FTB query

edited 31 December 2014 at 10:15AM in Mortgages & endowments
5 replies 714 views
CornishOptimistCornishOptimist Forumite
44 Posts
edited 31 December 2014 at 10:15AM in Mortgages & endowments
Hello all,

Apologies for length of this post.

My fiancee and I are having a viewing on a property Friday. It is shared ownership and our 45% stake would be £57,200. We have a deposit of £13,500 with £1000 set aside for fees etc so far.

My fiancee's credit history is shot to hell (nothing bad in last 2 years, but 4 more years on her file) mine has 1 late payment marker from 2012 and 2 payday loans (paid back on time) from 2012, so apart from that one, all green. Have made the decision that the house will be in my name for a few years at least and she will pay money to me for upkeep/bills etc.

We both live with our respective families so we don't have regular D/D's out for utilities (will lenders have that count against us?)

I earn £17,460 p/a and that according to online calculators allows me well within reach of the £44k needed for our mortgage. I do however put £700 pcm into my savings for the house.

My main question is. Will a bank understand when looking at my bank statements that this £700 is not something that will continue to be an outgoing if/when we get a mortgage? Should I have left it all in my current account?

Apologies if I seem nervy or unsure, this whole process freaks me out slightly and I like to be organised!

Thanks

CO

Replies

  • ACGACG Forumite
    22.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Forumite
    Short answer is yes. The question may not even come up to be honest if it does they may question what the £700 is, you tell them and that should be it.

    A slightly bigger issue you may find is doing a single application as a married couple - some lenders will not be open to that.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG wrote: »
    Short answer is yes. The question may not even come up to be honest if it does they may question what the £700 is, you tell them and that should be it.

    A slightly bigger issue you may find is doing a single application as a married couple - some lenders will not be open to that.

    We don't get married until later in the year, so if we go ahead in the coming months then we would both be single. Or doesn't it work that way?

    The whole bloody process confuses me :(
  • ACGACG Forumite
    22.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Forumite
    That should be fine then.
    Im not saying it will be a deal breaker if you are married, just that some lenders do not like it as they want to ensure you are not applying in a single name to avoid the second persons bad credit - which is what you would be doing.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thank you for your prompt and insightful replies ACG.

    This whole process does seem rather "reading through chicken entrails" like, so a broker will be essential for us I think!

    If I get unstuck again further down the road in this process I do hope it is ok to ask for your advice again

    Many Thanks

    CO
  • ACGACG Forumite
    22.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Forumite
    I would suggest using a broker.

    I dont do shared ownership mortgages personally so my replies are purely on the mortgage lenders point of view. But by all means ask away, if I can not help im sure others can.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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