Mortgage Question

[dicksojo]

Hi Kickback, my wife and I are thinking of moving house and are looking at how much we can borrow. We both receive annual bonuses and I was wondering if lenders will take this into account along with our base salary when calculating how much we can borrow?

 

Cheers

[1971fozzy]

I think some did if they were consistent over a period but wouldn’t be so sure in these times now. 

[dicksojo]

Thanks Fozzy, lending criteria might start tightening up once furlough unravels but I hope it doesn’t!

[Bigsmak]

15 minutes ago, dicksojo said:

Hi Kickback, my wife and I are thinking of moving house and are looking at how much we can borrow. We both receive annual bonuses and I was wondering if lenders will take this into account along with our base salary when calculating how much we can borrow?

 

Cheers

 

 go to an independent advisor, they will find you the best deals and have access to all the market... 

[dicksojo]

7 minutes ago, Bigsmak said:

 

 go to an independent advisor, they will find you the best deals and have access to all the market... 

Thanks, that’s what we’re going to do. All a bit of a minefield out there.

[Howdy Doody Jambo]

I got a new mortgage a few months ago and ended up getting the best deal picking up the phone to my current bank account RBS that was after going through an independent financial advisor wasting over a week who couldn't get me a deal I wanted 

The digit docs and phone interview was a pain, I suppose everybody is different by their own finances and whether they have taken mortgages breaks, have been furloughed, claimed SEIS and what sort of deposit you have, rather stressful at the time 

Good luck 

Edited December 8, 2020 by Ma Roon

[gashauskis9]

Last mortgage I applied for, they averaged my bonus over three years.  That was in 2017 mind you.  

[Mr Sifter]

Dunno if you’ve got an advisor in mind, but I’d always recommend Bryan Dow at Dow Financial at Ratcliffe Terrace. Been in the game for decades, does all the leg work for you and talks you through everything in layman’s terms. 

 

Oh...and he’s a massive Jambo 😊

[highlandjambo3]

I’m not to sure it’s that difficult tbh.....lenders are well aware they have no crystal ball to look any further forward that a predicted (guess) of how the economy will be in 3/4/5 years time however, they are still willing to give you a deal for 25-35 odd years......they know you could loose your job (through no fault of your own) but, they need to keep the property market flowing.  They will gauge your suitability based on what you currently earn (how can they do it any differently) and, the rest is up to you to find away to pay it all back.
 

My current property is a guest house and, when I applied for a “top up” mortgage through the nationwide, the nationwide mortgage advisor said they don’t do “commercial loans” but, if I were to not mention anything about turning the property into a guest guesthouse, it would be fine, what I did with the property after I bought it was up to me.

 

I was also self employed and, was told that my last 12 months salary was quite low (all because I had a clever accountant), I was advised to take my income declaration form away and re do the figures.....I shit you not, that was 12 years ago now and I now own the place.......the pressure was all mine.....they got their sale that day.  Of course things may have changed now.

 

Im was also on a fixed term capital repayment which, IMO is the best way.....same amount every month and no reliance on a lump sum insurance policy to settle the difference at the end of the loan period.

[Dazo]

13 hours ago, Bigsmak said:

 

 go to an independent advisor, they will find you the best deals and have access to all the market... 

 

13 hours ago, dicksojo said:

Thanks, that’s what we’re going to do. All a bit of a minefield out there.

I wouldn’t bother with that it’s very straightforward to find the best deal these days. Independent advisors get paid by mortgage company’s for successful completion so while they’ll make sure the process goes well for you it doesn’t always mean it’s the best deal. 10-20 mins online will find you the best deals. 

[Ribble]

Most lenders will ask for overtime and bonus's, not sure how much it's actually taken into consideration though

 

Stuart McDonald at Fox Financial is who I use, top bloke and recently sorted a buy to let mortgage for a good mate, also a jambo which helps!

[Ribble]

2 minutes ago, Dazo said:

 

I wouldn’t bother with that it’s very straightforward to find the best deal these days. Independent advisors get paid by mortgage company’s for successful completion so while they’ll make sure the process goes well for you it doesn’t always mean it’s the best deal. 10-20 mins online will find you the best deals. 

 

Only the 'free' mortgage advisors work on the model of getting a % from the banks, others will charge you a fixed % of the mortgage they get you (something like 0.001% etc), just going online yourself won't get you anywhere near the best deal and it's much harder to see which lenders do hard v soft searches on your credit rating, if you do it yourself and get quotes or agreements in principle from multiple lenders it could adversely impact your credit score. Not to mention that they know which credit agency each lender uses, my credit rating for example is much better with Experian than it is with Experis/Clear Score

[Dazo]

1 minute ago, Ribble said:

 

Only the 'free' mortgage advisors work on the model of getting a % from the banks, others will charge you a fixed % of the mortgage they get you (something like 0.001% etc), just going online yourself won't get you anywhere near the best deal and it's much harder to see which lenders do hard v soft searches on your credit rating, if you do it yourself and get quotes or agreements in principle from multiple lenders it could adversely impact your credit score. Not to mention that they know which credit agency each lender uses, my credit rating for example is much better with Experian than it is with Experis/Clear Score

All the information about which lenders use which credit agency’s is available. Who on earth gets multiply quotes or agreements in principle ? That’s stupid, the point about doing your research is apply for the best deal not multiple applications. I understand people will disagree but I don’t agree this sort of thing needs to be paid for. I also get some advisors may have advisor only deals which slightly beat other deals but to blindly say you won’t get anywhere near the best deals is clearly false. 

