Help please: FTB broker or bank? How much can my GF borrow?

paulcalf_2

Please help
MY Girlfriend is a 1st time buyer
She wants to borrow approx £130k
£15k deposit
Earns £34k pa. She is a teacher

Currently pays £199 per month on a car on PCP, debt classed as £12k.
She has a credit card with a £0 balance and £750 credit limit

Credit history: Fair? She hasn't ever missed any payments, but equally she hasn't got much of a credit profile as she hasn't really bought things on credit cards and paid them off etc (I did suggest she started doing this a few years ago!)

She has spoken to a few brokers who are sugggesting she could borrow approx £122k.

Is she best off using a broker or speaking to her bank Lloyds who she has banked with for years, so have better knowledge of her history.

She also needs to secure a mortgage ASAP

Pls help with suggestions

Thanks

Paul

GMS

Amount available will vary hugely from lender to lender.

130k is 4 and a bit times income when loan is deducted (simple calculation). Not all lenders will stretch that far.

Current bank may be worth a chat, if nothing else it will set a benchmark. A broker may be useful from there to see the options available and if a better deal is possible.

paulcalf_2

Thanks very much

How much do they deduct for the loan?

Is it £2388 (12 x £199 pm) or the entire loan amount?

GMS wrote: »

Amount available will vary hugely from lender to lender.

130k is 4 and a bit times income when loan is deducted (simple calculation). Not all lenders will stretch that far.

Current bank may be worth a chat, if nothing else it will set a benchmark. A broker may be useful from there to see the options available and if a better deal is possible.

GMS

The monthly payment will be taken as a commitment. It is not as simplistic as deducting the total from salary but it gives a rough idea.

Try a few lender websites affordability calculators

paulcalf_2

I did try a few lenders websites.

I put in the salary, the monthly debt for the car and they said she could borrow £134k. I'm asking the forum because the broker has said £122k ish

GMS wrote: »

The monthly payment will be taken as a commitment. It is not as simplistic as deducting the total from salary but it gives a rough idea.

Try a few lender websites affordability calculators

GMS

Did the broker recommend a particular lender?

Calculators are fine for getting an idea but they are nowhere near 100%. Credit score can dictate the figures too. High score higher loan.

Also need to ensure criteria is met.

What is the rush? NEed a quick completion?

paulcalf_2

The rush is that she has seen a house she wants to buy & they want a quick completion (I did suggest she sort her mortgage, before she started looking).

Two brokers suggested Coventry, but they won't lend her much. Abbey/Santander said NO. We got her credit file from Equifax & Experian which don't show any problems except not much history of borrowing & repaying.

I'm starting to think it will have to be Lloyds as she has banked with them for yonks!

GMS

Any broker suggesting Coventry having been given the figures and requirement is having a laugh.

3.6 times income after deducting commitments from salary if under 40k income from memory.

Broker may be the way forward here if speed is a requirement. Could save a lot of leg work.

paulcalf_2

I think the Cov broker suggestion may have come before she knew she wanted to borrow £130k.

Just discovered that she cant get an appointment with Lloyds for a week as well!

Thanks very much for the info and help

GMS wrote: »

Any broker suggesting Coventry having been given the figures and requirement is having a laugh.

3.6 times income after deducting commitments from salary if under 40k income from memory.

Broker may be the way forward here if speed is a requirement. Could save a lot of leg work.

Dave_Ham

High income multiples and quick processes, as GMS rightly said Coventry selection must be advised by a joker.

Get her to speak to a proper broker, not the Estate Agent ones.

Cannot comment what C & G may have their sleeves, but worth a chat.

Just remember, no matter what her situation is; they only have C&G products to offer and targets to meet.

See if income fits before they credit search her - if of course you can get an appointment

droiderm

Try Halifax ?