Mortgage broker - ask me anything

K_S

pinki-88 said:

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?

@pinki-88 There's no black and white rule that applies across all lenders. How variable components (bonus, overtime, commission) are calculated and considered can vary a lot from from lender to lender and according to the specifics - frequency, amount, kind of job, etc.

To take a crude example, lender A may take the lowest of last 3 months overtime and annualise it, lender B may take average of last 6 months and annualize it, lender C may require that overtime needs to show on all payslips, etc etc. Affordability calcs will also differ across lenders. Some will take only 30% of OT, some will go up to 60% (or higher with a P60) and some will cap income multiples at 95% LTV to 4x.

With a P60 reflecting OT/bonus would maximise your lender pool. With 3-6 months payslips showing OT you should still have options but whether or not it will add up to being able to borrow the 131k will depend on the specifics. Good luck!

GreenCat80

Do you need to get a special mortgage to be able to make over payments on it? 

K_S

GreenCat80 said:

Do you need to get a special mortgage to be able to make over payments on it? 

@GreenCat80 Depends on how much you want to overpay without penalty. But generally speaking, no, most products allow you to make a certain level of overpayments without any penalty.

- most fixed term products will allow you to pay up to 10% of the outstanding loan amount annually without any penalty. A very small number of products diverge from this.

- a lot of tracker products will allow unlimited overpayments without any penalty. So you could take one out today and pay off half of it 2-3 months later, no fee.

- it's important that there will always be exceptions to the above and differences among products/lenders in how the 10% is calculated,  so do make sure you specify your preferences/requirements to the adviser and check the KFI/illustration for the details.

GreenCat80

@K_S very helpful, thanks 😊 

JamieJ89

Hi there.

what’s the situation around gifted deposits from non family members? Is this possible?

looking at a 10% deposit on a 300k house. 10k of own savings with balance gifted by a friend. 

Thanks in advance. 

K_S

JamieJ89 said:

Hi there.

what’s the situation around gifted deposits from non family members? Is this possible?

looking at a 10% deposit on a 300k house. 10k of own savings with balance gifted by a friend. 

Thanks in advance. 

@jamiej89 It may be possible with a few lenders, but it depends on the details and whether the scenario looks plausible to the lender. You are unlikely to have access to the best rates though as with most mainstream lenders the gifted deposit will need to come from family.

A couple of mainstream lenders will consider if the amount from the friend is a loan and the numbers add up affordability-wise.

Bluebell1000

Slightly different query for a broker. I'm currently employed but thinking about the future. I might be interested in being a mortgage broker in a few years, I've always enjoyed maths, finding solutions, and communicating with different people. Would it be best to look into getting CeMAP qualifications while still in my current role then apply for maybe trainee advisor roles? Any other tips for working in the field? Thanks.

Bobthebuildercanyoufixit

Hi all,

is it possible to get a 5% deposit acceptance even if i have the following;

1. previous payday loans used (more than a year ago and fully paid back right away- amounts total approx £500)
2. Partner on a fixed term contract, but this tends to renew all the time (been employed with the same company 2years+ and current contract till october 2022)
3. Have current unsecured loan (not entire large amount) and also student interest free overdraft (£1000 each, me and my partner).

other info;

1. DTI- approx between 15-20%
2. affordability is good in accordance to property price

many thanks,
bob

K_S

Bobthebuildercanyoufixit said:

Hi all,

is it possible to get a 5% deposit acceptance even if i have the following;

1. previous payday loans used (more than a year ago and fully paid back right away- amounts total approx £500)
2. Partner on a fixed term contract, but this tends to renew all the time (been employed with the same company 2years+ and current contract till october 2022)
3. Have current unsecured loan (not entire large amount) and also student interest free overdraft (£1000 each, me and my partner).

other info;

1. DTI- approx between 15-20%
2. affordability is good in accordance to property price

many thanks,
bob

@Bobthebuildercanyoufixit Quick thoughts based on the limited info in your post -

FTC - as described, not likely to be an issue

Loan and OD - not likely to be an issue as long as affordability numbers stack up

DTI - unlikely to be a stumbling block as long as affordability numbers stack up.

Payday loan history - *should not* by itself be the one thing that stops you from getting a 95% LTV mortgage. However, that will depend on the specifics, what your credit report looks like and the overall details.

K_S

Bluebell1000 said:

Slightly different query for a broker. I'm currently employed but thinking about the future. I might be interested in being a mortgage broker in a few years, I've always enjoyed maths, finding solutions, and communicating with different people. Would it be best to look into getting CeMAP qualifications while still in my current role then apply for maybe trainee advisor roles? Any other tips for working in the field? Thanks.

@Bluebell1000 In your place, I'd be thinking on similar lines. Start looking into getting my CeMAP about 5-6 months before applying for a role and then, once I have it, apply for a trainee advisor role.

There are other ways to go about it but the above would be the most straightforward way to do it. Mind you, it may not be easy getting the first job but if you like it and are decent at it, there are plenty of opportunities.