Mortgage broker - ask me anything

K_S

Ruggers13 said:

I am currently on a mortgage with my father so that I could borrow the initial amount I needed. When I come to remortgage I want to try and remove him from the mortgage so that I can increase the term as it is heavily reduced due to his age.

My Salary will be about £47k and I require a remortgage of £260k this is just roughly over 5.5x How difficult would this be to achieve? I'd like to add that I am Chartered Accountant aged 28 so further scope for salary increases and I am aware some lenders offer favourable income multipliers to this profession. Would that be the route I'd need to take?

Thanks

@ruggers13 Assuming the remo is going to be like-4-like (no additional borrowing), 5+ year fix, zero debt, no dependents, recently qualified (<5 years), no credit issues, LTV no more than 85% - 

off of the top of my head, you’re probably a bit short (10-25k) of 260k with mainstream lenders that offer enhanced professional products. The farther you move from the assumptions above, the lower the max borrowing is likely to be.

Sadly, since interest rates have gone up, the max borrowing on professional products is more likely to be limited by the stress test ceiling than the 5.5/6x LTI multiple cap. I hope that makes sense.

If the above doesn’t work at all and you desperately need to up the term, then you could also look at mainstream-ish lenders which offer more flexible JBSP products where the term isn’t limited by the parent’s age.

If none of the above works then you have some mainstream/ish lenders who do bespoke underwriting so if your background is squeaky clean, no debt, no commitments, etc. they might consider enhanced borrowing considering your profession and age.

Ruggers13

K_S said:

Ruggers13 said:

I am currently on a mortgage with my father so that I could borrow the initial amount I needed. When I come to remortgage I want to try and remove him from the mortgage so that I can increase the term as it is heavily reduced due to his age.

My Salary will be about £47k and I require a remortgage of £260k this is just roughly over 5.5x How difficult would this be to achieve? I'd like to add that I am Chartered Accountant aged 28 so further scope for salary increases and I am aware some lenders offer favourable income multipliers to this profession. Would that be the route I'd need to take?

Thanks

@ruggers13 Assuming the remo is going to be like-4-like (no additional borrowing), 5+ year fix, zero debt, no dependents, recently qualified (<5 years), no credit issues, LTV no more than 85% - 

off of the top of my head, you’re probably a bit short (10-25k) of 260k with mainstream lenders that offer enhanced professional products. The farther you move from the assumptions above, the lower the max borrowing is likely to be.

Sadly, since interest rates have gone up, the max borrowing on professional products is more likely to be limited by the stress test ceiling than the 5.5/6x LTI multiple cap. I hope that makes sense.

If the above doesn’t work at all and you desperately need to up the term, then you could also look at mainstream-ish lenders which offer more flexible JBSP products where the term isn’t limited by the parent’s age.

If none of the above works then you have some mainstream/ish lenders who do bespoke underwriting so if your background is squeaky clean, no debt, no commitments, etc. they might consider enhanced borrowing considering your profession and age.

Thanks for the response. I have additional guaranteed income for life from a industrial injuries benefit of about 2k per year. Could this also be used in the calculation? How short do you think I would be from a salary perspective? 

I've never found a JBSP product that doesn't limit on age, do you have any examples of lenders? 

K_S

Ruggers13 said:

K_S said:

Ruggers13 said:

I am currently on a mortgage with my father so that I could borrow the initial amount I needed. When I come to remortgage I want to try and remove him from the mortgage so that I can increase the term as it is heavily reduced due to his age.

My Salary will be about £47k and I require a remortgage of £260k this is just roughly over 5.5x How difficult would this be to achieve? I'd like to add that I am Chartered Accountant aged 28 so further scope for salary increases and I am aware some lenders offer favourable income multipliers to this profession. Would that be the route I'd need to take?

Thanks

@ruggers13 Assuming the remo is going to be like-4-like (no additional borrowing), 5+ year fix, zero debt, no dependents, recently qualified (<5 years), no credit issues, LTV no more than 85% - 

off of the top of my head, you’re probably a bit short (10-25k) of 260k with mainstream lenders that offer enhanced professional products. The farther you move from the assumptions above, the lower the max borrowing is likely to be.

Sadly, since interest rates have gone up, the max borrowing on professional products is more likely to be limited by the stress test ceiling than the 5.5/6x LTI multiple cap. I hope that makes sense.

If the above doesn’t work at all and you desperately need to up the term, then you could also look at mainstream-ish lenders which offer more flexible JBSP products where the term isn’t limited by the parent’s age.

If none of the above works then you have some mainstream/ish lenders who do bespoke underwriting so if your background is squeaky clean, no debt, no commitments, etc. they might consider enhanced borrowing considering your profession and age.

Thanks for the response. I have additional guaranteed income for life from a industrial injuries benefit of about 2k per year. Could this also be used in the calculation? How short do you think I would be from a salary perspective? 

I've never found a JBSP product that doesn't limit on age, do you have any examples of lenders? 

@ruggers13

Protection income - Yes, generally speaking (assuming that it's equivalent to an Income Protection payout) though it will depend on the specifics and lender.

