Any Mortgage Advisors?

[Annie10189]

Hey Dibbers

I'm looking for some Mortgage Advice (happy to pay).

Me and DBF have saved our deposit and have seen a property we like on Londons Help to Buy Scheme which wont be ready until April 2021 at the earliest.

We have a problem.

I've been self employed for the past 1.5 years (events) and my earnings have dropped significantly due to Covid. I've got one part time contract which lasts until December. In January I plan to take up a full time teaching post. Full time/permanent.

My question is:

- Can we put in an offer based on future earnings?
- Can we get a mortgage in principal?
- Do we need a mortgage in principal to 'reserve' the property?


Everything I've looked at wants our current earnings despite the fact the mortgage wont be activated for at least six months. Covid has mega screwed us (as it has a lot of people).

We are more than happy to pay for some advice so if you have any answers for us please feel free to DM me and we could work something out.

We are FED UP paying London Rent when we have our deposit and just can not get our first step on the ladder.

Thanks a million,
Annie

[Leggibone]

There’s an online mortgage broker Habito, or where I work we refer to a company called Roxburgh who do it all over the phone. As far as I’m aware (not a mortgage advisor) they go on the previous years earnings (your 19/20 tax year) but some companies don’t like new employment in probation period, your best speaking to a broker about your specific circumstances though, it’s in their best interest to come up with something usually!

[skalexander]

We applied for a mortgage in July, and my husband was due quite a significant pay rise in August. The banks would not take into account the pay rise until he could produce a pay slip for it. It wasn’t a big deal as we were fine on the lower salary, but we’d have had to delay our application if it was a problem.

I’m not familiar with help to buy but a friend bought a new build here. She put £1000 down but didn’t have to apply for a mortgage etc until the property was ready, as the mortgage survey couldn’t be done until then anyway.

I think you need to take some proper advice. Not sure what the situation is in England but we didn’t pay our IFA, they were paid by the bank.

[MrsG26]

Hi, I am a mortgage broker based in Scotland and also a new build specialist. To enable you to reserve a new build property you require a decision in principle. This is where a lender will agree to lend the mortgage amount subject to a full assessment of your income and a satisfactory valuation.

A decision in principle is not a mortgage offer and even if you have been approved in principle, once an underwriter assesses your self employed income it may well be a decline.

As a result of Covid , self employed people are going through more rigourous checks with lenders & you have to evidence that you haven’t stopped trading or have had your business impacted during Covid.

Most lenders want to know that your earnings haven’t been impacted - or if you have - your back trading and can show 3 months worth of business bank statements that correspond with the contracts you have in place. I’ve placed quite a few cases over the last few months for self employed people but it’s a tougher market now; and if you’ve taken any of the self employed grants some lenders are basing your affordability on the income you took rather than your previous earnings on your tax calculations and tax year overviews.

I would suggest you get in touch with a mortgage broker and let them look at all of your specific circumstances and see if there is anyone willing to lend at this current time. Good luck,

[Annie10189]

Thanks for all your advice , Dibbers, found a local broker who is happy to have a chat x x