Likelihood of acceptance?

dpowell3

Good Evening,

I have a viewing on a property Saturday and although I've only seen the pictures thus far will probably be making an offer (it is a steal).

The property is currently on the market for £83k however have been tipped off that the vendor would accept £80k.

I have 10% deposit so therefore require a 90% mortgage.

My current wages are £19,000 p/a (rising to 21k in april) and have been to Natwest today who have given me a decision in principle based on borrowing 72k.

My only two worries are;

1) Credit Score
- I have one financial associate which I am currently awaiting for Experian to remove (equifax have removed it).
- I have had a number of credit cards in the past, with one late payment in 2012 however have one credit card where I have been making only the minimum payment each month.
- My total debts - credit card/overdraft were £5600 which has now been paid off so am waiting for this to be updated with the credit agencies before making the offer and applying for the full offer.

2) Overdrafts

- I have had 2 graduate student accounts (one with Natwest) with £500 interest free overdrafts on each
- I have been in and out of the overdrafts throughout the last year however have been paying off my credit cards as I thought this was more important than paying the interest free overdraft off.
- The two overdrafts have now been paid off and I have removed the overdraft facility.
- Again I am currently waiting for this to be taken into account on the credit report before making a formal offer / apply for the full mortgage offer.

On the basis of the above information what do you think are my chances of acceptance? I appreciate it is a guessing game at this stage as I don't know what the lenders criteria are but I would love some feedback.

I am most worried about the bank checking my previous bank statements, it doesn't look good but if you really look into it I have been paying £500 on bills and rent each month then making anywhere between £300-£500 payments on my credit card each month.

Thank you.

stator

I'm pressuming you don't have any dependents etc but you're at the top of the range of the amount they will lend on your income. Some banks don't actually want to see recent bank statements. With your finances a bit complicated with recent CC payoffs etc I would say it could go either way.
What is your source of the deposit? That may affect their opinion of you.

dpowell3

Thanks Stator.

No dependents and the deposit is coming from a gift.

billybear1

If I were you I would speak to an adviser, they will know all the nuances of each individual lender and what they will accept.

To me and you your finances make sense, if a little bit stretched at times, but to a lender one or all of your behaviours may not be acceptable - a broker will be able to attempt to place this based on both your financial behaviour as well as affordability calculations.

Out of interest you say you have a 10% deposit, have you taken into consideration legal fee's, moving costs etc?

dpowell3

Thanks Billybear,
Exactly, I know I can afford it and have done the maths with it all its just dining a lender who will lend to me.

I get free Legals with work and the rest I have covered as well so I'm not worried about that.

I was speaking with London & Country as originally I wanted to buy a new build but after a number of calls and emails I've not heared anything back from my advisor so am going to call them again to find out what is going on.

billybear1

dpowell3 wrote: »

Thanks Billybear,
Exactly, I know I can afford it and have done the maths with it all its just dining a lender who will lend to me.

I get free Legals with work and the rest I have covered as well so I'm not worried about that.

I was speaking with London & Country as originally I wanted to buy a new build but after a number of calls and emails I've not heared anything back from my advisor so am going to call them again to find out what is going on.

Why chase someone to offer them business? Is that the service level you want?

Personally I would try and find a local broker who you can sit down with. Make sure they are whole of the market and fully understand your situation.

Have 3 months bank statements
3 Months CC statements (and proof of final payments)
Latest CRA report
Contract
Last 3 Payslips
2 Forms of ID

If you want things to go smoothly - prepare everything so when you leave they are an expert on your case.

How does the saying go? Failure to prepare is preparing to fail?

Experian_company_representative

hi dpowell3

dpowell3 wrote: »

Good Evening,

My only two worries are;

1) Credit Score
- I have one financial associate which I am currently awaiting for Experian to remove

As you have mentioned this is one of your worries I wanted to see if I am able to help, have you received a response from us regarding the removal of your financial associate yet?

If you haven't please could you [EMAIL="uksocialsupport@experian.com"]email me[/EMAIL] your details (name/dob/full address and post code) and I will gladly chase this up for you.

Regards
James Jarvis