Mortgages: 50% Deposit
Discussion
Quick question before I start wasting a broker's time as I know nothing about mortgages!
If you had a 50% deposit but low salary as self employed is getting a mortgage going to be doable at all?!
I know it's a bit vague sorry
Do the lenders look less at the incomings if they have less risk I suppose is what I'm trying to say!
If you had a 50% deposit but low salary as self employed is getting a mortgage going to be doable at all?!
I know it's a bit vague sorry
Do the lenders look less at the incomings if they have less risk I suppose is what I'm trying to say!schueymcfee said:
Quick question before I start wasting a broker's time as I know nothing about mortgages!
If you had a 50% deposit but low salary as self employed is getting a mortgage going to be doable at all?!
I know it's a bit vague sorry Do the lenders look less at the incomings if they have less risk I suppose is what I'm trying to say!
No.If you had a 50% deposit but low salary as self employed is getting a mortgage going to be doable at all?!
I know it's a bit vague sorry
Do the lenders look less at the incomings if they have less risk I suppose is what I'm trying to say!Your income either fits the amount you want to borrow or it doesn't. If the affordability calculations are saying it's unaffordable, your deposit could be £5m, they will still say no........
Hub said:
Surely it would still depend on the size of the mortgage and whether it is affordable? They will ask about your income and also outgoings to see what you can afford and how risky a customer you will be.
Correct!The days of lenders turning a blind eye to things due to the client having a large deposit are looooong gone.
schueymcfee said:
Ah that's a shame, thought it could've worked in my favour a bit. I suppose the higher LTV lowers the interest rate increasing affordability.
It does work in your favour;- You'll get access to the lowest rates around
- The credit score requirement will be lower at your LTV
But, your income still needs to be sufficient to lend the amount you need.
Sarnie said:
Marcellus said:
can you declare past dividends paid as part of your income for mortgage company calculations?
No.And lenders don't like Dividends taken from previous years retained profit either..............
williaa68 said:
Firstly, Sarnie, thanks for all the advice on here. How does it work if one's primary income is not income from employment but income from investments? E.g. retired but not formally in pension drawdown (as CGT advantages to pension fund assets). Will lenders take this into account or are we just stuck with current mortgage (who presumably neither know nor care whether still employed as long as mortgage is paid)?
Some lenders will lend to you, it just depends on the circumstances and requirements at play.........I understand that these days they care, but you've got a 50% deposit, why are they bothered about your income. If you can't keep up repayments, the house is sold and given it's worth twice the loan, they recoup the money owing? It's a no lose proposition.
I think it used to be called a non status mortgage. Have they died a death?
I think it used to be called a non status mortgage. Have they died a death?
TwigtheWonderkid said:
I understand that these days they care, but you've got a 50% deposit, why are they bothered about your income. If you can't keep up repayments, the house is sold and given it's worth twice the loan, they recoup the money owing? It's a no lose proposition.
..........because banks are in the business of lending money, not repossessing properties.Sarnie said:
TwigtheWonderkid said:
I understand that these days they care, but you've got a 50% deposit, why are they bothered about your income. If you can't keep up repayments, the house is sold and given it's worth twice the loan, they recoup the money owing? It's a no lose proposition.
..........because banks are in the business of lending money, not repossessing properties.As the old saying goes, a fool and his money rarely get together in the first place.
Sarnie said:
No.
And lenders don't like Dividends taken from previous years retained profit either..............
Strictly speaking that may be true, but there are lenders who will consider company earnings as part of the 'affordability' calculation. From my experience they want a minimum of 12 months company accounts, but most want to see 2 years. I recently had a mortgage approved based solely on 12 months company accounts (signed off by an accountant).And lenders don't like Dividends taken from previous years retained profit either..............
TwigtheWonderkid said:
But people who are astute enough to have cobbled together a 50% deposit are not in the business of getting loans they can't service.
As the old saying goes, a fool and his money rarely get together in the first place.
It's not for the applicant to decide if they can afford the loan, thats the lenders responsibility.As the old saying goes, a fool and his money rarely get together in the first place.
You can either tick the affordability box or not.
It's as simple as that, irrespective of deposit or LTV.
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