Mortgage broker - ask me anything

K_S

redhead22 said:

Looking for some advice.

1st home bought together as a couple 5 years ago as joint owners.

3 years ago my partner became unemployed and didn't pay the mortgage for 2 years. I struggled and paid but got into debt to avoid losing the home. 

Unfortunately, my partner's unemployment has become a regular thing and he is just not suited to paying a mortgage as he had led me to believe. The strain has caused the relationship to break down and I'm wondering what my options are.

The home was bought for £410k and is now worth £500k. The mortgage is £1500 approx. and my take home pay is £3500 net. But...... because of the issues with my partner, I have large amount on credit cards to cover the part he failed to pay.

I love my home and do not want to lose it but a mortgage advisor did not feel I would be granted a mortgage solely on my own (CC monthly payments at 3% are £800 approx.).

Would a lender allow interest only do you think? Outstanding mortgage after 5 years of repayment is £350k approx. 

Thanks for any help which is greatly appreciated! 

@redhead22 As you've already spoken to an adviser who now knows your situation, they'd be best placed to answer your question about qualifying for an I/O mortgage.

Unfortunately, with most lenders even I/O affordability is based on a capital-repayment basis so going I/O isn't necessarily going to help you to borrow more.

There are a few lenders that will base affordability on the interest-only payment but you'll need to meet their criteria on the repayment plan for the capital amount, LTV, income etc.

If you have someone (parents, sibling, etc.) who could help you on a JBSP basis until you can afford the mortgage on your own, that may be another option.

K_S

Kirsty9936 said:

Hoping someone might be able to assist. I have a LISA, and last year I withdrew some of the money I had put in. It has since been put back in and I am adding to it whenever I have some money spare. I'm a little way off having a full deposit yet, but just thinking ahead to applying for a mortgage, will I be asked to provide evidence or proof of what I withdrew that money for? Or will it not even be a question? Thanks! 

@kirsty9936 Assuming I've understood your question correctly, movements in/out of the LISA 1-2 years ago is unlikely to have any relevance to a mortgage application.

K_S

Peco141 said:

So I'm somewhat regretting signing up to a 2 year fixed last month and paying an additional £105 on my monthly payments compared to the previous 10 years as we watch interest rates fall. 

I take it I my only option is to suck it up and live with it?

@peco141 Assuming that you've completed on the 2yr fix i.e the product has started, then you're stuck with it unless you want to pay the ERC and switch.

Chrisal90

Hi,

I have a friend (first-tiem buyer) looking to purchase a property with their husband.

Their husband was put on the mortgage deed of his brother's property when he(brother) split up with his wife and she was taken off as he could not afford the mortgage himself on a sole income.

He eventually came off the mortgage after roughly a year when brother could afford the mortgage himself.

Would my friend's husband now not be considered a first-time buyer?

Thanks

K_S

Chrisal90 said:

Hi,

I have a friend (first-tiem buyer) looking to purchase a property with their husband.

Their husband was put on the mortgage deed of his brother's property when he(brother) split up with his wife and she was taken off as he could not afford the mortgage himself on a sole income.

He eventually came off the mortgage after roughly a year when brother could afford the mortgage himself.

Would my friend's husband now not be considered a first-time buyer?

Thanks

@chrisal90 Assuming that the husband on the mortgage and the deeds of his brother's house -

For govt FTB incentives (stamp duty, LISA, etc.) - not an FTB

For lenders definition of FTB - will differ depending on lender criteria. For example lender 1 might classify a buyer as an FTB if they haven't had a mortgage for 3+ years, others if they've never had a mortgage, others if they've never owned a home, etc. To be honest, there isn't much of a difference between FTB and non-FTB products so meeting a lender's definition of FTB or not isn't like to make a huge positive/negative difference.

BritishGent

Hi,

Looking for some advice/maybe reassurance from a Mortgage adviser on our situation ahead of a Mortgage Adviser meeting with Natwest next Wednesday.

December 2021 my wife and I bought a £275k property with a 10% deposit on combined salaries of ~£73k, monthly repayments of £1220 per month.

