Mortgage hunting and credit searches

wierddumpling

Hi all a little info first,

Had an offer accepted on a flat for £99,000, deposit £40,000.

Basic income £14,000pa with additional payments overtime/regular bonus payments of £2,500 pa. This is where I've hit a stumbling block. I have DIP with nationwide but they will not now take the additional payments into account as they will only take the last 13 weeks and not last years p60.

I have zero commitments, no missed payments, no dependents etc.
Property I want to purchase is band A council tax, low maintanance/ ground rent.

I have appointments with Halifax and Barclays (although seeing the Woolwhich thread not sure with this now)

My question is can I get a mortgage on my basic alone (4.2 x) salary and are these good lenders to achieve this. I'm very weary about any credit searches, appointments aren't until next week so have time to keep searching in the mean time.

Thanks in advance.

Mortgage_Mark_2

The problem that you often have with a lower income, is that the basic cost of living that you mention such as council tax etc are a higher proportion of your net income, and as such you can generally not expect to borrow the same kind of multiples of your salary as you would with a higher income, as the house 'running costs' are the same.

Please, please, please speak to a broker rather than going to different banks - multiple credit searches will only damage your chances, and lower your credit score leading in turn to lower mortgage potential.

There might be a chance of getting the mortgage you need, but it will be tight. Speak to a broker and let them help you.

wierddumpling

Thanks for your reply,

Realistically I know the broker route is where to go, will have to start searching after work this evening. I know the impact credit searches will have on my files, which are excellent at the moment, but the only way to speak to their advisors was to book appointments. My plan was to do affordability assessments with them without DIPs to judge likely hood. Both their online calculators say it could be possible, but I take that with a pinch of salt.

Mortgage_Mark_2

The other thing to consider is that brokers have access to intermediary-only lenders, so options that you wouldn't be able to access?

snowscreamer

I agree that in order not to end up with a lot of credit searches the broker route is a good idea, but just to add from my personal experience, the maximum amount allowed from Woolwich (in branch advisor) came up as £201,388 which is the same as their online calculator. She put through an AIP for £200,000 (assumed house value £480,000) which was accepted and then subsequently we were offered this mortgage on a house for which we paid £480,000. So from my experience the Woolwich calculator and Woolwich AIP were almost identical.

Caveat, our full application was submitted and mortgage offered before MMR was enforced. However we did have a 3-hour interview so I suspect we were being assessed under the new rules anyway...

kingstreet

snowscreamer wrote: »

I agree that in order not to end up with a lot of credit searches the broker route is a good idea, but just to add from my personal experience, the maximum amount allowed from Woolwich (in branch advisor) came up as £201,388 which is the same as their online calculator. She put through an AIP for £200,000 (assumed house value £480,000) which was accepted and then subsequently we were offered this mortgage on a house for which we paid £480,000. So from my experience the Woolwich calculator and Woolwich AIP were almost identical.

Caveat, our full application was submitted and mortgage offered before MMR was enforced. However we did have a 3-hour interview so I suspect we were being assessed under the new rules anyway...

... and the Woolwich affordability calculator is "hardening" tomorrow.

snowscreamer

kingstreet wrote: »

... and the Woolwich affordability calculator is "hardening" tomorrow.

I did read that in the other thread... I assume however that their internal calculator and the publically-available online calculator will both be updated accordingly however (as they previously matched)?

kingstreet

snowscreamer wrote: »

I did read that in the other thread... I assume however that their internal calculator and the publically-available online calculator will both be updated accordingly however (as they previously matched)?

Yes. They should all match up with each other and have the same outcome when you apply.

wrkactjob

Their 'how much can you borrow' calculator seems to be working on 5.5 X gross income right now....possibly the most generous lender out there?

http://www.barclays.co.uk/Mortgages/Mortgagecalculator/P1242614685130

amnblog

wrkactjob wrote: »

Their 'how much can you borrow' calculator seems to be working on 5.5 X gross income right now....possibly the most generous lender out there?

http://www.barclays.co.uk/Mortgages/Mortgagecalculator/P1242614685130

More a piece of marketing that something that reflects how the actual figures may work.

snowscreamer

wrkactjob wrote: »

Their 'how much can you borrow' calculator seems to be working on 5.5 X gross income right now....possibly the most generous lender out there?

http://www.barclays.co.uk/Mortgages/Mortgagecalculator/P1242614685130

We borrowed 5.5 times our official income with Barclays/Woolwich a few months ago. And were turned down by a couple of others for the amount we wanted due to their lower income multiples...
Caveat, our actual income is quite a bit higher so not as unaffordable as it sounds, at least in our case.