Never going to get a mortgage?

moremoney27

Hi all,

first post. Just wanted to ask a few things (sorry if it's long). I have been trying for awhile now to buy my first house. I earn a decent wage £35K, my husband is a house husband. I am not buying a huge place (£100,000) and I have a £5K deposit. But I keep getting turned down. My credit rating isn't spotless but it isn't that bad either (I blame my student days :rotfl: ) Anyway when I have asked I have been told it is because I have too many children. The first time I accepted this and then the last time I queried as to what they meant exactly and was told 'you need to have £300 per month diposable income per child after the mortgage and any other financial commitments'. Well I have 4 children so this equates to £1200 spare over and above absolutely anything else. I tried explaining that my children cost no where near that much a month, but they wouldn't budge. Is this normal for a mortgage lender? It was a high street bank I tried who told me this. Are children always factored in in this way and at such an amount per month? I tried seeing a broker but he didn't seem very clued up and kept avoiding my questions about it, and then finally said his system didn't search how much I could borrow taking children into account.

Do any lenders out there not take children into account, or at least at a lower figure do you know? The people the broker was suggesting were Bristol & West, Gmac & Accord for example.

I am not especially bothered about which lender I go with, I just don't want to bother applying again if I am going to encounter the same problem.

MortgageMamma

Hi There
Some lenders do take children into account when calculating affordability. Was it cheltenham and gloucester by any chance?

You are I dont know much about your circumstances but based on what you tell me I cannot see why you should not be able to borrow 100k. Do you receive CB and Working families tax credit? They can also be included in mortgage calculations as can maintenance payments if made through a court order.

Do you have a lot outstanding on monthly credit?

MM

moremoney27

Hi,

yes it was cheltemham and gloucester. I do have about £450 monthly commitments. Also tried Halifax with no luck. Out of all the deals my broker showed me before I liked the bristol and west and accord deals best. Do you know if either of these lenders look at children in their calculations. I get child benefit and child tax credits but that's it.

herbiesjp

Borrowing £95k on your income should be fine as long as there are no other debts in the background

Some lenders do factor children in to their affordability calculations, and others do not

I'm guessing that the adviser is looking at these lender who do not charge a Higher Lending Charge

There are plenty of other options available