Mortgage broker - ask me anything

Intel1982

K_S said:

Intel1982 said:

Hi there, after waiting 8 stressful weeks we finally got a mortgage offer accepted from 'The Mortgage Lender' (we have some old credit issues, 3 years ago now). As I was getting so hopeless that I wouldn't get approved, I went to my credit union and applied with them - they approved me the same day! 

A hard search was carried out 15th December by The Mortgage Lender and I've been told a hard search will be carried out by the credit union on Monday while they get everything finalised. 

At this point I had decided to go with credit union, as they require less deposit off me than The Mortgage Lender, leaving me with more savings to decorate etc.

My mortgage advisor has now got back to me to say that since I put the original application in back in December, more options have become available and he said that Santander would now be willing to lend to me, and it would save me over £115 a month and with the same amount of deposit as the credit union.

We are due to move in 25th March..if we apply for the Santander one, will we potentially get turned down due to the two other mortgage offers received? I'm also worried that if we do apply with them it would be another long, drawn out process and I don't want to risk the sellers pulling out as they've already become anxious (they won't be told until next week that we have a mortgage offer but they have been contacting our solicitors looking for progression).

Just looking for some advice really on how best to proceed, we don't want to lose the house as there are very little houses coming up for sale where we live at the moment and we are living with family, desperate for our own space now. 

Thanks! 

@intel1982 Just to be clear, I can't advise you on what to do but essentially if you're asking whether you will be declined by Santander purely because of 2 recent hard-checks, that is unlikely. However, in combination with a relatively poor credit history, it could tip the application over from an accept to a decline. Off of the top of my head (I might be wrong!) I think Santander do ask about other in-flight (in progress) mortgage applications but I've never answered 'yes' to that question so not sure what impact that may have.

On the positive side, an adverse impact from the two hard-checks *should* show up at the Santander DIP (Decision In Principle) which is a soft-footprint credit check.

Whether you want to try Santander or not is down to your personal preferences and attitude. You have already been through a stressful mortgage application process and might be willing to take the higher cost of the credit-union mortgage for a few years in exchange for not having to apply again (the Santander process may or may not be drawn out, that depends on the entirety of the case, what your credit report looks like and the individual at Santander that assesses the case).

Otoh, you might place sufficient value on the saving and the advantages of being with a mainstream lender to give it a shot with Santander.

Sorry I couldn't suggest a clear way forward.

That's great advice thank you, and has made my mind up. I don't think the potential saving is enough for me to jeopardize anything and go through the stress again. I'll stick with the credit union for a few years and just be glad to be on the property ladder and have an offer!

egorfester

Hi,

we are struggling to find a mortgage deal due to having overseas address and work history. Applicant one is overseas citizen on a visa with a permanent job and good income. Applicant 2 is british with fixed term contract started in December (previous employment in the same field for 6+ years but immediate history is overseas). Any places where overseas history does not work against you? We can easily do a 75% LTV

K_S

egorfester said:

Hi,

we are struggling to find a mortgage deal due to having overseas address and work history. Applicant one is overseas citizen on a visa with a permanent job and good income. Applicant 2 is british with fixed term contract started in December (previous employment in the same field for 6+ years but immediate history is overseas). Any places where overseas history does not work against you? We can easily do a 75% LTV

@egorfester I can't really recommend a lender as there quite a few important criteria points which individually are surmountable but gets complicated when it all comes together. I daresay you *should* have options at 75% LTV with one UK citizen on the app, especially if the joint income is 100k+,  but it'll require speaking to a few lenders to run the whole case past them.

I would recommend getting in touch with a broker, plenty recommended in the MSE list here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

Good luck!

CatBlack123

CatBlack123 said:

Hi. 
I am just after a bit of advice.
Our plan is to apply for mortgage in April.
My partner is self employed and took Grants. Business is now back to normal and including grand income would be around 30k. 
I am working part time and get about 14k a year.
Deposit around 30k 

My partner has very good credit rating and history.  We have a joint account which is managed very well. 
My credit rating is fair but because I wasn't on electoral register , now registered so should move to good.
I have  account where my salary is paid but the statements up to December and not looking  good . Little lottery spending, going into arranged overdraft for couple of days for around £50 basically not well managed (stupid me ) . I have a saving account with good amount of money saved there  . No missed payments ever , no CCJ nothing like that . No debts or any money owing.
What is our best course of action to make sure mortgage doesn't get declined due to my statements. 
Is waiting 3 months enough  to make sure my bank statements are looking good and to minimise any risks ?
If lender asks for 6 months statements but only recent 3 are looking good will this be automatic decline ?

