Moving House - New Mortgage

DanDan123

Hi,
I am looking for some advice, so i have come here!

Applied for a mortgage today with HSBC (in principal) and was agreed, but for far less than i need.

I am looking to borrow £225,000

Have a good credit history, with no missed payments
Partner has a good credit history, with no missed payments.

Both have good jobs (within the last year) and have a combined income of £100500 pa.

The problem is (predictably) outstanding credit cards etc.

I have around £15,000 outstanding and around £500 per month on two loans

Partner has around £8,000 outstanding, and around £140 per month on one loan.

We have just sold our house, and are looking for a 90% mortgage.

Clearly, in an ideal world i would have been able to clear most of the debt before applying, but the reality is that isnt possible.

I am intending on seeing a broker to look at my options, but before i did that, wanted to see if anyone was able to offer any advice on here. Do you think this will be possible with any lender?

Thanks

Dan

DanDan123

No Brokers out there with any thoughts on this? *worried* :-(

Dave_Ham

Do not be worried, unless you are seeing an Estate Agent broker.

HSBC are incredibly selective at 90%, but you will be able to achieve a mortgage on fair rates...

Best of luck

Thrugelmir

DanDan123 wrote: »

Both have good jobs (within the last year) and have a combined income of £100500 pa.

Then why the debt problem? (not my question but an underwriters).

Were the loans taken out to consolidate other unsecured debts?

kingstreet

Is the income flat/basic salary, or is a chunk of it variable/unguaranteed, like bonus or commission?

Assuming the former, you should have no problem with the amount you need. Even after deducting £16k for your credit commitments, you still only need just over 2.5x your joint incomes.

DanDan123

Thanks for the replies.

All salaries are guaranteed, and doesn't include any bonus. There are additional monies from bonus, but hasn't been included in my calculations.

HSBC did give me an agreement in principal, but was for about 35k less than i need.

harvey115

DanDan123 wrote: »

Both have good jobs (within the last year) and have a combined income of £100500 pa.

Did you by any chance put in an extra 0 by mistake in your income?

If that is the income, the outstanding debt would be no problems and you should also have the ability to raise further deposit very easily.

DanDan123

harvey115 wrote: »

Did you by any chance put in an extra 0 by mistake in your income?

If that is the income, the outstanding debt would be no problems and you should also have the ability to raise further deposit very easily.

No, our joint income is one hundred thousand and five hundred pounds pa.
And the intention is to pay off the Credit cards etc, and use the money we already have for our deposit.

Thrugelmir

DanDan123 wrote: »

HSBC did give me an agreement in principal, but was for about 35k less than i need.

Did that equate to the total amount of unsecured debt you owe?

clairvoyant_vagabond

DanDan123 wrote: »

Thanks for the replies.

All salaries are guaranteed, and doesn't include any bonus. There are additional monies from bonus, but hasn't been included in my calculations.

HSBC did give me an agreement in principal, but was for about 35k less than i need.

It's bit perplexing. I got MIP from HSBC for much higher value than you've quoted and my salary is just little over half of your combined.

Please check your credit report- answers should lie there!

Good Luck!

GMS

clairvoyant_vagabond wrote: »

It's bit perplexing. I got MIP from HSBC for much higher value than you've quoted and my salary is just little over half of your combined.

Please check your credit report- answers should lie there!

Good Luck!

What was your Loan to Value? How much unsecured debt do/did you have?

Many factors in an affordability assessment, not a case of income multiples alone.