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  • FIRST POST
    • FTB-James
    • By FTB-James 9th Oct 16, 5:08 PM
    • 9Posts
    • 4Thanks
    FTB-James
    FTB Mortgage and credit card debts
    • #1
    • 9th Oct 16, 5:08 PM
    FTB Mortgage and credit card debts 9th Oct 16 at 5:08 PM
    Hi

    I have found my first house £130,000 and it is a new build. I am going down the help to buy scheme route.

    Deposit 5% - £6500 in the bank

    Debts 13000 credit cards

    Salary £45k guaranteed with another £5k per year on top from adhoc work

    Spoke to mortgage advisor and he has told me the first application has been deferred and he will know more tomorrow

    Is this looking problematic?
Page 1
    • Thrugelmir
    • By Thrugelmir 9th Oct 16, 5:18 PM
    • 51,313 Posts
    • 43,142 Thanks
    Thrugelmir
    • #2
    • 9th Oct 16, 5:18 PM
    • #2
    • 9th Oct 16, 5:18 PM
    Safe to say that lenders aren't keen on borrowed deposits. Savings and debt doesn't reside in separate pots. You are £6.5k in debt. With no savings.

    When you say adviser is this in house or external?
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • FTB-James
    • By FTB-James 9th Oct 16, 5:20 PM
    • 9 Posts
    • 4 Thanks
    FTB-James
    • #3
    • 9th Oct 16, 5:20 PM
    • #3
    • 9th Oct 16, 5:20 PM
    it is an independent mortgage adviser who I have found

    not sure if I have answered the question here or not?
    • Thrugelmir
    • By Thrugelmir 9th Oct 16, 5:32 PM
    • 51,313 Posts
    • 43,142 Thanks
    Thrugelmir
    • #4
    • 9th Oct 16, 5:32 PM
    • #4
    • 9th Oct 16, 5:32 PM
    Your advisor is best placed to help you. Lenders do differ in their requirements. They also know your full circumstances.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • muhandis
    • By muhandis 9th Oct 16, 6:38 PM
    • 231 Posts
    • 87 Thanks
    muhandis
    • #5
    • 9th Oct 16, 6:38 PM
    • #5
    • 9th Oct 16, 6:38 PM
    To get an idea of how much you might be able to borrow, please try out the detailed affordability calculator on the NW website https://www.nationwide-intermediary.co.uk/calculators/aff_calc being as specific as possible to the questions asked. It should not take more than 5-10 minutes. If your broker is half decent, he should have already given you an approx figure of how much you can realistically borrow.

    One major aspect going in your favour is that the income multiple that you require is very low with a salary of 45k and the mortgage amount being £123k.

    However, this being a Help2Buy for new builds, the range of lenders willing to lend on it is quite restricted which I'm sure your broker would have told you about.

    An application being referred isn't necessarily bad news. Ours was referred because we lived in a flat and the address finder on the NW application system read it incorrectly. So wait till your broker tells you why it was referred.

    Hi

    I have found my first house £130,000 and it is a new build. I am going down the help to buy scheme route.

    Deposit 5% - £6500 in the bank

    Debts 13000 credit cards

    Salary £45k guaranteed with another £5k per year on top from adhoc work

    Spoke to mortgage advisor and he has told me the first application has been deferred and he will know more tomorrow

    Is this looking problematic?
    Originally posted by FTB-James
    • FTB-James
    • By FTB-James 9th Oct 16, 7:03 PM
    • 9 Posts
    • 4 Thanks
    FTB-James
    • #6
    • 9th Oct 16, 7:03 PM
    • #6
    • 9th Oct 16, 7:03 PM
    Thanks, that is really useful
    • minimike2
    • By minimike2 9th Oct 16, 10:22 PM
    • 1,721 Posts
    • 1,289 Thanks
    minimike2
    • #7
    • 9th Oct 16, 10:22 PM
    • #7
    • 9th Oct 16, 10:22 PM
    Pointing people to specific lender calculators is not really a great idea, or particularly in the spirit of what this forum is about.

    Also the way in which you have done it / your wording makes it very suspicious that you work for Nationwide.
    I am a mortgage industry professional. 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
    • Jon B
    • By Jon B 10th Oct 16, 6:40 AM
    • 723 Posts
    • 620 Thanks
    Jon B
    • #8
    • 10th Oct 16, 6:40 AM
    • #8
    • 10th Oct 16, 6:40 AM
    If I was a lender, I'd certainly be questioning why on a salary of £45k+, you have only amassed savings of £6.5k, yet have £13k on credit cards.

    You effectively have no deposit here.
    • muhandis
    • By muhandis 10th Oct 16, 7:14 AM
    • 231 Posts
    • 87 Thanks
    muhandis
    • #9
    • 10th Oct 16, 7:14 AM
    • #9
    • 10th Oct 16, 7:14 AM
    Haha that's hilarious . You think NW might be paying me for posting anonymously on this board?

    I find NW's affordability calculator detailed but easy to use, hence why I point people towards it to get a rough idea of how much they can borrow.

    When we got our FTB mortgage from NW, their systems were very poor with our application being referred twice - once because their system messed up our address and second because their underwriter made a mistake. Our broker had to chase the NW BDM non-stop to get it sorted and the whole process took double the time it should have. So I'm no more a fan of NW than you are.

    Does that anecdote allay your suspicions about me being a sleeper agent for NW?

    Pointing people to specific lender calculators is not really a great idea, or particularly in the spirit of what this forum is about.

    Also the way in which you have done it / your wording makes it very suspicious that you work for Nationwide.
    Originally posted by minimike2
    • FTB-James
    • By FTB-James 12th Oct 16, 11:08 PM
    • 9 Posts
    • 4 Thanks
    FTB-James
    So, I have been approved in principle so far. Need to send in bank statements, pay slips, proof of deposit etc... then need valuation.

    I think this is looking positive?
    • muhandis
    • By muhandis 13th Oct 16, 7:31 AM
    • 231 Posts
    • 87 Thanks
    muhandis
    Certainly a positive development but hold back from celebrating until you get a firm offer.

    Do keep us updated when you hear back from the lender after sending in all the documentation.

    So, I have been approved in principle so far. Need to send in bank statements, pay slips, proof of deposit etc... then need valuation.

    I think this is looking positive?
    Originally posted by FTB-James
    • FTB-James
    • By FTB-James 27th Oct 16, 11:17 PM
    • 9 Posts
    • 4 Thanks
    FTB-James
    Full offer now received and I will be accepting it :-)

    So pleased!
    • TJParsons
    • By TJParsons 28th Oct 16, 9:10 AM
    • 33 Posts
    • 6 Thanks
    TJParsons
    Did you have to clear down any of the debt? Or was it accepted as is?
    • ap1985
    • By ap1985 28th Oct 16, 9:20 AM
    • 265 Posts
    • 106 Thanks
    ap1985
    Congratulations James.
    Finally going to be a homeowner
    • FTB-James
    • By FTB-James 28th Oct 16, 12:36 PM
    • 9 Posts
    • 4 Thanks
    FTB-James
    Did you have to clear down any of the debt? Or was it accepted as is?
    Originally posted by TJParsons

    No conditions at all. I do have quite a high income of around £3000 per month, my mortgage payment will be about £400 so on affordability, I look good I think.


    I will however be getting rid of my credit card debt and should be around £2000 - £4000 when I move in to my new build in April 2017
    • csgohan4
    • By csgohan4 28th Oct 16, 12:49 PM
    • 2,596 Posts
    • 1,605 Thanks
    csgohan4
    I think also what helped the OP is not using the full 4.5x end of what they could borrow
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