First time buyers - mortgage advice

Emdlincoln

....solved...

Caladan

2 issues - The car finance (£300/month is quite a large commitment) and the payday loans.

Most lenders wont care about the PDLs, especially if they're old and were settled without issues, but from reading this forum I believe some are quite adverse to them.

I've just run a quick 'How much can I borrow' on one of the major lenders sites and it came up with a figure of around £96k. Without the car finance that figure is closer to £120k. I did underestimate your incomes slightly when I did the calculation though, just to be safe.

That is a VERY rough guideline though, realistically I don't think you'll have a problem, but this might be a job for a broker.

ACG

I cant see this being a major problem - presuming the overdrawn is on occasions and following a large expense then i think you will be fine.

Probably best to make sure you havnt been in the overdraft for atleast 3 months but you could probably do this yourself with a bit of legwork speaking to the lenders but it might be more one for a broker.

Emdlincoln

Thanks for replies. I know the car finance will hinder us slightly but my Cambelt snapped and we head gasket went with weeks of each other at the beginning of the year so we decided to go for a new car and not worry about paying for such problems. I've been doing alot of overtime this year which is pretty much covered the car each month, I know it's not guaranteed but I can bring in approx 500 a month more doing overtime.

Pdls were about 2 years ago now, both with the same place both settled with no missed payments or extra charges Ect.

Overdraft was used for car repairs late last year, and not been in it this year.

Thanks again.

amnblog

If you need to dip into the overdraft today, before you have the expense of running a house, you need to think very carefully about costs before you take this step.

C Tax
Insurance
Maintenance
Furniture
Decoration

all needs to be paid for

Emdlincoln

Thanks for the reply, but as I said in my previous post my overdraft was used for car repair late last year and not been used since. I never "dipped" into it, it was used for one off car repairs.

JC509

I think ur car loan is going be a real problem for u. I was in exactly the same situation as u a few months ago. Our joint income was about 31k, the car loan was about £350 per month. Our MA advised us if with the loan we only be able to borrow up t 58K but if we could clear the loan we can get up to 98K. Then we paid back the loan in full, not only we have £0 monthly commitment by pay it back, but also boost up our credit rating a lot. That was with Santander.

btw we had more than 30% deposit.

Good luck

Emdlincoln

JC509 wrote: »

I think ur car loan is going be a real problem for u. I was in exactly the same situation as u a few months ago. Our joint income was about 31k, the car loan was about £350 per month. Our MA advised us if with the loan we only be able to borrow up t 58K but if we could clear the loan we can get up to 98K. Then we paid back the loan in full, not only we have £0 monthly commitment by pay it back, but also boost up our credit rating a lot. That was with Santander.

btw we had more than 30% deposit.

Good luck

Thanks for the reply. Based on a few online calculators we've done. The lowest was 93k and the highest was 113k. Obviously this may be wrong.
We are seeing someone hopefully Friday to see sit down and see what our options could be.

JC509

Emdlincoln wrote: »

Thanks for the reply. Based on a few online calculators we've done. The lowest was 93k and the highest was 113k. Obviously this may be wrong.
We are seeing someone hopefully Friday to see sit down and see what our options could be.

When we do the online calculator, it said we can borrow more as well, but when we went to the branch and actually applying is a different story.

Good luck and all the best!