Mortgage broker - ask me anything

Wiggles705

@K_S

Wanting to apply for a mortgage and relocating. We are house hunting in the next few months, with a view to move in July (ish) but I won’t know yet whether I’ve got a new job starting in September (timing is important here as I’m a teacher). Looking to get an AIP from it current mortgage provider for a loan of £250k (£50k deposit on £300k house) but when I explained this situation they said they couldn’t include my salary. The reality is, that if I don’t get a job, then we won’t be moving and will have to either stall or pull out of house moves so we won’t be applying for the mortgage anyway. How do I get an idea of what they’d be willing to lend us?? Do I ring for another AIP and say that I won’t be changing jobs? If I do get a job to start September, will a copy of the contract be enough for us to get a mortgage before I’ve started, baring in mind my current salary will take us through until then? 

Thanks for your help!!! 

K_S

Wiggles705 said:

@K_S

Wanting to apply for a mortgage and relocating. We are house hunting in the next few months, with a view to move in July (ish) but I won’t know yet whether I’ve got a new job starting in September (timing is important here as I’m a teacher). Looking to get an AIP from it current mortgage provider for a loan of £250k (£50k deposit on £300k house) but when I explained this situation they said they couldn’t include my salary. The reality is, that if I don’t get a job, then we won’t be moving and will have to either stall or pull out of house moves so we won’t be applying for the mortgage anyway. How do I get an idea of what they’d be willing to lend us?? Do I ring for another AIP and say that I won’t be changing jobs? If I do get a job to start September, will a copy of the contract be enough for us to get a mortgage before I’ve started, baring in mind my current salary will take us through until then? 

Thanks for your help!!! 

@wiggles705You have mentioned that you are 'relocating'. If the new area is outside a reasonable commuting distance, as a teacher (so can't wfh), the lender will want to know what your plans are. If those plans include a job that you can't evidence at the point of application through a contract, then they won't be able to lend.

Not all lenders will accept income based on a future contract, but there are a decent number that will consider, especially for a teacher.

An AIP is only as good as the information you put in (garbage in garbage out) and how much a lender will be prepared to lend can vary quite significantly across lenders and your circumstances. There's not much point in getting an AIP from a lender if they will not consider future dated employment contracts.

To get a ballpark idea of how much you may be able to borrow, just play around with a few lender affordability calcs. 
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

There's not much to be gained by starting viewings for a house outside commuting distance without a new contract in hand as you are unlikely to be able to apply for a mortgage.

RSMB14

Hi, just wanted some advice.

Applied for a mortgage through a broker on 24th. Looking to borrow £50k, £55k deposit. Credit history good, I’m returning from mat leave as of 28th Jan and have letter from work to support this. My only worry is my low income of £18532. Do you see any issues?

Thank you 

K_S

RSMB14 said:

Hi, just wanted some advice.

Applied for a mortgage through a broker on 24th. Looking to borrow £50k, £55k deposit. Credit history good, I’m returning from mat leave as of 28th Jan and have letter from work to support this. My only worry is my low income of £18532. Do you see any issues?

Thank you 

@rsmb14 A broker would be very very unlikely to put in an application unless there was a very good chance of it going to offer. So unless your broker has told you that it's 50-50 for whatever reason, I wouldn't worry too much. Good luck! 

RSMB14

Thank you! The repayments are more than affordable, it’s just not knowing if the lender (Santander) will think the same!

propertyhunter

Hello @K_S,
I hope you can help me. 
I am a contractor - and I have seven years of accounts operating within a limited company, as well as personal tax returns showing dividend income only. For the latest financial year for which I do not have confirmed accounts (2021-2022) I have business account statements showing regular income commensurate with past years' net profit. My question is, do I need to have contracts in place to show I will have work in the future? If so, how many months in advance?
The thing is, the contracts come in last minute so securing them in advance of a mortgage application is difficult - but I have seven years of accounts showing similar net profits (last year they were actually 10% higher than normal). 
Thanks for any advice. 

K_S

propertyhunter said:

Hello @K_S,
I hope you can help me. 
I am a contractor - and I have seven years of accounts operating within a limited company, as well as personal tax returns showing dividend income only. For the latest financial year for which I do not have confirmed accounts (2021-2022) I have business account statements showing regular income commensurate with past years' net profit. My question is, do I need to have contracts in place to show I will have work in the future? If so, how many months in advance?
The thing is, the contracts come in last minute so securing them in advance of a mortgage application is difficult - but I have seven years of accounts showing similar net profits (last year they were actually 10% higher than normal). 
Thanks for any advice. 

@propertyhunter Based on the limited information in your post, with 3+ years contracting history you should be fine even without an upcoming contract. Depending on the specifics, it might not fit every lender but there should still be a decent choice of lenders.

propertyhunter

Ok, thanks so much for the prompt and informed response

Wiggles705

@K_S

I am currently on maternity leave and hoping to move next summer. Will it affect my chances of getting a mortgage if I don’t have 3 pay slips showing a full wage? I am returning to my usual full time hours in April. 

K_S

Wiggles705 said:

@K_S

I am currently on maternity leave and hoping to move next summer. Will it affect my chances of getting a mortgage if I don’t have 3 pay slips showing a full wage? I am returning to my usual full time hours in April. 

@wiggles705 As long as your employer is willing to confirm a return date and pay, it shouldn't have a material impact on your chances of getting a mortgage while on mat leave. The lender will need to know what your plans are for childcare, if there is a cost involved then it may impact your maximum borrowing amount.