Houses

[FoyleFox]

22 minutes ago, Hollism said:

 

The valuation hadn't even been done at that point but we're sure it's relating to affordability rather than the property value. They hadn't asked for any more payslips or statements, but it does make sense given the rise in cost of living in the last two months and projected over the next god-knows-how-long.

I think Costock made the same mistake as I did. I read your post as saying revaluation, but on reading again you actually said re-evaluation. They reviewed the loan position, not the property valuation, which makes more sense now.

 

With the continued increase in price, I think you're wise to continue. Although you've fewer funds than you anticipated, it's better to get on the ladder even if it takes longer to get everything you'd like completed.

Edited 27 October 2021 by FoyleFox

[Hollism]

2 minutes ago, Costock_Fox said:

The cost of living stuff probably won’t have been factored in yet to be honest as this only gets updated at infrequent intervals. Banks have to prove affordability at a much higher rate than the ones you take out but would probably make more sense if they offered some but not all of what you wanted.

 

Have you got any more income you could evidence?

Unfortunately I'm newly self-employed (well newly in the eyes of the lender) so effectively no. Everything to do with this process is in my partners name, hence the shared ownership route and the tightness of the affordability calculation.

 

Annoyingly I'm paying my partner £100/wk to do a bit of bookkeeping for me, but the banks won't consider it as income in the application. She's being paid by a Ltd company through PAYE and getting proper payslips, but it counts as working for family as the business is registered to our current address, so they'd want years and years worth of accounts to prove it's a genuine and sustainable job.

 

There are a few ways around things if this mortgage were to not happen, but involves moving money around in a convoluted way (starting with taking more money out of my business that I'd like to, albeit completely above-board at that stage), but probably ultimately amounts to fraud. Obviously we want to avoid that.

 

 

 

Anyway we've plodded along and are just waiting on the outcome of the property valuation (not stressed about this as it's very, very reasonable), and even if it did happen to be lower, we should be okay with the deposit now reducing our LTV giving us a bit of a buffer. Mortgage advisor gives us the impression we're on the home straight anyway.

[VLC86]

1 minute ago, Hollism said:

Unfortunately I'm newly self-employed (well newly in the eyes of the lender) so effectively no. Everything to do with this process is in my partners name, hence the shared ownership route and the tightness of the affordability calculation.

 

Annoyingly I'm paying my partner £100/wk to do a bit of bookkeeping for me, but the banks won't consider it as income in the application. She's being paid by a Ltd company through PAYE and getting proper payslips, but it counts as working for family as the business is registered to our current address, so they'd want years and years worth of accounts to prove it's a genuine and sustainable job.

 

There are a few ways around things if this mortgage were to not happen, but involves moving money around in a convoluted way (starting with taking more money out of my business that I'd like to, albeit completely above-board at that stage), but probably ultimately amounts to fraud. Obviously we want to avoid that.

 

 

 

Anyway we've plodded along and are just waiting on the outcome of the property valuation (not stressed about this as it's very, very reasonable), and even if it did happen to be lower, we should be okay with the deposit now reducing our LTV giving us a bit of a buffer. Mortgage advisor gives us the impression we're on the home straight anyway.

Ah right yeah that makes sense, sounds like the person reviewing it doesn’t believe that the income is genuine if that’s the case, I work in this field and I wouldn’t say as standard we would need years of proof but I’ve definitely seen some occasions where we don’t use it.

 

Being newly self employed is a pain with mortgage applications but at least you are in the process of getting yourself something mate.

[Hollism]

7 minutes ago, Costock_Fox said:

Ah right yeah that makes sense, sounds like the person reviewing it doesn’t believe that the income is genuine if that’s the case, I work in this field and I wouldn’t say as standard we would need years of proof but I’ve definitely seen some occasions where we don’t use it.

 

Being newly self employed is a pain with mortgage applications but at least you are in the process of getting yourself something mate.

 

Thanks mate. Took the decision at the start of the year when my job looked a bit insecure and there was a gap in the market. Best decision I ever made and the missus was and is fully on board, but we underestimated the impact it would have on her mental health to be living at home for another few years, so we are where we are. Hopefully when the mortgage term runs to it's end we can easily staircase to 100% with me having a few years of accounts behind me.

[Tommy G]

Keep an eye out for interest rate rises....

 

I was at a seminar with the chief economist for Santander, she is expecting 0.1-0.25 before Xmas and another 0.25 before next summer. 

 

I think there is a lot of people that own a house and have a mortgage that probably can't really afford it, suspect any interst rate rises could put a pinch on a decent part of society, especially if inflation continues to rally.....I dont think 0.5% interest rate rise will do much to that.

