Will mortgage be approved?

Mike84_2

Hi,

Just after a bit of advice please?

Me and my girlfriend are buying our first property together.

The house is £167.5k and we are putting down 5% deposit. 15% is being paid by the developer through a 10 year interest free loan and we are having an 80% mortgage, so the mortgage is £134k.

We earn £50k between us.

I have a credit card with £2k on it, two catalgues with £500 and £600 on them, a car loan with £2.5k left and I'm in an approved overdraft of £1800.

My girlfriend has about £300 on a credit card.

We have had no missed payments in the past year and I always pay off more than the minimum payment.

I did a credit score check the other day and it was 947 (best is 999).

Is the mortgage offer likely to be accepted because I am worrying that my overdraft will affect it?

Any help would be great!

Thanks

Thrugelmir

Sounds like you don't really have the deposit.

Make getting your personal financial affairs into order before committing to a house purchase.

Mike84_2

Hi,

We have the deposit, it is coming from family members, and we can afford to pay off the debts at a later stage.

I just want to know if having these debts will affect the application??

Thanks

LilacPixie

No one can say for sure as it is up to individual lenders and as far as I am aware no one here is an actual mortgage lender.

Our situation earn 48k looking at mortgage of 97k have 15% deposit already and possibly more depending on sale price of current property. My husband has £2200 on a credit card ( low LOB) and our mortgage adviser has suggested we clear it before application if possible.

Caz3121

Has the property been valued, is £167.5 the asking price or the valuation?

herbiesjp

The income and debts seem fine to get the mortgage amount needed.

However..... not many lenders will accept the 15% deposit from the lender.

poppy10_2

Mike84 wrote: »

We have the deposit, it is coming from family members

What, haven't even been able to save up the meagre 5% deposit on your own. Seriously, with the amount of debt you are in, you should not be even thinking about getting a mortgage until you have proven to yourself that you can handle your money and live within your means.

opinions4u

Mike84 wrote: »

The house is £167.5k and we are putting down 5% deposit. 15% is being paid by the developer through a 10 year interest free loan and we are having an 80% mortgage, so the mortgage is £134k.

So you're taking on a 10 year loan to give the developer money for a property that is really worth 15% less than you are paying for it.

Whichever way I look at this, the property is not worth £167.5k.

I have a credit card with £2k on it, two catalgues with £500 and £600 on them, a car loan with £2.5k left and I'm in an approved overdraft of £1800.

My girlfriend has about £300 on a credit card.

What's your plan to clear al this unnecessary credit? Get out of the habit of buying things on credit! Save up for stuff you want to buy!

I did a credit score check the other day and it was 947 (best is 999).

Meaningless numbers to a lender.

Is the mortgage offer likely to be accepted because I am worrying that my overdraft will affect it?

- income: probably fine
- debts: irritating but manageable. Some bad habits to get on top of though.
- property: new build's are high risk lending and a mortgage valuation could potentially tell you that iter's over-priced.
- deposit: this is a nightmare scenario. You're deposit hasn't come from your own resources and the 15% "loan" from the devleoper strikes me as a cover up for over-pricing the property - substantially.

I think the lender will decline the mortgage. Not because of you, but because of the 15% seller funded deposit.

I also think you should find another property to buy instead. At the moment it looks like an application for a long term negative equity problem for you.