what are chances of mortgage?

f1slikki

i am hopefully going to go through a mortgage with the clydesdale bank but was just wondering how people think my chances would be...

both myself & OH credit ratings with experian show as fair, 2 settled defaults from 2005 (£117 & £45) other than this no other payment issues.

take home pay is £2,500 per month.
current credit commitment is car finance £600 p.mth, owe £500 on credit card.
other than this it is just general bills, electric,food,fuel.
(I do have a loan but I am paying this prior to mortgage offer therefore will have this as a condition of mortgage offer)

mortgage would be for 2.5x salary on 80% LTV
mortgage payment would be around £650-£700 p.mth

what chances if any do i stand??

many thanks

Francesanne

Would imagine you'd need a pretty hefty deposit saved. Your current commitments are taking a fair chunk out of your income. Anyway you could off what you owe and start your mortgage with a clean slate?.

f1slikki

looking at an 80% LTV therefore 20% deposit.

you said my credit commitments are taking up a fair chunk of my income butthe way i was looking at it was:
mortgage 650-700
council tax 125
car 600
fuel & food 300
c.card 30
car ins 50
which means we have £700 per month left after food & fuel,
is this not enough to meet affordability.

I am a FTB so really dont know how mortgage companies look on this...

thanks

uzubairu

80% of what, how much do you plan to borrow?

How much longer will you have to pay the £600 per month for the cars?

With defaults on your credit files you may not get as much choice or the best rates so you may need more than a 20% deposit.

f1slikki

house is £130,k so £26,k deposit mortgage for £104k may be able to get another £4,k so the mortgage is a straight £100,k.

2 years left with car finance.

thanks

Mrs_Bumble

Its more about basic salary than take home pay, as any overtime, bonus etc would be taken very cautiously. the defaults inpair your credit rating at the current time and the loan doesn't help.

So really the whole profile is about your salary, how it is made up, purchase price and deposit.

Also your income and expenditure is extremely lacking, what about electric, gas, buildings and contents insurance, car maintenance, christmas, birthday, life insurance, asu insurance, pet insurance, gym membership, water rates, pet insurance, do you have children? If your take home pay is reliant on overtime or commission payments it puts a different slant on what is affordable and what isn't??

TeddyBear_2

f1slikki wrote: »

i am hopefully going to go through a mortgage with the clydesdale bank but was just wondering how people think my chances would be...

both myself & OH credit ratings with experian show as fair, 2 settled defaults from 2005 (£117 & £45) other than this no other payment issues.

take home pay is £2,500 per month.
current credit commitment is car finance £600 p.mth, owe £500 on credit card.
other than this it is just general bills, electric,food,fuel.
(I do have a loan but I am paying this prior to mortgage offer therefore will have this as a condition of mortgage offer)

mortgage would be for 2.5x salary on 80% LTV
mortgage payment would be around £650-£700 p.mth

what chances if any do i stand??

many thanks

Any mortgage application would have to be supported by proof of income and bank statements, the bank statements being evidence of your ability to handle an extra financial commitment in addition to all others.

Just an observation really, but if I were a lender, I would be concerned about the remaining funds you have to live on. At almost 25 per cent of your £2,500 (gross) pay, personally I would be concerned about the size of your car finance and the impact of that alone when put together with your mortgage on your total outgoings.

When you factor in all the outgoings Mrs Bumble mentions, I think it is optimistic to believe you will have left £700 after your outgoings and then you have to take into account the effect on your mortgage of interest rate rises, together with the effect of all other outgoings increasing on your net income.

Sorry if my advice comes across as gloomy, but I really feel it is best you take another look at your outgoings, are honest with yourself, think of all the questions you are likely to be asked and then consider how you will answer them. Best of luck!

f1slikki

thanks guys for your posts, I forgot to note electricity in my previous post about out-goings which is £70 p.mth , dont have any kids, no pets, work for an insurer therefore get life/crit illness/ buildings & contents as part of my salary package therefore no outgoings here. no gym membership and car comes with warranty & servicing therefore no further outgoings there. i have mentioned fuel costs.
my take home pay of £2,500 is basic salary as i did not include any overtime or commission for either of us but this is something which we do get regularly but as this can never be guaranteed i did not include any monety amounts for this.
do this help any...

benjo

mortgage 650-700
council tax 125
car 600
fuel & food 300
c.card 30
car ins 50
which means we have £700 per month left after food & fuel,
is this not enough to meet affordability.

You havent included...

Water rates
Car Tax
Car insurance
Telecoms (phone/mobile/broadband)
TV (license/sky/bt/virgin)
Appliance repair insurance - or at least some savings to meet these costs.
Central heating running costs/repair fund/service contract (you dont mention if it is gas/elec/sf)
Savings pot for house repairs/emergencies

These little things all add up, even if the mortgage lender doesnt require you to declare them, they will have them in the back of their mind.

Japtastic_UK

That is a huge amount for the car, what is it?