5% mortgage advice for 1st time buyer

mikeL

I am after some advice on a first time buyers mortgage with a 5% deposit. Looking to borrowing around £150,000 - to £160,000.

My wife has recently started her own business and so does not draw a wage. Her credit history is bad so to start the business I have in my name a small natwest loan and about £4000 on a credit card.

The business has now started to take off and we are desperate to get our own house.

I am in full time local government employment and my salary covers the 4.5 ratio for the mortgage. Other than the debt amount itself I have no bad credit history.


Our we likely to get a mortgage and should I apply in just my name?

Any suggestions for lenders to check out?

Thanks in advance

ACG

You wont be able to have your wifes income taken into account unless she has atleast 1 years accounts (ideally 2-3).

A lot of lenders will want you both on the mortgage so that means your income would need to support both loans and the mortgage.

I would get on the phone to a broker or get on the lenders calculators as this sounds like it could be very very tight.

mikeL

Just tried Santander and nationwide and on my salary with both the loan and the credit card add - as a sole application they both said they would lead what I need.

I guess the question is would either lend to me without my wife being involved in the application?

ACG

Did you put down you have financial dependents? If so how many did you put?

kingstreet

Nationwide won't do 95% unless you are a save to buy customer, or an existing borrower moving home.

Be careful with Santander. Their affordability calculator is very "definite" and you have to ensure every item of expenditure is correctly allocated to the right area and the right amount entered.

mikeL

Ok thanks- any other leaders worth looking at - spotted the post office?

Thrugelmir

Suggest that you tackle your debts. 5% of £160k =£8k. Which suggests that the majority of your deposit is funded by borrowed money. Savings and debt do not sit separate pots they are netted off.

mikeL

anyone with any experience of the nationwide save to buy account requirement of their mortgage?

mikeL

ACG wrote: »

Did you put down you have financial dependents? If so how many did you put?

I put down none - no kids and wife works.