Saving/Applying for a mortgage 2015/16/17/18/19

GingerLily

AlmightyCushion wrote: »

Frozen Veg wrote: »

Is there any mortgage providers which facilitate early repayments more than others?

I intend on applying for a mortgage over 30 years but would hope to have it paid in 20.

If you go with a variable rate it shouldn't matter. If you're looking at going with a fixed rate then some will let you pay off a certain percentage without incurring a breakage fee.

Not all mortgage providers allow you to over pay on a fixed rate.

AlmightyCushion

GingerLily wrote: »

Not all mortgage providers allow you to over pay on a fixed rate.

Hence why I said some.

awec

NearlyForty wrote: »

**When applying for a mortgage and the banks request your bank statements etc what are they looking for? Obviously you need to pay any loans you have on time, direct debits on time, savings etc but do they scrutinise your spending habits? i.e. cut out online shopping and just use your card to pay bills, your weekly food shop, fuel etc would I be right in saying that? Anything else I should look at? Thanks

Banks don't give a feck about online shopping or what you buy with your money.

All the bank wants to see is that you've enough money to pay the mortgage, you have made regular savings and you aren't losing half your salary in the bookies every month.

NearlyForty

Thanks for that all

Sarn

Goose76 wrote: »

I’m in a similar situation to a poster above and need to request a reduction in sale agreed price after a structural survey.

The issues are largely cosmetic/regulatory as opposed to crucial, if that makes sense, but the cost adds up. Also new windows have been recommended and a new boiler will be needed within a year.

Does anyone have any tips / cautionary tales about how we should approach our email to the estate agent on this topic or should we just fire ahead. Thanks!

In relation to cosmetic, windows and boiler, I dont see much chance of a reduction. That’s something that you would factor in when bidding in the first place. If it’s an old house you would expect there to be upgrades required. Structural issues, dodgy attic conversion are another matter.

james678

On 37K with a 10% bonus not included as well. Single, no debt and good credit history. Have 30K saved. Wages also go up a grand year.

Max banks will give me is 130K going by the 3.5 rule. Anything decent in my area where I want to live is 200K. If I apply for the 200K from the bank and get rejected twice how likely is it the the council would offer me the mortgage for first time buyers? Currently paying 600 a month for a single bed apartment as well for last three years.

Job is secure with a multinational and can easily afford a 200K mortgage on my own. 2500-773(30 year mortgage)= 1727 left over.

Any advice is greatly appreciated.

Julez

james678 wrote: »

On 37K with a 10% bonus not included as well. Single, no debt and good credit history. Have 30K saved. Wages also go up a grand year.

Max banks will give me is 130K going by the 3.5 rule. Anything decent in my area where I want to live is 200K. If I apply for the 200K from the bank and get rejected twice how likely is it the the council would offer me the mortgage for first time buyers? Currently paying 600 a month for a single bed apartment as well for last three years.

Job is secure with a multinational and can easily afford a 200K mortgage on my own. 2500-773(30 year mortgage)= 1727 left over.

Any advice is greatly appreciated.

Go to a broker would be my advice. They may be able to get you higher than the 3.5 times your wages, you can get exception almost all the way up to 4.5, depending on your circumstances.

EriT

Julez wrote: »

Go to a broker would be my advice. They may be able to get you higher than the 3.5 times your wages, you can get exception almost all the way up to 4.5, depending on your circumstances.

What's stopping banke going to 4.5 or higher ? I thought I've seen posters on here mentioning getting 4.5 and sometimes higher.

GingerLily

EriT wrote: »

Julez wrote: »

Go to a broker would be my advice. They may be able to get you higher than the 3.5 times your wages, you can get exception almost all the way up to 4.5, depending on your circumstances.

What's stopping banke going to 4.5 or higher ? I thought I've seen posters on here mentioning getting 4.5 and sometimes higher.

You won't pass the other affordability criteria given your salary, no chance of an exemption that high.

myshirt

GingerLily wrote: »

You won't pass the other affordability criteria given your salary, no chance of an exemption that high.

No chance of an exemption full stop. Single applicant and income is too low. If finances are in order they should get the 3.5 though. If not then they'd get somewhere around 0 to 3 times. It's often not discussed that the 3.5 is not a given. Not everyone gets (or wants) 3.5 times.

EriT

GingerLily wrote: »

You won't pass the other affordability criteria given your salary, no chance of an exemption that high.

Ah okay . But for example a couple with good wages and no debt could in theory get 4.5 or over ?

Creamy Goodness

EriT wrote: »

Ah okay . But for example a couple with good wages and no debt could in theory get 4.5 or over ?

Yes, but you’re looking at wages 60k or even higher.

amcalester

Creamy Goodness wrote: »

Yes, but you’re looking at wages 60k or even higher.

Do banks even give exemptions that high?

Creamy Goodness

amcalester wrote: »

Do banks even give exemptions that high?

How do you mean that high? Max most will go to is 4.5 times your salary.

If you mean is it possible to get an exemption on 60k, the answer is yes (I was offered one, not needed) but it was in December 2017

amcalester

Creamy Goodness wrote: »

How do you mean that high? Max most will go to is 4.5 times your salary.

If you mean is it possible to get an exemption on 60k, the answer is yes (I was offered one, not needed) but it was in December 2017

ERiT was asking for an exemption greater than 4.5 times salary, I don’t think banks offer this regardless of (combined) salary.