[VLC86]

5 hours ago, Tommy G said:

Keep an eye out for interest rate rises....

 

I was at a seminar with the chief economist for Santander, she is expecting 0.1-0.25 before Xmas and another 0.25 before next summer. 

 

I think there is a lot of people that own a house and have a mortgage that probably can't really afford it, suspect any interst rate rises could put a pinch on a decent part of society, especially if inflation continues to rally.....I dont think 0.5% interest rate rise will do much to that.

I mentioned that banks have to stress test mortgages at about 7%, obviously some mortgages scrape through at that but rates would need to go up by a fair bit for most to be impacted.

 

Will certainly slow the market down though, could also slow down because loads of people moved during the stamp duty holiday and that will include some who would have moved next year.

[Ian Nacho]

I will hopefully be getting myself onto the property ladder in the not so distant future, however, I’m a little unsure of the finer details of getting a mortgage. Funnily enough money is the main issue I’m questioning; I have more than enough for a deposit and my salary will be fine to cover the repayments. I’m unsure on how much of an impact the type of job and how long you’ve been at a place of work have on actually getting a mortgage. I will be starting a new job soon which in basic terms is  a 2 year fixed term trainee position where I should be very employable upon completion, with potential to stay at the same company I would’ve been working for the previous two years. Would I have any issues with the contract not being permanent when being a first time buyer?

[Greg2607]

30 minutes ago, Ian Nacho said:

I will hopefully be getting myself onto the property ladder in the not so distant future, however, I’m a little unsure of the finer details of getting a mortgage. Funnily enough money is the main issue I’m questioning; I have more than enough for a deposit and my salary will be fine to cover the repayments. I’m unsure on how much of an impact the type of job and how long you’ve been at a place of work have on actually getting a mortgage. I will be starting a new job soon which in basic terms is  a 2 year fixed term trainee position where I should be very employable upon completion, with potential to stay at the same company I would’ve been working for the previous two years. Would I have any issues with the contract not being permanent when being a first time buyer?

Possibly. But also, be aware that you may struggle to get a mortgage offer if you are in your probation period.  

[VLC86]

38 minutes ago, Ian Nacho said:

I will hopefully be getting myself onto the property ladder in the not so distant future, however, I’m a little unsure of the finer details of getting a mortgage. Funnily enough money is the main issue I’m questioning; I have more than enough for a deposit and my salary will be fine to cover the repayments. I’m unsure on how much of an impact the type of job and how long you’ve been at a place of work have on actually getting a mortgage. I will be starting a new job soon which in basic terms is  a 2 year fixed term trainee position where I should be very employable upon completion, with potential to stay at the same company I would’ve been working for the previous two years. Would I have any issues with the contract not being permanent when being a first time buyer?

Not necessarily mate. Is the job you are going to do in the same field you have been in before? Vaguely speaking, what field of employment is it.

 

Generally this won’t worry lenders, especially if it has a decent amount of time to run which it sounds like yours does and if the person working the case can evidence the likely hood of this continuing you will be fine. 

[VLC86]

9 minutes ago, Greg2607 said:

Possibly. But also, be aware that you may struggle to get a mortgage offer if you are in your probation period.  

Maybe, but very generally doesn’t doesn’t really concern the banks

[jgtuk]

43 minutes ago, Ian Nacho said:

I will hopefully be getting myself onto the property ladder in the not so distant future, however, I’m a little unsure of the finer details of getting a mortgage. Funnily enough money is the main issue I’m questioning; I have more than enough for a deposit and my salary will be fine to cover the repayments. I’m unsure on how much of an impact the type of job and how long you’ve been at a place of work have on actually getting a mortgage. I will be starting a new job soon which in basic terms is  a 2 year fixed term trainee position where I should be very employable upon completion, with potential to stay at the same company I would’ve been working for the previous two years. Would I have any issues with the contract not being permanent when being a first time buyer?

Don’t tell them. 3 months wage slips should do it.

[Ian Nacho]

23 minutes ago, Costock_Fox said:

Not necessarily mate. Is the job you are going to do in the same field you have been in before? Vaguely speaking, what field of employment is it.

 

Generally this won’t worry lenders, especially if it has a decent amount of time to run which it sounds like yours does and if the person working the case can evidence the likely hood of this continuing you will be fine. 

Well I’m straight out of university so I haven’t had much experience but it’s project management the area that I’m in. 

[VLC86]

1 minute ago, Ian Nacho said:

Well I’m straight out of university so I haven’t had much experience but it’s project management the area that I’m in. 

