Mortgage Market Report – Summer 2018

HOT MORTGAGE TOPICS 2018 By Chris Morgan

Even the most suitable “High Street” mortgages are difficult to place with lenders at this moment in time. One major high street lender I’ve been dealing with recently has imposed a five day turnaround on all documents submitted as proof of income and affordability. Every question and query raised then take’s another five days to complete, which of course is ridiculous and makes obtaining finance very difficult for applicants.

It would almost seem they don’t really want to lend any money at all, even to customers with a large 25% deposit, with a complete set of pay slips and a good credit record. Although this is frustrating it’s a clear indication that High Street lenders are still protecting their balance sheets. They simply do not have the capital adequacy to change their lending policy to the benefit of consumers.

Unusual Mortgages are experts at finding Mortgages for consumers who have been turned down by High Street lenders. In the previous market reports we have talked about Adverse Credit, Buy to Let, Returning Expats, Debt Consolidation, Right to Buy and Downward Trend in Income, Fixed Contract Income, Moving Employment, Self-Employment.

Here’s the latest Hot Mortgage Topics …

Proof of Income,

All mortgage lenders now require an applicant to prove their income and affordability, before advancing a formal mortgage offer. The amount of referencing and type of proof of income varies enormously between each applicant and depends on their employment status. Employees are almost certainly going to be asked to produce their pay slips and self-employed people will be required to produce company accounts and/or tax returns.

Employment Contracts

Employees are almost certainly going to be asked to provide a copy of their employment contract and in particular any details of short term contracts. Some lenders have very specific criteria relating to second income and also contractor incomes, so it’s best to get specialist advice around this issue because not all lenders treat these issues the same and criteria varies widely.

Financial Referencing

Self Employed people are almost certainly going to be asked for their company accounts and copies of their tax returns. Most lenders will require sight of an applicant’s SA302’s which will show the amount of income declared and the tax actually paid to the Inland Revenue in that year. If an applicant is unable to produce paper documents for a mortgage application then most lenders will be able to send an income reference to be completed by an accountant (self-employed) or to an employer (employee).

All mortgages are now agreed after careful assessment of Income and Afordability. In the next column we will look at Contractor Income, Director Status and Dividend Income.

15 Minute Mortgage Assessment

Unusual Mortgages offer a 15 minute free mortgage assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across 70 lenders on our manual research list, from which we tailor bespoke solutions for our clients.

If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.

If you require more information on Complex Mortgages, Multiples Mortgages, Buy to let, Self Employed or Adverse Credit Mortgages  you can contact Unusual Mortgages onUK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk

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  • COMPLEX MORTGAGE SERVICE

    Unusual Mortgages are specialist Independent Mortgage Advisers who are highly experienced in arranging Complex Mortgages and Buy To Let Mortgages.

    Our lead financial adviser Chris Morgan has 30 years of experience in Banking, Finance and Mortgage Advice.

    We have strong relationships with many off high street lenders, such as private banks, specialist banks, niche lenders and complex mortgage providers. Many offer exclusive products, that are tailored bespoke for clients and are only offered through financial advisers like ourselves.

    These are many of the areas in which we are able to offer advice. If you have a Mortgage Issue we can assist you with and it’s not on our A-Z of Mortgage Issues then please give us a call for us to for advice.

    A-Z of Mortgage Issues 

    • Adverse Credit (Arrears, CCJ’s, Defaults)
    • Braford & Bingley (Buy to Let End of Mortgage Term)
    • British Expat Mortgages
    • Buy to Let (Above Commercial Premises)
    • Buy To Let (Capital Raise)
    • Buy To Let (End of Mortgage Term, also see End of Mortgage Term, Bradford & Bingley, Mortgage Express, Rosalite Mortgages, Rosinca Mortgages, Siberite Mortgages)
    • Buy To Let (Expat Products)
    • Buy To Let (Incomplete Proof of Income)
    • Buy To Let (Interest Only)
    • Buy to Let Mortgage (Impact of Tax Status)
    • Buy to Let (Minimum Proof of Income)
    • Buy To Let (Multiple Mortgages)
    • Buy To Let (No Minimum Income)
    • Buy To Let (Portfolio Landlords)
    • Buy  To Let (Rental Stress Test)
    • Buy To Let (Scottish Property – Certain Postcodes)
    • Complex Income Situations
    • Complex Mortgages
    • Contractor Mortgages
    • County Court Judgements
    • Country Properties (Large Acreage)
    • Debt Consolidation
    • Declined High Street Lender
    • Development Finance
    • Director Income
    • Dividend Income
    • Downward Trend Income
    • End of Mortgage Term (Bradford & Bingley, Cerburus, Citi Mortgage, GMAC Residential Funding, Heliodor, Jasper Mortgages, Landmark Mortgages, Mortgage Express, Northern Rock, Roselite Mortgages, Rosinca, Seberite Mortgages, Topaz, UCB Home Loans, UK Asset Resolution. Whilstree, TSB)
    • Equity Based Lending
    • Exit Route (Development and Bridging Finance – Note we only advise on Exit Route situations, Not Bridging Finance itself)
    • Expat Mortgages
    • Foreign Currency Income
    • High Income Mortgages
    • Higher Rate Tax Payer Rental Calculation (Buy To Let)
    • High Value Mortgages
    • Incomplete Proof of Income (SA302 & Self Employed)
    • Interest Only Mortgage (Buy To Let)
    • Interest Only Mortgage (Down Sizing Strategy)
    • Interest Only Mortgage (Term Ending, See End of Mortgage Term)
    • Investment Income
    • Impact of Tax Status
    • Jasper Mortgages (Buy To Let End of Mortgage Term)
    • Kitchens (Multiple In One Property)
    • Landlord Mortgages
    • Late Payments On Credit Record
    • Let to Buy Mortgages
    • Listed Properties
    • Million Pound Mortgages
    • Minimum Proof of Income
    • Missing Proof of Income
    • Mixed Use Property
    • Mortgage Deeds (Two Properties, One Title)
    • Mortgage Term Ending (See End of Mortgage Term above)
    • Multiple Income Sources
    • Multiple Kitchens (One Property)
    • Multiple Mortgages
    • Multi Unit Properties (Multi Properties, One Title)
    • Mortgage Express (Buy To Let End of Mortgage Term)
    • Mortgage Rejected
    • No Minimum Income (Buy To Let)
    • Nurses Income (Agency and Bank Hours – Declined by High Street Lender)
    • One Year Self Employed (1 Year accounts)
    • Other Income Types (Non Conventional Income Types such as Airbnb, Property Income, Director Remuneration)
    • Portfolio Landlords
    • Professional Mortgages
    • Proof of Income (Problems meeting lender criteria)
    • Property Income
    • Re Mortgages (Capital Raising)
    • Restricted Lending
    • Right To Buy
    • Rosalite Mortgages (Buy To Let End of Term)
    • Rosinca Mortgages (Buy to Let End of Mortgage Term)
    • Rural Properties (Mixed Use Properties)
    • SA302 Income Proof (Problems Producing Proof of Income)
    • Scottish Rural Property (Buy To Let – Certain Postcodes)
    • Self Employed Income
    • Self Employed Mortgages.
    • Siberite Mortgages (Buy To Let End of Mortgage Term)
    • Stress Testing Portfolio’s
    • Split Title Deeds (Annex and House)
    • Sports Person Mortgages
    • Thatched Roof Properties
    • Title Deed Issues (Multi Units One Title)
    • Topaz Mortgages (Buy To Let End of Mortgage Term)
    • Trust Fund Income
    • Two Kitchens (One Property)
    • Utilising Other Income
    • Utilising Property Income

    We have only a few types of mortgages where we do not offer advice

    • Auction Property
    • Bridging Loans (Unless the borrower is looking for an Exit Route)
    • Contract Races
    • Guarantor Mortgages
    • New Build Property (Unless the property is already built and ready to move into)

    Lead Financial Adviser Chris Morgan, FPC, CeMap, CeRER. 

    Chris Morgan is the Lead Financial Adviser at Unusual Mortgages with over 30 years experience in Banking, Financial, Insurance and Mortgage Industries. He has worked for three major banks in his career – Lloyds, HSBC and Barclays.

    He is the former resident financial adviser for Barclays Regent Street, Liberty’s and Mayfair group of branches and been an Independent Financial Adviser since March 1999, when he created his own advisory practice Compass in Soho London. He has also been the Lead Financial Adviser at Unusual Risks and Unusual Mortgages, since 2009.

    He is a former Financial Adviser of the Year, Barclays Young Business Person of the Year and finalist in the FT Adviser Mortgage Adviser of the Year contest.

    He has also won a host of other community and industry awards for his consumer facing work within the finance industry.

    Chris has recently been shortlisted at The European Diversity Awards for Barclays Campaigner of Year. This is for his work as a Diversity Leader within the UK Financial Services Industry.

    *PLEASE NOTE

    Authorised and regulated by The Financial Conduct Authority. Please note most Buy to Let mortgages are not regulated by The Financial Conduct Authority.

    Fees will apply for mortgage advice. We charge a set fee of between £1295 and £1495 payable on application, dependent on the amount of work involved, the type of mortgage you are applying for and any commission we receive from the lender on completion of your mortgage. Please contact us for a specific quotation.

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