First time joint mortgage help would be appreciated

singhr2

Hi there,
Newbie here with 1st post but has been reading on MSE for a while.

Just wanted any advice on whether myself and my partner would be able to obtain a FTB mortgage for a house £98000 with a 10% deposit (half saved and half an engagment gift). We applied for the HSBC FTB mortgage only to get declined.

Applicant 1 Salary: £23400, net: £17500, Credit rating Good
Applicant 2 Salary: £1150 net: £1500 Credit rating Average (had default over 6 years ago, had 1 loan and 1 car HP, both paid off without any missed pmts.


Debts applicant 1 : Loan: £300 (3400 o/s) Credit card1 (850 o/s) Credit card2 (580 o/s) Credit card3 (900 o/s)
Debts applicant 2 :Credit card1 (2500 o/s), Credit card2 (1600 o/s), (680 o/s) Credit card4 (150 o/s)
Would it be better to keep applying directly to banks or via a broker. Could anyone advice if the chances of us obtaining a 90% are good. Any advice would be greatly appreciated.

Regards

Rob

Gary123456790

Hi,

A broker will be your best bet as your debts are quite high relative to income at around 25%.

HSBC are able to cherry-pick at the 90% level therefore your debts would count against you even if you have always paid them on time.

High credit card debt could say to a lender that you arent able to manage your monthly expenditure and therefore live off your plastic.

Have you budgeted for solicitors fees, any mortgage fees, survey fees, etc?

What if the boiler breaks just after you move in?

Would you lend you £90,000?

Gary.

singhr2

Thanks for your reply Gary,

We have put aside £2000 for all the solicitor fess, valuation etc.

We have also took into account builings/content insurance, council tax, elec/gas/water, boiler cover etc.

I currently live with parents paying £350/month, partner has been renting at £395/month + bills which comes to approx 600/month. So the affordibility factor for mortgage and bills/shopping will not be an issue. In fact we would both actually be better off each month with the purchase.

We currently pay more than the min on credit cards and have not really spent on them, the loan was for my partners Educational course, which will be paid off within 12 months.

Will take you advice and talk to a broker.

Regards,

Rob