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MMR - Worried?
blueboy14
Posts: 4 Newbie
Hi, I have a mortgage in principle to borrow £215,000 but am a little concerned this will be reduced due to the MMR and tighter rules?
We've had an offer on a property accepted and need to borrow £200,000 which we could easily afford to repay, however my finances over the past few months have not been particularly stable.
We have approximately £10,000 in savings and £6,000 debt on credit cards, so I was wondering as part of the MMR, would we be seen better to pay these debts off and be left with little savings, or leave it as 'available cash'?
Any advice would be much appreciated.
Thanks
We've had an offer on a property accepted and need to borrow £200,000 which we could easily afford to repay, however my finances over the past few months have not been particularly stable.
We have approximately £10,000 in savings and £6,000 debt on credit cards, so I was wondering as part of the MMR, would we be seen better to pay these debts off and be left with little savings, or leave it as 'available cash'?
Any advice would be much appreciated.
Thanks
0
Comments
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Enter the details onto your selected lender's affordability calculator and see what the new output is.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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We saw a broker this morning and some lenders now wouldn't even lend us what we current owe (a mortgage that we comfortably repay still putting £300+ a month into savings) even if we extended our mortgage term by 10years!! And we need to borrow £50000 more for our house move.
Broker applying for one with skipton building society now.
Lots of luck.0 -
From my understanding of MMR, lenders will now look at everything from entertainment to how much you spend on tooth paste (exaggeration, but only a slight one). If you want your best chances tighten the belt for 3 full months worth of bank statements and spend nothing you don't absolutely need too.
I've seen plenty of good quality Mortgages declined this week.
P.s. All my comments are entirely uneducated and without and backing whatsoever, just my own take on things.0 -
How accurate do you need to be about these figures? If I'm honest I account for my income and outgoings but knowing how much I spend on entertainment or household I would only be able to give a rough estimate, there being the worry of under or over estimating?!0
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*Tea*lady* wrote: »How accurate do you need to be about these figures? If I'm honest I account for my income and outgoings but knowing how much I spend on entertainment or household I would only be able to give a rough estimate, there being the worry of under or over estimating?!
Lenders will scrutinise your bank statements0
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