Mortgage advice

bukhaariuk

A decent house in a decent area of my home town costs about £140,000. My parents are willing to give me £10,000 to help with a deposit, could my financing listed below support a mortgage of £130,000 ?

Debt to parents £2000
Tesco CC owing £700 0% till January 2007 than 16.9%
Alliance & Leicester loan £7500 9.9% £157pcm, 52 payments remaining
Morgan Stanley CC £0 16.9% paid off Sep 06
Barclaycard CC £0 flexi-rate paid off Oct 06

Total Income £1100 per month
Essential Outgoings £850 per month (rent, utilities, groceries, loan, car etc)

Member of the NHS pension scheme for 3 years
Stakeholder pension with Scottish Widows (balanced growth portfolio) worth £1900
Shares in BT worth £3100
Savings £630

Many thanks

olly300

What are your essential outgoings without your rent?

_Andy_

What's your gross annual income? I'm guessing with a NMI of £1100ish it's maybe £18k or so? If this is the case I can't see any lender lending you 10+x your income to begin with.

herbiesjp

What is the gross annual salary?
Any overtime/bonuses?

bukhaariuk

Sorry for omitting those details I had posted my details previously on another thread regarding a pension query.

My current rent is £380 pcm

My gross salary is just over £17,000

If I do flog myself I could do overtime worth about £4500 per year gross on top

_Andy_

_Andy_ wrote:

What's your gross annual income? I'm guessing with a NMI of £1100ish it's maybe £18k or so? If this is the case I can't see any lender lending you 10+x your income to begin with.

Note to self: 18 x 10 = 180 not 130

TRACEY12_3

Hi Andy i was wondering if you could give me some much apprechiated answers, me and my partner are planning on getting a 100% mortgage we both have good credit records and have no outstanding debts, loans or credit cards however about 3-4 years ago my partner did get behind in a credit card payment which resulted in a CCJ in the form of a letter being issued it didn't go to court but the CCJ is still present on his reord, it was fully paid off over two years ago and we have been renting for the past two years and have kept up wilth all rent, council tax and other payments, his record has been clean and improving for the last couple of years because of this but do you think this one CCJ will jeapordise our chances of Lloyds bank giving us the 100% mortgage were after of as it was a long time ago and he has proved that he can keep up with the regular payments are they likely to ignore the CCJ? Please inform me as to how the bank maked a decision like this, Many Thanks, Tracey

Cara79

bukhaariuk wrote:

Sorry for omitting those details I had posted my details previously on another thread regarding a pension query.

My current rent is £380 pcm

My gross salary is just over £17,000

If I do flog myself I could do overtime worth about £4500 per year gross on top

Ok, so your gross salary is £17,000. For a mortgage of £130,000, you're looking at over 7.5 times your salary. The norm is about 3.5 times your salary which is nearly £60,000.

With ref to the overtime, this is not gauranteed and I do not think a lender would take this into account.

I honestly do not think you can afford a mortgage of £130,000, especially as you also have debts, which would also be taken into account by a lender and knocked off your available credit.

I'm afraid I do not think this would be possible.

Sorry.

Cara79

TRACEY12 wrote:

Hi Andy i was wondering if you could give me some much apprechiated answers, me and my partner are planning on getting a 100% mortgage we both have good credit records and have no outstanding debts, loans or credit cards however about 3-4 years ago my partner did get behind in a credit card payment which resulted in a CCJ in the form of a letter being issued it didn't go to court but the CCJ is still present on his reord, it was fully paid off over two years ago and we have been renting for the past two years and have kept up wilth all rent, council tax and other payments, his record has been clean and improving for the last couple of years because of this but do you think this one CCJ will jeapordise our chances of Lloyds bank giving us the 100% mortgage were after of as it was a long time ago and he has proved that he can keep up with the regular payments are they likely to ignore the CCJ? Please inform me as to how the bank maked a decision like this, Many Thanks, Tracey

Hi Tracey

I do not know about Lloyds specifically, but I think your best bet is to contact a fee free whole of market broker. There are certainly lenders out there that would lend to you. A broker could look at all of this for you and advise of the best possible course of action.

Good luck

herbiesjp

TRACEY12 wrote:

Hi Andy i was wondering if you could give me some much apprechiated answers, me and my partner are planning on getting a 100% mortgage we both have good credit records and have no outstanding debts, loans or credit cards however about 3-4 years ago my partner did get behind in a credit card payment which resulted in a CCJ in the form of a letter being issued it didn't go to court but the CCJ is still present on his reord, it was fully paid off over two years ago and we have been renting for the past two years and have kept up wilth all rent, council tax and other payments, his record has been clean and improving for the last couple of years because of this but do you think this one CCJ will jeapordise our chances of Lloyds bank giving us the 100% mortgage were after of as it was a long time ago and he has proved that he can keep up with the regular payments are they likely to ignore the CCJ? Please inform me as to how the bank maked a decision like this, Many Thanks, Tracey

Simple answer is some may be able to offer you "high street" rates and others will not.

YOu will need to explain your situation in detail to a whole of market mortgage adviser and let them start some conversations with some lenders, to see if it can be agreed for you at normal rates as opposed to sub prime rates because of the CCJ in the background

HTH

TRACEY12_3

Thanks Guys, so do you think i will get a 100% mortgage im aware the intrest rates may be that bit higher but asl ong as a bank out there preferably the one i currently bank with wont see tha CCJ as a problem ill be very happy.