Mortgage broker - ask me anything

22225

One last thing....sorry... our houdecejich we have just sold was held as tenants in common as in when we die we leave our halves to our joint kids and stepchildren respectively. We have a deed of trust etc. Weve exchanged on our current house. Is it relevant for the mortgage application on the new house?! I mean I cant see why it would be but it just occurred to me today. We are married bit we have a blended family.

K_S

22225 said:

One last thing....sorry... our houdecejich we have just sold was held as tenants in common as in when we die we leave our halves to our joint kids and stepchildren respectively. We have a deed of trust etc. Weve exchanged on our current house. Is it relevant for the mortgage application on the new house?! I mean I cant see why it would be but it just occurred to me today. We are married bit we have a blended family.

@22225 As far as I can tell, whether the house you're selling is in joint names or tenants in common shouldn't impact your mortgage application for the onward purchase.

kingstreet

22225 said:

One last thing....sorry... our houdecejich we have just sold was held as tenants in common as in when we die we leave our halves to our joint kids and stepchildren respectively. We have a deed of trust etc. Weve exchanged on our current house. Is it relevant for the mortgage application on the new house?! I mean I cant see why it would be but it just occurred to me today. We are married bit we have a blended family.

It's not a mortgage issue. However, if you want the same on the new purchase you need to ask your solicitor/conveyancer.

22225

Thanks a lot x

Becky19

Hi, I'm hoping someone can help. I'm after some reassurance that I haven't messed up our house purchase and that we'll still be able to get a mortgage? We're restricted with what lenders we can use due to my partners poor credit (defaults over 3 years old). 

We had our offer accepted back in April but for various reasons everything has taken a bit longer than I expected. I am due to start a new job in July - is this likely to cause an issue? My June payslip which I'll need to submit will likely show some deductions as I've taken too much annual leave, so I think it will be obvious that it's a final payslip... otherwise I just wouldn't mention it. When I applied for the job I thought we would easily have been in the new house by the time I started and didn't even consider what would happen if we weren't.

I've had a look on the Aldermore lending criteria and saw this which gave me a bit of hope that we'll still be able to get the mortgage?
"the applicants must be able to demonstrate a minimum of three months record of employment immediately preceding the mortgage application in the same line of work".

I currently work in local government and my new role will be in the civil service.

K_S

Becky19 said:

Hi, I'm hoping someone can help. I'm after some reassurance that I haven't messed up our house purchase and that we'll still be able to get a mortgage? We're restricted with what lenders we can use due to my partners poor credit (defaults over 3 years old). 

We had our offer accepted back in April but for various reasons everything has taken a bit longer than I expected. I am due to start a new job in July - is this likely to cause an issue? My June payslip which I'll need to submit will likely show some deductions as I've taken too much annual leave, so I think it will be obvious that it's a final payslip... otherwise I just wouldn't mention it. When I applied for the job I thought we would easily have been in the new house by the time I started and didn't even consider what would happen if we weren't.

I've had a look on the Aldermore lending criteria and saw this which gave me a bit of hope that we'll still be able to get the mortgage?
"the applicants must be able to demonstrate a minimum of three months record of employment immediately preceding the mortgage application in the same line of work".

I currently work in local government and my new role will be in the civil service.

@becky19 Sorry it's not clear from your post whether you already have a mortgage offer from Aldermore or haven't yet applied for a mortgage.

If you haven't yet applied for a mortgage - As long as you can demonstrate 12m continuous employment history and you've started in the new job, the job situation on its own should not be a show stopper. Given that you're joining the CS, I'm assuming you have a 6 month probation period. That will likely reduce your pool of lenders by a bit.

If you already have an offer from Aldermore - Aldermore don't have an issue with probation or a minimum time in the current job, so as long as you can demonstrate continuous employment history, you should be fine.

Becky19

K_S said:

Becky19 said:

Hi, I'm hoping someone can help. I'm after some reassurance that I haven't messed up our house purchase and that we'll still be able to get a mortgage? We're restricted with what lenders we can use due to my partners poor credit (defaults over 3 years old). 

We had our offer accepted back in April but for various reasons everything has taken a bit longer than I expected. I am due to start a new job in July - is this likely to cause an issue? My June payslip which I'll need to submit will likely show some deductions as I've taken too much annual leave, so I think it will be obvious that it's a final payslip... otherwise I just wouldn't mention it. When I applied for the job I thought we would easily have been in the new house by the time I started and didn't even consider what would happen if we weren't.

I've had a look on the Aldermore lending criteria and saw this which gave me a bit of hope that we'll still be able to get the mortgage?
"the applicants must be able to demonstrate a minimum of three months record of employment immediately preceding the mortgage application in the same line of work".

I currently work in local government and my new role will be in the civil service.

@becky19 Sorry it's not clear from your post whether you already have a mortgage offer from Aldermore or haven't yet applied for a mortgage.

If you haven't yet applied for a mortgage - As long as you can demonstrate 12m continuous employment history and you've started in the new job, the job situation on its own should not be a show stopper. Given that you're joining the CS, I'm assuming you have a 6 month probation period. That will likely reduce your pool of lenders by a bit.

If you already have an offer from Aldermore - Aldermore don't have an issue with probation or a minimum time in the current job, so as long as you can demonstrate continuous employment history, you should be fine.

Thank you so much that's really helpful.

homeless9

When a lender offers you a mortgage alongside a Help To Buy loan, does the lender take the HTB loan into consideration when offering you the mortgage in terms of whether you can cope with the interest costs / paying it off? Obviously you may need to either save to pay the loan off, have the money available to pay the interest off once 5 years is up, or possibly add the loan to the mortgage.

or do they just assume in 5 years time you would have had a pay rise and it will all be hunkydory.

Is there some sort of leeway built into the mortgage when the help to buy equity loan is taken out alongside it?

K_S

homeless9 said:

When a lender offers you a mortgage alongside a Help To Buy loan, does the lender take the HTB loan into consideration when offering you the mortgage in terms of whether you can cope with the interest costs / paying it off? Obviously you may need to either save to pay the loan off, have the money available to pay the interest off once 5 years is up, or possibly add the loan to the mortgage.

or do they just assume in 5 years time you would have had a pay rise and it will all be hunkydory.

Is there some sort of leeway built into the mortgage when the help to buy equity loan is taken out alongside it?

@homeless9

- Generally speaking, the lender will automatically factor in the cost of servicing the equity loan as an expense in the affordability calculator. For example if it's Santander and you have an equity loan of 100k, the additional monthly outgoing will be calculated as 2% of 100k divided by 12, so about £167/month. Other lenders may take 3% or some other estimate.

- crudely speaking, lenders don't particularly care about whether or when you pay off the equity loan or not, as they have first charge on the property and have factored it in as an expense for the borrower at the outset.

- the leeway I suppose is the 4.5x income multiple cap and the affordability check imposed by the H2B calculator (which in some cases stress tests the mortgage more strictly than when compared to a non-H2B mortgage) which needs to be passed

homeless9

I will be remortgaging in the near future and was wondering if rules have become stricter as to how overtime pay if viewed?

I fear I may not be earning enough to borrow what I need, so plan to do some overtime throughout the 3 months before remortgaging just so I can borrow more.

Can you get away with this these days?