Mortgage broker - ask me anything

SuseOrm

@K_S I have a quick question if I may I have a buy to that property that has a mortgage of 49,000 left on it,  my daughter lives there while she’s at university she does pay me rent which is declared to HMRC.  

I earn 50 grand a year literally just started a new job though,  I have two defaults from 2017 that are settled, a long time ago. 

I have 50-ish grand in savings that was going to be a 25% deposit down on my main residence which I will live in. 

I seem to be having an extraordinary amount of problems achieving this. 

Would my position be better if I cleared the Mortgage so that I have absolutely no debt whatsoever and then over the next six months by which point I would’ve passed probation I would’ve been able to save up an additional deposit of around 10% that I could put down on another house ? I guess in summary is it that by select property that’s holding me back ?  Thank you 

K_S

SuseOrm said:

@K_S I have a quick question if I may I have a buy to that property that has a mortgage of 49,000 left on it,  my daughter lives there while she’s at university she does pay me rent which is declared to HMRC.  

I earn 50 grand a year literally just started a new job though,  I have two defaults from 2017 that are settled, a long time ago. 

I have 50-ish grand in savings that was going to be a 25% deposit down on my main residence which I will live in. 

I seem to be having an extraordinary amount of problems achieving this. 

Would my position be better if I cleared the Mortgage so that I have absolutely no debt whatsoever and then over the next six months by which point I would’ve passed probation I would’ve been able to save up an additional deposit of around 10% that I could put down on another house ? I guess in summary is it that by select property that’s holding me back ?  Thank you 

@suseorm Sorry it isn't clear to me, what exactly is the issue you are running up against?

The defaults registered 4-5 years ago should not necessarily stop you at 75% LTV. 49k of interest only debt on a BTL property shouldn't be a huge issue. If you have been continuously employed the probation shouldn't be a huge issue either (unless you're limited to specialist lenders who have much stricter criteria with regard to new jobs and probationary periods).

[Deleted User]

Sorry another question!

In the past have you had instances of banks turning down applications based on family members at the same current address?

i.e if my father happened to be in debt at the same bank, living at the same address as me, could this also blacklist myself why applying for the mortgage at the said bank?

To be clear there is no financial link between us and I have never defaulted on any debt, and have hardly any debt. 

SuseOrm

K_S said:

SuseOrm said:

@K_S I have a quick question if I may I have a buy to that property that has a mortgage of 49,000 left on it,  my daughter lives there while she’s at university she does pay me rent which is declared to HMRC.  

I earn 50 grand a year literally just started a new job though,  I have two defaults from 2017 that are settled, a long time ago. 

I have 50-ish grand in savings that was going to be a 25% deposit down on my main residence which I will live in. 

I seem to be having an extraordinary amount of problems achieving this. 

Would my position be better if I cleared the Mortgage so that I have absolutely no debt whatsoever and then over the next six months by which point I would’ve passed probation I would’ve been able to save up an additional deposit of around 10% that I could put down on another house ? I guess in summary is it that by select property that’s holding me back ?  Thank you 

@suseorm Sorry it isn't clear to me, what exactly is the issue you are running up against?

The defaults registered 4-5 years ago should not necessarily stop you at 75% LTV. 49k of interest only debt on a BTL property shouldn't be a huge issue. If you have been continuously employed the probation shouldn't be a huge issue either (unless you're limited to specialist lenders who have much stricter criteria with regard to new jobs and probationary periods).

@K_S - that literally was my question which you’ve answered,  if it’s not the BTL property that’s the problem I don’t know what it is … 
£49,000 isn’t interest only I am clearing the capital as well each month,  never missed a payment.  And I’m still well within the affordability calculation‘s. 

I feel like I’m banging my head against a brick wall so I just wondered if paying that off and getting rid of it when the fixed rate runs out in November would make any significant difference to my ability to get a mortgage going forward.  

K_S

SuseOrm said:

K_S said:

SuseOrm said:

@K_S I have a quick question if I may I have a buy to that property that has a mortgage of 49,000 left on it,  my daughter lives there while she’s at university she does pay me rent which is declared to HMRC.  

I earn 50 grand a year literally just started a new job though,  I have two defaults from 2017 that are settled, a long time ago. 

I have 50-ish grand in savings that was going to be a 25% deposit down on my main residence which I will live in. 

I seem to be having an extraordinary amount of problems achieving this. 

