Mortgage broker - ask me anything

Jemma01

theonenonly said:

kingstreet said:

From Nationwide criteria, for example;-

"For second job income, you can only use it where the applicant has been in the job for at least 6 months."

That's fair, and I won't be applying for a mortgage until atleast the new year anyway. Other than the time constraint, does my mate's broker mate have a point in your opinion?

Do you mind sharing more details about the job? Working hours? Is it via PAYE or self employment? is it consistent with guaranteed hours?

The bank dgaf about a job being "beneath you" that's just insane. All they care about is that it is guaranteed and stable. If this is zero hours contract, you'll probably have difficulty proving sustainability, and if you're having to work long hours, they might not like it for the same reason. Remember they'd be lending for 20+ years.

If any of this feels like it is a risky job in their view, I wouldn't declare it. I'm self employed, HSBC asked for 2year accounting.

theonenonly

Jemma01 said:

theonenonly said:

kingstreet said:

From Nationwide criteria, for example;-

"For second job income, you can only use it where the applicant has been in the job for at least 6 months."

That's fair, and I won't be applying for a mortgage until atleast the new year anyway. Other than the time constraint, does my mate's broker mate have a point in your opinion?

Do you mind sharing more details about the job? Working hours? Is it via PAYE or self employment? is it consistent with guaranteed hours?

The bank dgaf about a job being "beneath you" that's just insane. All they care about is that it is guaranteed and stable. If this is zero hours contract, you'll probably have difficulty providing sustainability, and if you're having to work long hours, they might not like it for the same reason. Remember they'd be lending for 20+ years.

If any of this feels like it is a risky job in their view, I wouldn't declare it.

Yep it's only 10 hours, one day a week, PAYE, permanent

K_S

theonenonly said:

Am I being paranoid? I recently picked up a second job that I do once a week, its the next town over, just for some extra money. I was with my friend and his friend the other day who so happens to be a mortgage broker, and we briefly spoke about how I'm going to start looking to buy as a FTB.

Straight away he advised me not to use the second income. He told me it looks dodgy and the job is "too beneath me" to be considered a real job (it is a real job, I somewhat like doing something totally different to my main job!). 

Now, he's got me a bit stressed out. Mentally, I'd been preparing myself and browsing properties online with the belief that I *may* be offered a loan based off both incomes.

Does he have a point?

@theonenonly Quick comments -

- IF you are needing to use income from the second job for affordability, then yes the lender will (one) check for plausibility and (two) usually have stricter criteria/limitations of the kind Kingstreet has mentioned above. The specific criteria, checks will depend on which lender.

- If you DON'T need the second job income for affordability, then you don't need to declare it or can declare it with 0 against it, depending on what the specific lender is and the details. That's what I usually do for clients in that situation where they have a second income but don't need it for affordability.

theonenonly

K_S said:

theonenonly said:

Am I being paranoid? I recently picked up a second job that I do once a week, its the next town over, just for some extra money. I was with my friend and his friend the other day who so happens to be a mortgage broker, and we briefly spoke about how I'm going to start looking to buy as a FTB.

Straight away he advised me not to use the second income. He told me it looks dodgy and the job is "too beneath me" to be considered a real job (it is a real job, I somewhat like doing something totally different to my main job!). 

Now, he's got me a bit stressed out. Mentally, I'd been preparing myself and browsing properties online with the belief that I *may* be offered a loan based off both incomes.

Does he have a point?

@theonenonly Quick comments -

- IF you are needing to use income from the second job for affordability, then yes the lender will (one) check for plausibility and (two) usually have stricter criteria/limitations of the kind Kingstreet has mentioned above. The specific criteria, checks will depend on which lender.

- If you DON'T need the second job income for affordability, then you don't need to declare it or can declare it with 0 against it, depending on what the specific lender is and the details. That's what I usually do for clients in that situation where they have a second income but don't need it for affordability.

Thanks. If I do plan to use the second income: using Nationwide as an example, other than what Kingstreet mentioned re 6 months, what other things are they likely to look at? Does the broker friend have a point of the job unlikely to be considered by lenders i.e. Nationwide?

K_S

theonenonly said:

K_S said:

theonenonly said:

Am I being paranoid? I recently picked up a second job that I do once a week, its the next town over, just for some extra money. I was with my friend and his friend the other day who so happens to be a mortgage broker, and we briefly spoke about how I'm going to start looking to buy as a FTB.

Straight away he advised me not to use the second income. He told me it looks dodgy and the job is "too beneath me" to be considered a real job (it is a real job, I somewhat like doing something totally different to my main job!). 

Now, he's got me a bit stressed out. Mentally, I'd been preparing myself and browsing properties online with the belief that I *may* be offered a loan based off both incomes.

Does he have a point?

@theonenonly Quick comments -

- IF you are needing to use income from the second job for affordability, then yes the lender will (one) check for plausibility and (two) usually have stricter criteria/limitations of the kind Kingstreet has mentioned above. The specific criteria, checks will depend on which lender.

- If you DON'T need the second job income for affordability, then you don't need to declare it or can declare it with 0 against it, depending on what the specific lender is and the details. That's what I usually do for clients in that situation where they have a second income but don't need it for affordability.

Thanks. If I do plan to use the second income: using Nationwide as an example, other than what Kingstreet mentioned re 6 months, what other things are they likely to look at? Does the broker friend have a point of the job unlikely to be considered by lenders i.e. Nationwide?

@theonenonly Depends on the specific lender, but generally speaking things like - are the total hours a week sustainable (some might have a hard cap of x hours, some might just look at it from a plausibility pov), are the jobs related, is it genuine employment (not an issue with Tesco), how long have been in the role, are you in probation, etc. etc.

If it meets criteria and plausibility, and can be sustained in the underwriter's view, then of course a second income may be considered for affordability.

kingstreet

theonenonly said:

kingstreet said:

From Nationwide criteria, for example;-

"For second job income, you can only use it where the applicant has been in the job for at least 6 months."

That's fair, and I won't be applying for a mortgage until atleast the new year anyway. Other than the time constraint, does my mate's broker mate have a point in your opinion?

I wouldn't give such an opinion without some foundation. It's true lenders apply plausibility - eg has this extra work been taken purely to increase borrowing power and can it be sustained along with the hours of the main employment. I suspect not allowing it until there's a six month history suggests to a lender it is more likely to be maintained. I would ask my BDM before I submitted an application with this income to any lender.