Appointment with Barclays..will they accept?

Cheesedoodles

Hello,

Im looking to get a FTB mortgage and I do have an appointment with barclays this week to get a mortgage in principle. But I would like to know if my figures are correct and what my chances are.

My situation is as follows...loads of figures.

Looking to buy house for £250,000
Deposit of £115,000 so require mortgage of £135,000. This is a "gift" from parents-in-law. My wife has a rough credit history so she will NOT be on the mortgage application. My father in law will NOT be on the mortage application either. This will be done on trust and possible via a trust deed with the solicitor. So I will be sole owner of house.

LTV is 54%

Salary: £36000
Bonus is £3600 anually. It's not guaranteed but in all the time i've worked there ive always received the bonus.

Outgoings:
Loan: £234 (4 years left)
Loan: £301 (11 months left). This loan is with baraclays so they.
Total outstanding credit cards: £5700

If I annualise this i get the following:

£234*12= £2808
£301*12= £3612
(£5700*0.03)*12= 2052
Total = £8472

Deduct that from my salary I get £27528 (i've not included my bonus) and the woolwich advisor said they might give 5 x salary so that will give me £137k possible mortgage which would work out great!

Now... I COULD technically pay off my barclays loan of £301 per month but I would prefer not to as that would lower what we can spend on furniture etc. but I prefer to leave that as it is since its very low apr. If I pay off the credit cards it wouldnt increase my available mortage so i will leave those for the time being, especially since part of it is a 1.9% balance transfer.

My credit history is clean (i had a late payment 2 years ago when I swithced bank account but that was quickly paid) and I've recently settled 1 credit card and 2 loans (in the last 6 months).

My questions are:

1. Will my high debt deter them to give me a mortgage?

2. We have been renting for the last 5 years and have lived all over the place so might not be classed as "stable". Does that matter when we're looking to buy a place to settle down? Our last move was actually 2 months ago when we moved in with my parents in law. That way we are free to buy and move into a house asap.

3. The woolwich advisor says it SHOULD be ok but I am concerned he is just saying that so he can get me to apply. Is it a human looking at these things or is it just "computer says no".

4. If computer says no, am I able to fiddle around with the figures (i.e. pay my £301 loan off or increase the deposit slightly) and reapply without them doing a full credit check again?

Sorry for the long post and boring details but I am very new to this market so need some assistance from people who aren't financially interested in my situation and not trying to screw me over. I've looked at several providers but I've decided on woolwich since I've been with barclays for over 10 years and they know my bank accounts have been run well (although Im currently using my overdraft with them).

Thanks for reading

dimbo61

Well 68 other people have read your long post so a few comments from me.
Not sure you will get the £135k mortgage with the amount of debt you have even at cheap rates !
Thats down to Barclays!
Keep the property you are trying to buy under £250k or you pay 3% stamp duty over £7.500 ( you still pay 1%!!)
Be sure to see solictor RE deposit from in -laws and again dont know how Barclays will see that.
If you get turned down its time to see whole of market broker and clear some of your debt.
5X salary is very high and you will be very lucky to get that in the current market so see what they will lend.
GOOD LUCK

Cheesedoodles

Thanks for your reply Dimbo

My appointment is tomorrow and I've decided to tell them that I will pay off my barclaysloan early in order to increase my chances. That will give me £301 more per month. But I won't be able to pay it off tomorrow so I hope they can give me a mortgage in principle based on me paying it off before I formally apply?

My main worry was how much I can negotiate with them if they turn me down. I don't know how these things work.

If I say I would like a £135k mortgage and they turn me down do I have to apply again (with another credit search) or do they tell me "you can't have £135 but we will give you £120"?

This is all new to me I've applied for loans before and they just point blank refuse to give any reasons, but with a mortgage I was hoping they are a bit more reasonable in their reasons and allowing me to adjust accordingly if they say no.

_Andy_

They will tell you the maximum you can get.

maninthestreet

What is your actual take home pay each month?

Cheesedoodles

My take home monthly pay is £2188 but will increase to £2202 this month since I'm finishing my "Cycle to Home" scheme But I don't have a pay slip showing that yet so I assume they will look at the £2188.

Conrad

You do not need an appointment to put your mind at rest. Just apply to them online.

'Computer says no' is very real. This week I have been unable to place a woman wanting 65% ltv because she has never had any credit, mind you that is a buy to let case.

Humans cannot usualy override a credit score, but small Building Societies have a greater Human touch, but on the other hand they are very cautios organisations.

I'm fairly sure you will be accepted by someone.

Cheesedoodles

My plan was to go to Barclays for a mortgage in principle. If they decline then I'll speak to london & county.

This week I have been unable to place a woman wanting 65% ltv because she has never had any credit, mind you that is a buy to let case.

Well. I'm going to live in the house I buy and I have had a LOT of debt in my last 6 years. All have been maintained according to agreement and as mentioned I've paid off 2 loans and a credit card in the last 3 months. 2 years ago I had £36k debts!!! Today I have £15k of debt and clearing just under £1k per month at the same time as I live quite comfortably. I used to pay £900 in rent (now live with parents in law until we find a house) and with a £150k mortgage fixed for 5 years I'm looking at paying £700 (repayment).

TheLostSheep

Hi,

Is your situation as follows:

Loan 1 £3311
Loan 2 £11,232
Credit cards £5700
Total Debt = £20,243

You'll pay off the Barclay's loan of £3311 straight away and that leaves you with around £16,900 of debt? You then plan to take on the mortgage yourself?

I have a similar query up on this board but my figures are slightly different. My details are:

Credit card £3000
Loan £10,000

I am paying £200 to both. Any application I make though will be with someone. the property will be for way less than what you are after and getting a near 10% deposit is the area I need to work on.

I'd be intersted in how you get on....

Cheesedoodles

cg81 wrote: »

Hi,

Is your situation as follows:

Loan 1 £3311
Loan 2 £11,232
Credit cards £5700
Total Debt = £20,243

You'll pay off the Barclay's loan of £3311 straight away and that leaves you with around £16,900 of debt? You then plan to take on the mortgage yourself?
I'd be intersted in how you get on....

Yes, that is my situation (give or take a couple of hundred pounds). And I am taking on the mortgage all on my own. My wife will be paying towards it, but she has a bad debt past so won't be able to apply with me. After further discussion my father in law will put up to 45% of the value of the house as a deposit so i need to get a mortgage for LTV 55%. We will own 50% each but he will use the 5% difference to pay for fees, work that needs to be done etc. But I want to keep it to less than that if possible.

Cheesedoodles

I got my mortgage in principle... Yaay!

Their credit scoring checking system was down at the moment so I just showed him the one I had got myself and all my payslips, bank statements, P60s etc etc...and he did it manually.

He said I would definately get a mortgage after seeing my report. He wasn't entirely sure if he could give me £140k or £170k since he couldn't check the EXPerian credit score!! If it's over 698 i will get 5x salary which is £170, if its below it will be £140.

Anyhow I got my principle agreement for £170 so I have something to show the agents. And since their system was down there is no search on my credit report. Which is good I suppose since i've just seen the post office 5 year fixed deal at 4.5%!!