16mths later, we're now earning combined £93k (Take home roughly 4.5k per month) and because of a job opportunity we're now moving again, and the house is now being sold for ~£330k and we've had an offer accepted on a house for £235k. We're porting the mortgage but we need to go through the mortgage reapplication process with Natwest again.

The bit that is causing me a bit of anxiety is Credit Card debt- I've used credit cards to pay for furniture for the house on a 0% Balance Transfer card, it's currently £5.9k overall, split between £3.5k on one card, £1.7k on another (19.5% overall credit usage) and each month I'm getting paid into my current account, transferring out important funds (Mortgage, Bills, Groceries, etc) to a joint account, then using the remaining money (~£800) to pay down that amount. 

Is this going to be an issue? I've got it in my head that this credit card debt is going to ruin our mortgage application and spiralling slightly. 

Appreciate any advice with this.

K_S

BritishGent said:

Hi,

Looking for some advice/maybe reassurance from a Mortgage adviser on our situation ahead of a Mortgage Adviser meeting with Natwest next Wednesday.

December 2021 my wife and I bought a £275k property with a 10% deposit on combined salaries of ~£73k, monthly repayments of £1220 per month.

16mths later, we're now earning combined £93k (Take home roughly 4.5k per month) and because of a job opportunity we're now moving again, and the house is now being sold for ~£330k and we've had an offer accepted on a house for £235k. We're porting the mortgage but we need to go through the mortgage reapplication process with Natwest again.

The bit that is causing me a bit of anxiety is Credit Card debt- I've used credit cards to pay for furniture for the house on a 0% Balance Transfer card, it's currently £5.9k overall, split between £3.5k on one card, £1.7k on another (19.5% overall credit usage) and each month I'm getting paid into my current account, transferring out important funds (Mortgage, Bills, Groceries, etc) to a joint account, then using the remaining money (~£800) to pay down that amount. 

Is this going to be an issue? I've got it in my head that this credit card debt is going to ruin our mortgage application and spiralling slightly. 

Appreciate any advice with this.

@britishgent "we've had an offer accepted on a house for £235k" Is 235k the new house price or the total borrowing required (original mortgage + additional borrowing) or size of additional-borrowing required?

If 235k is the house price or the total borrowing required - based on the numbers you've shared I don't see the cc debt making any difference one way or the other.

If 235k is the additional-borrowing required on top of the existing loan size - then it may have an impact

I'd recommend plugging your numbers in here and checking whether or not it adds up to the total mortgage size that you need
https://spa.mortgages.natwest.com/calculator/residential-affordability

BritishGent

K_S said:

BritishGent said:

Hi,

Looking for some advice/maybe reassurance from a Mortgage adviser on our situation ahead of a Mortgage Adviser meeting with Natwest next Wednesday.

December 2021 my wife and I bought a £275k property with a 10% deposit on combined salaries of ~£73k, monthly repayments of £1220 per month.

16mths later, we're now earning combined £93k (Take home roughly 4.5k per month) and because of a job opportunity we're now moving again, and the house is now being sold for ~£330k and we've had an offer accepted on a house for £235k. We're porting the mortgage but we need to go through the mortgage reapplication process with Natwest again.

The bit that is causing me a bit of anxiety is Credit Card debt- I've used credit cards to pay for furniture for the house on a 0% Balance Transfer card, it's currently £5.9k overall, split between £3.5k on one card, £1.7k on another (19.5% overall credit usage) and each month I'm getting paid into my current account, transferring out important funds (Mortgage, Bills, Groceries, etc) to a joint account, then using the remaining money (~£800) to pay down that amount. 

Is this going to be an issue? I've got it in my head that this credit card debt is going to ruin our mortgage application and spiralling slightly. 

Appreciate any advice with this.

Is 235k the new house price or the total borrowing required (original mortgage + additional borrowing) or size of additional-borrowing required?

If 235k is the house price or the total borrowing required - based on the numbers you've shared I don't see the cc debt making any difference one way or the other.

