First Direct - Disaposable income percentage

tilly78_2

First direct have approved my mortgage; however they won't give me the full amount I want. They said it ws due to not having enough disposable income available for emergencies.

Does anyone know what percentage of disposible income they work to as i am very confused. The monthly payments were less then my current mortgage and since my first mortgage with santander was taken out 3 years ago i have had a 3k pay rise.

I unfortunately don't bank with first direct therefore they said they couldn't track my long term banking. I have never missed a payment for anything and have good credit history. I do have a few other bank accounts, however these are used to transfer monthly amounts to cover car expenses (this money comes from part of my expenses from work milegage) and for my yearly service charge. I would have thought this would have been good as i plan for expenses.

ACG

I dont know the answer, however 1 lender requests that you have £700 left over after your mortgage repayments and any other regular payments to cover your other bills etc. Thats off a smaller lender though, first direct probably have something more in depth.

It doesnt matter if your mortgage repayments have come down and your income has gone up. If other expenses have gone up too at a faster rate (eg more loans, higher loans etc) then that could be the issue.

tilly78_2

I totalled up all of my regular expenses... mortgage, phone, water, electric, council tax, gym and i had minimum of £775 left over out of my pay.

I do not have any loans, excpet my student loan which i voluntary pay off £15 a month, but do not have to pay this and only £300 outstanding on my credit card! Nothing major! I have no dependants, own my car outright - work milegage pays for all expenses.

If i had anymore money over i would have tried for a larger amount of mortgage knowing i could afford it. Kinder feel a bit deflated without any real explanation. I even managed 10 overseas holidays last year with my current amount of 'disposable income'!!

Thrugelmir

Have you allowed for the fact that interest rates will rise in the future and that your car will require replacement in the future?

ACG

£775 might not be enough for them?
Have you spoken to them about their concerns ask for more information?
was it an underwriter or computer?

To be honest HSBC and first direct have by far the cheapest deals on the market at the minute, because of that they literally have the choice of who they want and the strictest criteria, you dont seem to fall into that criteria.

jaysb

FD offered me just 1.25x salary and I only wanted a mortgage of 2x salary (LTV 33%), thats with a good credit score as well as having a mortgage for over 10 years and also having banked with FD for 15 years. What planet are they on ?. So for me it was goodbye FD and hello Nationwide (banking, mortgage, savings)..simples

Thrugelmir

jaysb wrote: »

What planet are they on ?.

Obviously not interested in your business. Hence the low offer.

They would prefer 60%-80% LTV borrowers.

Dave_Ham

Put some great deals on the market, make them very hard to get and the perception becomes that this is an exclusive brand for movers and shakers (not a technical term)

The reality is that it just winds up a large % of the population and adds to the growing reputation that HSBC/First Direct are pushing their luck - see Countrywide and Preferred solicitor panel threads...

Well done to previous poster who has taken everything to Nationwide who to be fair do what they say they will do, with good rates maybe not market leading...

maninthestreet

tilly78 wrote: »

I even managed 10 overseas holidays last year with my current amount of 'disposable income'!!

Ten holidays??
You haven't told us what your annual income is, nor how much money you wanted borrow or the LTV figure.

katejo

maninthestreet wrote: »

Ten holidays??
You haven't told us what your annual income is, nor how much money you wanted borrow or the LTV figure.

Ten! I have about £800 left after paying mortgage and other bills. No way could I afford ten holidays. I never have more than 3-4 and that includes short weekends away.

The_J

First Direct are idiots. No idea why they get the praise they do.