Mortgage offer too low ...

pinkladyjune11

My husband & I are buying a house and need a mortgage of at least £111,000 (ideally want £117,000). We have been through whole process with ING only to be told that they will only lend us £102,000, due to husband's £20,000 loan & credit card debt. I have no debt. Salaries are £22k and £24k

I am guessing the ING offer is low because they are new to mortgage business - online calculators for other mortgage companies offer us much more.

So my question - does anyone know which mortgage companies (with good fixed rates) are more likely to offer us what we need??

We have an agreement in principle with Nationwide - are they more likely to offer what we need?

many thanks for any advise.

Rick62

I would have thought most lenders would lend what you need, based on the details given. If Nationwide have given an AIP then that means they are happy to lend (subject to verifications), you might also want to speak to a broker to see if there are any better rates available.

danjberry

how much is the credit card debt?

Cardinal-Red

Perhaps ING's offer is 'low' because they're taking a more responisble attitude to lending than some of the other mortgage providers...?

tigerminxy

pinkladyjune11 wrote:

online calculators for other mortgage companies offer us much more.

Do these online calculators also take into account your husband's £20k debt? You might find when you actually apply for a mortgage that other lenders will feel the same way as ING.

pinkladyjune11

Cardinal-Red wrote:

Perhaps ING's offer is 'low' because they're taking a more responisble attitude to lending than some of the other mortgage providers...?

Thanks every one for advice. Credit card debt is £7500. I have to say though that giving us a mortgage is not 'irresponsible'. We are currently paying over £900 a month in rent, compared to paying £650 a month for the mortgage when we buy. We have stable jobs and my husband's debt is under control (being paid off gradually). Sorry, just wanted to put the record straight - feeling rather victimised and stressed at the moment due to mortgage problems!

pollyanna24

When we applied for our mortgage with Nationwide, I think we were both on £25K. And they offered a mortgage of around £230K I think! We only took £185K though.

wacko911

IMHO I dont think anyone was intending to insult/stress you.

Lenders will look at your disposible income. With 20K of other debit even if your only paying the very minimum 3%, thats £600 a month less income. I assume you are paying a lot more than this, which would like paying 2 mortages every month.

£900 a month in rent - OUCH! I can see why you want to buy. Dont forget if interest rates rise that £600 you will be paying on your mortage will soon increase.

I would suggest trying to get the 20k debt down, and throw every spare penny you have at it. And dont be tempted to add it to your mortage, it will just cost you more in the long term.

Another tatic would be if your on a good salary, see what you would offered if you are not finically linked to husbands debt. Some lenders are offering x5 salary - 5x24k might be what your after.

There is some great advise over on the debt free wannabe forum.

Cardinal-Red

pinkladyjune11 wrote:

Thanks every one for advice. Credit card debt is £7500. I have to say though that giving us a mortgage is not 'irresponsible'. We are currently paying over £900 a month in rent, compared to paying £650 a month for the mortgage when we buy. We have stable jobs and my husband's debt is under control (being paid off gradually). Sorry, just wanted to put the record straight - feeling rather victimised and stressed at the moment due to mortgage problems!

Just to repeat Wacko, my post was not to imply that supplying you with a mortgage specifically would be irresponsible.

My point was that banks have their own lending criteria and limits, and some of them, in my personal view, border on the irresponsible - banks offering 5x salary mortgages, interest only with no insistence on a capital repayment vehicle etc.

ING have assessed your affordability and decided that for them, they're prepared to take the risk of lending you £x. Other banks will probably decide to lend you £x + £y, but as y gets higher, the risk gets higher, and eventually will become irresponsible.

It doesn't follow from my post that lending you what you need would automatically be irresponsible. Indeed I would never make such a statement without knowing you and your circumstances in much greater detail than I do now.

My post was on the whole issue of bank governance and corporate responsibility, rather than any reference to your own circumstances

pinkladyjune11

Cardinal-Red wrote:

Just to repeat Wacko, my post was not to imply that supplying you with a mortgage specifically would be irresponsible.

I appreciate that you didn't mean it personally and understand your comments. I am just rather frustrated and worried with the whole mortgage situation, so my response probably sounded more 'snappy' than was intended - sorry!
We are aware of what we are doing, and are not taking on more than we can afford (even if interest rates go up further after fixed period ends). Loan will be paid off in 4 years. Credit cards should be cleared within next 2 years.
Thanks for advice everyone - just hoping that it all works out now!

learntmydebtlesson

Hi

Firstly, it's great that you have been offered a mortgage, I too am currently very stressed about the whole mortgage thing and in a similar situation to you. I have 20k of debt and my OH has none. We have a mortgage meeting arranged at the end of the month with Britannia and I am so scared of being rejected. So well done for being offered, even if this is too low for what you're looking for.

How much disposable income do you have over each month? Perhaps that's something that you could look at to increase this? Just a thought. And have you a deposit?

Perhaps you could arrange some meetings to discuss your current salaries, debt and expenditure with high street lenders rather than going through the mortgage in principle route, which may add a mark to your credit file as being searched and as I believe it, they are fussy if you have too many of these.

As for online calculators, I too have used these and one site ses that it will lend £185,000 and another £105,00 so I personally find them really inconsistent, that's why having a chat with a mortgage advisor is perhaps the best way forward for you.

Have you produced a spreadsheet of all your outgoings and expected outgoings, sometimes a good way to show lenders that it's affordable..

Hope this helps in some way and good luck, you'll get there. :rotfl: