FTB - Advice and thoughts

ftbkate

Hello!

This is my first post, so i apologise if im going over covered ground.

My situation is this:

I am looking to buy a house on the market at £75k. I have a cash deposit of 20% meaning i need a mortgage of aroung 60k give or take.

My salary is £16.5k. I have cc debts of 3k. No loans or od at present.

I currently live with my partner (rented accom) and we applied for a joint mortgage 1 yr ago which was declined. He has had adverse credit in past which was obv the contributing factor to this. His salary is 20k plus 10k bonus average.

So, we are actually buying this house together, but due to credit factors im looking to get the mortagage solely.

Is my situation reasonable for the amount needed. Also I have clear record with my bank of over 10 years. Is it at all beneficial to apply with your own bank?

Thanks in advance.

Henry_P_Chester

Use the mortgage calculator here:

http://www.nationwide.co.uk/mortgages/calculators/overview.htm

that will give you a rough idea how much you can borrow. You will have to clear your cc debts first. Lenders won't like these. It may be beneficial to go with your bank if they offer a deal for current customers.

_Andy_

Henry_P_Chester wrote: »

You will have to clear your cc debts first. Lenders won't like these.

Not true - if it fits on the lender's affordability there will be no need to do so.

opinions4u

Henry_P_Chester wrote: »

You will have to clear your cc debts first. Lenders won't like these.

Not necessarily. The OP may actually be better off keeping the debts as they are and finding an additonal 5% deposit though.

It may be beneficial to go with your bank if they offer a deal for current customers.

Or better off still going with a whole of market mortgage adviser who may be better placed to identify an even better deal.

ftbkate

Thanks for the advice,

I could pay off the debt, but will be impacting my deposit.

Will a bank decline on cc debt - its always paid way over the minimum.

_Andy_

No - as stated above. They will take into account the minimum payment when looking at affordability.

Henry_P_Chester

_Andy_ wrote: »

Not true - if it fits on the lender's affordability there will be no need to do so.

They won't decline you but it will effect how much you can borrow.

I very much doubt the OP would be able to borrow enough for the desired house with 3k outstanding CC debt on that salary.

I'd clear the debt and then save up the 3k to replenish the deposit.

ftbkate

Also, any recommendations on where to get a broker. We used one before and im not convinced he did the best job for us.

And one final question - the siad broker said that two declined mortgage applications rejected means your out of luck for good (ie no-one will touch you with a brage pole). Is this just for say 6 months of 12 months or years?

herbiesjp

Change your broker asap.

If he is making applications for you, with a partner that has had adverse credit, he would need to be making sure you fit criteria before having any credit checks run against you both.

These searches could impact against you.

However I think you should still be able to find a lender to get close.

You may have one or two limited options available to you, but you need an experienced broker to help, and one with good lender contacts, who can chat through not only with high street lenders, but also smaller building societies or even other broker-only options.

Cool_man

A very good post and certainly these are points really useful.

_Andy_

Cool_man wrote: »

A very good post and certainly these are points really useful.

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