Offer isn’t the right word but you know what I mean, approve maybe.

GingerLily

Apparently exemptions higher than 4.5 are allowed, but I would expect that's only offered to people on very high wages, but it's not common.

There are are several ways they check your affordability, and you need to pass the other criteria comfortably if you want an exemption!

EriT

Interesting thanks . For the record I am looking for an exception but not 4.5 or over.

Creamy Goodness

amcalester wrote: »

ERiT was asking for an exemption greater than 4.5 times salary, I don’t think banks offer this regardless of (combined) salary.

Offer isn’t the right word but you know what I mean, approve maybe.

ah I get you now, sorry I was still asleep.

as GingerLily says, greater than 4.5 exists (even seen 1-2 mention they got greater than 4.5 on this thread) but they're super rare.

GingerLily wrote: »

Apparently exemptions higher than 4.5 are allowed, but I would expect that's only offered to people on very high wages, but it's not common.

GingerLily

EriT wrote: »

Interesting thanks . For the record I am looking for an exception but not 4.5 or over.

Does your savings plus rent cover a stresses mortgage payment?

What percentage is your debt (mortgage and other loans) compared to your net monthly income?

How much after your mortgage payment and debts, crèche etc. are you left with each month?

What's your LTV?

There's are the big questions the bank will want to know before granting an exemption. There are more criteria obviously but they're the main ones that particularly affect the exemptions.

EriT

GingerLily wrote: »

Does your savings plus rent cover a stresses mortgage payment?



What percentage is your debt (mortgage and other loans) compared to your net monthly income?



How much after your mortgage payment and debts, crèche etc. are you left with each month?

No kids or loans etc

What's your LTV?

90%

There's are the big questions the bank will want to know before granting an exemption. There are more criteria obviously but they're the main ones that particularly affect the exemptions.

1.So we Currently pay rent not far off the mortgage payments we would be looking at (75% of potential mortgage ish) on top of that I have 1500 a month in savings for last 3 months. Previous to those 3 months Saving we had been heavily paying off Credit cards /loans total value of over 1000 a month. I understand this isn't 6 month savings but will the consider the previous 3 months clearing debt ?

2.Currently debt free.

Mortgage would come in under 30% of Net monthly income

3.No kids or loans etc

4.90%.

How do we look ? Mortgage meetings booked for end of next week . We are looking at new builds due to be released in feb

amcalester

I’m no expert but I’d imagine that an exemption on the salary multiplier would only be offered to someone with a large deposit.

And, vice versa, an exemption on the deposit would only be offered to someone looking for a low multiple of their salary.

GingerLily

Not having 6 months of savings could be a massive issue! Especially as your going for a 90% LTV and looking for a high LTI exemption.

conti

Creamy Goodness wrote: »

but it was in December 2017

My understanding was that these were used up early in the year. Does that mean the exemption you were offered was for 2018? I ask because we're entering the market at the end of the year, but I was going to wait until January for that reason.

Creamy Goodness

conti wrote: »

My understanding was that these were used up early in the year. Does that mean the exemption you were offered was for 2018? I ask because we're entering the market at the end of the year, but I was going to wait until January for that reason.

I was told by the bank in question, that they staggered their exemptions throughout the year, so say for example they can only have 20% of their entire mortgage book be exemptions, for the mortgage AIP's they were given out at the start of the year was max 1 in 5 mortgages and this allowed them to still give exemptions in December.

This may not be the case anymore, and other banks may vary.

EriT

GingerLily wrote: »

Not having 6 months of savings could be a massive issue! Especially as your going for a 90% LTV and looking for a high LTI exemption.

Understood . The release date of our 1st choice property is forcing us to show our hands and apply early otherwise id have waited till 1st April with 6 months savings in the bank .

I'm no expert but I'm hoping we can show that disposable income is quite high given the debt we cleared in the previous 3 months

Creamy Goodness

EriT wrote: »

I'm no expert but I'm hoping we can show that disposable income is quite high given the debt we cleared in the previous 3 months

The problem here is the bank won't see it this way. They'll see it as "why did you have this much debt?" and see it as bad financial planning. How will they be sure that other debts won't come into play again given that you have a record of debt. I got the feeling from your posts that the debt wasn't paid off in a timely fashion, if this is the case disregard.

GingerLily

EriT wrote: »

GingerLily wrote: »

Not having 6 months of savings could be a massive issue! Especially as your going for a 90% LTV and looking for a high LTI exemption.

Understood . The release date of our 1st choice property is forcing us to show our hands and apply early otherwise id have waited till 1st April with 6 months savings in the bank .

I'm no expert but I'm hoping we can show that disposable income is quite high given the debt we cleared in the previous 3 months

You can always ask

GingerLily

If you're debt was educational, then they might not hold it against you, but I can't see them being that impressed if it's just holidays or cars

EriT

Creamy Goodness wrote: »

The problem here is the bank won't see it this way. They'll see it as "why did you have this much debt?" as see it as bad financial planning. How will they be sure that other debts won't come into play again given that you have a record of debt. I got the feeling from your posts that the debt wasn't paid off in a timely fashion, if this is the case disregard.

All debt paid off - early with zero missed payments . Nothing out of the ordinary size wise with two small credit card balances and two small personal loans

EriT

Thanks for the feedback. One other point I'd like to note is that we would have 6 months savings by the time official mortgage offer would be required . It's the approval in principle piece of paper we are after ASAP . I will post in here when I hear back