Santander FTB with HTP worries

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Ravesquire690
Ravesquire690 Posts: 3 Newbie
in Mortgages & endowments
Hi all,

Looking for some advice.
Me and my partner have just completed our full mortgage application with Santander via our Mortgage Broker.
We are buying a 209k house with the HTP 20% and our 15K deposit, mortgage c. 150k.

I earn 29k a year and my partner 16k with a combined outstanding loan balance of 3k, credit cards 3k and my HP 7k. NO defaults, late payments etc.

I have a niggling worry in the back of my head it won’t go through despite our disposable income each month being close to 1.4k a month after paying 650 rent!

Has anyone else had a similar situation in terms of debt vs income and been accepted with Santander? Any comments welcome!:)

Comments

  • Richard_Pia
    Richard_Pia Posts: 69 Forumite
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    Your broker should have done an affordability check prior to submitting your application. This would have taken in to account your debts so I doubt he would have applied if affordability didn't fit.

    Bear in mind, when calculating affordability, lenders are typically concerned more with the monthly payment rather than balance outstanding.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Richard_Pia
    Richard_Pia Posts: 69 Forumite
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    *meant to say, lenders are more concerned with monthly payment for loans. For credit cards typically they take 3% of the balance outstanding as a commitment.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    Was the HTB affordability calculator result ok?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Ravesquire690
    Ravesquire690 Posts: 3 Newbie
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    Hi,

    Broker advised he is happy with the details and said it shouldn!!!8217;t be a problem.....

    I don!!!8217;t know, maybe it!!!8217;s just overthinking!!
  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    HTB affordability calculator can be found here;-

    https://www.gov.uk/government/publications/help-to-buy-equity-loan-calculator-and-guidance
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Line06
    Line06 Posts: 2 Newbie
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    Hi, I have made an offer on a HTB flat which was approved by the broker I was asked to talk to before being accepted by the developer.
    I have not discussed with a HTB London agent.
    However , I have just used the HTB affordability calculator and the result is not ok.
    The reason, I believe, is because the calculator uses an interest rate of 4.8%. The broker has offered a 5 year fixed interest mortgage which is much lower.
    The mortgage offered would be within the 4.5x salary cap, and the monthly payments including service charge & ground rent less than 45% of net monthly pay. The government loan would be 40%, and the mortgage about 42% & my deposit approximately 18%.
    Is there any chance I could gain "permission to proceed"?
    Would it help to try & reach a 20% deposit?
    Thank you for any advice.
  • kingstreet
    kingstreet Posts: 38,766 Forumite
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    If you have any red lights, the HTB loan will not be approved.

    Speak to your broker ASAP. The HTB affordability calculator settings cannot be over-ridden.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Line06 wrote: »
    The reason, I believe, is because the calculator uses an interest rate of 4.8%.

    Lenders are required to use higher interest rates when assessing affordability. As at some point in the future during the term of the mortgage. Interest rates are going to be at a higher level than they are currently. That's a certainty.
  • amnblog
    amnblog Posts: 12,443 Forumite
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    kingstreet wrote: »
    If you have any red lights, the HTB loan will not be approved.

    Speak to your broker ASAP. The HTB affordability calculator settings cannot be over-ridden.

    As above

    This is the correct approach.

    Try not to worry.

    In the first place you’re Broker has most likely done the calculation before submitting your case to Santander

    Secondly, you may not have completed the calculator correctly. As with all similar tools they are not always as straightforward as they appear.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Line06
    Line06 Posts: 2 Newbie
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    Thank you all for your replies.
    The broker I have talked to was through the agent.
    How do I find a good independent broker who has experience with HTB?
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