Mortgage- Any Chance?

poppymylo86

Hello,

Hoping someone can offer some help.

I have had some debt problems in the past which I have consolidated and am now paying off two consolidation loans...one in my mother's name and one in my own name.

Loan in my name: £6300 remaining
Loan in Mum's name: £5200 remaining

Total loan repayments £331 per month
Total salary per month £1365 per month

Combined yearly salary with partner of £38,000 (my salary is £21,000)

When looking at Nationwide's affordability calculator it says myself and my partner based on our debts and salary would be able to borrow up to £125,000 with a £20,000 deposit (gifted by family). We are only actually looking to borrow £105,000 for a house costing around £125,000.

Do I need to disclose the loan in my mothers name on my mortgage application? I repay her monthly by bank transfer but could withdraw cash to disguise this payment.

I also have a 5 year old default with 02 for around £100 which was settled at the time. Will this still count against me in a mortgage application?

Partner has a small credit card debt of less than £500 and an excellent credit rating.

According to Experian my credit rating is "good" and I have recently been accepted for a credit card and the consolidation loan.

So my question is would we be laughed out of the bank if we applied for a mortgage?

Any answers would be greatly appreciated!

Thanks

ACG

Ignore your score, its worthless. Lenders have their own ways of scoring you.

You do not need to disclose the loan in your mums name, but you do need to disclose that you owe that money and the monthly repayments to your mum... it will amount to the same thing but who it is owed to is the difference.

I imagine this should be achievable. I dont know whether its achievable with nationwide but im sure its doable.

dimbo61

What ACG is saying is that you MIGHT get a mortgage but Nationwide may not be the lender for you!
Time to speak to a whole of market mortgage broker and sort out IF you can get a mortgage and WHO is the best lender for you and your partner.

I am NOT a Mortgage Broker and get paid NOTHING for this or any other posts

Thrugelmir

poppymylo86 wrote: »

So my question is would we be laughed out of the bank if we applied for a mortgage?

Lenders are in the business of running a business that lends money not a circus.

How recent were the consolidation loans? As your previous credit history will be very apparent. Won't be helped by you having a totally gifted deposit. As there's no indication that you manage your personal finances well.

If you are serious about obtaining a mortgage you need to get to grips with the way you manage your money. As your combined income is more than adequate for the mortgage. But spending now to pay back later has to be addressed.

poppymylo86

Thanks for the advice about seeing a mortgage advisor.

The consolidation loans are fairly recent - both within the last 18 months and I am still learning to manage my finances responsibly.

Despite my overspending my credit file is not too bad...no missed payments, defaults etc for around 5 years.

We are hoping to start looking to buy mid next year so hopefully by then we will have saved a little to add to the gifted deposit and the balances on my loans will be lower.

Thanks for all the replies!

kingstreet

poppymylo86 wrote: »

the balances on my loans will be lower

Which means nothing, as it's only the monthly payments which are taken into account. Only when the loan has less than six, or in some cases, twelve months to run will it be ignored by the lender.

Kirstyb1987

poppymylo86 wrote: »

We are hoping to start looking to buy mid next year so hopefully by then we will have saved a little to add to the gifted

I don't understand this? How will you be able to save a ''little''. I don't want to sound harsh but its a big bad world out there when you have a mortgage and being able to save a little in 12 months doesn't sound to me like you have taken control of your finances at all.


Maybe you should sort out your debt and then trial run paying a mortgage, bills, council tax and day to day expenses for 12 months before you even think of committing to a mortgage. Open a bank account and put away these amounts e.g. 1000 each month and see how you get on.

Worldly_wise

Hi can anyone offer any advice?
I have recently applied for a mortgage with LTV ratio of only 39%. I have £132k equity in the property already and have applied for 83k. In my most current role I was there for 3.5 years and stable in similar role prior to that. I applied initially whilst in my most current role and got AIP stage and underwriters requiring fee for valuation to commence. At this point I declared I had changed employment to a similar role on 30k (more money than I was on). The mortgage advisor requested clarification from my new employer that my role was not indeed subject to any probationary period to which I have subsequently attained from them and submitted to mortgage advisor. They have told me that they now have all they need and has been re submitted to underwriters for assessment. In summary I have 132k equity and need to borrow 83k. The transition from one job to the next will be seamless and I will in fact be on more money. The lender is my own bank who have evidence of financial stability for at least 10 years and a very good credit rating. Is there any areas which could lead to the application being denied?

poppymylo86

Kirstyb1987 wrote: »

I don't understand this? How will you be able to save a ''little''. I don't want to sound harsh but its a big bad world out there when you have a mortgage and being able to save a little in 12 months doesn't sound to me like you have taken control of your finances at all.


Maybe you should sort out your debt and then trial run paying a mortgage, bills, council tax and day to day expenses for 12 months before you even think of committing to a mortgage. Open a bank account and put away these amounts e.g. 1000 each month and see how you get on.

I was asking for constructive advice not to be patronised!

I currently live in a rented property where I do pay all the bills mentioned along with rent and very much live in the "big bad world". I'm not sure why have gotten the impression I live at home? Trying to repay these debts along with rent & bills doesn't leave me a lot spare each month and what I do have I try to overpay on my loans.