Proof of Ability to make mortgage payments?

jamesbogiant

Hi All,

I am a first time buyer currently looking for a flat in London with my girlfriend. We are both very lucky that we have been left some money by various relatives and can afford 100,000 deposit between us. We have a MAIP for a further 230,000, which by the looks of the market in London we may well need all of it!

My other half is very good with money and has a spotless credit rating I would imagine and manages to put aside money each month. I am not quite as good with money, or haven't been until recently, I live pay cheque to pay cheque. I do not have a ccjs or anything. I have a couple of credit cards and an overdraft. About £3k debt in total (+£9k student loan) with about 60k tied up in a hedgefund which will be used for my side of the deposit. I haven't been paying rent as i have been staying at my parents and giving them money towards food etc.

My question is... How much will they look into my statements to see if I have been making savings/payments when deciding on my ability to make mortgage payments? I'm hoping as our deposit is quite large this shouldn't be an issue? I can easily afford to make the payments with my wage and have already started curbing my spending. I'm just paranoid that we will finally find somewhere and be told that we cannot have a mortgage because of me!

Dave_Ham

Subject to the detail of your case, this is highly unlikely to cause you an issue.

This is all subject to the lender selection and where your money goes each month. For example if betting littered across your account, a lender may take a different view.

I would imagine you will be fine, good luck

ACG

It really depends on the overall picture of the application.

Living at home with hardly any bills and not putting anything aside (even if its just money that you couldnt spend) isnt going to be great in anyones books especially as you are now going to have bills and a mortgage.

However on the other hand if you havnt been going overdrawn then it may not be too bad.

The honest answer is its difficult to say, i would imagine you will be fine with 99% of lenders but you may get the odd one who are very cautious with who they lend to who may decline an application.

shortchanged_2

Have you managed to save any money at all yourself?

If you're living with your parents now and are not saving much that doesn't bode well if you are then suddenly taking on a massive mortgage and all the other various expenses of homeowning.