Dream house found, declined mortgage by 3 diff companies

steve1980

CloudCuckooLand wrote: »

You need to allow some time to pass, from the loan being paid off, for the Lender to see the change to your credit report...

Agreed, normally this should be at least 28 days later. Make sure you get a letter from the lender to say that the loan has been paid off.

Any decent broker will not charge you a fee as they get paid by the lender as well.

Crinz

CloudCuckooLand wrote: »

You need to allow some time to pass, from the loan being paid off, for the Lender to see the change to your credit report...

you can usually indicate on the affordability questionairre that iut will be paid offf before completion. It is then ignored for afffordability and goes as a special condition on the mortgage offer that the debt has to be paid before sols will release money for house purchase

ryantcb

steve1980 wrote: »

Going on the salaries earned by the both of you (£37,900) the multiplier (very generous at 2.5 times although it could be more 2 times (£75,800) only comes out at £94,750. Take the current debt you have which is £3k (£34,900) then 2 times would come out at £69,800 (£85,700) and 2.5 times £87,250 (£103,150).

As you can see, you're actually short on your amount you need.

Get your loan paid off and see an independent broker, not a mortgage advisor in Bairstow Eves/Abbotts or anyone under the Countrywide banner.

so you take your salaries times by 2 or 2.5 (depending on what the mortgage company lend at) then deduct the total outstanding debts and that leaves you with amount that can be borrowed?

so is this correct:- (based on 2 x joint salaries)
me £45,000 partner £23,000 joint £68,000

68,000x2 = £136,000 less outstanding debts £10,000
amount available for mortgage £126,000 ?

steve1980

Crinz wrote: »

A generous 2.5 times multiplier??? What planet are you on? High street banks still give much more than that. I had a customer offfered a 6x by the system and a joint couple of nearly 5x

Perhaps that's why the banks are in such a mess now then. Irresponsible lending.

Crinz

We would generally take a joint salary and deduct the annual amount you would spend on debt repayments than apply a (very) rough multiplier.

e.g joint salary £68k, monthly debt repayment = £200, therefore annual debt repayments = £2400

£68000-£2400 = £65600 (then apply your made up plucked out of thin air multiplier that no respected company will use)


You will get a mortgage promise based on a affordability calculator that takes thousands upon thousands of variables into account. Not based on a multiplier

Crinz

steve1980 wrote: »

Perhaps that's why the banks are in such a mess now then. Irresponsible lending.

I agree with you on that aspect, but in the here and now the OP can realistically get much more loan than you indicated.

Our personal opinions on whether that is a good or bad thing is neither here nor there

luckyfool

ryantcb wrote: »

so you take your salaries times by 2 or 2.5 (depending on what the mortgage company lend at) then deduct the total outstanding debts and that leaves you with amount that can be borrowed?

so is this correct:- (based on 2 x joint salaries)
me £45,000 partner £23,000 joint £68,000

68,000x2 = £136,000 less outstanding debts £10,000
amount available for mortgage £126,000 ?

No this is not how it works. Steve doesn't know what he is talking about. It varies from lender to lender, but a better approximation would be to annualise the monthly payments to the credit and deduct those from the salary before applying a multiple. For credit cards lenders assume a minimum payment of 3%, so £300 per month on £10,000 in debt, and an annual commitment of £3,600 to be deducted from salary.

delveh

Thanks for all the helpful comments.

Once the Loan is Paid like you say it will be 28 days until that shows on my credit file. We're looking to hopefully have something sorted shortly in terms of mortgage.

I've seen mentioned on here before that some companies obviously use the "Computer Says No" decision.

Are there lenders who will sit down and look through your commitments?

Surely a computer cant be expected to make all the decisions. I guess the advisor will help with this.

sophievenusdoom

delveh wrote: »

Thanks for the info! I'll certainly mention that to the advisor and see what he thinks.

Like i say, just trying to get a better understanding / info as to what is available. 2 days is too long to wait lol.

Unfortunatley false hope by HSBC through the mortgage in principle etc. wasted 2 weeks of our lives!

We also were declined by Alliance and Leicester, but accepted by The Halifax. They seem a lot more considerate to FTB's, and people with adverse credit history (or both!). We have been nothing but happy with their service as well which included sending us a moving in present!!:T

delveh

sophievenusdoom wrote: »

We also were declined by Alliance and Leicester, but accepted by The Halifax. They seem a lot more considerate to FTB's, and people with adverse credit history (or both!). We have been nothing but happy with their service as well which included sending us a moving in present!!:T

Interesting info there. Thanks, so you were in a similar position?