Mortgage Application - Please advise

deano3

Evening,


I currently have a mortgage with Woolwich which im looking to port due to house move with further borrowing, I wonder if one of the brokers will see if the figures seem to stack up.


I earn approx 27k, good credit rating and been in my current employment 6.5 years. Wife earns about 5k part-time but is 7 months into a zero hours contract. She had previously been at the same company on a 0 hour for around 2.5 years before a 10 month gap between. We have 1 child and get the standard 960 a year child benefit.


Property selling value is 105k with outstanding mortgage of 70k. We purchased this house as a repo and spent 13.5k on credit cards in the process.


We want to pay off credit card debt with equity and purchase new house on a 90% LTV product.


House we want to purchase is 152k so would need to borrow 130500.


Does this look ok based on my salary and/or both salarys subject to lenders attitude towards the 0 hour contract, I note Woolwich lend upto 5.5 times salary.


Thanks

deano3

I should add that I have AIP but a bit nervous about the full application.

deano3

Im thinking my chances would increase if I could put down a 15% deposit, if wont accept wifes income Woolwich might not offer on a 90% product.


Anyone got any thoughts on this, please?

kingstreet

I suspect the income from the zero hours contract won't be accepted because there isn't a long enough history.

On tuesday, Barclays introduced an LTI cap so 4.5 x is the maximum on anything over 80% LTV.

http://www.mortgagestrategy.co.uk/2017768.article?cmpid=msdaily_835311

deano3

Oh dear, just my luck.


Looking at the numbers if its a no from Barclays do you suspect it could be done with another lender?

kingstreet

4.8 x income with a dependent?

I'm pessimistic, but I suggest you speak to a broker who can run the required affordability calculations.

deano3

Thanks Kingstreet, will the fact I already have a mortgage with them make any difference?


Also, as wifes salary is a small part of affordability would it more likely to be accepted? Im sure I read somewhere Lloyds take this view.


Looks like will have to use a broker if Woolwich say no

kingstreet

No difference. You are making a new application for a new mortgage.

I don't know any lender which will take zero hours contract income of less than twelve months duration.

Thrugelmir

deano3 wrote: »

We purchased this house as a repo and spent 13.5k on credit cards in the process.

Spend some time making inroads into the debt while you find the mortgage options. As a lender has no idea what you actually spent the money on.

deano3

I can evidence new kitchen, bathroom payments etc to that value.


Chance I might be able to get to 20% deposit which seems the only way under all the circumstances.