[Governor Tarkin]

Neil MacKay at Clarity Independent Financial Advisors.

Always got me a cracking deal, all round top guy, and a massive jambo.

[The Gorgie]

When we got our mortgage back in 2017 they weren't interested in things like overtime, was based on basic wage. The way then seen it is overtime isn't guaranteed so they can't calculate it in.

[Ribble]

2 minutes ago, Jamie Walker Tash said:

When we got our mortgage back in 2017 they weren't interested in things like overtime, was based on basic wage. The way then seen it is overtime isn't guaranteed so they can't calculate it in.

 

Depends on the lender, some will accept an average overtime value if you can demonstrate consistent overtime payments over an extended period of time

[IronJambo]

3 hours ago, Dazo said:

All the information about which lenders use which credit agency’s is available. Who on earth gets multiply quotes or agreements in principle ? That’s stupid, the point about doing your research is apply for the best deal not multiple applications. I understand people will disagree but I don’t agree this sort of thing needs to be paid for. I also get some advisors may have advisor only deals which slightly beat other deals but to blindly say you won’t get anywhere near the best deals is clearly false. 

I never used to rate brokers either but.... They're completely on the ball if you've got a good one. They're catching onto the best rates daily and they know their way around each lender. Some time ago it was pretty simple and you would be offered a set multiple of your salary but these days it goes on affordability which is calculated differently from every lender. You might be able to find a deal your happy with yourself and you might manage to navigate the process ok but a broker will give you lots of options and they'll know fine if you're application will go through before they've even sent it.

 

Worth every penny and shouldn't be ignored just because you can bring up moneysupermarket in your web browser.

Edited December 9, 2020 by IronJambo

[Dazo]

13 minutes ago, IronJambo said:

I never used to rate brokers either but.... They're completely on the ball if you've got a good one. They're catching onto the best rates daily and they know their way around each lender. Some time ago it was pretty simple and you would be offered a set multiple of your salary but these days it goes on affordability which is calculated differently from every lender. You might be able to find a deal your happy with yourself and you might manage to navigate the process ok but a broker will give you lots of options and they'll know fine if you're application will go through before they've even sent it.

 

Worth every penny and shouldn't be ignored just because you can bring up moneysupermarket in your web browser.

Worth every penny but you don’t use one ? I’m not disputing what good brokers can do I just feel for a straightforward mortgage application it isn’t necessary. 

[IronJambo]

4 minutes ago, Dazo said:

Worth every penny but you don’t use one ? I’m not disputing what good brokers can do I just feel for a straightforward mortgage application it isn’t necessary. 

I use a broker that I value very highly, you must've misunderstood my post if thought otherwise.

Despite what you think mortgage applications aren't straight forward anymore, you can only think that if your first application went through without any hassle. It's a very circumstantial thing, but let's just say you're trying to go balls deep in a mortgage. A decent broker knows who he can exploit your income/bonuses with the best. All you can do at home is put your salary on a form and hope they give you what you're looking for. It'll work with some and it won't with others. 

 

I remember buying my first place in 2002 . My ex and I stumbled into a branch of RBS and left half an hour later with a 100% mortgage offer. She was a student nurse and we were skint with barely a penny to our names. That would never happen now.

 

[Dazo]

23 minutes ago, IronJambo said:

I use a broker that I value very highly, you must've misunderstood my post if thought otherwise.

Despite what you think mortgage applications aren't straight forward anymore, you can only think that if your first application went through without any hassle. It's a very circumstantial thing, but let's just say you're trying to go balls deep in a mortgage. A decent broker knows who he can exploit your income/bonuses with the best. All you can do at home is put your salary on a form and hope they give you what you're looking for. It'll work with some and it won't with others. 

 

I remember buying my first place in 2002 . My ex and I stumbled into a branch of RBS and left half an hour later with a 100% mortgage offer. She was a student nurse and we were skint with barely a penny to our names. That would never happen now.

 

All of my applications have went through without any real issues, from my first flat to my current home with some buy to let in between. Again I’m not disputing the work brokers can do I just don’t think it’s worth it.
 

Regardless your edited post contradicts your first version so a little acknowledgment would have gone a long way instead of making out I misunderstood anything. 👍

[IronJambo]

38 minutes ago, Dazo said:

 

Regardless your edited post contradicts your first version so a little acknowledgment would have gone a long way instead of making out I misunderstood anything. 👍

What was the edit? I'm sure I only added a word in because it was missing and it didn't really change what I was saying.

