Mortgage process changes query

veejayteekay

Hi all

I would really appreciate any advice you could give me around this - I appreciate its a bit long winded but prob best if you have all info

My partner and I are first time buyers and have just over £20k saved as a deposit. This is with a view to put down a 10% deposit but we are considering the option of a 5% as well as I think we both are worried that with the money we have trying for a 10% will mean the fees on top of this could cripple us. We have a few questions...

- I have a £200 interest free graduate overdraft from Barclays which I am always in - but I have a steady income of £26k and my partner £25k - is this likely to have a significant impact on being accepted for a mortgage? Bearing in mind that we have been informed our credit check puts us both at "good" and we have no other credit, loans etc?
- What are the main changes to the mortgage application process? There has been a lot said in the media but also some scare stories...what will they actually look into? (For example will they really look through every little bit I spend and on what, or focus on ability to pay direct debits?)
- Is it true that you are sometimes able to add on some of the fees onto the mortgage (or not pay immediately)? If so, is this a reaalllly bad idea?

Thanks!

ViolaLass

If you add the fees to the mortgage, you'll be borrowing more i.e. putting down a smaller deposit.

Have you also considered the different interest rates you might be able to get for a 10% or 5% deposit?

If a 10% deposit and fees would cripple you, what will you do if the boiler blows in the first few months?

Yorkie1

At those tight margins, pay off your overdraft and don't go back into it. To a lender it might look as though you can't manage money if you need to keep dipping into it.

Are you on the electoral roll? Do you have any credit cards &/or mobile phone contracts. It is useful to show responsible usage of the same.