Mortgage offer ran out/now declined on affordability

kerryjayne21

Our mortgage offer on a house we are purchasing recently ran out due to an issue with our current property's deeds. We had to fix a problem with an incorrect garage showing on our deeds which took a while to rectify. There has been a huge catalogue of errors for us stemming from the deed errors (which should of been noticed), which involve our solicitor, previous solicitor, housing association (shared ownership) and Santander - everyone has made mistakes.

8 months along and we have just applied for another mortgage. Santander refused to extend our offer we believe because their rates increased, however this was declined today on affordability. We found the new details we had to give on our expenditure rather excessive. It ended up that we had £45 spare a month IF interest rates increased - our adviser at Santander didn't think this was an issue at the time. Our current mortgage is with Santander on the property we are trying to sell, never made a late payment.

My question is can anyone advise as to what kind of level of affordability we need?

The property is a 50% shared ownership at £89975
We have a 20% deposit

We are also wondering what the best course of action would be? We have an extremely impatient housing chain after this huge wait for us, we are lucky they have put up us with this so long so feel the need to stay with Santander as they are the only one who can get this done quickly, without the need to re-apply to another lender.

The options are, which will involve parental help which we would like to avoid:

Increase deposit
Pay off car loan (110 a month) - 4800
Pay off a credit card debit we have been moving between interest free cards - 2400

Any advice would be hugely appreciated!

Kerry

Yorkie1

Please note duplicate post on this board where answers are already received:
https://forums.moneysavingexpert.com/discussion/4062087

Suggest all further comments go on that thread to keep them all together and avoid duplication.