1st time buyer mortgage needed

Hughesy84

Ok here’s the situation.

• House is valued at £180k, price agreed is £166,500 and deposit we have is £20k.
• Combined salary of £45,600

I have an excellent credit record, no problems, no defaults, no missed payments, Only slight issue is I use an overdraft of £900. (Which until 2 minutes ago I didn’t realise would be a problem). I also have £2200 in savings……I earn £28,600 a year

Missus has some small debts (£850 total), however has 1 default which is for a £200 store card. She earns £17,000 a year.

I went to HSBC originally and she informed me I could get the money needed on my own and that I should be fine. However now iv agreed a price on a property she has now phoned and said I won’t be able to get that amount as its more than 4 or 5 times a single salary, despite previously saying id get up to £148k, and also she says due to my overdraft they will more than likely reject it.

Now is there any decent mortgages out there that will take us? :money: 1 small default but 2 decent wages and minimal debts….any mortgage brokers or anyone in a similar position please advise!

Wh05apk

HSBC are one of the pickiest lenders out there, so you would be unlikely to get through, when was your wife's default, as you will need her to be on the mortgage to get what you need.

Your od will make no difference provided you do not exceed it.

Hughesy84

Well she is currently in discussions with the financial ombudsman to try and get it removed...but thats a long story. The debt problem relates to 2009 but the company only added it in March 2011.

Wh05apk

If within 12 months it could cause a problem, however sevral lenders should disregard it given the size, best option to go via a broker who will contact lenders direct and ascertain their policy.

s_glover

Wh05apk wrote: »

HSBC are one of the pickiest lenders out there, so you would be unlikely to get through, when was your wife's default, as you will need her to be on the mortgage to get what you need.

Your od will make no difference provided you do not exceed it.

Are you saying HSBC are unlikely to agree due to the default rather than the overdraft?

My partner and I are about to apply for a mortgage with HSBC. We have an AIP and no adverse credit history, however we have both been well into £1000 oveerdrafts in recent months and I'm worried this is going to count against our application.

Wh05apk

s_glover wrote: »

Are you saying HSBC are unlikely to agree due to the default rather than the overdraft?

My partner and I are about to apply for a mortgage with HSBC. We have an AIP and no adverse credit history, however we have both been well into £1000 oveerdrafts in recent months and I'm worried this is going to count against our application.

Having an overdraft makes no difference at all, provided you have stayed within it, obviously if your bank are bouncing items every month then it will cause problems, but if it's simply a case of using a free overdaft as some banks provide until pay day when you are back in credit each month then it's not a problem.

rwharram16

There are a handful of lenders where you should be able to obtain the mortgage in your own right without the need for your partners income, given the figures in question. The overdraft shouldn't confuse the issue unless the lender wants to see your bank statements (they don't all require this) and you have been over your agreed facility. However, saying that if your partners default is over 12 months old, there should still be a possibility of using her income too.

s_glover

Wh05apk wrote: »

Having an overdraft makes no difference at all, provided you have stayed within it, obviously if your bank are bouncing items every month then it will cause problems, but if it's simply a case of using a free overdaft as some banks provide until pay day when you are back in credit each month then it's not a problem.

Thanks Wh05apk, we've both been using agreed overdrafts and staying within the limits so fingers crossed this won't have a negative influence on the decision.

Hughesy84

Overdraft NEVER EVER been over, £0 debt so no need to ever go over it.....woman at HSBC was convinced it would lead to a rejection!

Any other lenders people would recommend for my situation?

Hughesy84

Wh05apk wrote: »

If within 12 months it could cause a problem, however sevral lenders should disregard it given the size, best option to go via a broker who will contact lenders direct and ascertain their policy.

Any broker you would recommend?

Wh05apk

Hughesy84 wrote: »

Any broker you would recommend?

The best are always from referrals, speak to friends/colleagues/family, on something as important as a mortgage, unless you are experienced, I would always recommend a face to face meeting rather than phone.

What part of the country are you? maybe someone can recommend someone?