Mortgage broker - ask me anything

Zaox

HI

Are you more likely to get a mortgage easily approved if you are on PAYE than dividends?

Also what is the typical amount of PAYE payslips most lenders require?

kingstreet

Zaox said:

HI

Are you more likely to get a mortgage easily approved if you are on PAYE than dividends?

Also what is the typical amount of PAYE payslips most lenders require?

Evidence of income required depends on your status. If you are a Director with significant shareholding of 20%/25% or more, you will be treated as self-employed and have to produce accounts and/or HMRC tax calculations and tax year overviews. PAYE - payslips/P60 are only acceptable for those with no/low shareholdings.

First_Time_Buyer000

K_S said:

First_Time_Buyer000 said:

Hi all, I'm applying for a mortgage for a refurbished property (detached house) that's gone through substantial changes recently. I noticed that quite a few banks have a different LTV for refurbished properties as they consider them new builds and so offer lower LTVs. I'm a first time buyer and looking for a 90% LTV. Any advice as to which high street banks provide a 90% LTV for properties if they consider it a new build (as in recently refurbished/extended).

@first_time_buyer000 Are you sure that the property would be seen as a 'new-build' by lenders? The reason I ask is the refurbished/converted as 'new build' category generally applies to things like one house being split into 4 flats, the local pub being converted into flats, a house being demolished and two new houses built on that land, etc.

In my experience, the vast majority of houses that have been bought by a developer and refurbed will not be seen as a new property with LTV restrictions so you might well be worrying about a problem unnecessarily.

@K_S thank you for the quick response. Yes I believe some lenders see it as a new-build if it’s been significantly altered in the past 2 years. 

Here’s a definition from one of the mainstream lenders “We define a 'New Build' as a property that has been built, converted or refurbished within the last two years, which has never been sold. This includes properties being bought off-plan and those that have been occupied or rented, but are still in the ownership of the builder or developer.”

K_S

First_Time_Buyer000 said:

K_S said:

First_Time_Buyer000 said:

Hi all, I'm applying for a mortgage for a refurbished property (detached house) that's gone through substantial changes recently. I noticed that quite a few banks have a different LTV for refurbished properties as they consider them new builds and so offer lower LTVs. I'm a first time buyer and looking for a 90% LTV. Any advice as to which high street banks provide a 90% LTV for properties if they consider it a new build (as in recently refurbished/extended).

@first_time_buyer000 Are you sure that the property would be seen as a 'new-build' by lenders? The reason I ask is the refurbished/converted as 'new build' category generally applies to things like one house being split into 4 flats, the local pub being converted into flats, a house being demolished and two new houses built on that land, etc.

In my experience, the vast majority of houses that have been bought by a developer and refurbed will not be seen as a new property with LTV restrictions so you might well be worrying about a problem unnecessarily.

@K_S thank you for the quick response. Yes I believe some lenders see it as a new-build if it’s been significantly altered in the past 2 years. 

Here’s a definition from one of the mainstream lenders “We define a 'New Build' as a property that has been built, converted or refurbished within the last two years, which has never been sold. This includes properties being bought off-plan and those that have been occupied or rented, but are still in the ownership of the builder or developer.”

@First_Time_Buyer000 I wouldn't really put too much weight on that definition, it's just a generic statement to cover all bases, just in case.

As mentioned, in practice, the vast majority of single dwelling houses that have been newly refurbed by a developer and being sold as a single-dwelling house will not be treated any different to a normal house.

Good luck, hope you are able to buy the house with a mortgage that you're happy with!

JOBEN

Hi 
we currently have a 5.08 % with First Direct but their rates have reduced - trouble is we are hoping for a completion date of 8/12 but haven’t exchanged yet - if I contact first direct to reduce do you think it affect our exchange date/completion date ? 

K_S

JOBEN said:

Hi 
we currently have a 5.08 % with First Direct but their rates have reduced - trouble is we are hoping for a completion date of 8/12 but haven’t exchanged yet - if I contact first direct to reduce do you think it affect our exchange date/completion date ? 

@joben Can't speak for your specific case or FD, but generally speaking - exchange doesn't really matter, as long as there's 2+ weeks to completion, it *should* be enough time for the lender to reissue the offer with the new product.

jonnydeppiwish!

Hey all, for a let to buy, do you need to go through a broker or can it be done directly to lender? Do mainstream lenders undertake let to buy mortgages?
thanks in advance

K_S

jonnydeppiwish! said:

Hey all, for a let to buy, do you need to go through a broker or can it be done directly to lender? Do mainstream lenders undertake let to buy mortgages?
thanks in advance

@jonnydeppiwish! You can do all kinds of mortgages direct - resi, personal BTL, LTB, bridging, even ltd co BTL. To state the obvious, the breadth of lenders/products/criteria that you can access will differ based on whether you limit yourself to directly available products or not. 

Some mainstream direct lenders do offer LTB products, some don't. If you want to check for a specific lender just Google 'lender-name for intermediaries criteria' and browse to see if you can find anything on their LTB policy.

dadio77

Hi All, I am moving house, porting my existing mortgage and borrowing more, so can only borrow from my lender NatWest (existing rate is very low). I accepted a rate of 5.52% about six weeks ago, but due to issues with the valuation, and our initial sale falling through, the offer has only just been made.

The most expensive rate on their website is now 5.44%, the cheapest 5.09% (2 years). Can I ask them to provide a better rate given the drop whilst waiting? I am considering asking to borrow an extra £10k to make up the shortfall between the original and new sale price of my property, so changes may be needed anyway - if I do this, should they automatically apply a new rate, or do I need to ask them to do this; alternatively will they only use the original rate?

For info, the valuation issue was down to an annexe, not a down value, so the additional borrowing should be fine.

Thanks in advance!

K_S

dadio77 said:

Hi All, I am moving house, porting my existing mortgage and borrowing more, so can only borrow from my lender NatWest (existing rate is very low). I accepted a rate of 5.52% about six weeks ago, but due to issues with the valuation, and our initial sale falling through, the offer has only just been made.

The most expensive rate on their website is now 5.44%, the cheapest 5.09% (2 years). Can I ask them to provide a better rate given the drop whilst waiting? I am considering asking to borrow an extra £10k to make up the shortfall between the original and new sale price of my property, so changes may be needed anyway - if I do this, should they automatically apply a new rate, or do I need to ask them to do this; alternatively will they only use the original rate?

For info, the valuation issue was down to an annexe, not a down value, so the additional borrowing should be fine.

Thanks in advance!

@dadio77 Yes, like the vast majority of other mainstream lenders, they'll be happy to switch you to a lower rate and reissue the offer if rates have fallen for the equivalent product, you need to ask them to do so, it does not happen automatically.

The above product (whatever you choose) will apply to the total additional borrowing, be that the current additional amount or current+10k.