Go to a broker and get them

to explain you are qualified in that field and you will be fine mate. As long as your first job isn’t on 100k haha

[UniFox21]

I forget how tiring estate agents are to deal with. Trying to find a rental house, we've found one in a new build estate. One is up for 300pcm less than the other for no real reason, and they're being bloody awkward in trying to avoid giving us that

[Ian Nacho]

Thanks for all the advice above. Any ideas where I would even go to actually get a mortgage. The first place that springs to mind is going to the bank where the majority of my savings is kept. Any other ideas?

[rachhere]

18 minutes ago, Ian Nacho said:

Thanks for all the advice above. Any ideas where I would even go to actually get a mortgage. The first place that springs to mind is going to the bank where the majority of my savings is kept. Any other ideas?

It would definitely be worth applying for a mortgage in principle from your bank, as often estate agents won't even let you view places until you have one. Nationwide always have a good reputation for first time buyers, and i can give personal recommendation there. I definitely recommend finding a good mortgage broker though and I am sure people on here will be able to offer local suggestions. 

[Ian Nacho]

1 hour ago, rachhere said:

It would definitely be worth applying for a mortgage in principle from your bank, as often estate agents won't even let you view places until you have one. Nationwide always have a good reputation for first time buyers, and i can give personal recommendation there. I definitely recommend finding a good mortgage broker though and I am sure people on here will be able to offer local suggestions. 

Handy because that's where my savings are. Thanks!

[matty98]

@Ian Nachodo you have a Lifetime ISA? If not I'd recommend getting one, you can put up to 4k in a year and the government will top it up by 25% to put towards a mortgage. I have one with moneybox and they also have a mortgage advisory service.

[Ian Nacho]

37 minutes ago, matty98 said:

@Ian Nachodo you have a Lifetime ISA? If not I'd recommend getting one, you can put up to 4k in a year and the government will top it up by 25% to put towards a mortgage. I have one with moneybox and they also have a mortgage advisory service.

Already have a help to buy ISA. Unfortunately you can’t have both. Thanks anyway. 

Edited 29 October 2021 by Ian Nacho

[Hollism]

On 29/10/2021 at 14:11, Ian Nacho said:

Thanks for all the advice above. Any ideas where I would even go to actually get a mortgage. The first place that springs to mind is going to the bank where the majority of my savings is kept. Any other ideas?

https://www.blackbrookfinancial.co.uk

 

I cannot recommend these guys enough. Definitely worth getting on to them when you’re ready to start looking.

[Ian Nacho]

I have been deliberating whether to buy a flat for around £100k with cash, stay there for a few years where I can continue saving and earn some equity so I can buy a house I really like, or just get around a £70k mortgage on top of a £100k deposit to buy a house I don't plan on living there for very long.

[rachhere]

23 minutes ago, Ian Nacho said:

I have been deliberating whether to buy a flat for around £100k with cash, stay there for a few years where I can continue saving and earn some equity so I can buy a house I really like, or just get around a £70k mortgage on top of a £100k deposit to buy a house I don't plan on living there for very long.

I would suggest going and looking at places, exploring both options. Once you get an opportunity to compare what life will be like in a flat vs a house, it will help, I am sure. When we last moved we were in a position where we could have moved into a slightly bigger house, mortgage free, or a substantially bigger one, but have to take out a £100k mortgage. In the end after viewing a few places we went for the later. Whilst being mortgage free would obviously have been great, it just wouldn't have given us what we wanted. It sounds like your situation is different to ours as you are thinking about a longer term investment, but I think the principle remains that you can't really answer questions like this until you have something tangible to base it on. 

[jgtuk]

34 minutes ago, Ian Nacho said:

I have been deliberating whether to buy a flat for around £100k with cash, stay there for a few years where I can continue saving and earn some equity so I can buy a house I really like, or just get around a £70k mortgage on top of a £100k deposit to buy a house I don't plan on living there for very long.

Have you thought about buying something that needs improvements which you can do over the time you live there as your overall investment is then likely to give a greater yield.

 

[Ian Nacho]

46 minutes ago, jgtuk said:

Have you thought about buying something that needs improvements which you can do over the time you live there as your overall investment is then likely to give a greater yield.

 

Not really got the capital to do that and won’t be able to get a big enough mortgage. 

[Wrighty22]

1 hour ago, Ian Nacho said:

I have been deliberating whether to buy a flat for around £100k with cash, stay there for a few years where I can continue saving and earn some equity so I can buy a house I really like, or just get around a £70k mortgage on top of a £100k deposit to buy a house I don't plan on living there for very long.

I’m having the same thoughts. 
 

Although I can afford a decent house it would put me right on the edge of my limit. 
 

Plus I am getting fed up of looking everyday and not finding what I want.