Natwest refused mortgage HELP!!

stinkypluff

Hi,

We've applied for a 1st buyer mortgage, raised a deposit with homebuy (26% deposit) So we're finding a mortgage for 74%. In summary the mortgage is 133K, good credit score, bread winner earns 30K, in addition receive child tax credit etc (Which natwest accept!) and in additional bread winner received a £2,500 bonus every year.

We have a credit card of £4,500 and and outstanding loan of £800 also.

Natwest have refused the application based on: Based on affordability - they won't accept bread winners bonus, infact they will only accept 25% of the bonus and not the full amount! Despite the letter of confirmation from the employer.

If we cleared the credit card and loan totally, do you think this would alter the decision?

If not, what else could it be? We know that this lender is our only options, so we can't exactly "shop around".....

Thanks for reading

DevCoder

Yes, clear your debts as this will improve your affordability ratio.

moblo

Clear debts for sure. I only just about managed to get a mortgage because of a loan I have for my car.

You could weigh up the monthly cost of servicing that credit card and loan vs the cost of more borrowing and a smaller deposit on your mortgage.

poppysarah

stinkypluff wrote: »

Hi,

We've applied for a 1st buyer mortgage, raised a deposit with homebuy (26% deposit)
We have a credit card of £4,500 and and outstanding loan of £800 also.

How much of the 26% deposit is cash in your hand?

Clear your debts off.

PasturesNew

Lenders don't like debts, that's your biggest problem.
Bonuses have never been accepted 100% by many lenders.

You should be getting a mortgage based on: No debts, actual salary only. Bonuses and benefits etc are fleeting occurrences in the lifetime of a mortgage.

steve1980

Are you actually sure you can afford the mortgage? They would be lending at approximately 4.3 times income. That's madness.

drummer_666

steve1980 wrote: »

Are you actually sure you can afford the mortgage? They would be lending at approximately 4.3 times income. That's madness.

A lot of lenders lend at 5.5 times your income.

That's what I can get - not that I'm going to as if I did that I'd have no money left over for social stuff

hazyjo

drummer_666 wrote: »

A lot of lenders lend at 5.5 times your income.

That's what I can get - not that I'm going to as if I did that I'd have no money left over for social stuff

One one person's salary?! Jeez... that's madness. Wouldn't have thought it would be 'a lot of lenders', if any at all. Are you sure that's still the case in 2012 (and not 2007)?!

Jx

ruggedtoast

steve1980 wrote: »

Are you actually sure you can afford the mortgage? They would be lending at approximately 4.3 times income. That's madness.

No, this is madness:



I took out a loan greater than 4 times salary and I have a nicer house than the one I used to rent, and the mortgage is £200 less a month.

:money:

olly300

hazyjo wrote: »

One one person's salary?! Jeez... that's madness. Wouldn't have thought it would be 'a lot of lenders', if any at all. Are you sure that's still the case in 2012 (and not 2007)?!

Jx

Mortgages are now done on affordability not income multiples.
So two people can be earning the same amount but if person 1 goes on paying back debts or they have other high expenses, unlike person 2 they will not get a mortgage.

Unlike in 2007 lenders are actually looking at the figures properly rather than getting brokers to collecting them to pay lip service.

moblo

I was advised by santander to take out a loan from them to boost my deposit. Not all lenders are being sensible