Second Residential Mortgage
Discussion
Been on this forum quite a lot but never had anything I wanted to post until now. I am 26 years old, working in the Middle East the last three years and have just applied for a second residential mortgage. I always believed that I would have to switch my first mortgage to a BTL but my bank says this is not the case and seems happy for me to rent the property out.
I have agreed the sale with the builder and plan on putting down a 30% deposit.
At first the bank seemed to give the impression that this would be very straight forward and it may well end up being so but they are requesting a lot of paperwork from me which I provided. What may be complicating the issue is that I am on a fixed 60 hour work week as per my contract. I have been working 60 hours a week since I arrive but the bank view this as 20 hours overtime. Therefore they will only accept 50% of my overtime when they run the numbers. I have a basic salary of 36K and the extra twenty hours equates to an extra 50% thus bringing me up to a take home of 54K before bonuses etc. Using their rule they will only use a salary for me of 45K. I still don’t think this should be a problem as its tax free and be similar to someone on almost 65K at home.
I just wondered has anyone else faced a similar problem and are people finding banks difficult or easy to get a mortgage from at the moment?
Thanks
I have agreed the sale with the builder and plan on putting down a 30% deposit.
At first the bank seemed to give the impression that this would be very straight forward and it may well end up being so but they are requesting a lot of paperwork from me which I provided. What may be complicating the issue is that I am on a fixed 60 hour work week as per my contract. I have been working 60 hours a week since I arrive but the bank view this as 20 hours overtime. Therefore they will only accept 50% of my overtime when they run the numbers. I have a basic salary of 36K and the extra twenty hours equates to an extra 50% thus bringing me up to a take home of 54K before bonuses etc. Using their rule they will only use a salary for me of 45K. I still don’t think this should be a problem as its tax free and be similar to someone on almost 65K at home.
I just wondered has anyone else faced a similar problem and are people finding banks difficult or easy to get a mortgage from at the moment?
Thanks
If your circumstances are fairly straight forward then it's easy to get a mortgage. If your circumstances deviate from the norm then a lot of lenders don't have the flexibility to accommodate anything outside of their rigid criteria. A large proportion of my clients come to me having had unfavourable conversations with their bank or current lender.
With regards to your circumstances a lot of lenders would automatically decline it because you have foreign address history within the last three years, the decisioning systems just can't compute the non UK address history. So, rather than doing something about it, they'd just rather you went elsewhere.....seems crazy to me.
With regards to your circumstances a lot of lenders would automatically decline it because you have foreign address history within the last three years, the decisioning systems just can't compute the non UK address history. So, rather than doing something about it, they'd just rather you went elsewhere.....seems crazy to me.
I work overseas but for a UK company and my money is paid into a UK bank account.
I do agree with you that some banks do not like lending to people like me but the bank I am talking with I have been with since I am 16 and all my salary goes there. We had a meeting when I was back home last week and they seemed very happy to do the deal.
I do agree with you that some banks do not like lending to people like me but the bank I am talking with I have been with since I am 16 and all my salary goes there. We had a meeting when I was back home last week and they seemed very happy to do the deal.
CONNORRS500 said:
I work overseas but for a UK company and my money is paid into a UK bank account.
For most lenders this makes no difference, it's the foreign address history that would make it an auto decline with most lenders.Your current bank is your best bet as they may accept it on the strength of your relationship with them.
It's not overtime in the sense of doing it in the UK. My contract is 60 hours a week so it's constant. Very few people work 40 hours on direct hire construction. I have just signed a three year contract in Saudi and affordability is not a problem. Even after paying the deposit I would have four years worth of mortgage payments in savings.
It's not overtime in the sense of doing it in the UK. My contract is 60 hours a week so it's constant. Very few people work 40 hours on direct hire construction. I have just signed a three year contract in Saudi and affordability is not a problem. Even after paying the deposit I would have four years worth of mortgage payments in savings.
CONNORRS500 said:
Not planning on renting out. Why do you say that? Some banks allow two residential mortgages.
I was asking because the title says a residential mortgage, you mentioned that you were buying it as an investment and then said that you had recently signed a three year deal in Saudi.Who do you bank with?
It's an investment because I see the purchase as a good opportunity for a return if I decide to sell down the line. In addition I'm not getting a good rate on my savings.
Yeah Saudi is three years but I'm home every eight weeks for two weeks.
I bank with one of the main lenders on the high street.
Yeah Saudi is three years but I'm home every eight weeks for two weeks.
I bank with one of the main lenders on the high street.
Not sure how much equity you have in your first house and how much cash you have available, but if these are favourable, you might consider an offset on the first house with the highest LTV rate possible and see if that would generate enough cash to buy the second property outright... if you know what I mean.
CONNORRS500 said:
It's an investment because I see the purchase as a good opportunity for a return if I decide to sell down the line. In addition I'm not getting a good rate on my savings.
Yeah Saudi is three years but I'm home every eight weeks for two weeks.
I bank with one of the main lenders on the high street.
Completely off topic - but do you have a need for a mechanic at all? Lol. Yeah Saudi is three years but I'm home every eight weeks for two weeks.
I bank with one of the main lenders on the high street.
And congratulations (sincerely) on the savings enough to cover the mortgage for 4 years.
I need to keep saving up a bit.
cashmax said:
Not sure how much equity you have in your first house and how much cash you have available, but if these are favourable, you might consider an offset on the first house with the highest LTV rate possible and see if that would generate enough cash to buy the second property outright... if you know what I mean.
I don't have that much equity in the first house to be honest. I bought the house and then put another 25K in by adding a new kitchen, windows, bathrooms, oil heating and full re-wire. Therefore if I sold it now I would break even as the market is lower than when I purchased five years ago.Gassing Station | Finance | Top of Page | What's New | My Stuff