Mortgage broker - ask me anything

K_S

Fkhan95 said:

Hi,

Wondering if accord accept child DLA - their website says they accept DLA/Child disability payment (Scotland) so not 100% sure 

@fkhan95 Can't speak for your specific case but generally speaking - Accord will consider 50/60% (can't remember exactly which off of the top of my head) of DLA for children (England) subject to the specifics.

K_S

gallow18 said:

Hello, 

I was wondering if someone could help point us in the right direction. Me and my husband have been planning to buy our first house and move from England to Scotland. He graduated with a first class masters earlier this year, but has been working as an electricians mate (not exactly his degree field) for his step father over each summer term and as the money is good, he loves it and he has loads of opportunities for overtime he has stayed with it so we can rack up a good deposit for buying our first house. I'm also in full time employment and sitting on a reasonable wage. The original plan was for him to get on a graduate scheme up there roughly September 2024, I can do some of my current job remotely and would drop to part time, and find a part time job up there in due course to go with it. We were open to one of us moving up before and getting roots down or renting something if needed. However, life has thrown us a curveball and I'm now pregnant, due June. 😬

I am hopeful that I can negotiate with my employers to let me work from Scotland on less hours (thinking 15/week) after a short maternity leave (no maternity benefits).
Anyways I'm wondering how mortgage providers deal with moves where job will need to change?

Do we /can we apply for a mortgage now based on what we get now? Before we add a dependant to the mix too? Or will maybe my husband have to be enrolled on his graduate scheme in Scotland for three months before we can buy a house? 

We're confident in our incomes covering the mortgage repayments but not sure how they will see it.

I hope I've explained this well enough... Any advice greatly appreciated. 

@gallow18 To put it concisely, if you're living+working in place X and apply for a mortgage in place Y based on your current income, the lender will usually need evidence of one of the following -
- X and Y are within reasonable commutable distance, and the costs of commuting are factored in
- you will get a transfer to Y without any change in employer and employment T&Cs
- it is plausible for your current role to be carried out remotely and your employer will permit remote working for you in the current role
- other variations on the above which essentially prove that your current income will continue in Y

With respect to your husband's graduate scheme being considered for income, lenders will fall into one of the following buckets with respect to when they will allow an application based on a new job -
1. signed contract with a future start date (typically up to 3 months in the future)
2. day 1 of new job
3. at least one payslip in the new job 
4. at least one full payslip in the new job
5. minor tweaks and variations on the above

K_S

Jjmbrown1 said:

Hi there

I am about to buy a house and been asked for 3 month bank statements. My bank statements wouldn’t show anything out the ordinary typically (all everyday spending is done on credit card which is paid off in full every month). However there was one day last month where me and some friends went gambling at a service station and withdrew £1100 in a day (and lost..) on my debit card. 5 seperate transactions. Paid the £1.99 ATM fee on 4 of the 5 transactions too. I’m conscious this probably doesn’t look good (wasnt thinking at the time), can I realistically still apply for a mortgage in the short term or will this cause problems? (For reference have generally minimal cash withdrawals on statements apart from this and no online gambling transactions). How likely is this to be queried/any sensible response to this or do I need to wait?

@jjmbrown1 This specific matter on its own - assuming the transactions simply show as 5 ATM cash-withdrawals totalling up to £1,100, it's quite unlikely that that would be queried.

There might well be other factors in your application profile that increase/decrease the likelihood of the above raising a flag to the underwriter/assessor.

Jami74

Hi,
I have been doing bank switches, stoozing and run multiple current accounts for the rewards to help build my deposit as a first time buyer. I originally thought I'd be ready to buy at the end of next year and was planning to start running things down early next year, but circumstances are changing and I might be ready sooner. I have had no interest bearing debt for more than six years (and even before then never any missed payments, only a small loan with my longest bank which I paid off early) but I currently have about £25k of 'debt' on 0% credit cards while the cash sits in various savings accounts earning interest. Is this going to prevent me from getting a mortgage? Should I pay it all off asap?
Thanks.