Would my position be better if I cleared the Mortgage so that I have absolutely no debt whatsoever and then over the next six months by which point I would’ve passed probation I would’ve been able to save up an additional deposit of around 10% that I could put down on another house ? I guess in summary is it that by select property that’s holding me back ?  Thank you 

@suseorm Sorry it isn't clear to me, what exactly is the issue you are running up against?

The defaults registered 4-5 years ago should not necessarily stop you at 75% LTV. 49k of interest only debt on a BTL property shouldn't be a huge issue. If you have been continuously employed the probation shouldn't be a huge issue either (unless you're limited to specialist lenders who have much stricter criteria with regard to new jobs and probationary periods).

@K_S - that literally was my question which you’ve answered,  if it’s not the BTL property that’s the problem I don’t know what it is … 
£49,000 isn’t interest only I am clearing the capital as well each month,  never missed a payment.  And I’m still well within the affordability calculation‘s. 

I feel like I’m banging my head against a brick wall so I just wondered if paying that off and getting rid of it when the fixed rate runs out in November would make any significant difference to my ability to get a mortgage going forward.  

@suseorm The background BTL mortgage being capital-repayment will (in most cases) have a bigger adverse impact than if it were interest only, because of the higher monthly committed payment. 

It's still not clear to me that that is the primary issue here. It could well be if you need to absolutely maximise borrowing. As I mentioned earlier, the probation could be an issue if you are limited to specialist lenders due to the old defaults.

In any case, if you haven't already, I would recommend speaking to an experienced broker who can look at the whole case and give a clear idea of your mortgage options (if any) or tell you what needs to happen to be able to get where you need to. Good luck!

K_S

[Deleted User] said:

Sorry another question!

In the past have you had instances of banks turning down applications based on family members at the same current address?

i.e if my father happened to be in debt at the same bank, living at the same address as me, could this also blacklist myself why applying for the mortgage at the said bank?

To be clear there is no financial link between us and I have never defaulted on any debt, and have hardly any debt. 

@[Deleted User] Generally speaking, no. The lender might ask "We can see that Mr XYZ lives at your current address, please confirm whether they will be an occupant in the property being purchased" but your father's credit history *shouldn't* normally have an impact on your mortgage.

Rc0105

K_S said:

Rc0105 said:

K_S said:

Rc0105 said:

My broker submitted an application which got declined another broker told me it should have never been submitted due to gambling being on the statements and I told the broker before was submitted but he just seems like he’s not bothered at times is it right that it shouldn’t have been submitted in the first place?

@rc0105 It would be inappropriate for me to comment one way or the other as I literally know nothing about the case.

Generally speaking, a few betting transactions on the statement is not necessarily an issue. If it's consistently large amounts then that could be a red flag, both for the broker and the lender. It all depends on the details.

I hope it works out in the end, good luck!

Do some brokers not check bank statements before submission though? Just as I’m getting conflicting advise from brokers

@rc0105 I check 3 months worth of bank statements for every residential client and 1 month for every BTL client. I personally don't know any brokers who would put through a residential app without even a cursory review of the applicant's bank statement.

It came as a shock to my broker even though I had mentioned it! I am just hoping that my resubmission will go through but he hasn’t give me much confidence!

CatBlack123

Hello. I have a question regarding National Lottery transactions . 
I have around 5 monthly transactions for about £ 5 each on my bank statements up to December. I was not aware that this can cause issues with mortgages.
If I wait 3 months before applying  for mortgage will I be safe ? Can this transactions decline my application for mortgage ? I am just so worried that I have spoilt my chances of owing a home. Could you please advise ?

K_S

CatBlack123 said:

Hello. I have a question regarding National Lottery transactions . 
I have around 5 monthly transactions for about £ 5 each on my bank statements up to December. I was not aware that this can cause issues with mortgages.
If I wait 3 months before applying  for mortgage will I be safe ? Can this transactions decline my application for mortgage ? I am just so worried that I have spoilt my chances of owing a home. Could you please advise ?

@catblack123 Can't speak for your case specifically, but plenty of people play the lottery and I would not expect £25 a month on the national lottery to cause any issues with a mortgage app.

CatBlack123

@K_S I appreciate your reply. Many thanks. 
Would it still be more sensible to wait 3 or 6 months before applying ? Are banks statements over 6 months old ever requested ? I am the lower earner. Bills come out form different  , joint account.