Single FTB needing advice on MMR and options

Mybrainiscrying

Hi,

I'm a single FTB and would really appreciate any advice with regards to MMR, how it could affect me and sympathetic lenders.

Background: Offer accepted on a place (flat) for £250k and a mortgage offer from Nationwide for £175k to go with my £75k deposit. Unfortunately there has been a delay with the transaction and it's now almost definite the Nationwide offer will expire before completion. No issue with the offer changing/being rejected by seller, but now I have to apply for a new offer with the MMR checks.

According to their online calculator, Nationwide have dropped their max lend to me to about £130/£140k, which is a big drop and a big problem. I've used other lenders calculators with varying but generally low results. The only two I can see that seem willing to lend me what I need (in fact, pretty much pre-MMR amounts) are Santander and Virgin Money.

My income is permanent £43k
My outgoings are typical p/m. Transport is £200, mobile £36, food bills average for a single guy, nothing extravagant. I'm basically a boring single bloke.
I have no debts, loans, court things and my credit is good.

After reading about MMR, I've taken steps to reduce my monthly outgoings to absolute minimum for the three months leading up to a new mortgage application. Not sure if that'll help or they're trawl back further and discover I occasionally used to buy a Bluray or two in my reckless days.

My question/s are really, am I really such a huge risk all of a sudden? Why are some lenders - asking the same questions about my outgoings, council tax, service charges etc - seeing me as a safe lend, and others, especially Nationwide, not wanting to go anywhere near me?

Also, if anyone has advise on other lenders that seem more sympathetic like Santander and Virgin Money, please let me know. I've read some worrying things about Santander on here lately, so more options would be nice, although it appears I'm now in no position to have choice.

Thanks to anyone that chimes in.

Kirstyb1987

I am the same, hopefully putting my application in tomorrow.

I am a single FTB although my boyfriend will be living with me (newly self employed) and I am nervous about the affordability tests ect.. Even though I can quite easily afford the mortgage and bills on my own regardless of any input from my boyfriend.

It's seems single FTB are finding it alot more difficult now.

Good luck and keep us informed as I may be racking your brains (or you racking mine) on how we get on

Thrugelmir

Keep saving and increasing the size of your deposit.

Mybrainiscrying

Kirstyb - Good luck, it'll be a few months before I have to apply afresh once my current deal expires so it's more likely you I'll be asking questions of! Can I ask which lender you're going with?

Thrugelmir, that's the plan but even putting the most I can away per month (£2k tops) the rate prices are rising I'm in an increasingly bad position. I'd be lucky to offset the increases, let alone get a bigger deposit (in terms of LTV). I'd say somethings gotta give with the whole system, but apparently it has no intention of stopping and the government have seemingly no desire to stop collecting the stamp duty so it's all a bit desperate.

Wh05apk

What is your age and mortgage term, because on their calculator if you are looking at a 25 year term you should get well over £200k?

Mybrainiscrying

Wh5apk - Age 36, and I've been looking at 25 and then 30 year terms (longer term seems to increase the amount they'll offer, so I'd likely do that than overpay).

The only factors I can see that are variable (between me and another 'average' single buyer in regards to outgoings), would be the service charge and council tax. Council tax is actually relatively low (about £1100) and service charge is also £1100 which isn't particularly high.

The massive sway with Nationwide and many others seems to come down to the 'other' (or similarly named) field where they ask you about anything else going out. I'd been factoring in about 300 to 400 for this, which is food (so I don't die, I'm keen on the not dying) and all other monthly bills, so pension, mobile phone, internet etc.

To get £200k from nationwide, I actually have to enter £1 as my monthly outgoings (excluding £200 on travel which is a separate cost). I've not shopped at the cheaper grocery stores, but I suspect getting food for a month on £1 may be stretching it even for them.

This isn't me entering the wrong figures in (although what Nationwide consider 'other' is not explained very well), I enter the exact same - in fact much "worse" - figures in with Santander or Virgin Money and the results are more in line with the £200k you mention.

I've heard a few people say Nationwide's calculator is broke, but I've read enough on here and used enough updated affordability calcs online to see a lot of lenders don't want single buyer apps, at least not right now :S

Ryan1983

Hi,

My case is a bit more "bottom end" than your's but still similar. I processed my mortgage application through a MA at the start of April with Halifax, for a property worth £125k. My initial AIP was £145k. Valuation was sift and completed on 17/4... however, Halifax experienced a "technical IT issue" and couldn't process the mortgage offer. 3 weeks later I still have no mortgage offer and over the past 2-3 days been advised that I may have to revert to MMR to get this application through. My MA seemed very apprehensive as she switched another client of hers over to MMR and Halifax reverted with a £53k reduction from the AIP!!! That's ridiculous, right! So, this made me very anxious even though, like yourself, I am a single bloke, very little outgoings etc etc. What do they deem as affordable?! Anyway, after receiving a phone call from Halifax at lunch today, they seem to think that this IT technical glitch will be resolved next friday and my application will be submitted under the old rules! Hurrah! However, I do not trust Halifax as far as a I could throw them and not holding my breath until that mortgage offer is sat on my solictors desk!
It is absolutely farcical that these lenders can move the goalposts at such a late stage! Why change your lend amount when you have gone so far down the line?! Anyway, my personal opinion is to perhaps stick to your guns and get your broker to fight your corner and put this through the old system, as this was when the application was submitted.

Mybrainiscrying

Ryan - I feel for you, hope yours goes through without more issues.

I'm not sure what the individual lenders are using as their criteria for what is or is not affordable, they appear to be all over the place right now.

You've probably read the press (perhaps sensationalist) about things like gym memberships or even haircuts being considered against buyers. Whilst I agree a cost is a cost, I'm not sure it's even close to realistic to theorise someone would put getting a haircut ahead of paying their mortgage, which when you boil it down, is what they're suggesting.

Unfortunately for me, there's little my broker can do. I'm basically sitting around watching my current offer expire, and when it does it's essentially a brand new app and will be treated as such.