Help - Will we be able to get this Mortgage

Amy22109

Hi,

We have the below debts and was just wondering if you think we would get a mortgage.

My husband earns 35k
I earn 20k

Loans
17000 NRAM - 200 a month
10000 Natwest - 215 a month
7000 Lloyds - 185 a month
380 a month childcare

We are looking to buy a house for 200k with a 10% deposit.

I would really appreciate any help.

Thanks

ACG

If im being honest, i dont think you will.
Thats without running it through any calculators so i could be wrong but thats a lot of debt, to be carrying when trying to borrow so much.

dave333

Go to the main providers of mortgages and use their affordability calculators. The Nationwide calculator for example suggests you could borrow £114k with a £20k deposit... (you may want to check it yourself as there may be additional income/expenditure that you hadn't thought of).

Also work out your own budget and what you think you could realistically afford to pay out on a mortgage. You have quite hefty loan commitments - it may be worthwhile paying down those as much as possible before taking on more debt in a mortgage.

hoggums

Why don't you use that 10% deposit to pay off your debts?

Thrugelmir

Do you currently have a mortgage?

Amy22109

Yes. It is only in my husbands name and we lost a lot of money on it. he overpaid for it and took out the unsecured loan. We've paid off the negative equity till we have broken even.

I have run all the outgoings through a calculator and HSBC have said they will lend us 175K in principle and my Dad has agreed to pay the difference of 5k. The only thing i am worried about with them is that they have a lot of negative press. For example agreeing in principal but then diclining just because they can. We are going to see a mortgage advisor on Saturday so hopefully they will be able to help. Natwest who i bank with have said they will lend us the money but they're rates are quite high. So fed up of the situation. We either move, or i give up work or we pay a childminder £600 a month on top of what we already pay in childcare.

Thank you for your comments!!!

Dave_Ham

I will be amazed if HSBC lend you the amount required.

I think there will be a solution, but you may need to play with the unsecured first.

Higher rates than HSBC's are to be expected here.

Remember that when you call a branch/call centre, they are often targetted on applications.

Good luck

Thrugelmir

Amy22109 wrote: »

The only thing i am worried about with them is that they have a lot of negative press.

HSBC are fine. With your debt levels unlikely they'll play ball. As a very conservative lender.

Amy22109

Dave_Ham wrote: »

I will be amazed if HSBC lend you the amount required.

I think there will be a solution, but you may need to play with the unsecured first.

Higher rates than HSBC's are to be expected here.

Remember that when you call a branch/call centre, they are often targetted on applications.

Good luck

Could you advise how we would play around with the unsecured. I've looked at getting a 95% mortgage and paying off some of the unsecured with the rest of the money but i can't see a mortgage deal that would allow us to do that. Would a broker have access to one that we can't see??

Thrugelmir

Amy22109 wrote: »

I've looked at getting a 95% mortgage and paying off some of the unsecured with the rest of the money but i can't see a mortgage deal that would allow us to do that.

You won't. Any amount of debt will influence the lenders decision.
Banks are contracting their mortgage lending. So will choose the best applicants.