Someone to share the worry!

natjscofield

Hi everyone.

I've posted once before about our situation (first time buyers) but I've been a long time reader.

I'm off to Natwest tomorrow to see what they'll offer us but I'm quaking in my metaphorical boots. I now understand why buying a house is considered one of the most stressful things you'll ever do. I'm sure everyone else felt just as nervous!

I'm more concerned that we're going to be declined. Not a particular reason to why I'm thinking that but I'm rather pessimistic and always seem to think the worst. Were others like this?

Earn £28,605 gross between us, plus £3k a year tax credits although I don't imagine they take that into account.
I pay £29 per month back on a loan of £1,000 borrowed last year. I spent the money on a car and driving lessons. Never missed a payment. My husband pays £140 a month on his loan. He's had it a long time and it ends in 2016. Again, never missed a payment or paid late.

Same goes with bills, phone, car insurance etc.

What I'm really concerned about is that recent months (since June maybe) any spare money I have has been spent. Reason being our daughter's birthday is 4 weeks before Christmas so I do both birthday/Christmas shopping throughout the last part of the year. I've now finished buying everything but I'm conscious that they'll think because I haven't got much more than £20 left in my account the day or so before payday that they think we can't afford a mortgage.

We know we can afford it, especially with my daughter getting 15 hours free nursery from January but I'm panicking that they'll see otherwise. We pay £450 a month in rent as it is so we're used to paying that amount and could afford an extra £100 or so on top of that so a monthly mortgage payment would be fine.

I know I'm probably being silly but it's the first time I've been through this and unfortunately for me worrying like an old lady is exactly what I do best.

Any advice or words of wisdom to calm my nerves?

Please and thankyous all round.

Jimbo1976

Take along proof of as much as you can, proof of tax credit, letter from daughters nursery, payslips, bank statements, passports, utility bills (for proof of address), details of loan balances etc

Don't worry too much about how much is left before payday. If you are in credit then you are managing your finances properly.

Unless you have had poor credit in the past (ie missed payments, CCJs, defaults etc) then they won't decline you. However they may not give you the size of mortgage that you are after. If that's the case speak to a mortgage broker who may be able to help. They deal with lots of lenders not just one and will know the best place for every client.

Is there a reason you're going to natwest? do you bank with them?

If you are worried about what they "sell" you, then come back on this forum over the weekend and tell the MSE community. there are lots of people on here who answer questions.

Good luck, come back and tell us how you got on

natjscofield

Jimbo1976 wrote: »

Take along proof of as much as you can, proof of tax credit, letter from daughters nursery, payslips, bank statements, passports, utility bills (for proof of address), details of loan balances etc

Don't worry too much about how much is left before payday. If you are in credit then you are managing your finances properly.

Unless you have had poor credit in the past (ie missed payments, CCJs, defaults etc) then they won't decline you. However they may not give you the size of mortgage that you are after. If that's the case speak to a mortgage broker who may be able to help. They deal with lots of lenders not just one and will know the best place for every client.

Is there a reason you're going to natwest? do you bank with them?

If you are worried about what they "sell" you, then come back on this forum over the weekend and tell the MSE community. there are lots of people on here who answer questions.

Good luck, come back and tell us how you got on

Thank you, you've really helped.

Yes - we bank with Natwest so as a first move we thought it would save having to collate bank statements. We've looked into getting a broker and my dad's offered to pay for us to use the one he went with which is lovely. Just got to book an appointment if this all goes pear shaped.

I've had an instance this month where a direct debit (which was actually cancelled - gym) went out even though it was cancelled. I looked that same day and noticed I was overdrawn (no overdraft though) by a tenner so put some back in from my ISA. Bank say this is fine as I noticed it straight away so hopefully the mortgage people agree. Gym are refunding me.

No defaults, CCJs etc. Clean credit history. My score isn't great but I've not had a lot (being 21) that actually boosts my credit until that loan and phone contract so it's building up. I'm classed as 'good.' I understand they don't take the score anyway, but instead take the 'contents' of the reports.

I suppose I'm just worried.

natjscofield

We're hoping to borrow £115k but I think thats unlikely.
Would be happy with borrowing £90-95k.

Keekles

There are first time buyers that would dream of being in your position; and brokers that would probably dream of having you as a client!

On the face of it, you haven't got anything to worry about as far as I can see. As Jimbo mentions; take everything you can - it's best to overload a broker / branch consultant with information that's relevant because it paints a clearer picture from day one.

Best of luck and by all means let us know how you get on. I'm sure you'll be fine

Let_Us_See

You can take your whole life history, but if the computer says no.........!

Best of luck.

Thrugelmir

natjscofield wrote: »

I pay £29 per month back on a loan of £1,000 borrowed last year. I spent the money on a car and driving lessons. Never missed a payment. My husband pays £140 a month on his loan. He's had it a long time and it ends in 2016.

Where's the deposit coming from?

natjscofield

Thrugelmir wrote: »

Where's the deposit coming from?

Hi everyone, thanks for the replies.

In response to the above: we've saved for the last 4 years or so. As you can see we have small incomes and not a lot to save. £10-£20 every month and the gold coins sitting in our purses/wallets have all gone into out saving pot. Christmas/birthday presents have always been money from family as we made it clear that above all else we want to buy a house so they've all just stuck that in our savings too.

It's currently sitting in my grandma's ISA because her interest rate is better than ours and it means its out of sight/mind if we ever felt we needed to withdraw from it.

When our daughter has outgrown toys and clothes I've sold them on and put that towards it. We sold our old car 2 years ago and bought a cheaper one so they difference also went in to the pot. Just general saving really.

natjscofield

Just to clarify on the loans too - (in case people thought we used that for the deposit) my husband had a car on finance at 18 years old. He subsequently crashed into a tree (idiot, I know, nobody was hurt) and wrote it off. He then got a loan to repay the finance off and has been paying back the loan ever since.

Mine, like I said, paid for driving lessons, a car and some of my insurance. I was considering using our deposit savings to do it instead but a family member suggested it would be better to borrow and pay back a small amount to build up my credit history as previously I'd never had any credit card, finance etc. I used to be on pay-as-you-go so didn't even have that in my favour.