I run a mortgage underwriting team - AMA

[TapStepBallChange]

Clearly in the running for most boring AMA, but thought it might be helpful to someone. I run a mortgage team (for a relatively small mortgage lender), I oversee individual mortgage decisions, and look at policy changes - what we should and shouldn't lend on at a high level. I can't comment on the specifics of other lenders policies, or tell you you definitely will or won't get a mortgage, but I might be able to help.

@hermoinelodge it depends, the PX might just count as paying the actual value of the property, if that can be evidenced. Most usually we are looking at things like stamp duty, white goods etc.

We don't really know what we're doing with ourselves, but one option we've considered is building a house. The problem is knowing whether we could afford it - I know how big a mortgage we'd be offered to buy a house, but how does this stuff work for self build projects when there's just a square of mud to lend against? And would you lend the same amount as you would for an existing house?

Great AMA!

@wibblywobblyfish if a lender asked it would have to be declared, to be honest would probably still show up on a credit search. It's the end of the iVA that will be an issue, as it's still quite recent. You may well end up with a mortgage, but at a higher rate with a more specialised lender

Miri

Sorry about your diagnosis. Lenders are generally now less stringent about list insurance requirements, but check with the lender. The thing you need to consider is whether your husband is able to afford the mortgage if you are not earning. If you are the main earner it may be trickier.

@sickmumma

With Help to buy most lenders don't take into account the equity share in affordability because you're not actually paying anything on it on a day to day (or monthly basis), however the rental part of shared ownership does count because you're paying it.

@ticktocktoo

I'm not sure I understand your question, we don't discriminate against women with children, we're not allowed to under lots of different legislation. We take children into account, but that's regardless of whether you are a man or a women, because children impact your affordability. Some lenders will just use ONS data, which is available on size of household, to some extent. Other lenders will look at actual spending, so will look at commitments such as childcare costs, as well as other spending such as transport, utilities etc. This is done for both men and women.

@MossyOilTank

Self build mortgages are a whole different ball game. There is one big specialist broker in this area and it's worth looking at their website. They will assess your plans, money is generally released in stages, so the final amount will be against the final value, but it's quite complex and not like a normal mortgage. For a normal mortgage, we like a nice property we can see and get security against.

There was a lot of questions there! I'm off to put my income dependent to bed and catch up on some iPlayer. And read some more about the show jumper with some longing............

This is great timing for me as we are looking to buy our first property at the end of the year!

So I have just had two maternity leaves in a row pretty much, and reduced my hours to part time in between both leaves. So my first maternity was late 2016- late 2017 and my second started in March of this year and will likely finish in December/January (haven't finalised a date yet). I've worked in the same job for 8 years and will have no problem getting proof of return. However my annual salary hasn't been my "full" salary for two years. If I apply whilst still on maternity, how bad will this be? Will a broker point us in the direction of lenders more likely to accept us?

I just recently remortgaged, only need 15k as mortgage nearly paid off.

Got asked a load of health questions inc weight and height which I don’t remember before. This wasn’t for life/critical illness cover as already have this.

When I disclosed a chronic UTI the broker said some companies wouldn’t want to give me a mortgage. Why? I don’t know why a chronic uti would affect my ability to pay my mortgage when I haven’t had a day off sick in 10 years, dh also works and it’s only 15k! Not bothered as we have got sorted now, just seemed odd.

@Berimbolo My dh had just changed jobs and nationwide were fine with one wage slip.

Thank you @TapStepBallChange

@Imallout - complicated one. As a lender we're not allowed to discriminate on the basis of not earning due to maternity, but we are likely to basis the income on the last income you earned before you went on mat leave. A broker should definitely point you in the direction of a lender that works for you, if they don't they are a rubbish broker! Under the advice rules, brokers have to give good advice.

Nico - quite honestly, how odd, not heard of that one!! All lenders are different, I'm just trying to imagine the conversation if one of my team to came to me with "I think we're going to turn down this case because the borrower has a UTI". That would be an interesting day at work :)

Thank you.

Maybe the broker didn’t really understand it then. I do have to see a consultant two or three times a year and he just said it was ongoing consultant treatment which some lenders can be funny about. But like I said someone has said yes to us.

A couple of questions I would be interested to know the answer to. Does using an authorised overdraft facility every month affect the ability to get a mortgage or how much we could borrow?

Also, my child is in receipt of DLA. I have been told previously that this can't be counted as income for affordability purposes. Is that right?

@TapStepBallChange hi thank you for such a useful thread. I purchased my house 2.5 years ago for 92k and borrowed just over 80k. My postcode is desirable (apparently) and the property value has increased by approx 5% , I have also added some value too by restoring original features like fireplaces etc. As I have only paid approx 30 instalments of mortgage could I still have enough equity to remortgage to release some to pay off debts? Or is there a minimum fixed term you need to wait before this is possible? I am facing an 11 yr DMP to pay off CC debt that I can no longer afford interest and payments on. Just wondered if there is an alternative to this long term dmp by using by equity? Any light you could shed on this would be much appreciate