help please on first time mortgage

digitalphase

Hi all

We went to Halifax on the off-chance to see if it was possible to get a mortgage, after we learned our landlord wants his house back so we had two months to find somewhere else to live. With price of rent through the roof and the fact we finally were settled here, we decided to try and buy so we could stay settled in our own home.

Anyway Halifax did a soft search on my other half and he told her his credit card debts. She said that as Halifax always air on the side of caution and put each credit card debt down as a 5% interest repayment as that is the maximum any of them can charge (despite the fact that most of his cards charge around 1-2%), that he would need to get his debts down so his outgoings on credit cards were £400 or less a month. She suggested a consolidation loan and said he'd get one no problem with his excellent file.

However he was turned down for the loan with Nationwide, and we strongly feel it was due to his ridiculous amount of available credit combined with debts plus the loan he wanted. I take it Halifax couldn't see anything about his available credit on the search, but she did see information on a couch we have through Harveys.

My other half has an excellent credit report minus a 1 late payment (his first ever) last year around the time our baby was born and him not checking a direct debit had been set up. He has always before and after paid on time and never in arrears. On electrol roll etc etc.

We came away with a mortgage promise of £120k. With the money we have been gifted we can get his debts down to the £400 maximum (in reality his outgoings would be around £200 for anything on credit including the single card he'd be left with and tv and couch).

We have had an offer accepted on a place we love. We have been waiting for cheques to clear so he can pay off the remaining debts. This will be done Monday. However we have now been told (which we should have been before) that in order to take the property off sale officially we need to show them a mortgage promise and proof of deposit.

So we are looking at going to HSBC to see if we can get a better rate on a mortgage. We are exploring whether it is worth putting down a 15% deposit or use it to pay off more debts?

Also what are his chances of full approval as just read some stories about Halifax promise going t$ts up and got even more worried than we already are.

The clock is ticking until we are to be homeless and he needs to get his debts paid (Monday) and letters sent out stating he has done this and waiting for credit agencies to update.
HSBC seemed to think that the letter would be sufficient proof to the underwriter that the debts have been paid - is this correct?

Also how long does a mortgage application take to go through as we thought you were instantly approved or declined? That's why we held back making a full application as we wanted to get his debts reduced first.

We have got a solicitor lined up but still need to get survey etc done and really worried about everything and how tight time is :(:(

I want to go on the mortgage as well, but a stay at home mum at the minute with the intention to work from home once we're in and settled.

Any knowledgeable advice appreciated!

digitalphase

Forgot to add that he has reduced his available credit down substantially. I was on at him to do this for ages but he doesn't like talking on the phone so kept putting it off.

If we had known we'd be applying for a mortgage obviously we'd have sorted his files out sooner, but it's all been a huge rush since they told us they want the house back. We thought we'd be here for years as they gave us reassurance when our contract was up that they wouldn't be coming back.

We feel proper screwed at the moment and just hope we can get the mortgage!

digitalphase

help please

Thrugelmir

Hi,

How much do you currently owe in the way of unsecured debts?

Where is the 15% deposit coming from?

digitalphase

After Monday this will leave him with £11,500 on one card at a rate of 1.5% (Virgin).

Then we have two couches (one still paying off a crappy DFS load of !!!!!!) and our new couch, plus TV which will be paid off in a few months. These are obviously fixed payments.

His outgoings on any credit/debt facilities will be less than £200 a month.

The deposit is a mixture of savings and gifts.

He is working his absolute socks off at the moment and on track for the biggest bonus yet, so his wages will look good.