Announcement

Collapse
No announcement yet.

Mortgages?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Mortgages?

    Hey all,

    Although I'm still a cadet and have a while to go yet, the prospect of owning my own place one day is definitely helping me to motivate myself after a long day of cargo lol.

    So a question to those of you with experience of this, and I have seen questions about mortgages on this forum, but not around this specific area.

    When applying, and I'm aware that there will only be few mortgage providers that are willing to lend to seafarers without the help of a broker, but; do they take into account the tax free income?

    E.g, say I earn 28k tax free a year; would they add on what I'd pay in tax, to make it comparable to a salary on land? So more like 36k? Because obviously if they didn't, that would really limit me to lower value properties, when ironically I could probably afford it better than the person on land, since my expenses would be lower due to being away at sea etc.

    Cheers!

  • #2
    Every provider will be happy to lend to seafarers so long as they have secure, permanent employment with proof of this and proof of continuous monthly pay.

    In my experience, which is now quite a lot over several properties, they never take the tax into account despite brokers insisting they can pull some strings and make it happen. I’m now good friends with an underwriter and she told me that they’re very aware of several professions having concessions like seafarers, and they’re also very aware that it’s not a guaranteed benefit as if you’re sick for 4 weeks you’ll be hit with tax bills.

    So your mortgage will rely on four factors if you’re on £28k. Stage 1 is the salary and determining the maximum possible loan, which is likely to be around £90,000 in todays economy. Stage 2 is affordability, they’ll vet your outgoings and see that as a seafarer you’re probably going to have money left over in excess every month. Stage 3 is your credit check where they can lower that £90,000 down quite a bit if you lack history or have negatives, this will stop many lenders from considering you as a first time buyer. Stage 4 is your deposit, which will almost definitely be required to be 10% as most lenders are no longer offering 5% mortgages.

    If you tick all of those boxes then you’re good to go, but realistically as you say that’s going to buy a naff property. Then your only chances to move upwards are 1) finding a partner or friend to go twos/threes/fours up on a mortgage, 2) gaining equity which means going forwards you’ll still have £90,000 mortgages but bigger deposits (you put down £30,000 and the £90,000 means you can buy a £120,000 property rather than your original £99,000 house) and 3) earning more money to up your mortgage maximum. Generally they are going 3-4-5x your salary, plus 3-4-5x half of your partners salary (assuming they earn lower).

    Ps, always go through a broker, they can access cheaper mortgages for everybody and some don’t even charge for their services (they get commission).

    Comment


    • #3
      Haven't had any problems and I have 2 mortgages. They don't take tax free into account though no.

      If you are working with a reputable company you should have perm employment of +2 years which is all they really wanted.

      Comment


      • #4
        Cheers both for the replies, much appreciated.

        That's a bit of a bummer then. Guess I'll have to wait till higher ranks for better pay. Or maybe I'll just rent and invest instead!

        Comment


        • #5
          They lent me 4x my salary no questions asked and I'd only been earning proper money for just over a year.
          ?I'd probably recommend just to use a broker though then you can be sure, they tweek little bits here and there and it will work out better for you.

          Comment


          • #6
            I’ve only ever had salary searches for my most recent 3 months, they don’t give a monkeys before that unless there are anomalies.

            Comment


            • #7
              Originally posted by agibbs98 View Post
              I’ve only ever had salary searches for my most recent 3 months, they don’t give a monkeys before that unless there are anomalies.
              Completely disagree with this. In my and my friends experience they want at least 1 year in a perm contract position. If your self employed or on a fixed term it can be difficult.

              Comment


              • #8
                Originally posted by bobofinga View Post

                Completely disagree with this. In my and my friends experience they want at least 1 year in a perm contract position. If your self employed or on a fixed term it can be difficult.
                I’ve never had an issue in the last few years of applications and remortgages, and I’ve been all over the shop working with different contracts permanent temporary probationary. I’ve been honest about who and for how long I’ve worked and the banks have never requested more than three months payslips... this goes for non-standard products too like BTL and second charge mortgages. Fixed term (less than a year) also wasn’t an issue for my partner when it was honestly declared.

                The only thing that can legally trip you up is answering the question “do you anticipate any change in circumstances which will affect your ability to meet your minimum payment requirements?” Although this doesn’t refer to your history, obviously being on a temporary contract means the answer should be yes... but it’s up to the person to declare that.

                I can only think that if you and your friends are being vetted this closely it’s either you’re using the wrong banks (they have ideal applicants and WANT reasons not to loan to others) or your LTV ratio was close to the minimum and warranted responsible lending checks; this is most common for first time buyers.

                Comment

                Working...
                X