New Mortgage Advice - Not First Time Buyer - How Much Can We Borrow?!

beecher2

https://forums.moneysavingexpert.com/discussion/3040336=
Do you still have this mortgage?

diamondeye_2

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kingstreet

How long left on the loan? 21 months (ish)?

Any other children/dependents, or is the unborn your first?

Any previous mortgage payment or credit problems?

Talk to us about the maternity situation. If you aren't working, you're classed as a dependent, pulling down the borrowing power. Are you eligible for OMP, or only SMP?

Why mortgage in his sole name? Do you have any joint accounts/loans/cards?

I've just had a play with the Halifax affordability calculator. The credit card debt and the loan added together "taxes" you £593 per month, so a single applicant with one dependent child gives;-

Lowest score "C" pass = £78,000 (£122k)
Middle score "B" pass = £83,500 (£131k)
Highest score "A" pass = £89,000. (£140k)

for a 25 year repayment mortgage.

By adding you to the mortgage, with zero income input, these maxima fall by around £40,000 to just £35,000 for the lowest pass at grade "C."

Having the card debt and you being classed as a non-earning dependent is costing you big time. I agree with the earlier suggestion to repay as much of the credit card debt as you can before you start the new mortgage (saying you'll pay it off before completion when you apply will be enough) and this improves your borrowing power drastically. Without the card debt, the red figures apply.

Having no card debt, a medium B score would mean you could apply jointly and borrow upto £85k, even with no income for you.

There will be other options open to you. The Halifax affordability calculator is simply the easiest to play around on.

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

diamondeye_2

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diamondeye_2

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diamondeye_2

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kingstreet

diamondeye wrote: »

Can we find out which band he would be using the credit reference agencies?

No, you can't. That's the Halifax internal scoring system result. You could go through the mortgage promise application with them. It only leaves a "soft footprint" which can't be seen by other lenders.

That would leave you with a fall-back position if you can't find a better deal with another lender.

Being an existing customer can help the score increase.

Ulster Bank? Are you planning on buying in NI or on the mainland?

diamondeye_2

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kingstreet

Ok. So a mainstream lender should be fine for you.

diamondeye_2

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