Getting a mortgage!

leanneq

Hi
Our circumstances are as follows
Me- sold my house last year, currently live with oh in his house. I earn £45k and have 6k on a credit card. Good credit, no defaults etc.
Oh - earns £38k, owns his house but has 2 credit cards in arrangements but are both paid monthly.

We have a 10% deposit and looking up to 250k max. We are not linked financially. Will we be able to get a mortgage just in my name? We'll be looking at max 230k but more likely 210k?
Thanks

Thrugelmir

Is that purchase price or mortgage you are quoting?

If any of the deposit saved is your partners. Then use it to clear the debt. Arrangements to pay will cause damage to his credit profile for some considerable time.

leanneq

Up to £250k purchase price and up to £230k mortgage. We're considering buying in just my name to prevent his credit causing us to be declined. We can pay it off easily once we move. Ours debts are from when we had a house each!

ACG

I think your probably pushing the amount you want to borrow on your income alone. With a 10% deposit under the circumstances i dont think you will get a joint mortgage.

leanneq

Thanks for your help. How much do you think I'd get on my salary alone?

TheMortgageAdviser

You could be looking at borrowing just over 4x your income. You need to select your mortgage lender carefully though as bear in mind the following:

1) All lenders offer different income multiples so you need one who will stretch your income as much as possible.

2) Some look more favourably on credit card debt than others. It isn't a problem that you have a balance on there though just some are more harsh than others in how they view it.

3) Last, but by no means least, bear in mind that some lenders will penalise you on their affordability calculators for having other people in the house who are not party to the mortgage. They "presume" that they are dependant otherwise would be contributing. This can really impact on how much they will lend as your wage is 'watered down' between two of you and your other half's income isn't taken into consideration at all.

Other than this there's no reason you shouldn't be able to get up near to where you want to be. You've done the right thing by keeping your finances separate though.

leanneq

Thank you. We're seeing a broker on Saturday so hopefully they will know what to do. We've purposely kept our finances separate. I am sure that we won't get a joint one.

amnblog

You used the term 'OH' and suggest you are not linked financially so I assume you are not married or in a civil partnership.

If you are some lenders will not lend to you without your OH being on the application.

Picking the wrong lender in those circumstances is a regular mistake made by borrowers.

ACG

I agree with amn and to go back to your previous question, i would say £180k, maybe £200k at a push with your deposit on top.

leanneq

We're marrying next year so no links at all yet! Thanks

leanneq

We're seeing a broker again today. We've found a property, which will require a mortgage of 207000. As I said, no financial links and were not married yet. Fingers crossed I can get the mortgage offer today! So nervous!