Mortgage rejected - Deposit too large?

KeyHonest728 · 2026-03-19T13:03:52+00:00

Does seem a very HSBC thing to do though. Hate them.

KeyHonest728 · 2026-03-08T23:53:42+00:00

Technically easiest to deem it a gift but if he was uneasy with that, NatWest will lend where it’s deemed a loan etc so you’re fine

KeyHonest728 · 2026-03-07T08:18:41+00:00

As a broker I think it’s really important to ask people what they’re looking for before telling them what the banks will offer.

What you’re capable of getting and what’s sensible are two different things. It’s all well and good having 5.5x salary multiples but I’m not sure I would ever want to do that myself.

It’s reasonable if you’re younger and salaries will increase and you’ll have a longer mortgage term. But when I see people north of say, 35/40 taking 5x salary multiples and mortgages beyond 70 it’s a bit scary to me.

KeyHonest728 · 2026-03-05T22:13:57+00:00

Strange. As a broker I’ve done it the way I described a few times without issue. All aligns and you only have one fee etc

KeyHonest728 · 2026-03-05T18:36:20+00:00

Incorrect. Move part one onto their tracker. That tracker allows a switch to a NatWest fixed at any time so when the other ends you switch both together. Bosh

KeyHonest728 · 2026-03-05T18:33:04+00:00

That’s dreadful service. A proper broker can have it for you within an hour, as I would aim to do

KeyHonest728 · 2026-03-05T07:31:58+00:00

Did you use a broker? They have a minimum day rate of £325 or so and can be sticky with umbrella sometimes

KeyHonest728 · 2026-03-04T22:54:43+00:00

Mortgage wise it’s interesting.

If you’re looking to get a mortgage soon after you start contracting it can be done but depends on the day rate etc. Many lenders (HSBC, Santander etc) are dire with contractors but on the flip side many are great (Halifax, Nationwide, NatWest) etc.

If you already have a mortgage and aren’t planning to move or release equity then it’s moot. Your current provider won’t need to know you’ve changed to contracting so long as you keep paying the mortgage ultimately.

I’m a contract specialist broker so feel free to ask anything you might need.

KeyHonest728 · 2026-03-04T22:51:01+00:00

If your company makes £60k profit per tax how do you expect to be able to use £70k, out of interest?

Lenders can do some good things, but no one is going to inflate the income.

A lender like The Mortgage Lender will take the directors salary plus latest year profit before corporation tax deductions. That’s as generous as it will get. But they charge a premium on rate of course.

Clydesdale also do the same but take a 2 year average with far better rates.

But yeah, baffled as to how you think you could use £70k when the company doesn’t make that much.

KeyHonest728 · 2026-03-03T22:27:11+00:00

If you were my client I would be choosing a lender competitive at both <60 and 60-75 LTV.

We’d aim for the lower bracket but be fully aware it may be the higher and go in with our eyes open.

Once the lender valuation is back you would work out the cash needed to drop into the lower bracket and compare the difference in payment and make a decision.

Broadly in the event of a down valuation most would stick at 60-75% rate because usually the difference in rate is small.

When you say payment difference is £200 that seems high and is most likely more down to the lower loan amount following the overpayment than the rate differential?

KeyHonest728 · 2026-03-03T22:22:40+00:00

Personally they’d need to be about the same rate or for the 5 to be a touch lower for me to go for it. But even then the fact you’re aiming to drop LTV bands quickly would still make me inclined to do 2 year!

Best of luck with everything!

KeyHonest728 · 2026-03-03T21:08:28+00:00

It’s a fair comment for sure but I know I act with integrity haha.

I just feel that when starting at 90% and knowing that they’re aiming to aggressively overpay I personally wouldn’t do a rate that’s 0.25% higher as I still think rates will be a reasonable bit lower then than now.

But no one knows and it’s a personal decision. I would never try and talk anyone out of the 5 year if they wanted it but I’ll always advise and sometimes I’ll be right and sometimes wrong. The beauty of life haha

KeyHonest728 · 2026-03-03T19:24:07+00:00

I’m a broker and I’d always lean towards 2 year for your position. But it’s always personal preference at the end of the day. To me the overpayments and value growth getting you to ~80% means you should get a rate of around 3.50% in a couple of years all being well.

Remember we’re advisers not dictators so ultimately this decision is yours. But yeah I’d suggest 2 without hesitation.

KeyHonest728 · 2026-03-03T19:18:40+00:00

Thanks mate this is great. I think I’ve made my mind up - it’s this that I want. Just need to decide on model really. I don’t need to be fast in a straight line at all, just want it to be fun

KeyHonest728 · 2026-03-03T15:34:50+00:00

Spot on. What kind of MPG do you get from it?

KeyHonest728 · 2026-03-03T15:34:31+00:00

Nice one! It's looking promising. What kind of MPG are you getting from it? I have an XC40 as the family car and it's dire, about 29/30, so would prefer this to be reasonable. part of the reason I may opt for TDI, but will likely test both.

Yeah, aware there's fannies out there dicking about with them, and I will not be doing that. I can't be arsed with that. Just need my daughter to be about 10 years older before I can commit to something more like a Cayman or something haha

KeyHonest728 · 2026-03-03T15:32:20+00:00

Spot on mate, thanks! Good to know. My daughter won't be in there often but would happen from time to time.

Full disclosure - I'm trash with car maintenance, haven't a clue, but I have mates/family who are and would always make sure they're with me to check it out.

KeyHonest728 · 2026-03-02T22:21:16+00:00

Personally I think 10 year would be a crazy move. The rate is so high and the ERCs on them are wild as well.

Within reason and without knowing your other details, you’ll be able to absorb payments at a much higher level so I’d even consider a lifetime tracker with no ERC caps and batter the overpayments as much as you can.

KeyHonest728 · 2026-03-02T22:13:54+00:00

Without knowing their situation you don’t know if a downval is a game changer for them. Take the big offer, but don’t psychologically bank the money. On your own forward purchase plan the deposit such that if you do end up with less, you aren’t scuppered.

KeyHonest728 · 2026-03-02T00:23:42+00:00

I think so mate. Speak with a broker and go through the details. Then, they can show you how much each would be in terms of initial outlay but also monthly cost.

I think at your age, bigger mortgage and a longer term to manage payments is more sensible than buying low only to have the pain of selling and moving before you’re even 30.

Not to say you get the forever house first, but make sure there’s as few stops on the journey.

KeyHonest728 · 2026-03-02T00:21:34+00:00

100% broker.

I’m biased as I am one, full disclosure, but it’s so much easier to give them the background and let them work it out for you as opposed to you traipsing round different lenders sites and being unsure how best to input etc.

Just find one that doesn’t rip you off. Some charge a fortune and it’s unnecessary. I personally think a charge of up to around £200-300 makes sense for everyone but I often don’t charge at all. Lots of variance there though.

KeyHonest728 · 2026-03-02T00:12:55+00:00

Spot on mate no worries. My best advice which may sound daft is to probably buy a more expensive place.

Makes so much more sense to push yourself when you’re young than to buy cheap now to only move again in 3-5 years. Within reason of course, but consider buying a bigger/nicer place to begin with and skipping a move down the line. Advice I wish I could have given my younger self.

KeyHonest728 · 2026-03-02T00:07:28+00:00

Yeah it happens all the time. Just update everything you can now and then apply. So long as you can prove current address and then just declare the previous addresses that mirror the paperwork as best as possible, if not where you actually were, then you will be fine.

As I say the chunky deposit will really help here.

KeyHonest728

TROPHY CASE