Mortgage broker - ask me anything

Jemma01

silvercar said:

Jemma01 said:

Hi, what's the formal process for parental contribution to a mortgage after the mortgage had started? (Not a gifted deposit)

What declaration are needed here? A solicitor and informing the lender?

Do you mean parent being named on the mortgage, without going on the house deeds? If so, you need to take independent legal advice with a solicitor to understand the implications. Easiest is to use a different partner in the same practice as the solicitor doing the conveyancing. Solicitor will need to verify you have taken your own advice.

Apologies, no. Not to be added to the deed. Just to help towards overpayments.

BarelySentientAI

Jemma01 said:

K_S said:

Jemma01 said:

Hi, what's the formal process for parental contribution to a mortgage after the mortgage had started? (Not a gifted deposit)

What declaration are needed here? A solicitor and informing the lender?

@jemma01 Assuming that you're asking about overpaying an ongoing mortgage using money from parents - no declarations, gift letters or solicitor required.

That's what I meant, thanks. Someone on another post said if the mortgage lender finds out, it would be viewed as "fraudulent activity" 😱

That wasn't quite how you described it on the other thread, which is why you got a different answer 

Jemma01

BarelySentientAI said:

Jemma01 said:

K_S said:

Jemma01 said:

Hi, what's the formal process for parental contribution to a mortgage after the mortgage had started? (Not a gifted deposit)

What declaration are needed here? A solicitor and informing the lender?

@jemma01 Assuming that you're asking about overpaying an ongoing mortgage using money from parents - no declarations, gift letters or solicitor required.

That's what I meant, thanks. Someone on another post said if the mortgage lender finds out, it would be viewed as "fraudulent activity" 😱

That wasn't quite how you described it on the other thread, which is why you got a different answer 

What's the difference in both questions? The question is asking around the same activity, parents putting money into a mortgage account. I either need to declare it, or I don't. The answer shouldn't be opposites. Which one is it? Someone says fraud, someone says I don't.

BarelySentientAI

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

K_S said:

Jemma01 said:

Hi, what's the formal process for parental contribution to a mortgage after the mortgage had started? (Not a gifted deposit)

What declaration are needed here? A solicitor and informing the lender?

@jemma01 Assuming that you're asking about overpaying an ongoing mortgage using money from parents - no declarations, gift letters or solicitor required.

That's what I meant, thanks. Someone on another post said if the mortgage lender finds out, it would be viewed as "fraudulent activity" 😱

That wasn't quite how you described it on the other thread, which is why you got a different answer 

What's the difference in both questions? The question is asking around the same activity, parents putting money into a mortgage account. I either need to declare it, or I don't. The answer shouldn't be opposites. Which one is it? Someone says fraud, someone says I don't.

Because your first question was on a thread called "gifted deposit and residing in the property" - hence the responder (probably) thought that you were talking about 'sneaking' money in another way to get around the problem.

This thread didn't have that pre-existing slant - so you ask a direct question "can someone pay part of my already existing mortgage" and get a better answer.

theonenonly

Really appreciate what you guys do here. A question from a cousin of mine;

Him and his partner are looking to purchase as FTB. He's salary is £50,000, take home £2900 after student finance plan 1, deductions, and a civil service pension. His partner earns £12,000 a year. She gets £400 on universal credit too (more on this later). + child benefit. They both have a child together, 1 years old. 

Their combined take home is £3900, not counting child benefits and UC.

They're looking to purchase a property of around £425,000. What is the max they can borrow? They understand they can also benefit from the rent a room scheme if needed, as they're looking to purchase a 3 bed for potentially more kids.

On the UC- will this be factored in by the lender? She only qualifies for this in her current address, as she currently lives with her family. Once the couple buy together and move in, she won't be eligible for UC from what they understand. 

K_S

theonenonly said:

Really appreciate what you guys do here. A question from a cousin of mine;

Him and his partner are looking to purchase as FTB. He's salary is £50,000, take home £2900 after student finance plan 1, deductions, and a civil service pension. His partner earns £12,000 a year. She gets £400 on universal credit too (more on this later). + child benefit. They both have a child together, 1 years old. 

Their combined take home is £3900, not counting child benefits and UC.

They're looking to purchase a property of around £425,000. What is the max they can borrow? They understand they can also benefit from the rent a room scheme if needed, as they're looking to purchase a 3 bed for potentially more kids.

On the UC- will this be factored in by the lender? She only qualifies for this in her current address, as she currently lives with her family. Once the couple buy together and move in, she won't be eligible for UC from what they understand. 

@theonenonly Quick comments -

- generally speaking, the numbers that matter for affordability are gross income, child benefit (subject to income threshold), deductions on payslip, monthly financial commitments (min debt payments, outstanding credit card balances, childcare costs, commute costs, dependents, etc)

- future income from lodger / rent a room scheme: not relevant for the vast majority of lenders

- UC depends on lender and specifics but in this case will not count as it will stop after the purchase

- you can get a rough idea of what you might be able to borrow by playing around with a few lender affordability calculators
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

Dahliaa

Hello, FTB here currently in the process. Mortgage was approved and offer was sent but I’m having second thoughts about the mortgage product. We are considering putting more deposit down which will move us in lower LTV band and also we want to change the fix term. Both of these changes will result in lower monthly payments, by approx 180 so should not create issues for affordability.
how hard is it to do these changes? I don’t want to go through whole underwriting process again, if that is required, than I just leave it as it is and overpay.
Im very happy and lucky that we got approved so I don’t want to jeopardise this under any circumstances.

K_S

Dahliaa said:

Hello, FTB here currently in the process. Mortgage was approved and offer was sent but I’m having second thoughts about the mortgage product. We are considering putting more deposit down which will move us in lower LTV band and also we want to change the fix term. Both of these changes will result in lower monthly payments, by approx 180 so should not create issues for affordability.
how hard is it to do these changes? I don’t want to go through whole underwriting process again, if that is required, than I just leave it as it is and overpay.
Im very happy and lucky that we got approved so I don’t want to jeopardise this under any circumstances.

@dahliaa I can't speak for your specific case, but generally speaking - the process to tweak deposit, term, product post-offer is fairly straightforward and normally does not involve full underwriting. As long as there aren't any material changes in circumstances, credit history, etc. from the initial application, it should not be an issue.

snowqueen555

How easy is it to extend a mortgage offer. The new build I'm looking at will be more than  months away, I'm assuming this is quite a common occurrence when buying off plan, is this something I should be worrying about?

kingstreet

snowqueen555 said:

How easy is it to extend a mortgage offer. The new build I'm looking at will be more than  months away, I'm assuming this is quite a common occurrence when buying off plan, is this something I should be worrying about?

That's very much lender dependent. Without knowing which lender you wish to know about, we'd be here all day covering all the options.