[Dazo]

4 minutes ago, IronJambo said:

What was the edit? I'm sure I only added a word in because it was missing and it didn't really change what I was saying.

 Not that it matters has my opinion is pretty clear but you said you had never used a broker. You do and we disagree. 👍

[Ainsley Harriott]

18 hours ago, dicksojo said:

Hi Kickback, my wife and I are thinking of moving house and are looking at how much we can borrow. We both receive annual bonuses and I was wondering if lenders will take this into account along with our base salary when calculating how much we can borrow?

 

Cheers

Totally depends on the lender. I used to work in a job with a low base an commision. Some would count the whole amount based on previous years and others would only take into account my base.

[IronJambo]

1 hour ago, IronJambo said:

5 minutes ago, Dazo said:

 Not that it matters has my opinion is pretty clear but you said you had never used a broker. You do and we disagree. 👍

 

As far as I'm aware I added "a good" into the 2nd sentence and I done so within a minute of posting. If you've the original post to show me otherwise then fair enough. My post was corrected to how I intended it to read very quickly regardless of anything.

 

 

I can recommend the Biff, Chip and Kipper range of books.

[Dazo]

17 minutes ago, IronJambo said:

As far as I'm aware I added "a good" into the 2nd sentence and I done so within a minute of posting. If you've the original post to show me otherwise then fair enough. My post was corrected to how I intended it to read very quickly regardless of anything.

 

 

I can recommend the Biff, Chip and Kipper range of books.

As far as you are aware ? Surely you would know. If you want to edit the post to completely change what you said just say it was an error and move on. Trying to be smart after getting caught out isn’t very........err smart. 🙄

[IronJambo]

6 minutes ago, Dazo said:

As far as you are aware ? Surely you would know. If you want to edit the post to completely change what you said just say it was an error and move on. Trying to be smart after getting caught out isn’t very........err smart. 🙄

Quite clearly you read it wrong as you're unable to tell me what I changed and I can only remember changing two words which didn't contradict anything. My edit was very quick so I can assure you that if I changed something else and it's contradicted what you read it was unintentional, that much must be very clear from my initial reply to you. I'm not sure why you've such a beef about it. 

 

Anyway, I'd highly recommend you give a broker a call next time as it might do you well.

[dicksojo]

Thanks for all the replies, chaps. I think mortgage will all be ok. Just need to get the current place in a decent condition to get it on the market in April.

 

Cheers

[samgolden]

On 09/12/2020 at 11:27, Jamie Walker Tash said:

When we got our mortgage back in 2017 they weren't interested in things like overtime, was based on basic wage. The way then seen it is overtime isn't guaranteed so they can't calculate it in.

And that’s a good piece of advice never include bonus,overtime in your budget for mortgage because if it stops you won’t feel the negative effect of it use it as just that extra save it if you can 

[MaskedMarauder]

On this topic, do mortgage advisors look really badly on gambling? I know it’s obvious, but i mean just like smallish stakes every week. Not running into debt or anything, but normally spend about £20-£30 at the weekends on skybet, ladbrokes etc. Would this stop me from getting a mortgage? 

[heartsfc_fan]

1 hour ago, MaskedMarauder said:

On this topic, do mortgage advisors look really badly on gambling? I know it’s obvious, but i mean just like smallish stakes every week. Not running into debt or anything, but normally spend about £20-£30 at the weekends on skybet, ladbrokes etc. Would this stop me from getting a mortgage? 

Probably not but you could always have a separate bank account for that stuff away from your main account.

[IronJambo]

2 hours ago, MaskedMarauder said:

On this topic, do mortgage advisors look really badly on gambling? I know it’s obvious, but i mean just like smallish stakes every week. Not running into debt or anything, but normally spend about £20-£30 at the weekends on skybet, ladbrokes etc. Would this stop me from getting a mortgage? 

A mortgage advisor won't care. An underwriter is a different matter though. All my betting activity goes through a separate account that a lender will never see the transactions of and my main current account is clean.

[Samuel Camazzola]

On 12/12/2020 at 13:13, IronJambo said:

A mortgage advisor won't care. An underwriter is a different matter though. All my betting activity goes through a separate account that a lender will never see the transactions of and my main current account is clean.

Don't you go incognito in person to various betting shops to wipe them out too? 😄

[hughesie27]

On 12/12/2020 at 10:45, MaskedMarauder said:

On this topic, do mortgage advisors look really badly on gambling? I know it’s obvious, but i mean just like smallish stakes every week. Not running into debt or anything, but normally spend about £20-£30 at the weekends on skybet, ladbrokes etc. Would this stop me from getting a mortgage? 

I was about that level when I was getting a mortgage earlier in the year and went through fine.

 

Also I used money supermarket and an advisor and the advisor came back with the same offer that Money Supermarket came up with.

[IronJambo]

16 hours ago, Samuel Camazzola said:

Don't you go incognito in person to various betting shops to wipe them out too? 😄

With old clothes and a casio watch on, aye 😂.