Dispondant FTB

foolishqueen

Hi All,

I need some guidance. I have been to see a local broker and I'm not sure how helpful she is being, or whether I am expecting too much.

My details are as follows:

Annual salary - £24,250
Annual OT (regualr but not guaranteed) - £3996
Loans outgings per month - £390 (unsecured borrowing at circa 20k)

We are looking at a house tomorrow on at £98,500 - am I kidding myself?

NR came back and due to a low credit score would only lend max around £105k - this assumed the unsecured part paid off my debts eaving 85k ish for a house.

I have no missed payments or anything like that so I asume its my debt to income ratio that brings my score down.

She then went off to get an AIP form Accord, but they said they would only lend 93l ish at 95% - but I thought they did 100% mortgages which I would need? I have asked her to check this and get back to me.

At theend of the day, I know that waiting is the most sensible thing to do, but then again I can't wait forever.

Am I just deluding myself? Or does anyone know of a lender who can acocmodate my borrowing requirements? Maybe I need to see another broker?

Thanks for reading.

AndrewSmith

The thing that is affecting your mortgage-ability is the £390 per month on the loan payments.

This is having the effect of reducing your guaranteed income useable for the max lending calculation by almost £4,700.

This then in effect means that you have guaranteed 'mortgageable' income of £19550. The majority of lenders will use 50% of non guaranteed overtime as long as it is regular thus in your case increasing your mortgageable income to approx £1998 + £19550 = £21458.

The amount of loan payment will also have an impact on any affordability calculation, reducing the amount you can borrow. It will also depend on the conduct of this loan and other credit accounts, counting towards your overall credit score.

The figure of £93,000 reached by Accord represents just over 4.33x your income which, to be honest, is a realistic amount to be basing your maximum borrowing on.

Ask your broker on what basis she arrived at the recommendation for Accord bearing in mind that they are particularly inflexible when it comes to income multiples.

Andy

foolishqueen

Hi Andy,

Thanks for the response, it's appreciated. I know you are right, it is just so annoying - I have no one to blame but myself for my finances, and it is going to hold me back

Looking on the Accord intermediary website (I know I shouldn't!?) based on my income, and were I to take a 5 year fix, they say they will use an income multiple of 3.75 regardless of credit score. They also say they don't take into account loan repayments, which by my calculations take a the mortgage figure to about 98k.

Splitting feathers maybe, I just wonder why the broker did not come back with this? I'm probably missing something though!

No idea why she suggested Accord - it is something to ask. I was looking foreard to the house viewing tomorrow, but now I'm not. You can guarantee I will go in, love it, and it end up being a few grand out of reach......

Cheers,
David.

herbiesjp

Other ways of maybe getting increased amounts would be if you qualified for graduate or professional mortgages.

Have you looked into those options?

Is the income figure you quote a joint income, or is there only one income to take into account?

MortgageMamma

IMO Accord are the carslberg of lenders. If they won't do it - there won't be a lot that will on a decent rate. Personally if I was your broker I would be looking at someone like freedom lending - but the NR offer wasnt so bad - if you like that house, put a silly offer in of 85k, you never know they might accept. alternatively you could look at cheaper properties with a lot of "doing up potential"

You will find the right one eventually so don't rush into anything!

sarah_elton

Bit confused about whether that income is single or joint - it sounded like yours alone then you said "we" are looking at a house tomorrow.....?

I know it's frustrating, but are you sure you could buy (assuming you can get the mortgage) and not get into further debt? The cost of buying and moving can be in the region of £1-2k, and on top of that you may need to buy a lot of expensive household items, depending on what you own already (not sure if you're renting currently or living at home?). I bought my first place earlier this year and had been renting, but with all the costs plus a washing machine and sofa (only things that weren't mine in rented) and a few other bits, the total cost was around £3k (I can give you a breakdown of that if you want).

On top of that bear in mind it's a good idea to have at least a thousand aside for house emergencies - you might have to fix guttering, or replace a boiler with little to no notice.

Not trying to make you feel worse, just want you to go in prepared....

AndyWallace

MortgageMamma wrote:

IMO Accord are the carslberg of lenders.

Don't think Accord will do 100% on low credit score applications.

Andy.

foolishqueen

Hi

Thanks for the replies. It will be sole mortgage on just my income. My partnet does not work!

I though Accord did do 100% mortgages on their fixed products - but are they withdrawing them all as of Monday? My broker came back sayinhg they would lend my 95% - I have some money saved up but it still leaves me £3.5k short.

Am I doomed?

AndyWallace

foolishqueen wrote:

Hi

Thanks for the replies. It will be sole mortgage on just my income. My partnet does not work!

I though Accord did do 100% mortgages on their fixed products - but are they withdrawing them all as of Monday? My broker came back sayinhg they would lend my 95% - I have some money saved up but it still leaves me £3.5k short.

Am I doomed?

Where's that smiley where he bangs his head against the wall?

NR is your best bet, listen to your adviser, it sounds like an AIP has been carried out already and Accord have limited you to 95%.

Andy

MortgageMamma

AndyWallace wrote:

Don't think Accord will do 100% on low credit score applications.

Andy.

I am aware of that you plonker Future mortgages would do it but income mults are low low low...

foolishqueen

Ok I get the picture! Thanks for the replies everyone. Maybe I will just have to accept that I will have to wait a biyt longer.

Cheers.