p60 provide? 

Due to corona last year there wasn’t a lot of overtime as they slashed it all to keep people away from the office. 

Would the last 3/6 months payslips be good enough or is it something that I need a p60 to show?