FTB - will we get a mortgage?

giggsy07

Hi all,

My fiance and I are due to get married on Sat 16th June. We are currently living in private rented accommodation.

Our joint income is approx £65k. We are looking at a house on the market for £215,000 and would be looking to make an offer of around £205,000 with a ceiling of £210,000. We would have a 20% deposit net of SDLT and fees.

I have checked my credit history and is in excellent bracket on both Equifax and Experian. My fiances is likely to be in this bracket also as she has always been very good with her finances.

We are both first time buyers. Would you advise us to go to the bank direct or through a broker such as London & Country? Id we go through a broker will they do everything for us?

I have only recently, i.e. this week, paid off around £5k of overdraft, credit card and car loan debt. I also have an outstanding bank loan with HSBC with approx £10,500 remaining which I pay off at £190/month. Other than that our debt levels are £0.

Do you think we are likely to be easily accepted for a mortgage? Bank details are likely to show I have been in OD recently, however this has now been cleared.

Many thanks in advance for all advice.

Kind regards
Giggsy09

HappyMJ

Always go through a broker you will get a wider range of mortgages to choose from. If you go to your bank they can only offer you their deal of the day with them.

You need to use your savings to clear your debt if the rate is higher than you get on your savings before applying. Wait a month or two for your credit report to reflect this. If the rate on your savings is higher then don't pay off the debt but make sure you have set aside an amount that will clear the debt anyway as it may affect the affordability calculation. What is the source of the 20% deposit?

Wh05apk

You shouldn't have any problem with most lenders with those figures, don't worry about the loan, even with that it should still stack up.

..............and good luck next Saturday!

giggsy07

Thanks both! Fingers crossed. I will give L&C a call.

We are hoping to buy ASAP and so I am happy to hold on to the loan for now, however I have a bonus in April 2013 which I will likely use to clear the outstanding part of my loan debt.

Source of deposit is from savings which balance out about 60/40 in favour of my other half, however obviously our finances will be joint going forward.

ACG

I would definately speak with a broker, if your not happy with what they find you can still go to the bank - but depending on who you bank with its quite likely a broker will beat the deal your bank is offering and if you decide to look at proptection products, they will most likely be cheaper on that front too.