Mortgage application

hazza74

Hi, me and my girlfriend are going to apply for a mortgage, the house we want to buy is £119000, we have £12000 deposit (90% LTV) so we want to borrow £107000.

My girlfriend earns £28000 and i £30000.

My girlfriend has a healthy bank balance, no debt, and has never had credit because she has had no need to.

I have about £500 debts coming out every month, £800 if i include stuff i could get rid of i.e gym membership, sky, virgin, mobile phone etc.
I think my credit score is poor, don't really know why cause i have always paid on time, maybe its due to the fact i have a few things currently on credit, but these will be paid off in a year or so.

We are just wondering if Natwest (my girlfriends bank) would refuse us a mortgage either because of my girlfriends lack of credit or because of my credit so to speak. Plus when they ask for my bank statements they will see that my money depletes every month, but thats with paying for a place of my own (we don't live together yet)

We could definitely afford this but would the bank think so?

Regards

BristolExile

No problem with your joint incomes but £500 in debt payments per month seems high and nat west are quite picky. Are the payments for loans? Credit cards? Have you checked your experian report lately?

hazza74

The debt is for a car on HP and other stuff on finance.

We'll be putting our money together so will have ample to pay Mortgage and bills etc. But will Natwest see it like this.

BristolExile

Only they can tell you but as I've said they can be quite conservative. Might be worth getting some advice from one of their advisors before risking applying, shopping around or getting some advice from a free 'whole of matket' advisor such as London and Country mentioned on this site. They can advise over the phone. Worth doing as a rejected application will not help your cause.

Might be also worth considering how much of your joint net income will be used for debt repayments each month. Over 30/40% would be considered high.

Thrugelmir

Where's the deposit coming from?

hazza74

Thanks, my girlfriend is putting up the deposit.

Wow, just found out that i had a default on my credit file, i know this will effectively end the mortgage application so i chased it up, it was a £21 Bt unpaid bill 4 years ago, ive rang BT and they said they will look into it, just received an email saying i dont owe anything on any account and the default has been unmarked, but its still showing on Equifax.

Will this still affect me? even though there was no debt?

hazza74

Could anyone please advise

chanz4

wait until its removed

kingstreet

The only way to find out if they accept you is to go through the decision in principle process. It will cost you a credit search to find out.

On the affordability issue, enter the details in here and see what you get back;-

http://intermediary.natwest.com/tools/calculators/calculator.asp

hazza74

Affordability issue is not a problem, i guess we will wait a few days as BT says its takes 72 hours for the default to come off.

Stressful times!