Mortgage broker - ask me anything

K_S

@tiredwithtwins Based on the limited info in your post, you should be comfortably able to get a 95% LTV mainstream mortgage for a 100k property over a 10-11 year term.

Brebal

I want to switch to another lender for a remortgage. If they give me an AIP that is valid for six months, does that mean they guarantee the rate? Or will it be recalculated in six months time should the rates have risen? Thanks 

K_S

Brebal said:

I want to switch to another lender for a remortgage. If they give me an AIP that is valid for six months, does that mean they guarantee the rate? Or will it be recalculated in six months time should the rates have risen? Thanks 

@brebal With the vast majority of lenders, you can only secure a rate when you put in a full application, not at DIP stage.

With Nationwide (intermediary, not sure about direct), you can 'reserve' a rate for 90 days at DIP stage.

PJC88

My partner has been given mortgage in principle for 110 on her own. 
Seen a house, home report is 105 and we bid 115 and our offer was, unexpectedly I have to say, accepted. 
The plan is for me to borrow around 15k and give to her as a gift, she's the mother of my children and I wouldn't even think of asking for it back.

Is this a problem.? 

K_S

PJC88 said:

My partner has been given mortgage in principle for 110 on her own. 
Seen a house, home report is 105 and we bid 115 and our offer was, unexpectedly I have to say, accepted. 
The plan is for me to borrow around 15k and give to her as a gift, she's the mother of my children and I wouldn't even think of asking for it back.

Is this a problem.? 

@PJC88 Will depend on the specific lender's policy as some will not allow gifts from occupiers not named on the mortgage and some will expect co-habiting applicants to apply in sole names.

ElwoodBlues

Which lenders consider child tax credits as income in their affordability calculations? I'm currently with Natwest, and I think they did include it. I'm a single parent, but have a joint mortgage with my sister. our combined earned income is about 42k, although that includes a large recent pay rise, so don't have 3 months payslips to corroborate all of that yet. I'm also ltd company director and shareholder of my own business, which might also limit choice of lenders?

K_S

ElwoodBlues said:

Which lenders consider child tax credits as income in their affordability calculations? I'm currently with Natwest, and I think they did include it. I'm a single parent, but have a joint mortgage with my sister. our combined earned income is about 42k, although that includes a large recent pay rise, so don't have 3 months payslips to corroborate all of that yet. I'm also ltd company director and shareholder of my own business, which might also limit choice of lenders?

@ElwoodBlues Apologies, I can't name any lenders as that could be construed as advice. My quick thoughts -

1. Plenty of mainstream lenders will consider CTCs for affordability. Any additional criteria to be met and the % at which they will be considered will depend on the specific lender.

2. As long as you have one full payslip showing the new higher basic (and can get confirmation/letter from employer if needed), you should have mainstream lender options to use that income.

3. All lenders will consider ltd.co.Director income but the criteria can vary significantly and which lender is appropriate for you will depend on how you draw an income from the Ltd.co.

PJC88

K_S said:

PJC88 said:

My partner has been given mortgage in principle for 110 on her own. 
Seen a house, home report is 105 and we bid 115 and our offer was, unexpectedly I have to say, accepted. 
The plan is for me to borrow around 15k and give to her as a gift, she's the mother of my children and I wouldn't even think of asking for it back.

Is this a problem.? 

@PJC88 Will depend on the specific lender's policy as some will not allow gifts from occupiers not named on the mortgage and some will expect co-habiting applicants to apply in sole names.

Sorry for not getting this. 
She is applying on her own so will be the sole name on the mortgage. 
A gift is just that, no one else is named on the mortgage, it's money that isn't to be paid back. 
The current offer is from RBS, there's also been one through a mortgage advisor with ACCORD? 

K_S

PJC88 said:

K_S said:

PJC88 said:

My partner has been given mortgage in principle for 110 on her own. 
Seen a house, home report is 105 and we bid 115 and our offer was, unexpectedly I have to say, accepted. 
The plan is for me to borrow around 15k and give to her as a gift, she's the mother of my children and I wouldn't even think of asking for it back.

Is this a problem.? 

@PJC88 Will depend on the specific lender's policy as some will not allow gifts from occupiers not named on the mortgage and some will expect co-habiting applicants to apply in sole names.

Sorry for not getting this. 
She is applying on her own so will be the sole name on the mortgage. 
A gift is just that, no one else is named on the mortgage, it's money that isn't to be paid back. 
The current offer is from RBS, there's also been one through a mortgage advisor with ACCORD? 

@pjc88 If you already have a mortgage offer and the source of deposit was correctly identified in the application, you should be fine. The person making the gift having borrowed the deposit should not normally be an issue, but with you living in the property I don't know if that makes a difference.

What I was referring to is two criteria points with respect to residential purchase mortgages (so buying a property that you will live in) -

1. Some mainstream lenders (Coventry for example) will expect that co-habiting partners or married couples have to apply in joint names.

2. Some mainstream lenders (Santander for example) will not accept a gifted-deposit if the person providing it will be living in the property but is not named on the mortgage.

Brebal

K_S said:

Brebal said:

I want to switch to another lender for a remortgage. If they give me an AIP that is valid for six months, does that mean they guarantee the rate? Or will it be recalculated in six months time should the rates have risen? Thanks 

@brebal With the vast majority of lenders, you can only secure a rate when you put in a full application, not at DIP stage.

With Nationwide (intermediary, not sure about direct), you can 'reserve' a rate for 90 days at DIP stage.

Thanks. I’m not sure I’ll be able to drag it out to Feb which is the earliest I can get out my fixed rate without paying. I’ll prob just pay the ERC to tie in a deal now. I’m scared rates will rise even more!