Does my mortgage advisor actually have any idea??

littlelost

Well does the advisor actually have any idea?

ACG

Too much for me to read but if you can forget about the story and just deal with the facts:
Annual incomes
credit commitments(amounts & monthly repayments).
Dates/amounts of defaults
You mention a debt management plan/arrangement to pay - which was it? When did it start and has it finished?

Purchase price:
Deposit:

littlelost

I will try and consolidate the figures as much as possible however I hope you can understand that it is not as straightforward (to me anyway lol).


Annual income is made up of a Salary and Bonus (which changes each month) last 3 months have been as follows:


November = Salary £2000 Bonus £1525.79 Supervision fee 111.36 Total = 3637.15
December = Salary £2000 Bonus £3941.90 Supervision fee 102.79 Total = 6044.69
January = Salary £2000 Bonus 529.16 Supervision fee 98.64 Total = 2627.80
Minimum earnings for 2014-2015 of £40,739.75.
DLA £304 a month
Child benefit £47.60 a week


No credit commitments (credit cards paid in full each month)


Defaults on my file £100 Jan 2010 & £53 Sep 2009


Defaults on Husbands file £100 Jan 2010 (joint british gas account) £53 Sept 2009


Capquest was originally on a debt management plan with Payplan in 2006 however although the rest of my accounts were paid on the debt management plan this account was in dispute hence the reason I only settled in November 2014 as realised it was dramatically ruining my credit file.


Im just really fretting that we took advise from a broker and on that advise put our house on the market. I am just worried now that it has been a waste of everyone's time!!

littlelost

Oops deposit 60k purchase price 215k

ACG

Sorry to be abrupt with my previous post - its been a busy day. Generally speaking lenders main aim is that it fits criteria and financially stacks up, the rest of the information is more of a minor point so at this stage its more important to make sure the figures stack up.

The basic annual income - how much? Im assuming around £27-28k plus bonus and supervision fee?

If thats the case then I would say comfortably you could probably get closer to £120k comfortably, you might be able to get to the £155k you need depending on the finer details.

Im not sure the lenders you will likely need will accept DLA/tax credits (but im not 100% on that).

If your current broker is struggling, I would suggest finding another. Its certainly not impossible based on what you have said.

littlelost

The basic salary is 24k plus bonus and supervision fee

littlelost

Thanks for the advise it is really appreciated;


We need to really get the 155k in order to move to this property; the other propertys in our area that are slightly larger than ours would all require a mortgage of between 140k and 155k or it wouldn't really be worth the move if we can only go to a house that isn't much larger than ours.


I am really not too sure what to do now.

ACG

Im not sure you will get it. I think £145-147k is probably going to be where it tops out.

Find another broker more confident in adverse. The figures I have done are very basic and £8-10k is not that much in the grand scheme of things.

Annisele

littlelost wrote: »

I asked him if we would not be better with going with a sub-prime lender (we are currently with GE money due to the horrific past credit history that we have desperately since been trying to repair.)

Does "horrific" include any bankruptcies (ever) or repossessions?

littlelost

OK, thanks.... I have looked on the Woolwich lending criteria as someone from work recommended them as they were in the same position re salary and bonuses and they will take the following into account:





Basic income 100% = 24k





Im not sure which of these mine would come under?





Monthly bonus 100% At least 3 months’ payslips supported by YTD figures where amounts vary, we will use the average value as primary income





My Average over last 3 months = £1998 p/m ?? or annual to date = 16739?





Monthly bonus commission 50% Latest 3 months’ pay slips and latest bank statement
Please note, where amounts vary, we will use the average value as primary income





50% of the average of the last 3 months would be £999 x 12 = £11,988





Child benefit 100% = £564





Unless I am really missing something would they calculate my allowable income as


£24k salary


£16739 bonus


£564 child benefit


Total £41303





It says on the site that there lowest loan to value income multiplier is x4 so would this equate to a possible mortgage of over 165k??


The only other reason that I also looked at the Woolwich is because I was told that they would look at accounts with defaults but apparently only 3. I have obviously have two and my husband has two (one of which is a joint one) would they count that as 4 or factor in that one is technically the same default?


Sorry to be a pain in the backside, this is why I should not be a financial advisor!!

littlelost

We have never been bankrupt or had any ccjs.... We got our first mortgage 10 years ago when we were not in a position to have a mortgage at all (I had only just turned 18 was pregnant and we though buying a house was a great idea) Our finances were a mess, at the time but we were still given a 100% mortgage which followed which followed with a series of late payments and arrears in the first 2 years. However we pulled our act together, re-mortgaged with GE money to pay all the debts off and have had the same mortgage now for the last 7 years.