Unsure and need advice, newbie!!

katesmommy

.Hi all,

I have just accepted an offer on my house and am ready to start house hunting.

I saw a mortgage consultant at the agency who sold our house and he told us our best option would be to port our existing Halifax mortgage (we have 2 yrs of our fixed deal left and an ERC of £2,729). He told us we would port the remaining mortgage (89k) and then pay a different rate on any extra borrowed. However when I rang Halifax, they said you port the rate not the money, and as such they can only lend us 77k. Tbh I think that consultant had no idea what he was on about!

I contacted a mortgage broker who tried to get us a deal with Abbey but they declined us on affordability. Leaving a footprint on our credit reports also.

We have an 11k deposit (gifted from my dad), and the money from the sale will all go on mortgage, commission and legals so 11k is all we have towards a new property.

I rang Natwest and they said the most they could lend is 122k. They said they won't do an AIP til we find a house and offer on it.

I am confused because HSBC will only lend 83k and everywhere else is well under that! Which makes me worry why Natwest are offering more. We haven't had an AIP from anywhere so I am basing it on their affordability calculators found on websites.

I am afraid to house hunt because I have no idea how much we can afford and I would like the security of an AIP or some sort of definite answer as to how much we can afford.

Husband's income is 20,000 basic per year and 1,800 bonus per year (guaranteed). My income is 3390 per year (child benefit/tax credit). Hubby works full time, I am a housewife.

There are various reasons why we need to move but to be blunt we are desperate to move and there is no point buying a house if it's going to be in a crap area, so ideally we would need to be purchasing a property for about 110k.

I cannot return to work until my daughter is 3, as full time nursery at the nursery she is in would be £700 per month which would eat into all my salary really. We need to move before she is 3.

No idea where to go from here as I don't want to apply all over the place and leave footprints on our credit reports (which are good-excellent)

We have 4k combined on our overdrafts and £360 on a credit card but both will be paid off over the next few weeks, do I need to pay these off before a mortgage AIP or application? Or will they take it into account that these will be paid off by the time the mortgage is released? (my dad is paying these off for us)

We have absolutely no other financial commitments.

So confused and really worried we won't get a mortgage as I know 90% mortgages aren't easy to come by these days!

Any advice would be much appreciated

Thrugelmir

katesmommy wrote: »

I saw a mortgage consultant at the agency who sold our house and he told us our best option would be to port our existing Halifax mortgage (we have 2 yrs of our fixed deal left and an ERC of £2,729). He told us we would port the remaining mortgage (89k) and then pay a different rate on any extra borrowed. However when I rang Halifax, they said you port the rate not the money, and as such they can only lend us 77k. Tbh I think that consultant had no idea what he was on about!

In broad terms the consultant was correct. However they would not know that the Halifax would only lend you a lower amount on the new property.

Thrugelmir

katesmommy wrote: »

We have 4k combined on our overdrafts and £360 on a credit card but both will be paid off over the next few weeks, do I need to pay these off before a mortgage AIP or application?

Most definately yes. Even paying them off will still affect your lenders credit score for some time. As your history is still on file.