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anxious about applying

I may be overthinking things here, but my fiance has arranged to see a mortgage adviser next week.

we have just shy of £5k saved up and will be looking to apply for a mortgage on a £120k property (we're getting a fair few quid from family aswell to get us up and beyond the 5% threshold). our local authority are involved in a scheme similar to the government's help to buy scheme that's being rolled out in january, where by if you get a 5% deposit, the local authority guarantees 20% to the mortgage provider (lloyds tsb).

my mrs' has an impeccable credit file, but mine isn't as peachy. i have currently about £3600 debt (£1000 of it still interest free) (student overdraft, which was closer to £4500 but i've managed to fire as much money towards it as i can to pay it off). i have one default on my file from a year ago because i stupidly forgot to pay my visa bill on time (now i only owe £500 on it, but will be looking at having that paid off completely by next week (payday)).

our combined earnings are around £27,000. I'm due a 9-10% payrise in the next 3 months, which would take our earnings to closer to £30,000.

we've to take in payslips and ID with us on thursday the get the ball rolling on the application - are they going to perform a credit search there and then or will i have a bit more time to pay for my sins?

her indoors rang me before to confirm the appointment and i'm experiencing what sir alex ferguson referred to as 'squeaky bum time'. we were initially going to wait until january for the gov't scheme, but we don't want to get caught by any anticipated price hikes
helpful tips
it's spelt d-e-f-i-n-i-t-e-l-y
there - 'in or at that place'
their - 'owned by them'
they're - 'they are'
it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)

Comments

  • ACG
    ACG Posts: 24,884 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I have just tried to look at their underwriting criteria both on their website and the software we use - it doesnt mention anything around defaults.

    I think a lot will depend on how they underwrite this - if they view it as a 95% mortgage i would say the chances of it passing are very slim, if they view it as a 75% mortgage then you stand a better chance but i suppose really you can only give it a go.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • brettcta
    brettcta Posts: 4,693 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    they make it more inviting to go for the 5% deposit as the local authority cover you for less if you have a bigger deposit (bank borrows us 75% regardless, so if we get 10/15% deposit, local authority only guarantees further 10/5%).


    'more inviting' is the wrong term. i know what i mean, but can't say it properly
    helpful tips
    it's spelt d-e-f-i-n-i-t-e-l-y
    there - 'in or at that place'
    their - 'owned by them'
    they're - 'they are'
    it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    brettcta wrote: »
    'more inviting' is the wrong term. i know what i mean, but can't say it properly

    A higher LTV will be reflected in a higher interest charge. So there's nothing for free.
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