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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
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Question
Are there flexible mortgages for self-employed?
I am self-employed and my income varies dramatically from month to month. There are times when I can earn three for four times my average and other months where I may earn nothing.
My partner has a far more regular salary, which remains the same every month. As such, we are keen to find a mortgage which may allow some flexibility on this basis.
Does such a product exist? My partner earns a salary of £38,500 and my earnings last year were, in total, approx £60,000.
We are looking at buying a home which is worth £325,000. I should probably add we have been paying rent which will probably be more expensive than our mortgage will be!
Answer
Flexible mortgages are available to both the employed and the self-employed; not having a traditional PAYE income does not preclude you from these.
In terms of the type of arrangement which would fit around the fluctuations of income, I would strongly suggest you speak to a mortgage broker, who will be able to advise you on the options which may fit.
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Question
Pregnancy and mortgages – will I still be eligible?
My husband and I were hoping to buy our first home but I am pregnant and we are worried – because I won’t be getting full pay – whether this will work against us during the application process.
We have two questions for you: Firstly, is there even any requirement to mention the fact I am pregnant? If do mention it, how will this impact our application?
I am due in March 2020 and intend to return to work full-time following maternity leave.
Answer
A lender will not ask directly whether you are pregnant when you apply for a mortgage, however, what they will ask is whether you expect there to be any changes to your income.
As long as your employer can confirm that you will be returning to work, when and on what level of income, lenders will generally be happy to work on this basis.
I would add that they may want a little further information to help them understand how you will manage whilst you are on maternity leave and a lower income (if, indeed this will be the case).
Equally, it may be that your husband’s income is high enough that your income is not needed to meet the affordability requirements, in which case the lenders really shouldn’t ask for further details.
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Question
Extended family house move – can we go on the same mortgage?
My son and daughter-in-law are moving to a bigger home which they are hoping to fund, partly, using money from the sale of my husband’s and my home.
We are going to move in with them and help with the childcare. As such we will need quite a large home and even with the share of the deposit belonging to us, they will need a mortgage – we expect this to be around 50% of the property’s value.
In order to support them with this we would like to also like to help them with the mortgage repayments. My husband is 69 and retired and I am 64 and in part-time work but due to retire shortly.
My husband has a healthy final salary pension. Do you think it might be possible for all four of us to be named on the mortgage – particularly bearing in mind our ages?
Answer
In terms of whether you can join them on the mortgage, the answer is yes – lenders are much more open to lending to mature borrowers than they used to be.
However, it may be that this is not the right solution – if your son and daughter-in-law can obtain a mortgage on the back of their income solely, then you may also want to consider a different type of arrangement in terms of your providing the deposit and noting your interest in the property – it would be worth getting some legal advice on your options if this is something which appeals.
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Question
Five year deal – what happens if I want to move?
I have just remortgaged to a five-year mortgage with a fixed rate, which I thought was a good idea because it would save me having to remortgage for a while and would also help me ride out any interest rate rises after Brexit. It is also very low! 1.99%, which I am very happy with.
However, I have just found out my employer is going to relocate to another part of the country – too far to commute. This means it’s looking very likely my family and I will need to move in the next year.
My question is can I move my mortgage when I move house? I am on a good deal and I am really worried about having to pay an expensive exit fee (apparently there will be a charge if I pay it off early). We are moving from the south to the north so we should hopefully be able to get more house for our money.
Any advice you could give me would be really helpful as I am not great with financial matters!
Answer
The majority of residential mortgages are portable. This means that you can move the mortgage to your new property without incurring any ERCs.
The process of moving your mortgage is just like taking out a new one, as the lender will re-underwrite you and run affordability and credit checks, however, assuming you are looking to borrow no more than you currently owe, and your income hasn’t changed, this should not be an issue.
I would suggest you check your mortgage T&C’s to check whether your mortgage is portable.
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