Does this sound doable?

musogirl295

My husband is starting a new job soon and we would like to be able to relocate to this area ideally at the end of the year/beginning of next year.

We have had a valuation of £155-160k on our current property and by the end of the year our mortgage should be down to about £142k.

My husbands salary is £45k and I have a self employed income of about £7k. We have one child with no childcare costs. We have car finance of £209 a month and about £3500 on a 0% credit card. By the end of the year we should have about £10k in savings for which we have earmarked £6k for selling and moving costs.

We are hoping to look at properties up to about £180k.

I visited the mortgage advisor at the estate agents that valued the house to get a rough idea of where we stood (when it comes to it we will be shopping around!). He had no 95% products available to him but said that we shouldn't have any problems getting a 90% providing we sold our house for enough.

We have taken out a Nationwide Save to buy account as a back up for a 5% option and I have also seen that Cambridge building society are also doing a 95% mortgage.

The thing that concerns me is that we have one late payment on a credit card at the beginning of last year. It was only a couple of days late I believe and the credit account was settled a couple of months later.

Is this going to ruin any chance of us getting a 95% mortgage?

Ideally we would hope to be able to go for a 90% but would like a back up if we can't sell our house for as much as we'd hoped!

Thanks

musogirl295

bumping in the hope somebody can help

Wh05apk

At 90-95% criteria is very strict, probably unlikely at 95%, although who knows in 6 months time. You would probably do best with a lender like Cambridge, who will underwrite properly as opposed to "the computer says no" type, with the larger lenders.

musogirl295

Thanks, that's useful to know.

Thrugelmir

Are you planning to repay the credit card balance before applying?

musogirl295

Repaying the credit card balance would depend on what kind of offers we get on the house, as higher equity will free up our cash.

The mortgage advisor I saw said that the credit card wouldn't make much difference to affordability as the monthly repayments are small. Would that cause problems with being accepted?

Thrugelmir

Some lenders deduct the amount owed when making a mortgage offer now depending on the financial circumstances of the application. .