Skiptons BS mortgage treatment

Gigabyte2

I am looking at getting a new house (second home) can't sell existing at the moment. I hear skipton is a good lender. 2 questions really. How will they treat my bonuses. Hadn't worked there for a full year last year and therefore didn't get one but got one this year. Will they accept 50% at least for affordability?  Also will they cut affordability for existing mortgage if property will be rented and covers the existing mortgage comfortably. Wondering if Skipton are the way to go. Any help Will do.

housebuyer143

Skipton are really good in my opinion but they are not going to take your annual bonus unless you have 2 years showing on your P60, then they take the average and if it's not guaranteed only take 50% into account. 

If your old house is on a BTL mortgage they are likely to ignore it for affordability purposes but if it's not, they will probably include it. 

Edi81

In your circumstance (second home) id go with a broker rather than trying to DIY. 

Gigabyte2

housebuyer143 said:

Skipton are really good in my opinion but they are not going to take your annual bonus unless you have 2 years showing on your P60, then they take the average and if it's not guaranteed only take 50% into account. 

If your old house is on a BTL mortgage they are likely to ignore it for affordability purposes but if it's not, they will probably include it. 

I assumed so ...Wasnt sure as  this is from website. Wondered if the 50% would be taken from irregular and 100% if you had 2 years but makes sense.   

"Where evidence shows the income is irregular, 50% will be included. However, if 2 years evidence can be provided to prove sustainability then we may be able to include this at 100%."

simon_or

I was on a Skipton joint mortgage sole owner mortgage for 2 years for my sister and back then my broker said she went with them because they were willing to be flexible on contractor criteria so on that basis they perhaps might be able to show some discretion if your overall application is strong.

For the other house, if it's rented out then the impact will be less but if it's not then that will be a drag on how much you can borrow.

Accord has done a one year bonus for a rental income-slicing (where the bank uses personal income to increasing borrowing on a rental mortgage) application for me in the past.

Being someone who always takes two year fixes, has gone through the whole.spectrum of terrible->bad->ok->good credit and has complicated income, I've seen a lot of banks and ultimately all that I care about is that I get a bank that will lend me what I require.

I would also recommend using a solid broker.

housebuyer143

Gigabyte2 said:

housebuyer143 said:

Skipton are really good in my opinion but they are not going to take your annual bonus unless you have 2 years showing on your P60, then they take the average and if it's not guaranteed only take 50% into account. 

If your old house is on a BTL mortgage they are likely to ignore it for affordability purposes but if it's not, they will probably include it. 

I assumed so ...Wasnt sure as  this is from website. Wondered if the 50% would be taken from irregular and 100% if you had 2 years but makes sense.   

"Where evidence shows the income is irregular, 50% will be included. However, if 2 years evidence can be provided to prove sustainability then we may be able to include this at 100%."

Criteria changes all the time, I just remember them only taking 50% when I applied and none for my husband as he only had one year. 
It might be they take 100% now if that is what the criteria says, depends what they consider sustainable.

ACG

I like Skipton and they may accept you. 
But you are doing this the wrong way. 

What I do is to find the products - lets say 5 year fixes for example. 
I then draw up a list of issues. In your case that would be:
Do they accept second properties,
Do they accept an annual bonus paid once,
Does it pass affordability,
Any other issues. 

Then I work down the list of lenders, once I have a row of ticks, I know we are good. 

Every lenders affordability is different. That may mean you do not need the bonus, or you need 100% or possibly even with the bonus it still does not fit. Some lenders just take the mortgage payment into account, others take the running costs (council tax, gas, electric etc). 

Gigabyte2

ACG said:

I like Skipton and they may accept you. 
But you are doing this the wrong way. 

What I do is to find the products - lets say 5 year fixes for example. 
I then draw up a list of issues. In your case that would be:
Do they accept second properties,
Do they accept an annual bonus paid once,
Does it pass affordability,
Any other issues. 

Then I work down the list of lenders, once I have a row of ticks, I know we are good. 

Every lenders affordability is different. That may mean you do not need the bonus, or you need 100% or possibly even with the bonus it still does not fit. Some lenders just take the mortgage payment into account, others take the running costs (council tax, gas, electric etc). 

I have essentially done that. And whittled skipton down. The bonus would help with deposit amount needed rather than getting the mortgage at all and just wondered what the treatment would be. 

housebuyer143

Gigabyte2 said:

ACG said:

I like Skipton and they may accept you. 
But you are doing this the wrong way. 

What I do is to find the products - lets say 5 year fixes for example. 
I then draw up a list of issues. In your case that would be:
Do they accept second properties,
Do they accept an annual bonus paid once,
Does it pass affordability,
Any other issues. 

Then I work down the list of lenders, once I have a row of ticks, I know we are good. 

Every lenders affordability is different. That may mean you do not need the bonus, or you need 100% or possibly even with the bonus it still does not fit. Some lenders just take the mortgage payment into account, others take the running costs (council tax, gas, electric etc). 

I have essentially done that. And whittled skipton down. The bonus would help with deposit amount needed rather than getting the mortgage at all and just wondered what the treatment would be. 

Give them a call for a DIP. I loved Skipton. They seem to be less computer says no kinds of people so might have some flexibility.
They even sent me a "new home" card when I moved in which was a nice touch ♥️