Mortgage broker - ask me anything

motorman99

K_S said:

motorman99 said:

Thanks In advance for any assistance

my wife owns a buy to let property worth 450k, outright and unencumbered. She is 79.
she wants to gift her son 100k.
can she get an equity release on this please?

@motorman99 ‘Equity release’ has a specific meaning with respect to later life lending, but I’m assuming you mean a normal capital-raise remortgage?

If the property is tenanted (non family) then you could potentially get a capital raise remo even at 79 for the purpose of gifting to family. What options you may have will depend on the details - what personal income (if any) you have, any debt, other commitments, etc.

If you actually meant an ‘Equity release’ mortgage then yes she should definitely be able to get one though that’s a much more complex product and has a lot of implications, DYOR before going down that route.

Thank you…..what I mean is any product where she could raise 100k on it with the loan being repaid from sale on her death ie with no or voluntary repayments?

Could you point me / her in any direction on this please, as I was told by a broker that equity release no longer possible on btl. 

Thank you 

Bob 

motorman99

Btw…

no debt, btl unencumbered. Rent plus Oap gives income of 30k, no commitments otherwise 

K_S

@motorman99 The most straightforward, cost-effective way to get 100k out of the BTL would be to do a BTL capital raise remo. But you’d have a monthly interest only payment to make, probably around £400-500/month based on current rates.

If you want no payments at all, then a roll-up equity release product is what you’re looking for. I don’t do later life lending and so do not know much about it. If a later-life broker has said that that is not an option, then that is probably the case.

motorman99 said:

K_S said:

motorman99 said:

Thanks In advance for any assistance

my wife owns a buy to let property worth 450k, outright and unencumbered. She is 79.
she wants to gift her son 100k.
can she get an equity release on this please?

@motorman99 ‘Equity release’ has a specific meaning with respect to later life lending, but I’m assuming you mean a normal capital-raise remortgage?

If the property is tenanted (non family) then you could potentially get a capital raise remo even at 79 for the purpose of gifting to family. What options you may have will depend on the details - what personal income (if any) you have, any debt, other commitments, etc.

If you actually meant an ‘Equity release’ mortgage then yes she should definitely be able to get one though that’s a much more complex product and has a lot of implications, DYOR before going down that route.

Thank you…..what I mean is any product where she could raise 100k on it with the loan being repaid from sale on her death ie with no or voluntary repayments?

Could you point me / her in any direction on this please, as I was told by a broker that equity release no longer possible on btl. 

Thank you 

Bob 

silvercar

K_S said:

silvercar said:

Speaking to the broker this week, but do you know Santander policy on extending a mortgage offer? Mortgage offer expires at the end of the month and it looks unlikely that exchange/ completion will happen within that time.

@silvercar This is their policy, you might as well re-consider re-reviewing the whole market if you have a few weeks+ to go.

Thanks. The original product has expired is my understanding. Back to the drawing board for them I think.

Taradiamond1

Suggestions for lenders willing to lend to someone with a poor credit score. 2 missed payments in 2023 (disputing these)...these were partial payments due to a DMP recovering from financial and domestic abuse and one overdrawn account in 2019. All debts now cleared! I had DIP but my credit score dropped over night as the 2 2023 missed paymebts suddenly appeared  and now mortgage application refused. 

Against the property I offered on I have a 16.5% deposit

PanPen

Any experience on here about Buckinghamshire BS and affordability please?
I'm used to salary multiples on previous mortgages so I'd assumed 4.5x joint. However it looks as though we are potentially looking at Buckinghamshire and they seem to use affordability only. I tried their online calculator and was surprised to see quite a low amount being offered. We have no loans, credit cards, dependents or outstanding debts other than mortgage. We don't have big outgoings really, so I'm surprised. Any advice?

K_S

@panpen As part of the post financial crisis reforms by the FCA, all residential lending is now based on affordability. Lenders still have LTI income multiples but they are only upper limits and not used in the affordability calculation itself except as a cap. Even with the same lender, the LTI multiple can vary across applications depending on LTV, loan size, profession, income-threshold, etc.

Very generally speaking, any of the following factors may impact your max borrowing with a particular lender - deposit/LTV, term/age/retirement-age, length of fix (usually <5 or 5+), income (and income thresholds), committed outgoings, background debt, dependents, etc etc.

With respect to Bucks BS, off of the top of my head they offer 5.5x LTI for high-income apps at low LTV. I would suggest just playing around with their calculator to figure out what the factor is that’s limiting your max borrowing. Affordability calculators are only as good as the information that is fed in so if you’ve filled it it accurately as per Bucks criteria, then the number is likely to be correct.

PanPen said:

Any experience on here about Buckinghamshire BS and affordability please?
I'm used to salary multiples on previous mortgages so I'd assumed 4.5x joint. However it looks as though we are potentially looking at Buckinghamshire and they seem to use affordability only. I tried their online calculator and was surprised to see quite a low amount being offered. We have no loans, credit cards, dependents or outstanding debts other than mortgage. We don't have big outgoings really, so I'm surprised. Any advice?

PanPen

@K_S I see, many thanks. Maybe agerelated as I'm.early 50s. I have no plans to retire at 68, so could I extend term to see if that increases it? If so, will Bucks lend into my 70s?
I don't do a strenuous job. 

ayupmeduck

Would having one default (settled) on my credit file with a date of December 2023 look terrible if I was looking to get a mortgage in2026?

K_S

PanPen said:

@K_S I see, many thanks. Maybe agerelated as I'm.early 50s. I have no plans to retire at 68, so could I extend term to see if that increases it? If so, will Bucks lend into my 70s?
I don't do a strenuous job. 

@panpen Bucks max stated retirement age is 75 (I think) subject to plausibility. So if you’re 52 then you could try with a term of 22 years and see what it does.