Applying now, deposit in April..

bunnyfuller

Hope someone can help me here!!

My husband and I have found a new build we wish to reserve. We've spoken to the mortgage company and verbally they've ok'd things.

We'll have approx 60k from sale of other house and 87k from a redundancy payment. However, this payment isn't due until April time. We wish to borrow 100k, which is 44k more than our current mortgage. I have got work lined up for when I finish in the current job as well as a small pension. My husband is in full-time work too, and an initial calculation on his earnings plus my pension got us to 80k on a mortgage.

Questions (how I am lying awake thinking of all this)

Will any mortgage company let us have this mortgage?

Can we apply now, without the whole deposit actually in place?

Should we go through current lender what can we say this payment is? I mean (and I know this is probably iffy) do we have to declare the impending redundancy? or can we apply with the current status quo and then tell them when it actually happens?

What proofs of deposit do they require in each instance?

I apologise for my ramblings but any straight talking advice very welcome.

Antj29

sorry, you really need some specifics, gross salary, ages ( as you mention pension) over debts etc.

Bottom line, anyone can get a mortgage with a deposit, but how good a deal is down to the variables.

please elaborate with some specific details, or see an IFA for specific advice

bunnyfuller

My husband is 32, I am 39 (oh, caught me a young one!)

He earns 15-16K annually, my pension (ex-forces come April) will be approx 400 per month, index-linked and due to rise to whatever is equiv of 700pcm at age 55.

We have a car payment of 173pcm which finishes in July, and 60 quid a month on a sofa!

That's it - we don't do credit really, the house and car are the only things we borrow for (usually).

thanks so far

ps both have perfect credit score

herbiesjp

It is always better to be upfront with a broker/lender when looking to get a mortgage. The more information they have to hand the easier it is to place the mortgage for you and not have any nasty surprises, should the lender discover something that has not been disclosed.

There are lenders that will accept your pension. There will be lenders willing to accept your new income from day1 ( you have not said how much that will be)

The £233 pm on credit (sofa and car) will mean that your income will be reduced by £2796 to allow for those commitments.

However some lenders will be more flexible due to what looks like a low loan to value - although you have not given the specific purchase price and deposit

HTH

bunnyfuller

Well, after worrying myself stupid since saturday when the application form arrived and reading it made it quite clear that things could get sticky...

I called another lender with an initial enquiry, giving them the bald facts.

The property we're going for is 235, so LTV is only abt 42% with roughly 55k from house sale and 87,000k from my soon-to-be ex-employers.

Having gotten a pleasant surprise from these other lenders (Abbey) and them saying none of it was a real problem, I then called our current lenders and laid it on the line. They're willing to score us on my present salary, and as I am moving into the same line of work don't seem too bothered about the redundancy, said they'd just check later on that I was again in gainful employment. I actually finish work tomorrow, believe it or not, but am paid up until 16 Apr 07!! (Armed Forces). They said stick the redundancy lump sum down as savings.

So, not only is it all seeming ok, but I feel MUCH better having it all out in the open.

Am I right in thinking it is the low LTV that is helping things along?

herbiesjp

The low LTV helps, but in reality it is the whole situation that has to be assessed

I'm glad you called the lenders and gave them the exact facts - as I have said many times before on here, lenders do have guidelines to follow, but where there is a good case put to them, that may be outside of criteria, they will also try their best and be flexible (not all lenders can be flexible however)

Well done