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Leeds BS application
Comments
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I don't tend to use my credit cards very much at all.
The amount I want to borrow is not even twice my annual salary so hopefully that helps.
As I said the mortgage adviser did seem to think that the overdraft wouldn't be a problem as I never go over the limit.0 -
You have said on another thread that you have 10k of unsecured debts. Mortgage of £37500 is not twice your salary so is your salary around 20k?
Income multiples are a blunt tool for affordability. Lenders will use an affordability calculator. Your 10k worth of debts will be taken into account.
As you are also buying a shared ownership the lender should take any rent to be paid into account. This again will impact on affordability.
If you had a salary of 60k for instance then 10k worth of unsecured debts would not have the same impact as with a salary of 20k.
How much will the monthly rent be? How much do you pay per month on your unsecured debts?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yes 20k.
The rent is £220
I pay £115 on a loan
Owe 2.5k on credit cards
3k overdraft0 -
I apparently do meet the affordabilty criteria0
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Yes 20k.
The rent is £220
I pay £115 on a loan
Owe 2.5k on credit cards
3k overdraft
20k is approx £1330 per month net?
Lender will assume 3% of CC balance as monthly payments so £75 per month
75 CC
115 Loan
220 Rent
410 Total
Overdraft cost will be £50 per month?
You then have approx £870 left from which you would need to pay the mortgage and all monthly living expenses.
It will be tight on affordability. The fact that you have managed to accumulate a 3k overdraft whilst saving to buy will cause concerns. Without owning a home you appear to be struggling (in the eyes of the underwriter)I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hopefully they have already taken that into account when they did the aip and credit check?
The adviser continually assures me that there wont be any issue with the underwriting.0 -
Once I have paid all credit commitments, mortgage and rent I should have 50% of my income left, is this likely to meet afforadability assessments?0
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