Lender Criteria Flashcards
what is the usual age lenders will take earned income to?
70 or 75 above that they will need proof that retirement income covers the mortgage
If pension is sufficient which lenders have no Max Age?
Chorley, Dudley, Harpenden, Ipswich
will lenders give a 95% mortgage on a new build house?
No not usually, they go to 80% or 85% check with lender
Will lenders see a house that is only 2 years old as still a new house or flat?
Possibly, E.g. Natwest and Nationwide will still see a property as new if it’s 2 years old and will only lend 80% or 85%
Flats - what do you have to watch out for with lender criteria for Flats?
Freehold- only a handful of lenders will lend on a freehold flat - incl Natwest, Newcastle and Virgin MAX FLOORS - Some lenders will have a max of 4 floors but some have no limit STUDIO FLAT - Some lenders wontbdo this LEASE - usually need between 50 and 70 years left at the end of the mortgage term - so check will lender if LEASE is less than 100 yrs
Will lenders allow you to own two properties not rented?
Yes but both mortgages must be affordable on clients income. If a holiday home then fine but must not be rented out.
Can an applicant get a 100% mortgage?
No but TIPTON do a FAMILY ASSIST mortgage where as long as the children can afford it they can borrow 100% and a 35% charge is out on the parents home. There must be a percentage of equity left on parents home - check with BDM
Will all lenders allow capital raising to buy a Buy to Let?
Most will but some won’t e.g. Nationwide
Which lenders will allow a person to get a mortgage from starting a job in the first week?
Natwest, Nationwide, Santander, Metro and a few others…but Natwest won’t allow if there is a probation period
who will allow zero hours contracts…
including Halifax, Natwest, Coventry
what is the criteria around second jobs?
Check with lender how to assess this, some lenders allow 100% some 50% - there may be a distraction between employed or self employed - check with lender specifics
Can lenders lend for buying a house doing it up and selling?
No - this would be a bridging loan or bought with cash.
How does Equity release work? How much is typical interest? what happens to the interest? What are typical set up fees?
An Equity release mortgage is taken - usually between 5% to 7% . Interest is rolled up and added to the loan each year. set up fees aroind £2000
Equity release how can be released?
Between 40% to 55% - the older you are and the poorlier you are more can be released and lower interest rates.
What do lenders class as a Let to Buy ?
Getting a LTB mortgsge on a previiuos property to buy an onward residential
