A few silly questions

katesmommy

Hi,

Sorry to sound like a silly newbie but this is the first house I've ever bought/sold so I need to ask some (probably daft to you) questions.

I went on a few websites to check mortgages and was told I could borrow up to 101k with Natwest, 83k with HSBC and around the 90 mark with some others. On some websites the 100k dropped to 60/70k, after I had already been told on the same site I could borrow the higher figure based on income!

My mortgage broker advised Natwest would lend 106k according to their website. I called them and they told me they would lend up to 125k. I then called back on the same day and was given an AIP for up to 155k, this is despite giving the exact same information each and every time.

I am really confused as to why I keep getting different figures even from the same lender?

Also, I know AIPs aren't really meaningful, but we want to borrow 99k and I am worried that when we actually apply for the mortgage we will either get turned down completely, or they will only lend 70k or something silly. What does a mortgage application depend on? Natwest told me it was subject to verifying income (wage slips), credit score and valuation of the property.

Do they mean valuation as in their surveyor agreeing it is worth the price paid, or do they mean valuation as in they will lend more on a cheaper property?

We have a combined debt of £4k on overdrafts (hubbys is about 2600 mine is about 1500) but no credit cards, loans or hp or anything. Will this affect anything? As far as I know our credit scores are good.

Hubby earns 20k basic and 1800 a year guaranteed bonus. I get £974.40 a year child benefit and £2558.40 a year child tax credits. I will be returning to work when our child turns 3 which is why I'm not working atm.

Sorry for sounding daft!

Dave_Ham

The £100k you are looking for (circa) is achievable although the £150k is way off..

Good luck

ACG

Im not sure this will be an easy job.

Your living in a £4k overdraft. Any underwriter is going to question that.

Your incomes maybe just about cover the amount that your looking to borrow - however you dont say what the purchase price is so that could have some affect on the above answer.

As for the valuer question, they send someone round to look at the property and check its worth what your paying for it.

xyellowx

i would pay the 4k off first before you take out a 25 year mortgage

katesmommy

the purchase price is 110k, we're looking at 90% ltv, does that matter at all?

R_P_W

So what do you have in terms of deposit? You need to remember as well that you will need a few thousand extra on top to cover mortgage fees, solicitor fees etc.

I agree with the guys above - i wouldnt want to be applying for a mortgage at the top end of your borrowing whilst being £4k in the red on overdraft.

On the salary alone I guess you get take home of about £1400-£1500? A mortgage for £99k your probably looking at a monthly payment of about £550. So will be difficult to get out of the overdraft with mortgage payment and all the rest of home ownership costs.

katesmommy

We have 11k deposit gifted from my dad, the legals/commission etc are also gifted from my dad.

Income from salary is circa 1350 per month sometimes 1400. Income per month from benefits is about 280.