Mortgage broker - ask me anything

ElwoodBlues

K_S said:

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.

Thanks, I think our incomes should easily cover affordability for the current loan value (about 100k), but we're considering having an extension built that may end up needing to extend the mortgage for. I take all my ltd company income as PAYE, so it's all there on P60's for both of us.

The best deals currently seem to be direct from lender only. Is it more difficult to successfully get a mortgage direct than via a broker in my slightly non standard circumstances?

K_S

ElwoodBlues said:

K_S said:

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.

Thanks, I think our incomes should easily cover affordability for the current loan value (about 100k), but we're considering having an extension built that may end up needing to extend the mortgage for. I take all my ltd company income as PAYE, so it's all there on P60's for both of us.

The best deals currently seem to be direct from lender only. Is it more difficult to successfully get a mortgage direct than via a broker in my slightly non standard circumstances?

@elwoodblues If a Ltd.Co.Director applicant owns more than 20-25% of their company, then they will be treated as self-employed by lenders, irrespective of whether you pay yourself 100% through PAYE, 100% through divs, through a mix of PAYE and divs, or retain most of your profits inside the company. See the snippet below.

With an income of 42k and a loan size of 100k+extension, you probably won't need the CTCs for affordability so may be able to disregard it for criteria, making the process of finding a lender simpler.

I don't know enough of your circumstances to say, but generally speaking there's nothing particularly complicated that you couldn't sort out yourself direct.

Hanava22

I applied for mortgage 7 working days out 
Two working days ago HSBC requested documents. I was told today I will hear an Update within 1-2 business days. Does this mean it’s within underwriters? Struggling to log into HSBC so I can’t see anything my self. 

K_S

Hanava22 said:

I applied for mortgage 7 working days out 
Two working days ago HSBC requested documents. I was told today I will hear an Update within 1-2 business days. Does this mean it’s within underwriters? Struggling to log into HSBC so I can’t see anything my self. 

@hanava22 Based on what you've said, it does look like it's with an underwriter. HSBC are pretty quick at the moment (at least as compared to the likes of Natwest and Nationwide) and they should pick up the documents in 2 working days. Good luck!

Hanava22

Thank you! Would they have generally done a valuation? As I said it’s quite frustrating as currently I can’t access and I don’t always have the time to sit on hold to hsbc phone 

Hanava22

Just had a missed call and text suggesting to call them back regarding mortgage application!! Il call at lunch. Do they usually ring? Oh so nervous 

Coolbeans2010

So we are at the full mortgage application stage now, with Accord and my nerves are though the roof. 
Valuation is marked as satisfied.  The underwriter has asked more info including

- more recent bank statements
- my p60
- a council tax bill for me
- my partners business bank statements for last three months

All fine, but the business bank statements have thrown us a bit. Is this normal? He is a director of a ltd company and takes a small salary plus dividends.  Our worry is that the business was a bit slow Jan/ Feb (trade so always expected) and so the last three months of statements don't look as good as invoices for work carried out in March - present day are only slowly being paid.
Am I worrying unnecessarily?  
Thanks!

K_S

Coolbeans2010 said:

So we are at the full mortgage application stage now, with Accord and my nerves are though the roof. 
Valuation is marked as satisfied.  The underwriter has asked more info including

- more recent bank statements
- my p60
- a council tax bill for me
- my partners business bank statements for last three months

All fine, but the business bank statements have thrown us a bit. Is this normal? He is a director of a ltd company and takes a small salary plus dividends.  Our worry is that the business was a bit slow Jan/ Feb (trade so always expected) and so the last three months of statements don't look as good as invoices for work carried out in March - present day are only slowly being paid.
Am I worrying unnecessarily?  
Thanks!

@coolbeans2010 It's not unusual at all to ask for recent business bank statements, especially if you're relying on SA302s to prove income as a ltd.co.director. So that's not a reason to worry about. Accord underwriters are quite good with self-employed applicants and if there's a reasonable explanation for any temporary dip, they'll be fine.

Coolbeans2010

K_S said:

Coolbeans2010 said:

So we are at the full mortgage application stage now, with Accord and my nerves are though the roof. 
Valuation is marked as satisfied.  The underwriter has asked more info including

- more recent bank statements
- my p60
- a council tax bill for me
- my partners business bank statements for last three months

All fine, but the business bank statements have thrown us a bit. Is this normal? He is a director of a ltd company and takes a small salary plus dividends.  Our worry is that the business was a bit slow Jan/ Feb (trade so always expected) and so the last three months of statements don't look as good as invoices for work carried out in March - present day are only slowly being paid.
Am I worrying unnecessarily?  
Thanks!

@coolbeans2010 It's not unusual at all to ask for recent business bank statements, especially if you're relying on SA302s to prove income as a ltd.co.director. So that's not a reason to worry about. Accord underwriters are quite good with self-employed applicants and if there's a reasonable explanation for any temporary dip, they'll be fine.

Thank you!  I am a nervous wreck - my first ever mortgage.  I am worrying at every part!

KPHOME

Hi,
I am day 14 for a remortgage with Nationwide via a broker
Hardsearches carried out on the weekend, valuation approved last Wednesday, however I noticed this morning that redemption certificate was requested again yesterday? Last week it was showing as Thursday, why would this be? I was hoping we would hear today or tomorrow?