first time mortgage/ outstanding loans

readytofly

Well after MONTHS and MONTHS of saving, my fiance and i have reacher a target of 20,000 for a deposit on a mortgage WOOHOO! We have an appointment to speak a mortgage at nationwide - i have been a customer for 10 years - in a couple of weekends time.

Just want your thoughts really on what to expect - i know we need to take a copy of our latest payslips and details of outstanding loans. In total we pay £200 a month for my hire purchase loan(£5600 outstanding) and a personal loan(1000 outstanding) in my partners name. Will this greatly affect getting a mortgage? We have a joint income of £39000.

Thanks in advance

HappyMJ

Depends on the underwriter of the mortgage. They are all different. Some will deduct the outstanding loans and some will count the £200 as part of the affordability. If you paid them off you would save more money. £39k will easily get you a loan of around £117k and with a 10% deposit you will need £13,000 and another £2,000 for fees in total to purchase a property worth £130k. It would cost you around £685 per month over 25 years @ 4.9%.

readytofly

Thanks happyMJ. i think we are going to have to move out of north london -130000 might get us a studio only! but if we go 5 miles out it will get us a 1/2 bed flat - amazing. But then of course it adds time onto my morning journey to work

HappyMJ

readytofly wrote: »

Thanks happyMJ. i think we are going to have to move out of north london -130000 might get us a studio only! but if we go 5 miles out it will get us a 1/2 bed flat - amazing. But then of course it adds time onto my morning journey to work

True. Is there any way you can up your income £39k to buy in London between 2 people is quite low. It's only an average of about £10 per hour each. You need £8 per hour just to be on the breadline and you are only £2 per hour above that. The more income you get the more you can borrow. A evening part time job would help as well.

sibod2002

i have applied for a mortgage with halifax and also have a loan with 3000 left to pay.i pay 230 a month...the house i am buying is 105k and i am putting down 15k..halifax said this was fine even with me having a loan to pay monthly.they actually told that even with the loan they wud offer me a mortgage of up to 150k before the monthly loan payment would be a problem for them.

readytofly

i would rather not work more hours as ill never see my H2B i ithink im just going to have to put up with a commute