Question about mortgage credit checks

ACG

Im stumped as to how a £31k income can only get a £68k mortgage. Ive even had a mess around on the calculator and i can get more than £68k.

Maybe someone who has used virgin money can offer more help than i can.

Edit: Thats understandable, have you read your offer? Does it have a clause saying all debts must be repaid on completion?

What im trying to work out though is why they will only lend you £68k as that will say whether there is an issue on affordability and how likely it is that the debt will cause problems with the offer.

Robinsonandi

It gets us the house we want and we get £400 a month to save so I'm happy with that

Robinsonandi

Not found anything about debts needing repaying. It's just the fact that when we were offered the mortgage we didn't owe anything and after fees and furniture we now owe on CC and got a new one to transfer a balance

Wh05apk

ACG wrote: »

Im stumped as to how a £31k income can only get a £68k mortgage. Ive even had a mess around on the calculator and i can get more than £68k.

Maybe someone who has used virgin money can offer more help than i can.

Edit: Thats understandable, have you read your offer? Does it have a clause saying all debts must be repaid on completion?

What im trying to work out though is why they will only lend you £68k as that will say whether there is an issue on affordability and how likely it is that the debt will cause problems with the offer.

I think it may simply be that they are on an 85% deal? not knocked back on affordability.

ACG

The honest answer is nobody knows, they could do a credit check - they may or may not be bothered about it, i cant help on that as i cant determine why they are not prepared to offer you 90% (unless its down to credit score).

From an affordability point of view you appear to be walking it so i dont think it will be a major problem but nobody can give you the cast iron guarantee you probably want.

Possibly, but they applied for a 90% deal but were then told they could have around 85%? There is something im not getting.

Robinsonandi

We were knocked back from a 90% on affordability. We have a car loan of £250 a week. We also paid off our wedding the month before applying so that CC debt may have been on credit score

Wh05apk

Robinsonandi wrote: »

We were knocked back from a 90% on affordability. We have a car loan of £250 a week. We also paid off our wedding the month before applying so that CC debt may have been on credit score

£250 a week or month?

Now we are seeing the bigger picture.

Robinsonandi

£250 a month

ACG

Call me a dentist!

Its taken over an hour to get that from you.
Ive been trying to work out why theyre offering so little for the income, why would you not just say that at the outset or at any point when ive hinted towards there being some sort of info being missed - you could have saved us both a lot of time.

My answer remains the same, they could do a credit check and have an problem with it as there is an issue with affordability. In which case the solicitor or lender may need to see confirmation it has been paid off. But you may get lucky and it might not get checked.

GMS

You thought everybody got a credit card when buying a house?

Seriously, after having your maximum loan reduced due to affordability?

No real point in saying after the event but what a foolish thing to do. Not only have you risked the mortgage and the purchase but if it is pulled and you can't find an alternative you may well lose your deposit.

Squeaky bum time until the completion takes place.