Mortgage advice

egux478

Hi

My partner and I have inherited £100,00 and want to use it to purchase our first home together. We found a house for £167,500 and began searching for a mortgage for the remaining £67,500.

My partner is in full time employment with a basic yearly salary of £19,000 plus bonuses which vary throughout the year. For example, his bonus in May was £126 yet in June it was £900. He has no debt and a good credit report. He makes monthly CSA payments of £218 to his ex partner.

I am a stay at home mum to our two young children and therefore have no income, apart from monthly child benefit and child tax credits. I will not be named on the mortgage as I have a financial association (loan) with my ex partner that I can not terminate.

After speaking to Natwest, my partner was informed they would lend him up to £69,750 and was sent a letter to confirm their calculation. Following this conversation we put an offer in on the house and had it accepted.

My partner rang Natwest tonight to apply for the mortgage and was told by the advisor that he could not afford a mortgage and they could not lend him anything?! Our financial situation has not changed in the week since we initially spoke to Natwest, so we are confused as to why they can no longer offer us a mortgage.

My partner is looking into other mortgages as I type this but I would be grateful if somebody could explain why this has happened and if it is a normal occurrence? We are so anxious that we may lose the house as result of this

Thanks in advance...

kingstreet

Try different lenders' affordability calculators and see what the outputs are like.

I suspect it's an affordability issue. Maintenance to a former partner and three dependents take a heavy toll on such a low income.

Halifax is one of the more generous lenders, but its calculator is indicating £34,000 maximum. That's not taking any of this bonus you mention into account because it sounds too variable to be reliable.

How long has he been in this job? How many years can he evidence these bonus payments? What are his P60 earnings for the last three years?

Does he have any credit commitments, such as loan payments or credit card balances?

GMS

You providing some of the deposit and not being party to the mortgage will cause issues for lenders.

kingstreet

That's another complication, yep.

Dave_Ham

You need to quickly talk your detailed situation through with a decent broker, not one propped up by an Estate Agents.

I would think there is enough to go at to make this achievable, but really will depend upon the detail.

As above, source of deposit on a single application is likely to be an issue.

All the best

ACG

This is one for a broker as Dave says.
There will be a way forward though... you having a loan with your ex shouldnt be enough to stop you getting a mortgage, unless he is missing payments on it.
But if you are on it, some lenders will accept your CTC etc.