Mortgage broker - ask me anything

ltdmortgage

Hi

For my current situation, will any lenders offer more than 4.5x? Any idea how far they'll go?

Single first time buyer

LTD company director (no employees) - 1 year company accounts, but before that 3 years sole trader (same business/customers etc).

Profits increasing each tax year

Taking out £50k/year salary/dividends (47k post tax income)

Leaving remaining profits in company

66%-75% LTV depending on my deposit & mortgage offer

Thank you in advance!

ltdmortgage

Cannot edit post.. Forgot to say I have great credit, no loans/debs, no kids/dependables, low cost of living, etc.

K_S

ltdmortgage said:

Hi

For my current situation, will any lenders offer more than 4.5x? Any idea how far they'll go?

Single first time buyer

LTD company director (no employees) - 1 year company accounts, but before that 3 years sole trader (same business/customers etc).

Profits increasing each tax year

Taking out £50k/year salary/dividends (47k post tax income)

Leaving remaining profits in company

66%-75% LTV depending on my deposit & mortgage offer

Thank you in advance!

@ltdmortgage As you are retaining profits, to maximise borrowing you need a lender that will consider sal+net profit rather than sal+divs, someone that will take latest year figures rather than average, etc. You need someone who will go with one years ltd.co. accounts plus previous sole trader history, etc. At <75% LTV, looking at the whole pool of mainstream+specialist lenders you have some that will potentially go up to 5.5x but it's impossible to say whether you tick the boxes or not as it depends on the specifics.

silvercar

kingstreet said:

silvercar said:

We have a mortgage offer from Barclays that expires very soon. We are near the end of a legal problem with the property lease that won’t be sorted until the end of the month. Barclays have initially said that an extension is only possible if exchange happens before the mortgage offer expires, which won’t happen.
do you think there is any chance that Barclays will agree to extend without this requirement?

Barclays criteria;-

"A mortgage offer is valid for a 6-month period from the date the mortgage application is received by our teams.

Any offer that does not complete within this period must be re-submitted as a new application with the exception of ‘New Build Purchase’ applications which can be assessed against current lending standards with a refreshed credit search and re-offered for a further period of 6 months with the existing product or a product from the current range."

Thanks. It is a 3 yr old property, so it looks like starting again  

Totally the seller's fault, so looks like some negotiation is on the cards, given rates have increased recently.

James_D

Hi there, sorry if already covered before - can someone tell me whether it is normal / anyone has experience of Clydesdale doing a second check of credit score or job status just before completion?

Thanks!

Stevo9090

Hi,

I've received my mortgage offer from Precise and I may sound stupid, but I'm struggling to understand what the 7 day to accept the offer actually is

What happens if you don't accept it within the 7 days of the offer being made

I have only now instructed my conveyancer so nothing is going to be done within the 7 days of offer being made

tab99uk

my broker applied for a mortgage extension with skipton  it expired on 9th June im still waiting for skipton to issue it 
why is it taking so long ??

K_S

tab99uk said:

my broker applied for a mortgage extension with skipton  it expired on 9th June im still waiting for skipton to issue it 
why is it taking so long ??

@tab99uk Is this a new-build 3-month offer extension or a non new-build one? If the broker applied for an extension on 9th June and you haven't heard anything for 2 months you definitely need to chase your broker and ask. Skipton have been pretty good at processing stuff quickly over the past few months.

At the same time it might also be worth checking with your solicitor if they've received the reissued offer from Skipton.

jonesjs1989

Should i be looking to fix my upcoming mortgage for 2 or 5+ years? If the country is due a recession are mortgage rates likely to be increasing over the next few years? 

Thanks

carbonm

Hi - I'm looking for advice on whether or not to remortgage given the current rates are likely to keep increasing or to stick with my current deal. This is the situation:
Mortgage Debt: £30,000
Mortgage: Tracker
Rate: 2.24% but will increase by 0.5% in September
Term: 13 years 
Monthly payment: £1000 (overpaying roughly £760 a month).
Savings £25,000

I am willing to use some of my savings to increase overpayments/pay off a lump sum. I would like to be mortgage free in 2-3 years.

I've looked at fixed mortgages with my current provider and they can offer 3.44% on the same term with no fees, but I can only overpay 10%. I also tried L&G broker and they can only offer a similar rate on a 3 year term plus I would have to pay exit fees (£300) and any other fees that come with the new mortgage.

I also considered an offset mortgage but these come with high fees and interest rate over 4%

My gut feeling is I'm better off staying on the tracker and overpaying as much as I can over the next 2-3 years, but I want to crunch the numbers to see if they back me up.

Any advice/suggestions of what to do or how to work out the math would be appreciated!