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Well, broker got back to my husband, can't do. Devastated !! So wil now have to pull out of house buying, and our house sale

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Is it simply that you do not meet the criteria for the mortgage you are asking for? Presumably on one of two points, either multiple of income or on affordability?

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They r saying affordability. We have sold our house £211,000 and buying at £145,000. We were wanting a mortgage of £55/56,000. My husbands net is £12,000 and I get a small admin salary of £5,400, we have no debts as such. So we are devastated at the moment, as we wil let a lot of people down if we have to pull out as well.

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My husbands net is £12,000 and I get a small admin salary of £5,400
I think Cyclone raised the point earlier, not sure it's been replied to either. Is your husband's business worth £12k, or is £12k your husbands net earnings for the year?

 

If your husband's business is worth £12k, but your husband pays himself e.g. £30k throughout the year (and you £5k as you are employed by him), so the £12k is net of your and your husband's pay, then the combined earnings is way more than £17.4k.

 

Besides the combined figure, the issue will also depend on each lender's combined earnings multiplier for the mortgage term you're looking at (usually 20 years, but the shorter the term = the higher the ratio needed).

 

I have seen it as low as 2.5 in recent times, and if the £12k is your husband's net take-home for a year, 2.5 x £17.4k = £43.5k, well short of the £55/56k you're after.

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£12.000 net income

 

As another poster says try the Halifax. They use affordability so how much they will lend depends on financial dependence and your age. I'm guessing you do have children which will hammer how much they will lend.

 

As the other poster said, try their affordability calculator.

 

---------- Post added 05-06-2014 at 22:09 ----------

 

You need to put your best foot forward. Like everything in life, money talks and you have some. Get a good aggressive broker who will make sure the borrower understands that you are zero risk because of your equity position. So not only do you want, nay demand a mortgage but also require their best rate to reflect your no nonsense position, or you will walk. If you only want to borrow £55K to buy a £145K house you should have no problem at all. You're zero risk. MMR can kiss your behind. Cash is king.

 

Cash is certainly not king and the days of having a high deposit to guarantee a mortgage are over.

 

Its all about proving you can afford the mortgage.

 

---------- Post added 05-06-2014 at 22:15 ----------

 

I can totally sympathise i got a self cert mortgage in 2007 fixed till 2010 came off in 2010 and cant change provider cos am self employed and cant show enough earnings so am stuck with the libor rate.

 

Those were the days for a broker, sell the mortgage and to hell with the consequences.

 

You are unlucky to be stuck on a lenders variable interest rate although I obviously have no idea what you are paying.

 

However, you say you cannot show you earn enough to afford a mortgage. Is that because you genuinely dont earn enough or because you tell the tax man what you want to tell him and do cash jobs off the books?

 

Obviously I dont expect you to mention on here you hide earnings from the tax man but if you do, no sympathy!! Pay the tax your meant to. Lenders will lend to self employed what they declare.

 

---------- Post added 05-06-2014 at 22:17 ----------

 

It will depend on if the OP has any outstanding financial commitments, children and how long they are taking the mortgage over.

 

By all means go to the banks directly if you only want an offer of their products (no advice) and you don't mind waiting weeks to see an actual advisor.

 

I no longer do mortgages as they're not worth the hassle they now cause, protection is my game.

 

Re broker fee's you get what you pay for.

 

Does the non advice apply to all lenders post MMR?

 

ALL Halifax advisors advice on the clients mortgage and I was under the impression ALL lenders now had to give advice either direct or through a broker but I dont know if its Halifax interpretation of MMR or not.

 

---------- Post added 05-06-2014 at 22:22 ----------

 

Suzidee50 since the mortgage market review in April it is taking lenders longer to make decisions and all their service centres are busier. This will be the norm going forward but will take time for people to get used to. Gone are the days of instant decisions it takes time. The broker (if he's a good one) will be talking to all his contacts with the lenders available to see which lender is more likely to be sympathetic you your situation only when that research is done will he recommend a lender to you. Hope that helps.

 

If, for example, someone applies to the Halifax for a mortgage and they tell the advisor their income accurately. Again example Mr Jones says he earns 20k and and his wage slip proves he earns 20k then he will get the mortgage offer as soon as the payslip is verified and the valuation is done.

 

What a lot of potential mortgage customer find difficult is knowing how much they earn and relaying that to the lender accurately.

 

The mortgage offer is only slow if customers are not proactive and try to hide the truth.

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Our underwriters required SA302s from HMRC for both us (both self-employed) for the last two years of submitted returns (i.e. NOT 2013-2014 because I haven't filed yet). There's no quibbling about what you've earned then...

For what it's worth, now so many lenders required SA302s for self-employed, it only took about a WEEK to get hold of them - hooray!

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Cash is certainly not king and the days of having a high deposit to guarantee a mortgage are over.

 

Nonsense with all due respect.

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HURRAY ! Finally, sorted a mortgage out. Halifax have been our saviour!

They have gone out of their way to help us to obtain a mortgage with them for the

property we want. We tried to get a mortgage through 3 mortgage brokers, but no

joy whatsoever, so we are really thrilled to bits that we can now move to our dream house.

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HURRAY ! Finally, sorted a mortgage out. Halifax have been our saviour!

They have gone out of their way to help us to obtain a mortgage with them for the

property we want. We tried to get a mortgage through 3 mortgage brokers, but no

joy whatsoever, so we are really thrilled to bits that we can now move to our dream house.

 

If at first you don't succeed. Well done Suzi, who knows what you'll be able to raise finance for next. :)

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Nonsense with all due respect.

 

Question, if you want a 10% loan to value mortgage but you cannot prove you can afford the loan, do you think you will receive it?

 

Example, value of property 400k, want to borrow 40k but can only prove income of say being able to afford a 30k loan.

 

Will you receive the mortgage or not?

 

I think not. No matter what the loan or equity a reputable lender will not lend the money if the client cannot afford it. That is the point of MMR and why cash is not king.

 

IT IS ALL ABOUT AFFORDABILITY AND WHETHER THE CLIENT CAN AFFORD NOT JUST TO GET THE MORTGAGE BUT KEEP THE MORTGAGE!!!!!

 

Extreme example but you get what I am saying.

 

---------- Post added 06-06-2014 at 21:39 ----------

 

HURRAY ! Finally, sorted a mortgage out. Halifax have been our saviour!

They have gone out of their way to help us to obtain a mortgage with them for the

property we want. We tried to get a mortgage through 3 mortgage brokers, but no

joy whatsoever, so we are really thrilled to bits that we can now move to our dream house.

 

Congratulations. Its all about proving you can afford it and keeping it.

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Question, if you want a 10% loan to value mortgage but you cannot prove you can afford the loan, do you think you will receive it?

 

Example, value of property 400k, want to borrow 40k but can only prove income of say being able to afford a 30k loan.

 

Will you receive the mortgage or not?

ABSOLUTELY GUARANTEED 100% YES! Like I said.

 

I think not.

 

Then you'd be wrong.

 

No matter what the loan or equity a reputable lender will not lend the money if the client cannot afford it. That is the point of MMR and why cash is not king.

 

IT IS ALL ABOUT AFFORDABILITY AND WHETHER THE CLIENT CAN AFFORD NOT JUST TO GET THE MORTGAGE BUT KEEP THE MORTGAGE!!!!!

 

I know you want it to be like this, but it's really not. Don't know how to tell you any more. My final word on this. Money talks. Believe it.

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