How short - too many variables to be any more specific than my previous response of probably around 10-25k or so with ideal assumptions 

Example: Gen H is one example

Brushes

Hiya 
Me and my husband are first time buyers I'm extremely worried about the whole process really, im planning to buy a property owned by my dad. Any recommendations for mortgage lenders that will do a concessionary mortgage? The property will need a bit of new writing new boiler etc buy everything else is cosmetic. I  prone to over thinking and not sure of this one of those times?     Please can you let me know your thoughts K_S? or any other mortgage advisers? Thanks 

K_S

Brushes said:

Hiya 
Me and my husband are first time buyers I'm extremely worried about the whole process really, im planning to buy a property owned by my dad. Any recommendations for mortgage lenders that will do a concessionary mortgage? The property will need a bit of new writing new boiler etc buy everything else is cosmetic. I  prone to over thinking and not sure of this one of those times?     Please can you let me know your thoughts K_S? or any other mortgage advisers? Thanks 

@brushes A concessionary purchase is pretty common and nothing to worry about on its own. Most mainstream lenders will allow it subject to their specific criteria - LTV, personal deposit requirement if any, occupancy, etc.

The MSE guide here will help you find a broker 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

All the best.

Christine24

are Gifted deposits very complicated? should i give my son money in his account before he applies for mortgage so he has proof of deposit, 

silvercar

Christine24 said:

are Gifted deposits very complicated? should i give my son money in his account before he applies for mortgage so he has proof of deposit, 

Not complicated at all. You just need to write (an email will do) that the deposit is a gift that is not repayable and you don’t intend to live in the property.

misslizi

Hi,

just looking for a little bit of information and reassurance on this one please! 

Had a call last week with a nationwide mortgage advisor to port our current mortgage to a new property whilst borrowing more. The new property is a new build and at the time of the DIP only had a plot number address however prior to the appointment with the advisor I was given the full property future address and provided this. On the zoom call I pointed out a couple of times that the advisor still had the old plot number and estimated postcode in the application and she said not to worry and she’d update it. Application goes in, payslips submitted and satisfied and just waiting on the valuation.

today I got a call from e surv and they advised the address they’ve received is the first one, not the one I gave the advisor as the correct one, they said they’d send this information back to nationwide but can’t book the valuation in until it’s corrected.

what happens next? I’m a bit fed up because I pointed out so many times that the address was the incorrect plot address during the call and I’ve got the developers on my back asking why the valuation hasn’t taken place yet. Can any of you lovely brokers advise how this is resolved? Is it just an amendment nationwide side then valuation re instruct? 

Thank you from a stressed home mover

K_S

misslizi said:

Hi,

just looking for a little bit of information and reassurance on this one please! 

Had a call last week with a nationwide mortgage advisor to port our current mortgage to a new property whilst borrowing more. The new property is a new build and at the time of the DIP only had a plot number address however prior to the appointment with the advisor I was given the full property future address and provided this. On the zoom call I pointed out a couple of times that the advisor still had the old plot number and estimated postcode in the application and she said not to worry and she’d update it. Application goes in, payslips submitted and satisfied and just waiting on the valuation.

today I got a call from e surv and they advised the address they’ve received is the first one, not the one I gave the advisor as the correct one, they said they’d send this information back to nationwide but can’t book the valuation in until it’s corrected.

what happens next? I’m a bit fed up because I pointed out so many times that the address was the incorrect plot address during the call and I’ve got the developers on my back asking why the valuation hasn’t taken place yet. Can any of you lovely brokers advise how this is resolved? Is it just an amendment nationwide side then valuation re instruct? 

Thank you from a stressed home mover

@misslizi Couldn't say what the exact mechanics are but essentially the advisor/Nationwide needs to sort it out. If you gave the correct address prior to full application, they should probably have rerun the DIP with the correct address and then promoted it to a full application. It looks like they just promoted the old DIP.

If you're not getting any love, I'd suggest putting in a formal complaint.

All the best.

Smoulder80

Hi,

Just checking to see if this is straight forward as I think it looks initially, and then question on the future

Currently on a 90% LTV product with Barclays (expires next year), £340k remaining
Looking to move to a more expensive property which at the list price requires a mortgage of £510k (85% LTV). 
At the time of moving there would be 11-12 months left on the Barclays product, the product is portable and all affordability checks are fine. Lets assume valuation comes in OK.

Am I right that on purchase we'd end up with 2 mortgage products, being the current product (at 4.45%) for £340k and then a second product for £170k (best rate I can see here is 4.55% with Barclays which applies at 90% and 85% LTV).

Then in 12 months time I would remortgage whatever is left on the original product, this process would continue up to a point where I bring them into one amount, either through aligning the end period of the 2 products down the line or stump up the ERC should it become advantageous to do so?

I'll be going through the broker who put the original product in place so just looking to confirm or otherwise the way this works so I can work out approx mortgage costs. I'm budgeting to allow the ERC to be repaid on sale/purchase if the costs work but as there will only be 12 months left I'd need a fixed rate to fall probably 0.5% between now and purchase so this seems unlikely.

TIA