What are our chances...? pls help

samjd

I have a few questions;

1. Has the debt to income ratio shifting in relation to the current market?

2. Will they take into account repayment of some debt on completion, however we can prove funds if requested beforehand?


I

Thrugelmir

Completion date is rarely set until exchange of contracts has taken place. Without a mortgage offer your solicitor won't be in a position to exchange contracts.

I would suggest clearing your debts as a priority. Though it may too late.

What mortgage product have you applied for? A few % points increase in base rate would impact on a £350k considerably.

Also your budget looks light.

samjd

Can you please explain 'budget looks light' - thanks

MortgageChallenge2011

Any large mortgage offer will make them double look at the offer. What might be nerving them is the debt you have on credit cards you want to repay before completion. You have £12600 on cards you want to repay but have £13500 cash savings available now in addition to your deposit. Plus you will be keeping nearly £16k on cards.

By the meaning light it looks like there is a lot of surplus per month yet there is a considerable amount of debt.

You say you went into rented at the start of Dec. Minimum tenancies are 6 months so have you accounted for paying up the remainder of the tenancy?

You have probably got the underwriters nervous... if you can remedy now then do it. Good luck.

samjd

Rental - we are serviced apartment and pay monthly and have to give only 1 wks notice.

MortgageChallenge2011

By reading posts on here once a mortgage is declined there is little chance of an appeal.

Now it can go 2 ways..... You can badger customer services to speak to underwriting dept... which can help or can be seen that you are panicking.

Or let them come to you with a decision and take it from there. If its gone to a second underwriter for authorisation they may call you to clarify some info.

Tough call... best regards.

Thrugelmir

samjd wrote: »

Do you have any tips on how I can get to speak to the underwriter dealing with our application, i can't seem to get past customer service.

You won't be able to speak directly to the underwriter. The decision will be based on the hard facts as presented.

Repayment at 4.6% on £357,000 over 25 years is £2,004 per month. So there's £200 missing from your budget.

In 3 years time which your fixed rate ends. You'll have a mortgage balance of around £332,500. If rates rise to say 2%. So your next fix is at 6.6% . Then your outgoings will increase by nearly £400 per month. This is what the underwriter or more probable the senior underwriter to whom your case has been passed will be looking at. How affordable is the mortgage should rates rise steeply.

originalmiscellany

In the cold light of day it appears to be a very tight budget for you. Ouch.

Good process of thoughts Thrugelmir

samjd

The mortgage would be over

Thrugelmir

samjd wrote: »

The mortgage would be over 30yrs ?

From a personal perspective. This merely highlights how far you are stretching yourselves. Rather than clearing your debts entirely from the proceeds of your previous house sale.

Even over a 30 year mortgage term. A 2% rise still increases your outgoings by £414 in 3 years time with a further 27 years to go.

samjd

It's taken us 10wks to get this far, could you recommend a 'fast turn around' mortgage lender ?

Thanks