Many thanks for any advice. 

Just to add another question to this. 
My savings/deposit are in Flexi ISA and were build up over about 10 years . I haven't paid in to this account for about a year now just made small transfers to my current account. As I proof of deposit how many months of banks statements will lender need  as there is no payments in just out? Thanks 

jaelato1

egorfester said:

Hi,

we are struggling to find a mortgage deal due to having overseas address and work history. Applicant one is overseas citizen on a visa with a permanent job and good income. Applicant 2 is british with fixed term contract started in December (previous employment in the same field for 6+ years but immediate history is overseas). Any places where overseas history does not work against you? We can easily do a 75% LTV

Try Natwest,  was in similar situation a while back 

bubby08

Hello,

I undertake some freelance work along side my main income, but it’s freelance so it’s nature is inconsistent. I only plan to apply for a mortgage based on my current salary would any other income become a problem for my application?

thank you in advance 

housebuyer143

The lender is asking for 2yrs P60s to prove bonuses, this is fine (we will provide 19/20 & 20/21) but my husbands salary has increased a lot from 2019 to now and also he was also paying into a salary sacrifice scheme until recently so the gross on his P60s is looking significantly lower than the recent payslip.

Is providing these P60s going to cause alarm with the lender? It seems a very convoluted way to prove annual bonuses tbh and they wont take payslips. 

K_S

housebuyer143 said:

The lender is asking for 2yrs P60s to prove bonuses, this is fine (we will provide 19/20 & 20/21) but my husbands salary has increased a lot from 2019 to now and also he was also paying into a salary sacrifice scheme until recently so the gross on his P60s is looking significantly lower than the recent payslip.

Is providing these P60s going to cause alarm with the lender? It seems a very convoluted way to prove annual bonuses tbh and they wont take payslips. 

@housebuyer143 If you've already provided the payslips shows the latest and prior bonus, then the P60 should be merely additional verification. In any case if it raises a query you have a reasonable explanation.

housebuyer143

K_S said:

housebuyer143 said:

The lender is asking for 2yrs P60s to prove bonuses, this is fine (we will provide 19/20 & 20/21) but my husbands salary has increased a lot from 2019 to now and also he was also paying into a salary sacrifice scheme until recently so the gross on his P60s is looking significantly lower than the recent payslip.

Is providing these P60s going to cause alarm with the lender? It seems a very convoluted way to prove annual bonuses tbh and they wont take payslips. 

@housebuyer143 If you've already provided the payslips shows the latest and prior bonus, then the P60 should be merely additional verification. In any case if it raises a query you have a reasonable explanation.

Thanks, they will not accept any payslips to prove it, but instead they want these P60s and then they use the latest payslip to deduct the gross from the P60 but due to the pay rises they then want payslips from 2019 & 2020 to prove his gross to do the deductions... Seems really crazy to me, why not just look at the payslips for the amounts.

So you feel it would not be a red flag as I have a good explanation and I can evidence this if needed? I can go without it if needed, so do not want to do something which could mess up the application. 

K_S

housebuyer143 said:

K_S said:

housebuyer143 said:

The lender is asking for 2yrs P60s to prove bonuses, this is fine (we will provide 19/20 & 20/21) but my husbands salary has increased a lot from 2019 to now and also he was also paying into a salary sacrifice scheme until recently so the gross on his P60s is looking significantly lower than the recent payslip.

Is providing these P60s going to cause alarm with the lender? It seems a very convoluted way to prove annual bonuses tbh and they wont take payslips. 

@housebuyer143 If you've already provided the payslips shows the latest and prior bonus, then the P60 should be merely additional verification. In any case if it raises a query you have a reasonable explanation.

Thanks, they will not accept any payslips to prove it, but instead they want these P60s and then they use the latest payslip to deduct the gross from the P60 but due to the pay rises they then want payslips from 2019 & 2020 to prove his gross to do the deductions... Seems really crazy to me, why not just look at the payslips for the amounts.

So you feel it would not be a red flag as I have a good explanation and I can evidence this if needed? I can go without it if needed, so do not want to do something which could mess up the application. 

@housebuyer143 I can't comment on the possible outcome of your specific case but from the very limited info in your posts I don't see any show-stopping issues.