A Couple of Questions

Cat695

Guys/Gals

I'm hoping to buy a house.....though not till end of next year before you shout at me!!!:D
However i would rather get ready for one now.......when ever i use the mortgage calc's on websites they don't take into consideration of how my finances work (not that they should)....so somone with a bit of knowledge may be able to help

I'm a soldier earning 36k a year(goes up yearly).....(i'm single so live in military accom) anyway.

the way i get paid is this.

Now some of the normal out goings that most people have to deal with come out BEFORE i get my wage ie:

Rent.......60 quid a month (yes i know but its not that nice)
Food......130 quid (i'm not going to comment on the food)
council tax called Charge in Lieu Of Tax (CILOT)..... 55 quid
CSA......400 quid (i have the snip now so won't be doing that again:o )
Life/accident insurance......12 quid (a special one for guys in the forces)

I end up at the end of the month with about £1750

Then i have the rest such as (that goes out of my account)

mobile......60
landline/broadband......32
car/bike insurance.......90
Loan.........320
TV licence.......12
Sky......18

The first question is this......How would you present this to a mortgage lender? (i don't want to use one of those companys that are suppose to help forces as they seem more expensive with rates) i would rather go direct to a bank/building society

The second question is.....does having 3 banks account go against you?

i have 3 accounts with 2 banks....2 current and one savings

I don't have ANY credits cards and never have (is this bad?)

I'm now on the electoral roll

The Third question is.....does using your overdraft (not always and NEVER over the overdraft limit) go against you??

I will have about 40k in savings by end of next year (house i'm hoping to buy will only be around 90-100000k (i'm from the midlands so yes cheaper)

I don't know if this will make any difference but in 5 years i will also be getting a payment of about 45k (time finished in the army) tax free and then a monthly pension (yes from 40) of 750 pound a month...... should i tell the bank this to???

Many thanks if you can help a little

Cat

Cat695

I'm bumping this as i did put it on in the evening

koexelek

Out of your outgoings, the lenders will usually only be interested in the CSA and loan.

Ytpically, they will add those together (£720) multiply them by 12 (£8640) then deduct that from your salary (£27360)

They will then use that figure ( £27360) in their affordability calulation ( 3.5 times. 4 times etc).

Having those bank accounts will not go against you.
You might lose a few points for NOT having a credit card, but it is prefereable to not have a card than have one and missuse it. Best thing for credit scoring is to have one and use it properly.
If the rest of your credit history is OK, it should not cause you a major problem though.
Being on the electoral roll is great news.

Keeping within your overdraft does not go against you.

It's fine to tell the lender about the pension, but they probably won't be that interested at this time. It's good news for you though.

Based on what you have said, you should be able to get a mortgage with virtually any lender.
Good luck with it

Cat695

Many thanks Koexelek, I do understand about the credit card thing but its something i've never needed (or trust myself in having TBH)

I think what i will do is reduce my deposit a little by getting rid of the loan then.........working out 3.5 x 27360 gives me just over 95k however the mortgage calcs i've used have all said they would give me 120k up (so much for tighter lending)

Again many thanks for giving me the info