Mortgage broker - ask me anything

K_S

@flyer14 Sorry to hear about the last minute showstopper.

TML - I only do maybe 2-3 TML apps a year, but off of the top of my head, I'm pretty sure they have a 2 applicant limit and don't do guarantor/JBSP apps. So it's very unlikely that your parents standing as guarantors would help in this instance.

Alternative options - your broker would be best placed to advise on this as it's unlikely to be straightforward with background adverse. Hopefully, assuming the parents have sufficient pension income to evidence, there's some combination of your wife + parents that can salvage this purchase. Good luck!

Flyer14 said:

We recently had an offer accepted in Scotland on a property and yesterday, our mortgage was approved by TML.

With the worst possible timing, I was made redundant on Friday completely out of the blue as my role is being relocated down south. I finished up same day and will be paid my 3 months notice plus holiday in lieu of working notice.

Obviously this puts a gigantic spanner in the works. I spoke with my broker very briefly today to ask the implication of a new job and how that would affect things - TML require 3 months payslips from new employer and out of probation period.

I've been proactive and through recommendations and a finance recruiter secured an interview today and have already been invited back for second stage interview tomorrow. I have 2 other interviews this week with the recruiter confident of having an offer on the table from at least one by Monday next week on similar terms/package as my last job.

If we cannot salvage this the house will fall through - we have not yet concluded the missives but this is due for end of the month to exchange at the end of November. In every effort to avoid this, my wife's parents have offered to sign as guarantors. They are retired (mid 60s) with house completely mortgage free and sizeable savings in both current accounts and pensions etc.

Given we were placed with TML due to a historic DAS (which TML were fine with), are they likely to consider a guarantor in lieu of the 3 months payslips or are there any other lenders that might? Just hoping for some general advice before I go chasing my broker when he gets back on Thursday with all my last ditch ideas! The mortgage already seemed to be affordable at approx 30% of our joint take home pay, ongoing monthly income won't be an issue but due to the loan size (£200k) on her salary (32k) she would not be able to borrow it all on her own.

Thanks in advance for any suggestions.

Purejaz

Hey - Just in the process of purchasing a new house - involving porting and increasing the size of my existing mortgage.

A bit worried around the salary multiple, would be about 4.3ish. But hoping that should be In the current climate is that unreasonable?

I am currently in the application process. Was asked if there would be anyone over 17 other than me living in the property. There is a chance this could be the case (my partner) but it's not set in stone. I was wondering if that would impact the application at all (she's financially independant)?

K_S

Purejaz said:

Hey - Just in the process of purchasing a new house - involving porting and increasing the size of my existing mortgage.

A bit worried around the salary multiple, would be about 4.3ish. But hoping that should be In the current climate is that unreasonable?

I am currently in the application process. Was asked if there would be anyone over 17 other than me living in the property. There is a chance this could be the case (my partner) but it's not set in stone. I was wondering if that would impact the application at all (she's financially independant)?

@purejaz

Salary multiple - that's only an upper level cap (which itself can have a range with a single lender depending on the details), so may or may not come in to play. What matters is a specific case is how the application stacks up on the lender's affordability calculator. For example, if you're porting with Halifax, this affordability calc should give you a rough idea where you stand affordability-wise. If you're already at the full app stage, and a DIP/AIP has already been done, then affordability will already have been ticked off.
https://www.halifax-intermediaries.co.uk/tools-calculators/mortgage-affordability-calculator.html

Other adult occupants - depends on the lender, how you're related, where they live now, links on credit report, etc.

Purejaz

Thank you - Waiting makes me so nervous.

I have run it through the various affordability calculators and dependant on how things are classified it goes from comfortably getting it to not.

The other adult occupant, would be an unrelated partner , completely financially independant, living in her own place with no links to my credit.

Hypothetically, if it comes back as they can not lend me what am i after. Do they give a maximum value they would be able too? thus giving me an option to utilise more of my savings to bridge the differential.

Many thanks!

tiger1957

Hello. I'm in the fortunate position of being mortgage free in a property worth about 240k. I'd like to help a family member by either buying a small  properth for them where i would have  a residential mortgage,  or on a buy to let basis. I'd like to take approximately 20 to 30k from my current residence as a deposit.  Would this be possible,  and if so should I do this as a repayment or as an interest only mortgage,  or possibly a secured loan.my current income is around 60k p.a, but I would be expecting that to drop to around 40 in 2 years as I move towards part time work. Thank you for any comments in advance

K_S

tiger1957 said:

Hello. I'm in the fortunate position of being mortgage free in a property worth about 240k. I'd like to help a family member by either buying a small  properth for them where i would have  a residential mortgage,  or on a buy to let basis. I'd like to take approximately 20 to 30k from my current residence as a deposit.  Would this be possible,  and if so should I do this as a repayment or as an interest only mortgage,  or possibly a secured loan.my current income is around 60k p.a, but I would be expecting that to drop to around 40 in 2 years as I move towards part time work. Thank you for any comments in advance

@tiger1957 Quick thoughts -

Can you do this - potentially, assuming the numbers add up

Mechanics - for a property for a family member to live in, you could potentially get a second residential or a 'Regulated BTL' (as it's for family), but effectively both would be assessed on your personal income so the numbers need to add up for the total borrowing required.

Capital-repayment or interest only - should have options for both routes depending on the specifics.

kingstreet

If you have to raise some funds on your main residence, you might as well raise them all that way. Purchasing a second property is a realistic reason but watch out for the second property SDLT surcharge.

Costalot123

How soon Can I apply for a mortgage after paying off a substantial amount of debt.
the debt was always on minimum payment with no late payments.
we’ve been gifted some money to pay off the debt and was hoping to get a mortgage soon after. 

Thanks 

kingstreet

You didn't have to wait with most lenders - you simply enter the commitment and mark it "to be repaid on completion." Usually, Santander want a debt repaid and your credit report three months clear before they will ignore something. One or to others are similar.

Cnkp21

Hi 

my mortgage is due for renewal on 30th November and on the 21st June 2023 I secured a new fixed rate mortgage with my current provider at 5.33%. My existing rate is 0.97%, therefore there is a significant increase in my mortgage payments. 

I have been keeping a close eye on the interest rate in the hope that it won’t go much higher and over the last days there have been reports that the interest rate may stay at 5.25% again next month. I am hoping this will encourage lenders to reduce the rates further before my new deal starts. 

I will have to go with my existing lender with the timescales involved, however they also offer a tracker deal at 5.39% with a £999 fee attached. This would mean only slightly higher monthly payments than with the fixed rate. 

I am not massively familiar with a tracker mortgage as I have always opted for a fixed rate deal, however I am thinking that if the interest rate has peaked and will start to go down over the next two years then a tracker deal may be the better option in the long run. 

What are your thoughts? 

Many thanks 

Chris