Fkhan95

K_S said:

Fkhan95 said:

Hi,

Wondering if accord accept child DLA - their website says they accept DLA/Child disability payment (Scotland) so not 100% sure 

@fkhan95 Can't speak for your specific case but generally speaking - Accord will consider 50/60% (can't remember exactly which off of the top of my head) of DLA for children (England) subject to the specifics.

Thanks - and is it just the care component they take into account or both (care + mobility)?

Much appreciated 

Bucki

I am sure you have been asked this many times already but what are the prediction of the interest rates falling in next 2 - 3 years?

I am debating between 5.23% 2yr fix or  5.15% 3yr fix or even 4.80% 5yr fix.

what are prediction for rates to go down?

K_S

Jami74 said:

Hi,
I have been doing bank switches, stoozing and run multiple current accounts for the rewards to help build my deposit as a first time buyer. I originally thought I'd be ready to buy at the end of next year and was planning to start running things down early next year, but circumstances are changing and I might be ready sooner. I have had no interest bearing debt for more than six years (and even before then never any missed payments, only a small loan with my longest bank which I paid off early) but I currently have about £25k of 'debt' on 0% credit cards while the cash sits in various savings accounts earning interest. Is this going to prevent me from getting a mortgage? Should I pay it all off asap?
Thanks.

@jami74 As far as the lender is concerned, it doesn't matter whether the cc debt is at 0% or 30%, it's treated exactly the same.

Whether or not it'll have an impact on your application depends on the specifics, the numbers and the specific lender criteria.

To take two crude examples (these are just generic examples with made up numbers to reflect two extremes) -

If you earn 100k, are looking to borrow 3x income at 60% LTV, it may have no impact.

OTOH if you earn 40k, looking to maximize borrowing at 90-95% LTV then it might have an impact.

K_S

Fkhan95 said:

K_S said:

Fkhan95 said:

Hi,

Wondering if accord accept child DLA - their website says they accept DLA/Child disability payment (Scotland) so not 100% sure 

@fkhan95 Can't speak for your specific case but generally speaking - Accord will consider 50/60% (can't remember exactly which off of the top of my head) of DLA for children (England) subject to the specifics.

Thanks - and is it just the care component they take into account or both (care + mobility)?

Much appreciated 

@fkhan95 Sorry, I've no clue off of the top of my head, would have to ask my Accord BDM.

Perhaps just give them a call, or YBS (the direct arm of Accord), they might be able to answer your question.

K_S

Bucki said:

I am sure you have been asked this many times already but what are the prediction of the interest rates falling in next 2 - 3 years?

I am debating between 5.23% 2yr fix or  5.15% 3yr fix or even 4.80% 5yr fix.

what are prediction for rates to go down?

@bucki If you want a proxy for what the market expects today (a gentle reduction in rates over the next few years), you can get an idea by looking at the SONIA swap rates here
https://www.chathamfinancial.com/technology/european-market-rates BUT as you can probably tell, this is already reflected in the mortgage rates for 2/3/5/7/10+ year fixes and is less of a prediction and more of an average of what most people in the market think might happen.
 

I don't give clients my opinion on future interest rates, because its no more valid than the next person's. Looking at the past 10 years, I didn't expect rates to stay as low as they did for as long as they did, nor did I expect them to rise so sharply within such a short time.

Among my remortgage clients' preferences, following the recent drop in rates, some have moved from a 5 year fix to a 2/3 year fix because they feel fixing for 5 years is too long with the current direction of rates, and their circumstances are such that even if they turn out to be wrong, it won't be disastrous for them.

Otoh, there are clients who have gone the other way (2/3 year fix/tracker to a 5 year fix) and are happy with fixing for a longer time now that rates are much lower than they were a few months ago. They don't want the risk or hassle of looking at the market again in 2/3 years time.

I haven't answered your question, but I hope that gives you some food for thought.

Melziejane

Hi, 

We have submitted a mortgage application with TSB borrowing 137k with 28k deposit. 

My partner has went into his unarranged overdraft a few times in the statements we have provided, however he's always cleared the amount quickly and there is no fees being charged on his statement or impact on his credit report. Credit report is 996.

No other debt. 

How likely is it our application will be rejected? 

Household income 45k +