Big Deposit - What rate can I expect?

SilverSix

Mobility151990 wrote: »

Congrats. As an existing customer if the case is whats known as a "refer" so you may be on the borderline for being accepted etc etc, nationwide will refer the case to a specialist underwriter to take a look at it instead of letting the "computer says no" answer rule

I was hoping having such a large deposit would put me in good stead for a decent amount and also a decent rate, fingers crossed.

I can't remember where I read/heard it but I was under the impression that your credit rating was fair/good unless you give them any reason to doubt you, over drafts, debts etc.

Also I've only been at my job permenantly for 2 coming upto 3 weeks now. I was there for 2 months before employed by my temping agency. I've got a signed contract and the current project is good for 2 years with another 6-12 months finalising it all before I'm relocated to another project or (I hope not) let go. I'm guessing there might be a minimum term served at your present employer that will effect eligability for a mortgage?

Mobility151990

No, if anything, not having credits works against you. The whole idea of credit history is to see how well you manager the responsibility of having debts, do you stay within limits, do you pay each month etc. So having no history means we have no record of seeing how well you'd handle such a massive mortgage.

No, NBS don't care about how long you've been there as long as you're on an open ended contract ( what most people call permanent, so no fixed end date ). However they ask for latest 3 months payslips + p60, if you can't provide that they ask for just your latest payslip and if you can't provide that finally they'll ask your employer to confirm in writing your basic wage for 12 months.

SilverSix

Mobility151990 wrote: »

No, if anything, not having credits works against you. The whole idea of credit history is to see how well you manager the responsibility of having debts, do you stay within limits, do you pay each month etc. So having no history means we have no record of seeing how well you'd handle such a massive mortgage.

Ahh I see. So it wouldn't hurt to use my credit card a little even though I have no need, making sure I pay before deadlines etc, to build up some credit.

No, NBS don't care about how long you've been there as long as you're on an open ended contract ( what most people call permanent, so no fixed end date ). However they ask for latest 3 months payslips + p60, if you can't provide that they ask for just your latest payslip and if you can't provide that finally they'll ask your employer to confirm in writing your basic wage for 12 months.

kool, thanks.

Crinz

Just to back to the Tenant thing, as far as the Halifax policy goes, we dont need to give permission for you to take a tenant and you can do it whenever you want.
You can not however, use the rental income in your affordability calculations

Mobility151990

Correct, use the credit card, even just a little and pay off each month, looks great on a credit report.

SilverSix

Crinz wrote: »

Just to back to the Tenant thing, as far as the Halifax policy goes, we dont need to give permission for you to take a tenant and you can do it whenever you want.

I see.

You can not however, use the rental income in your affordability calculations

Is this because it's theoretical? as I have no tennant yet. Or is there something else I'm missing? because it's taxable?

RenovationMan

Why not put the money into a 12/18/24 month bond and not rush into buying a house until you've sorted out your career and settled into it a little bit. There certainly isnt any need to rush, the housing market is stagnent and you will only improve your chances of getting a decent place if you build up that deposit, build up that credit rating and sort out that job.

Whats the rush?

Crinz

BennyC wrote: »

I see.



Is this because it's theoretical? as I have no tennant yet. Or is there something else I'm missing? because it's taxable?

Its purely because its not guaranteed. People could buy 6 bedroom houses and rent 5 rooms to friends if we let them use tenant income to boost maximum lending. When those friends move out, who is paying the mortgage?

SilverSix

Crinz wrote: »

Its purely because its not guaranteed. People could buy 6 bedroom houses and rent 5 rooms to friends if we let them use tenant income to boost maximum lending. When those friends move out, who is paying the mortgage?

I understand.

I can afford interest only payments on my salary at 4% without the aid of any other investments or income from renting out a room.

If I can only borrow £86,000 I could use £110,000 of my inhertiance as a deposit and then save up another £4,000 to bridge the gap totaling £200,000 but this would leave me without any spare cash at all, until money from the sale of my dads house comes in (which could be days or years) which I don't think is sensible.

RenovationMan

BennyC wrote: »

... which I don't think is sensible.

I'm sorry but I dont think any of this is sensible. There are so many reasons why I think your making a mistake that I dont even know where to start to explain why. However, you didnt come on here to ask for advise about whether or not to buy, so I'll butt out.