Help please with applying for a new mortgage

julia817

Ok will try to keep this short and sweet.

Got divorce last year and sold the family home. Had a mortgage with Santander and all good.

Paid off some debts and have £20k deposit. Currently in rented accomodation from Feb 15th this year.

Looked to buy a house - before old house was sold got an AIP from Halifax for £211K

Now they dont want to know cos Im not a home owner anymore!!!

Struggled to get anyone to lend me anywhere near £200k

Currently earn £45k pa
Have Child maintenece from ex of £600 per month
DLA for child of £290 per month

Credit card debt of £15K (this seems to be a problem).

So what is a reasonable amount I can borrow. My credit rating is goo coming up as 899 with experian - nothing but green on it no defaults etc etc.

Im reluctant to pay anything else off - cos I thought I needed it for depoisut and now it looks like I need to pay everything off and have no deposit!

Also is the fact that I have rented for less than 6 months a real problem?

Is getting a mortgage hard at the moment?

Many thanks

:beer:

macarena123

Have you tried any of the online calculators to see how much they say you can borrow?

I would try plugging your numbers in there to see what comes back. You may be right that the cc debts are an issue - mainly because they will reduce your affordability. If you want to see the difference, try your details with and without the cc debts in the online calculators and see what comes back

I would suggest going to an independent broker who can give you more detailed advice. Plus there are many wise folks on here who do this for a living & can give you their thoughts. But you may need to spend some time reducing your cc debt to get the amount you want to borrow

Thrugelmir

julia817 wrote: »

Credit card debt of £15K (this seems to be a problem).

Major problem in terms of obtaining a mortgage.

Suggest you pay down the debt. Then rebuild your deposit. You may well struggle to obtain a mortgage of the level you require at a 90% LTV though.

Lenders have to assess affordability carefully now. In accordance with guidelines from the Financial Conduct Authority.

Dave_Ham

Not being a homeowner is not the reason for the difference now. Poor broker or poor advisor.

Suggest you engage a decent broker to optimise what you pay off, whilst ensuring you maintain a deposit to protect a good rate.

All the best

Just re-read so on 10% deposit, your options are limited but dependent upon age (and therefore term) and amount of dependent children, £200k+ should be achievable.

Atomix

"Struggled to get anyone to lend me anywhere near £200k"

You have tried to get a mortgage with numerous lenders, If I were you I would go back to them and ask why? Just out of interest - how old are you? And what is the nowhere near figure you have been given?

They take into account lots of things that they didnt use to now - for example how many children etc, that 600 a month for Child maintenance, how old are your kids etc? when will you be able to save that money?

All factors (inc ccard etc)

puregeordie

Thrugelmir wrote: »

Lenders have to assess affordability carefully now. In accordance with guidelines from the Financial Conduct Authority.

Of which most new rules don't come into effect until April 2014

cheers.