If 235k is the additional-borrowing required - then it may have an impact

Thanks for the quick response! That's the total house price. Due to we're porting transferring over ~35k from previous deposit and what we've already paid off, we're reducing our mortgage from ~240k to ~200k overall. Overall it's a significant reduction in monthly expenditure (On the phone they mentioned it would reduce our monthly payments from £1220 to ~£1000), I think I'm just in my head about having that much credit card debt there during the appoint which is being reduced quite rapidly, but just worried if they perceive that as lacking affordability as I'm trying to bring it down faster.

This might be a good question to ask now as well and I realise you may not be able to give a definitive answer. In the Natwest Digidocs it just asks for bank statements, would you say to include the credit card statements in that? I've seen some advice yes and others say it's not needed. Since January my current account is just used for paying in my wage then forwarding onto joint account/sending it to pay off furniture

K_S

BritishGent said:

K_S said:

BritishGent said:

Hi,

Looking for some advice/maybe reassurance from a Mortgage adviser on our situation ahead of a Mortgage Adviser meeting with Natwest next Wednesday.

December 2021 my wife and I bought a £275k property with a 10% deposit on combined salaries of ~£73k, monthly repayments of £1220 per month.

16mths later, we're now earning combined £93k (Take home roughly 4.5k per month) and because of a job opportunity we're now moving again, and the house is now being sold for ~£330k and we've had an offer accepted on a house for £235k. We're porting the mortgage but we need to go through the mortgage reapplication process with Natwest again.

The bit that is causing me a bit of anxiety is Credit Card debt- I've used credit cards to pay for furniture for the house on a 0% Balance Transfer card, it's currently £5.9k overall, split between £3.5k on one card, £1.7k on another (19.5% overall credit usage) and each month I'm getting paid into my current account, transferring out important funds (Mortgage, Bills, Groceries, etc) to a joint account, then using the remaining money (~£800) to pay down that amount. 

Is this going to be an issue? I've got it in my head that this credit card debt is going to ruin our mortgage application and spiralling slightly. 

Appreciate any advice with this.

Is 235k the new house price or the total borrowing required (original mortgage + additional borrowing) or size of additional-borrowing required?

If 235k is the house price or the total borrowing required - based on the numbers you've shared I don't see the cc debt making any difference one way or the other.

If 235k is the additional-borrowing required - then it may have an impact

This might be a good question to ask now as well and I realise you may not be able to give a definitive answer. In the Natwest Digidocs it just asks for bank statements, would you say to include the credit card statements in that? I've seen some advice yes and others say it's not needed. Since January my current account is just used for paying in my wage then forwarding onto joint account/sending it to pay off furniture

@britishgent My recommendation would be to keep it simple, just give what they've asked for  

If the underwriter needs to see any additional documentation they'll ask for it and you can provide it then.

I will say here that I've never had a mainstream lender ask to see a client's cc statements. It is fairly common for the lender to come back and ask for the bank statements for the account from which the main direct debits, etc. go out if those aren't visible on the salary account so if you wish you could provide that upfront.

jonnyniner

I was hoping for some advice on a complex dilemma I currently have when moving home.

We have two properties that we are selling. One belonged to my late mother-in-law and we be inheriting 50% of that property (around 75k after fees etc) and the other is our own house - a similar property of which we will be selling ourselves at a value of around 150k. We have some savings of around 30k-35k which we will be using against a house we have just been accepted on at a value of 320k. We will be taking a mortgage of around 85k to fund the rest of which I have been approved in principle for just over 200k. 

Both of our properties were sold and we finally found the home we wanted and then, the day after we finally got our offer accepted, our mother in laws property sale fell through. We have put it straight back on for sale and it sold very quick the first time, we're hoping to sell quickly again.

The problem is that it leaves us with that shortfall of about 75k until we sell that house. We really don't want to lose the house that we have been accepted on and people have suggested a bridging loan, but would we be able to do that with already looking at a mortgage? 

We're really starting to feel the house we want slipping away so any advice is greatly appreciated. At the moment, it seems we're stuck just hoping we can actually sell the house and overtake the buying process if we can do it quickly, but i'm obviously losing sleep about that.