FTB, will i get a mortgage?

riigs10

Well basically me and the better half are looking to get our first home.

We have saw one we like for 90k, but the EA thinks an offer around 85k would be accepted, which we both feel we can easily afford.

Im a graduate and have been in work for 4 months, my fiance has a solid job for the past 5 years, total income is 33k.

In terms of outgoings we only have mobile phones, both had them since 16, never missed a payment etc. We do both currently have overdrafts but will be paid off before we take a mortgage. We have no personal finance on anything, cars & insurance are both paid upfront.

I have 2 cars on finance for business, both were started in march this year, never missed a payment and the company pays money into my bank each month to pay for them, my wages are my wages.

For a deposit we currently have 5.5k but will have 9/10k by Christmas, will also have 2/3k for legal fees.

Any help / advice would be appreciated as I'm slightly worried about the 2 business cars, but have good history and can easily afford a mortgage

Henry_P_Chester

The only thing I would say is that your deposit might be on the small side. You will have around 10% slightly more, which is enough but not many lenders offer 90% LTV and the interest rate will be terrible. You may be better off waiting another 6 months or so and improving to a 20% deposit, There will be much more mortgage options open to you with better rates and more chance of you getting approved. Also your loan will be smaller and so your repayments will be lower and you will save a small fortune in interest payments over the term of the mortgage.

They may take the finance on the business cars into the consideration as a liability but if you get paid extra to cover this it shouldn't be a problem.

riigs10

Thanks, were just eager to get out and onto the property market, and the house we've saw is pretty much perfect.

I should add, the business cars aren't for my job, its for a family business but i dont work there, the cash is paid in, its not an official payment.

TrickyDicky

Why do you have an overdraft if you have savings?
A lender may see the overdraft as you being unable to meet your monthly commitments and overspending. Why not just pay them off? ( are these student accounts at 0%?).

You will also need to wait until you have at least 10% deposit before you start getting any choice in mortgages. Just wait another 6-12 months before you buy (the market is supposed to be dropping anyway).

firstaspect

You shouldn't have a problem getting a mortgage however as others have said you may want to try and save a bit more deposit, you'll get a much better rate with 15% deposit than 10%.