Mortgage broker - ask me anything

K_S

KnittedPython said:

I am a FTB in Scotland.

I will be gifted a deposit from my mother (from England) who has inherited the money. Will I need her to sign something that the deposit is gifted to me?

I currently have a financial association with someone on a DMP. Next month we will move the joint accounts to just in my name which ends any credit products we share. Is just enough to write to the credit agencies to break the link? I will be looking to get a mortgage just in my name.

I will also like to live with this person in my new place. We share the same last name, but are not married. I changed my last name to his because I like his last name. I have the piece of paper I used to declare I am called something else. Is this going to be an issue for applying for a mortgage?

Can he live with me? He is willing to sign a occupiers consent form.

I am in stable employment for + 2yrs, and I have no active debts or missed payments. I do have historic debts which have been paid off, and I have a credit card which I pay off in full.

@knittedpython

Gifted deposit letter - depends on the specifics (size, lender, LTV, etc.) and the solicitor you use. If required, it'll be something on these lines https://www.nationwide-intermediary.co.uk/-/media/nfi/documents/p2505-mortgage-gifted-deposit-form.pdf

Breaking FA on credit-reports - given that you share a last name (and live at the same address?) I'm not sure how it works. If you can fill this form in and it ticks the requirements, you should be fine I guess https://ins.experian.co.uk/disassociation . If your individual credit history is clean (no defaults, no CCJs and no recent missed payments) and you'll be applying in your sole name, I wouldn't assume that being financially associated with someone on a DMP will scupper my chances of a mainstream mortgage.

Non-borrowing occupier - Policy depends on the specific lender so you could just opt to go with a lender that doesn't care so the last names being the same will be irrelevant.

Your circumstances - all seems fairly straightforward: clean credit history, no debt, perm PAYE income.

KnittedPython

Thank you K_S.

I've been really worried about this and you have put my mind at ease.

I've never been married and we are not in a relationship. We see each other more as brother and sister, so hoefully the lender will accept this. We are have different parents and different nationalities.

I'll start reaching out to a broker soon.

Burns94

We have just started buying out first property and have a mortgage offer through Barclays. The property we are buying is probate so there could be delays. If rates were to drop in August and we were still nowhere near exchange, would I be tied to this mortgage offer or could I move to a different lender?

K_S

Burns94 said:

We have just started buyingt out first property and have a mortgage offer through Barclays. The property we are buying is probate so there could be delays. If rates were to drop in August and we were still nowhere near exchange, would I be tied to this mortgage offer or could I move to a different lender?

@burns94 As far as the lender is concerned, the borrower is committed to the offer only upon completion. The offer is deemed to be ‘accepted’ only when your solicitor requests release of funds, which is usually a day or two before completion.

cactuscollector37

FTB with a permanent job. Is there any chance of getting a joint mortgage when my partner has been self-employed for 8 months? (previously contracting and paid via umbrella for 2 years but now freelance - but both contracts with the same company). We have a 48% deposit and both have good / excellent credit ratings. No other debt. 

We met with a broker from our own bank and they would only lend against my salary as they needed my partner to be self-employed for 2 years. 

We then used an independent broker who has put our case forward to another high street bank using 2 years tax returns to evidence stable income and also highlighting the fact they have been working for the same company for that time period and ongoing. This was last Tuesday and we are still waiting. Hard credit checks have been completed - just waiting on a decision. I’m wondering if this will be acceptable and if not what other avenues to try? 

K_S

@cactuscollector37 It’s not clear what you mean by “self-employed” but if you’re talking about having gone from an Inside-IR35 day-rate contract paid through umbrella to an Outside-IR35 day-rate contract paid through your limited company, there are lenders who will go by the day rate and ignore the rest.

You have done the right thing by going to a broker. These kind of cases, most brokers would not place it with a certain lender unless they’d run it past them in detail and got a go ahead. If they’ve done that, you should be fine. 

All the best, hope your offer comes through soon!

cactuscollector37 said:

FTB with a permanent job. Is there any chance of getting a joint mortgage when my partner has been self-employed for 8 months? (previously contracting and paid via umbrella for 2 years but now freelance - but both contracts with the same company). We have a 48% deposit and both have good / excellent credit ratings. No other debt. 

We met with a broker from our own bank and they would only lend against my salary as they needed my partner to be self-employed for 2 years. 

We then used an independent broker who has put our case forward to another high street bank using 2 years tax returns to evidence stable income and also highlighting the fact they have been working for the same company for that time period and ongoing. This was last Tuesday and we are still waiting. Hard credit checks have been completed - just waiting on a decision. I’m wondering if this will be acceptable and if not what other avenues to try? 

cactuscollector37

Thanks for replying! The broker ran it past their contact and they couldn’t definitively say yes but advised him what information to submit and that we should give it a try… just hoping for the best now.. it’s been a long week.. 

 

cactuscollector37

We just heard that Halifax declined us as my partner doesn’t fulfil the 1 year self-employed criteria. Our broker is appealing to the underwriter as said he is not confident that they fully considered the background of our case but I’m assuming this will not be successful given that our own bank were hardline about the same thing. 

We are now thinking to try a more specialist broker for contracting / self employed workers but are we wasting our time? 

K_S

cactuscollector37 said:

We just heard that Halifax declined us as my partner doesn’t fulfil the 1 year self-employed criteria. Our broker is appealing to the underwriter as said he is not confident that they fully considered the background of our case but I’m assuming this will not be successful given that our own bank were hardline about the same thing. 

We are now thinking to try a more specialist broker for contracting / self employed workers but are we wasting our time? 

@cactuscollector37 Sorry to hear that. Halifax is actually quite good for genuine Day 1 day-rate contractor cases (both inside and outside IR35, as long as they have 2+ years of continuous PAYE history in the same career) so I’m guessing your case isn’t one.

I couldn’t comment on your specific case as it depends on the details, specifically the details of what you mean by this “previously contracting and paid via umbrella for 2 years but now freelance - but both contracts with the same company”

Definitely worth speaking to a good experienced broker before giving up, do make sure you tell them about the Halifax decline. All the best!

cactuscollector37

I couldn’t comment on your specific case as it depends on the details, specifically the details of what you mean by this “previously contracting and paid via umbrella for 2 years but now freelance - but both contracts with the same company”

They went from PAYE - paid weekly via umbrella - to invoicing after each project using a day rate. So they have been a sole trade for 8 months not the necessary 1 year. 

We are now considering if we can do a sole application based my salary only (which our bank suggested) and topping up our deposit - ideally only using up our own savings - we planned to keep some back to do some renovations but they will need to wait now -  and if that’s still not enough we might be able to get some gifted. 

None is this is ideal but it doesn’t seem like we have another option to secure a mortgage and not cause delays to the process. Our vendor has found a chain free property and needs to move by October.