Are we likely to get a mortgage?

jetsetgem

Hi All,

I would really like some guidance/advice. Is it likely that we will get a mortgage based on the following?

We plan to buy around December/January time.

Earnings: Me - 28,000 without mileage or bonuses. Partner 16,000 basic.
Savings so far: 10,000 and saving at a rate of £1500 pm.
Partner has £800.00 overdraft.
Me - CC balance £200 and pay off more than minimum every month. Limit is £325.

I had a default on a credit card with HSBC in 2006 for around £500 will this cause any concern?

The ideal is to have no debt on application which should be easily achievable.

We have no other credit or finance outstanding. No children.

We would be looking to borrow around £160K with 10% deposit.

Any advice is really appreciated.

Westminster

I can tell you that if the default date to HSBC was in 2006 then it will no longer be visible on your credit files. Doesn't mean it won't be visible to HSBC through their own systems though - although I have no idea if this will be a problem for them.

maninthestreet

How much do you spend on haircuts each year?
How often do you eat steak?
Do you plan to have children?

nick12

The quick and dirty Halifax affordability thing suggests you could borrow up to £190K.

http://www.halifax.co.uk/mortgages/forms/minicalc/container.asp

As mentioned the default is very unlikely to be an issue and you seem to have your head screwed on when it comes to credit (make sure the OD gets cleared asap as well as the CC). Also in the 3-6 months prior to buying, reign in any frivolous expenditure.

I'm not a broker but if you do as suggested you look to be in pretty good shape to me.

lindens

get rid of the overdraft also

jetsetgem

Thank you all for your replies. The new questions were pre-empted by us and we have made every effort to cut our expenses to the minimum.

We have very little expenditure as living with parents. No children at present, the house is taking priority.

We are 27 and 30 do really want children if we are to say we are not planning do you think the lender will just presume it is on the cards anyway due to our age? That's if we are lucky enough to be able to have children.

pcgtron

If your saving at the rate of 1500 a month and you have an 800 overdraft and 200 on the credit card that you don't clear in full, then the 1st thing you should do is clear both of these in full